Lagan Construction Group firms to enter administration

The A96 Park and Choose contract completed by Lagan on behalf of Aberdeen City Council

Up to 200 jobs are at risk after the Lagan Construction Group announced it is to put four of its 30 companies into administration.

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.

In a memo sent to staff at the company, chairman Michael Lagan said that while the announcement was made with “great sadness”, the business had been “significantly impacted” by delays and disputes involving several of its projects.

Lagan 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 subcontractors 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 eight hundred people and up to two hundred employees may be affected by the administrations.

As part of a joint venture with Wills Bros, it was one of four bidders shortlisted to construct a 9.5km section of the A9 Dualling Programme between Luncarty and Pass of Birnam.

The company said it hoped some of those jobs could be transferred to joint venture partners whilst 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.”

It is understood that all other companies within the group, which include Lagan Operations and Maintenance Limited, FK Lowry Piling Limited, Dew Piling Limited, H&J Martin Limited, Lagan Construction Aviation Limited, Lagan Construction Limited, Lagan US inc, Lagan Plant Limited and Lagan Projects Investments Limited, Coastal Industrial Limited and Lagan Construction Services Limited, are continuing to trade as normal.

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