Lagan Construction Group appoints administrators to four companies

Up to 200 jobs could be under threat

The Lagan Construction Group has appointed administrators to four of its companies which could put 200 jobs under threat.

The group, which is made up of 30 companies in total, is one of the largest, privately owned family construction businesses on the island and employs 800 people.

The Lagan Construction Group, which is controlled by Michael Lagan is not connected in any way to the Lagan Group which is owned by his brother Kevin Lagan and who is currently in discussions with the UK’s Breedon Group about a possible trade sale.

Appointment

The four companies which are being placed into administration by the Lagan Construction Group include; Lagan Construction Group Holdings Limited, Lagan Construction Group Limited, Lagan Building Contractors Limited and Lagan Water Limited.

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Michael Lagan, group chairman of Lagan Construction Group, said on Tuesday that issues had arisen in its “civils and buildings divisions” that had left the directors of the four affected companies with no choice but to request the appointment of administrators to the respective businesses.

Mr Lagan said these issues had been caused by a number of factors including “delays in the commencement of new projects, protracted contractual disputes on some existing major projects and instability caused by a joint venture partner in Great Britain”.

He 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 sub-contractors and suppliers. We hope that the process of administration will be smooth and that disruption to both projects and jobs will be minimal”.

Industry

The Lagan Construction Group has said there is a possibility that some of the jobs under threat could be transferred to joint venture partners and that some employees might also be relocated to other divisions within the organisation.

Lagan Construction Group’s remaining 26 companies (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) continue to trade as normal.

But the North’s Construction Employers Federation has said it is “extremely regrettable” that the group has had to appoint administrators to four of its companies.

“Given the huge contribution that Lagan Construction Group have made to Northern Ireland’s economy and society since their establishment, today’s announcement is extremely regrettable. They have been a pillar of our construction industry for decades and it is our express hope that a solution can be found,” the CEF said.

Francess McDonnell

Francess McDonnell

Francess McDonnell is a contributor to The Irish Times specialising in business