Three London towers and a new Maggie’s centre in Falkirk are among the projects facing an uncertain future following the collapse of contractor Dunne Group
The Scottish civil engineering and construction business, including its five subsidiaries, entered administration this morning (20 July) citing ‘severe cash flow pressures’.
According to the AJ’s sister title Construction News, the company ceased trading with immediate effect resulting in the immediate loss of 524 out of 540 jobs across the group.
Dunne was contracted - or sub-contracted - on a raft of high-profile projects when it went under, including:
- 100 Bishopsgate by Allies and Morrison and Arney Fender Katsalidis
- Newington Butts by Rogers Stirk Harbour + Partners and Axis Architects
- One Blackfriars by SimpsonHaugh
- Maggie’s Centre near Falkirk which is being delivered by Garber and James
It remains unclear how the schemes will be impacted by Dunne’s demise, however a spokesperson for the Maggie’s Cancer Care charity said it was now assessing how its partially constructed project at the Forth Valley Royal Hospital would progress.
She said: ‘We are in the process of planning other arrangements for the completion of Maggie’s Forth Valley so as to minimise any delay to the completion of the centre.’
Based in Bathgate, Dunne Group had grown rapidly in recent years with a raft of major contract wins and the completion of a number of huge schemes including the Queen Elizabeth University Hospital in Glasgow designed by Nightingale Associates, which opened last year.
Turnover last year at the Dunne Group was £74 million and was forecast this year at £96 million.
Construction News revealed that workers for the organisation had turned up for work on Tuesday morning, only to have been sent home.
Tom MacLennan of administrator FRP Advisory said: ‘This is a sad loss for the construction and building industry. The business faced substantial trading losses on some contracts, leading to severe cash flow pressures.’
Updated comment - 25 July
Laura Lee, chief executive of Maggie’s
We were very sorry at Maggie’s to hear the news regarding the Dunne Group earlier this week, and our thoughts go out to all their staff who have been affected. The Dunne Group have been a great source of support to Maggie’s, especially with the creation of the new Forth Valley centre.
As we’re entering the final few weeks of the project, we expect there to be minimal impact on costs and completion, and still very much envisage the centre opening later this year.
We would also like to reassure all of our generous supporters that we have not lost any charitable funds as a consequence of the Dunne Group entering administration.
Supporting those living with cancer, and their family and friends, is at the heart of what we do at Maggie’s. Forth Valley will be our 20th Maggie’s Centre and will be opened later this year, our 20th year.