Sort your admin out!
Our structural concrete package includes all drainage, waterproofing, slip forming, RC and post tension design and construction. This package was let to P C Harrington (of Southbank tower “worlds slowest slip form” fame). On Wednesday P C Harrington went into voluntary administration. On Friday the plumbing sub-sub-contractor, Salmon Plumbing, pulled out of the job and the concrete gang refused to come onto site until their boss assured them they would be paid.
This was considered a breech of a number of sub-contract clauses and McAlpine have now hired their own plumber to complete the drainage works. We have also had to procure all the rebar and pay for PCH’s skip hire and waste service.
By entering into voluntary administration PCH have bought themselves 10 working days to sort their finances. If they’d waited for the banks to step in their assets would have already gone into liquidation and they’d have had to cease trading. They’ve been clever on the timing too. Many sub-contractors don’t expect to paid the week following a bank holiday.
PCH have a large crane division reportedly worth around £50million. They aim to sell that quickly to correct their cash flow, appease the banks and stay in existence.
In the meantime we now have to closely control the two subcontractors working in the same area, using the same assets in an attempt to get closer to program (we’re currently 4 weeks behind and growing)!
Stay tuned!
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Guz
Seems everything is going to plan then! I must admit that I was not too impressed with PCH when I visited Richard last year. Let’s hope that all gets sorted relatively quickly.
Kind Regards
Which PC Harrington Company is McAlpine’s subcontracted with? The reason I ask is that it appears that PCH Group have only put PCH Contractors into administration and that the remainder of the PCH Group companies are trading normally. I don’t want to be a Jonah but if the subcontract is with PCH Contractors it is likely to take time to sort out at site level, and KPMG the adminisrators will want their pound of flesh to sort out the mess. Regards Greg
The main sub-contract is with PCH contractors, but they have also employed slipform international and structural systems, both PCH companies. But to dates they are still trading, so we’re still going…