200 jobs at risk at construction giant

Up to 200 jobs here are at risk with the announcement four firms are to be placed into administration.

The companies are part of the Lagan Construction Group.

In a memorandum sent to staff, which has been seen by Downtown/Cool FM, boss Michael Lagan blames delays and disputes in a number of projects.

"Certain parts of our Group have been significantly impacted upon by a number of recent dactors within the Civils and Building division including delays in the commencement of new projects, protracted contractual disputes on some existing major projects and instability caused by a Joint Venture partner in Great Britain."

Mr Lagan says those difficulties mean the Directors of the affected four companies have "no option but to immediately serve notice on the court to appoint an administrator."

Those companies are Lagan Construction Group Holdings Limited, Lagan Construction Group Limited, Lagan Building Contractors Limited and Laganwater Limited. All other companies withing the group will continue to trade.

He adds the action has been taken with "great sadness and reluctance" and is hopeful some of the 200 jobs can be transferred to joint venture partners, while others may be relocated to divisions within the Group.

Mr Lagan finished his memo by saying staff will be contacted shortly through Divisional Directors, and it's the company's intention to hold workshops this week with affected employees.

David Fry, Assistant Director of the Construction Employers Federation said:

“Given the huge contribution that Lagan Construction Group have made to Northern Ireland’s economy and society since their establishment, today’s announcement is extremely regrettable. They have been a pillar of our construction industry for decades and it is our express hope that a solution can be found.

“As the Federation has long said, the industry has faced a challenging period in respect of its sustainability. From issues related to low margins on works, to insufficient pipelines of activity, to the current political and budgetary challenges within Northern Ireland, there are significant tests which go much beyond today’s news. These must be matters of concern to anyone who wishes to see a healthy and vibrant Northern Irish construction industry given its critical role in delivering jobs, economic development and growth.