Four Lagan Construction Group companies are to enter administration, including a business involved in the delivery of Feilden Clegg Bradley Studios’ £250 million Belfast Campus for Ulster University.
Lagan Construction Group Holdings, Lagan Construction Group, Lagan Building Contractors and Lagan Water will all be handed over to administrators, group chairman Michael Lagan said in a statement.
Lagan Construction Group is working in a joint venture with Portuguese-based Somague Engenharia to deliver Feilden Clegg Bradley Studios’ 75,000m2 Belfast Campus for Ulster University.
Lagan blamed factors within the group’s civils and building divisions, including delays in projects getting underway and ‘protracted contractual disputes’ on existing schemes.
The troubled group has offices in Manchester, Scotland and the Republic of Ireland as well as the US and Dubai. It employs 800 people, of which it said up to 200 ‘may be affected’, although it hopes to transfer people to other divisions or joint venture partners.
Lagan said: ‘It is with great sadness and reluctance that we have had to take this course of action. We have had long-standing relationships with many subcontractors and suppliers. We hope that the process of administration will be smooth and that disruption to both projects and jobs will be minimal.’
An Ulster University spokesperson insisted the administration would have no effect on the contract it had with the architecture practice.
‘The university will now consult with the administrator and Somague Engenharia as necessary and continue to progress delivery of the project,’ said the spokesperson.
‘Under the JV arrangement, Somague Engenharia is now responsible for completion of the project including payment of all subcontractors. The university ensured, at the outset, that the respective parent companies provided written guarantees to ultimately ensure delivery of the project.
’The university expects that Lagan’s administrators and Somague Engenharia and its parent company SACYR SA will live up to their responsibilities, and ensure that all their suppliers are paid.’