Angus Council confident of ‘limited risk’ following contractor’s demise

angus-council-logoThe collapse of a contractor involved in an affordable housing project in Angus will have no financial impact on the local authority, councillors have been told.

Northern Ireland construction firm T&A Kernoghan fell into administration in April owing thousands of pounds to suppliers.

The County Antrim-based company was involved in building 18 homes in Forfar’s Newmonthill in a project that began in January 2013.

The 16 three-bedroomed townhouses and two 3/4 bed disabled access homes were completed in October 2015 but in May this year administrators were appointed after the firm hit trouble.

The council has subsequently found itself caught up in the administration process because defects were not rectified within the set period by the Northern Irish firm.

Communities committee members were told the council appointed other contractors to carry out the works.

Head of property services Ian Cochrane said there is just over £40,000 of retention monies outstanding on the contract and the council anticipates that sum will cover the rectification bill incurred by bringing in another firm.

He told councillors: “There is limited risk to the council in relation to T & A Kernoghan Ltd being placed in administration.”

Last year T&A Kernoghan was removed from two major building contracts in Scotland. Gorebridge Community Development Trust removed the firm from a £2.2m project to build a community centre and office space in September.

And South Ayrshire Council took the decision to remove it from a £1.5m golf clubhouse project due to various delays a month earlier.

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