Saturday 17 November 2018

Building insolvency crisis hits 17 schools

So far in 2018, 17 different projects have been hit, according to Education Minister Richard Bruton. Photo: Tom Burke
So far in 2018, 17 different projects have been hit, according to Education Minister Richard Bruton. Photo: Tom Burke

Fearghal O'Connor

The insolvency crisis among Irish contractors has hit 17 school-building projects, with the number of education projects halted by financial problems up 750pc so far in 2018.

Examinerships and liquidations of builders have hit schools in 13 counties, Department of Education data showed. In 2016 no such projects experienced difficulty due to insolvencies. In 2017 there were just two.

But so far in 2018, 17 different projects have been hit, according to Education Minister Richard Bruton.

The information was released in response to a parliamentary question by Fianna Fail education spokesperson Thomas Byrne about the number of school projects that have experienced difficulty or delay due to issues with contractors.

A number of projects faced problems when the Sammon Group group went into liquidation in June. It had subcontracted on a number of Irish schools projects on behalf of collapsed British building giant Carillion, which originally won a bundle of school projects.

But there is also huge concern in the sector that over 40 building companies have failed so far this year, even as turnover at the biggest contractors has jumped by over €700m.

Sunday Indo Business

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