Ikon blames collapse on site death investigation

Grant Prior 2 years ago
Share

Directors of collapsed Ikon Construction have named an ongoing HSE investigation into a death at one of its sites as a major factor into the contractor’s fall into administration.

They said primary causes for the insolvency included “adverse publicity in the market place as a consequence of the death and the resulting criminal and HSE investigation.”

Ikon added: “Uncertainty in respect of the investigations resulted in the company being unable to secure the required performance bonds for the  £25m of ongoing contract work it had won and had commenced.”

In March 22-year-old Luke Allen died after falling through a roof while working for a subcontractor on an Ikon site in Bristol.

Administrators from FRP Advisory said the HSE would become an unsecured creditor in the event of any fine.

Ikon went under in May after running up a loss in the 2018 financial year following a number of problem contracts.

Previously turnover and profits had grown rapidly from £9m and £395,000 respectively in 2014 to £37m turnover in 2017 and £925,000 profit in 2016.

Documents filed by the administrators at Companies House show Ikon owed £9.1m to trade creditors who are expected to receive 18p in the pound for the debts.

FRP are also investigating claims by suppliers that some subcontractors were favoured for payments in the run-up to Ikon’s administration.

The firm is also looking into allegations about ownership of luxury cars by the directors.

The Enquirer revealed earlier this year that directors Pete Hargreaves and Steve Chant had recently set up a new business called Spec Projects.

Spec Projects has taken over a number of former Ikon projects from a client called Glenmore in a £120,000 deal with the administrators.

Spec Projects has also bought some of Ikon’s plant, machinery and office furniture.

Latest news

Health chiefs issue details of £73m Multiplex hospital claim

Eleven technical problems highlighted at Glasgow’s Queen Elizabeth University campus
9 hours ago

GMI nets £95m haul of orders in first two months

Six projects secured in the North and Midlands, total close to 1m sq ft
11 hours ago

Construction firms OK with price-fixing and bid rigging

Competition and Markets Authority survey shows problems ingrained in industry
17 hours ago

Winners unveiled for £400m Essex framework

Council boosts numbers to minimise impact of possible contractor failures
15 hours ago

Unite reveals £20m cost of replacing HPL cladding

High pressure laminate cladding found on 16 buildings after ACM cladding refit completed
17 hours ago

Balfour Beatty wins £10m radium clear-up job

Radium from scrapped second world war aircraft being washed up at Dalgety Bay
14 hours ago

£1bn London Bankside Yards phase 2 approved

Major second phase of five buildings clears planning
18 hours ago

Graham to start £40m new M11 Harlow junction

Work to start on delayed 7a junction this spring
18 hours ago

Steel and cladding packages awarded at Paddington Square

Wins for William Hare and Focchi as Mace agrees £350m price to complete project
1 day ago

Willmott Dixon on call for £21m fire station

Planning to go in this spring for new training complex in West Sussex
1 day ago

Costain to offer clients low-carbon option in bids

Decarbonising option to be pitched to all clients from 2023
2 days ago

Derwent advances zero carbon building target by 20 years

New business model will involve turning brown buildings green
2 days ago

New watchdog to clamp down on shoddy building work

Independent Ombudsman given wide-ranging powers to protect homebuyers
2 days ago

Insurer warns hot work fire claims have spiked

Call for thermal imaging cameras to be used on site to combat rise in hot work fires
2 days ago

Construction nearly double size of official figures

Industry's real vital statistics put it above manufacturing
3 days ago

Spie fined after child killed by overhead power pole

Court hears how pole rolled down embankment and crushed 12-year-old
2 days ago

Eye-catching Newcastle office plan

Ribbon-like office scheme will be built near the Gateshead Millennium Bridge
3 days ago

Gilbert-Ash wins £26m Brunel Uni job

New teaching block to be built at Uxbridge campus
3 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
2 years ago

Contractor rethink on delayed smart motorway jobs

Fears grow Costain and Galliford Try's north west smart motorway projects will be rebid
3 days ago

Harry Fairclough Construction ceases trading after 120 years

150 staff made redundant at Warrington contractor
6 days ago

L&Q names new line-up of facade specialists

Bid races start for mechanical and electrical specialists
3 days ago

Sisk wins £21.5m deal to upgrade Leeds Corn Exchange area

Work to start in June on improving transport routes
3 days ago

Strucktor lands M&E package at £460m Raffles hotel

Specialist bags major win from Ardmore on Whitehall conversion job
5 days ago
STRUCKTOR UK

Construction work stops on another Elliot Group tower

Work suspended on £70m The Residence in Salford
7 days ago

Costain Welsh road job £100m over budget and two years late

Row simmers with Welsh Government about liabilities for cost overruns
7 days ago

London super sewer passes halfway point

Two further TBMs to be launched this year for east part of 25km drive
6 days ago

Entire facade of wind damaged tower to be strengthened

Major remedial programme planned after three cladding panels blown-off
6 days ago

BAM trading steady after second half uplift

Rise in profit at BAM Construction offsets fall at BAM Nuttall civils arm
6 days ago

Plan in for £30m East London ice rink

Twin pad ice skating centre will be biggest in southern England
6 days ago

Contractor services