Following confirmation that ISG Group and all subsidiaries are entering administration the Construction Leadership Council Convened a meeting and has published the following statement
“This morning, the Construction Leadership Council convened a meeting between key construction trade bodies, education and skills providers and the Department for Business and Trade to discuss how industry should respond to ISG filing a notice to enter administration.
Our sympathies are with everyone across the industry who is directly or indirectly affected by the administration of ISG, and the CLC’s objective is to ensure that individuals and organisations impacted are given the appropriate support and guidance, and that as far as possible the effect on the wider sector is limited.
The CLC is collating detailed guidance available for those impacted and in the interim, we would advise everyone in the industry to ensure that they are managing any impact on their businesses within the terms of existing contracts, ensure that where possible payments are made promptly to suppliers and to await further information. If companies are in particular financial distress, we would encourage them to contact their relevant industry body.”
For the apprentices and graduates who are directly employed by ISG, Build UK and the CITB have established a working group to ensure that placements can be found for as many people as possible. If you or someone you know is an apprentice or graduate directly employed by ISG, please contact info@builduk.org in the first instance.
- When you are able to access site (do adhere to timings provided) recover any plant, site accommodation and any records that are currently on the sites. You should avoid at all costs any damage to your completed works.
- if you are able, take photographic, video and written records of your work in progress.
- Accurate and detailed records will be invaluable in establishing the value of your “final account” and can be used for any negotiations with main contractor who is brought in to complete the contract.
- You should prepare a schedule that shows a record of all outstanding payments including retentions and when these payments were due
- If you’re currently in possession of materials that are required for the contract but have not been delivered to the site then make careful note of these.
FIS contract and legal advisors are on hand to help and some have offered additional pro bono support to members to help review contracts to ensure you are clear on your contractual position with respect to an administration event and e.g. understand Step in Rights from clients. If you need advice please send your contracts to iainmcilwee@thefis.org and we will look to undertake a targeted contract review.
We have had a number of questions with respect to Project Bank Accounts, these should protect and ringfence any monies due – certified payments should progress. Any applications will need to be certified and could be subject to a delay. Clients will be looking to appoint a contractor to replace ISG. How they are able to progress the project and the impact on existing sub contractors will depend on the contract and funding. We will be working with CLC and pressing clients to manage transition with sensitivity to the impact on the incumbent suppliers.
Members impacted are advised to do a cash forecast and, if the situation with ISG is forecast to cause serious financial difficulties, then we have specialist advisors available to assist you and provide guidance.
We would also ask members to send us in confidence details of the contract they are working on, size of the contract and monies owed (certified, a valuation of any completed works currently uncertified and retention).
Our legal toolkit is here and you can call the FIS helplines on 0121 707 0077 or can email iainmcilwee@thefis.org for assistance.