The Lagan Construction Group announced this week that it was placing four of its companies into administration, putting the jobs of up to 200 employees at risk.
Group chairman Michael Lagan has said that parts of the group had been significantly impacted upon by a number of factors within the Civils and Building divisions 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.
He 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 of sub-contractors and suppliers. We hope that the process of administration will be smooth and that disruption to both projects and jobs will be minimal.’
Lagan Construction Group currently employs 800 people and said that up to 200 employees may be affected by the announcement. It hopes that some of those jobs could be transferred to joint venture partners while others may be relocated to existing divisions within the group.
Mr Lagan added: ‘The difficulties which have arisen within the Civils and Building divisions has meant that the directors of the affected four companies had no option but to immediately serve notice on the court to appoint an administrator‘
The four Lagan companies being put into administration are: Lagan Construction Group Holdings Limited, Lagan Construction Group Limited, Lagan Building Contractors Limited and Lagan Water Limited.
Lagan Construction Group’s projects in the roads sector have included the A8 Belfast to Larne scheme under a joint venture with Ferrovial Agroman and Costain, undertaken on behalf of Transport NI of the Department for Regional Development (DRD).
The works involved designing and converting 14.5 km of the road into dual carriageway between Coleman’s Corner Roundabout and the B100 Ballyrickard Road.
