Super sewer contractors safe from Thames Water crisis

Grant Prior 12 months ago
Share

Contractors working on the £4.1bn Thames Tideway project will still get paid whatever happens to debt stricken client Thames Water.

The company told the Enquirer that the massive infrastructure project will not be hit by doubts over its financial future.

A debt mountain of £14bn has left Thames Water on the brink of possible administration as it scrambles for cash from investors.

Some of the industry’s biggest names including Ferrovial, Laing O’Rourke, BAM Nuttall,Morgan Sindall, Balfour Beatty,Costain, Vinci and Bachy Soletanche are working on the super sewer project.

Thames Water former chief executive Sarah Bentley left suddenly this week as the firm fights for its future amid restructuring plans.

One source close to the talks said: “Obviously it’s a major crisis but whatever happens the firms working on major infrastructure projects will be looked after otherwise no-one will work for whoever owns Thames Water in the future again.”

Peter Kubik, Partner in the Turnaround and Recovery team at UHY Hacker Young, the national accountancy group said: “The uncertainty over Thames Water is a real concern to its contractors and other suppliers. In any insolvency procedure they risk taking a very substantial haircut. If it was a normal insolvency process, as opposed to a Government backed rescue, then a trade creditor would normally get just pennies in the pound on what they are owed.

“Contractors to Thames Water will down tools unless they can get guarantees that they will be paid for the new work they do. If that happens then there is a risk that essential work on Thames Water’s infrastructure, such as repairs, doesn’t get done.

“Suppliers to other heavily indebted water companies like Southern Water, SES Water and Yorkshire Water are going to have similar concerns.

“It is hoped that trade creditors and employees will be paid in full if Thames Water goes into special a special administration but that is by no means guaranteed. We would be extremely surprised if the Government were not to protect the credit balances that customers have with Thames Water.”

 

Latest news

BAM plans another round of construction redundancies

Second round of redundancies in four months
6 hours ago

Ray O’Rourke steps down as chief executive

Son Cathal O’Rourke to head the Laing O'Rourke Group as new CEO
1 day ago

ARJ Construction went down owing £9m to supply chain

Unsecured creditors can expect some money back for unpaid invoices
12 hours ago

CBRE and T&T to combine project management arms

New $3bn revenue PM giant employs 20,000 staff in over 60 countries.
21 hours ago

Multiplex starts London 36-storey ‘hanging gardens’ tower

Piling starts on Square Mile's £400m 50 Fenchurch Street tower
1 day ago

Eastern Green Link 1 looking for local suppliers

Subcontractors wanted for electrical superhighway scheme
12 hours ago

Caddick wins £10m Manchester college extension

Loreto Sixth Form College in Hulme to get new three-storey building
11 hours ago

Green insulation firm buys flooring contractor

Energystore acquires Advanced Traditional Screeding
12 hours ago

Birmingham to pick five firms for £265m homes retrofit plan

Firms to be charged annual fee to cover Council cost of promoting energy efficiency
1 day ago

Arup and Binnies to design Abingdon reservoir

Embankment trial will help consultants to draw up £1.5bn reservoir design
2 days ago

Subdued market sees profit warning from SIG

Insulation and building products supplier pushes back timing for market turnaround
2 days ago

Developer CLS to advance major new Vauxhall scheme

Citadel Place scheme will consist of 400 student rooms and 200 flats
1 day ago

Tarmac trials electric tipper truck

Pioneering EV tipper being put through its paces
1 day ago

Changing of the guard at HBF

Long-standing Chief Executive Stewart Baseley steps back to become chairman
1 day ago

Early bond release key to averting industry surety crisis

Contractors must put pressure on clients to release bonds promptly
4 days ago

Over 1000 building safety cladding retrofits completed

25% of safety retrofits finished seven years after Grenfell disaster
4 days ago

Steel import delays make Rangers miss kick-off

Construction work at Ibrox will not be finished by start of next season
5 days ago

Lidl looking for new contractors for store building plans

Sign up for events in Newcastle, Glasgow, Birmingham and Southampton
4 days ago

Utility firm GTC revs up for ground source heat pump era

Contractor and heat pump maker strikes ground-breaking deal
4 days ago

Amey switches kit supplier to Speedy from HSS

New plant and equipment hire deal worth £25m a year
5 days ago

Clients under spotlight after bond bombshell

Contractors call for action to avoid project delays
6 days ago

M&E specialist Lorne Stewart falls into the red

Parent group suffers £2.8m loss in face of cost inflation and insolvencies
5 days ago

Four men rushed to hospital after site accident

Eye-witnesses report a wall was knocked over on Edinburgh site
6 days ago

World’s tallest scissor lift set for UK sites

Hire Safe Solutions partners with Dingli to supply lift with working height of 37 metres
5 days ago

Barhale wins £36m East London sewer remediation

Northern Outfall Sewer in West Ham runs above railway lines in the city
5 days ago

Weston Homes thumbs-up for £220m Essex homes scheme

Colchester 600-home Viridis scheme gains outline consent
6 days ago

Balfour seals £192m deal for trio of Scottish substations

Work to start this summer to enhance electrical transmission in Argyll
6 days ago

Construction bond bombshell as major player quits market

QBE currently provides cover for 20 of the industry's 30 biggest contractors
7 days ago

United Utilities names another 18 winners for £2.7bn water spend

Water giant cuts out large management contractors in latest spending round
1 week ago

Green light for £130m Dundee Eden project

Former gasholder site to be transformed into green house
6 days ago

Contractor services