Construction News has today reported that a group of specialist contractors working for ISG have formally threatened the Ministry of Justice with legal action following payments not being forthcoming for works completed and certified undertaken as part of prison construction at the time ISG entered administration.
These contractors and a wider group have been supported throughout by FIS who held a town hall meeting for impacted businesses in November last year when it became apparent that specialist contractors in the community were not going to get the protection expected from the Project Bank Accounts. There were 17 contractors involved in this first meeting and the group ballooned to 40 from across the construction sector that have been directly impacted. FIS introduced Hill Dickinson to the conversation and they have been advising the group since. On 11 August, Hill Dickinson, sent a pre-action letter to the department on behalf of six of these firms, demanding payment of unpaid money that was expected in August last year – the month before ISG’s collapse.
Commenting on the case, FIS CEO Iain McIlwee stated:
“We remain very concerned about how the supply chain of ISG have been treated and what we perceive to be a failing in the protection that should have been afforded through the administration of Project Bank Accounts. Specialist Contractors did an honest days work and for no fault of their own find themselves again carrying the can for others. We have tried to use all channels available to us to secure payment for this group of SMEs and are grateful to Hill Dickinson and Len Bunton for their advice throughout the process and to Lord Aberdare for championing the cause of these contractors in Government by raising key questions formally through the house.
Finishes and Interiors Sector will continue to do all we can to try to get some justice for these contractors and to ensure that lessons are not just learned, but changes are made.”.
Hill Dickinson partner Kate Kenneally, who is working on the case, said: “As the ultimate client and a party to the PBA Trust Deed, the MoJ is contractually obliged to ensure these payments are made. The failure to do so constitutes a breach of both the PBA and the associated contractual framework.”