{"id":382133,"date":"2019-03-15T16:23:00","date_gmt":"2019-03-15T16:23:00","guid":{"rendered":"http:\/\/www.constructionnews.co.uk\/uncategorised\/interserve-joins-paragon-and-dawnus-in-administration-what-happens-next-15-03-2019\/"},"modified":"2019-09-27T15:28:46","modified_gmt":"2019-09-27T14:28:46","slug":"interserve-joins-paragon-and-dawnus-in-administration-what-happens-next","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/contractors\/tilbury-douglas\/interserve-joins-paragon-and-dawnus-in-administration-what-happens-next-15-03-2019\/","title":{"rendered":"Interserve joins Paragon and Dawnus in administration – what happens next?"},"content":{"rendered":"

The project in question is the\u00a0Glasgow Recycling and Renewable Energy project.<\/p>\n

We already know the job has been the reason behind a \u00a370m profit warning<\/a>, the scene of worker unrest<\/a>, a significant factor in a major supplier going under,<\/a> and now it looks like becoming the subject of a termination battle between contractor and client<\/a>.<\/p>\n

Interserve is keeping quiet today, but I understand it has told Viridor that it can\u2019t meet a March 2017 completion date on a project that was originally due to complete in March this year.<\/p>\n

Viridor pulled no punches in its assessment of what\u2019s going wrong, saying Interserve had \u201ccontinually and repeatedly failed to meet delivery milestones\u201d.<\/p>\n

For its part, Interserve says it is consulting legal advisers and I understand Viridor is doing likewise.<\/p>\n

The contractor employs around 70 people on site, but there is a total workforce of almost 300.<\/p>\n

Construction MD\u00a0Ian Renhard was earlier this year tasked with sorting out the problem energy-from-waste contracts. Interserve has described the \u00a3400m portfolio as still having \u201csignificant risks\u201d, so his work is not done.<\/p>\n

Now as Interserve removes its staff from site and subbies have contracts halted, the question is will Viridor attempt to self-deliver the remainder of the troublesome job?<\/p>\n

Viridor is keeping quiet on that front, but says it remains committed to the project.<\/p>\n

Interserve had six contacts in its EfW business, which it entered into between 2012 and 2015, that combined would have generated revenues of \u00a3430m.<\/p>\n

But Mr Ringrose admitted to me in August<\/a> that the group had over-estimated its capability and under-estimated some of the complexities in the sector.<\/p>\n

That is proving to be a costly mistake.<\/p>\n

Now that this termination notice has been revealed, it also makes the timing of Interserve\u2019s statement on Adrian Ringrose\u2019s departure<\/a> yesterday all the more interesting.<\/p>\n

Interserve said the CEO\u2019s departure after 15 years at the company was expected to take place in 2017. Between\u00a0Mr Ringrose\u2019s departure being announced<\/a>\u00a0yesterday and the close of the FTSE today,\u00a0the\u00a0company\u2019s share price dropped almost 20 per cent before a late rally this afternoon.<\/p>\n

As a result, both parties will no doubt be desperate to put this ill-advised move into the EfW sector behind them and move on as quickly as possible.\u00a0<\/p>\n

Want more?<\/h4>\n

Read editor Rebecca Evans\u2019 leader<\/a> on the changes engulfing the industry and Interserve.<\/p>\n

Go to our dedicated Interserve landing page<\/a> to see all the latest news, comment and analysis on the contractor.<\/p>\n

People moves<\/h4>\n

Keep up-to-date on all the latest industry moves at our dedicated online portal<\/a>, as\u00a0Willmott Dixon\u2019s Energy Services managing director gets set to leave, while\u00a0Van Elle\u2019s managing director for piling is also moving on.<\/p>\n","protected":false},"excerpt":{"rendered":"

The project in question is the\u00a0Glasgow Recycling and Renewable Energy project. We already know the job has been the reason behind a \u00a370m profit warning, the scene of worker unrest, a significant factor in a major supplier going under, and now it looks like becoming the subject of a termination battle between contractor and client. …<\/p>\n","protected":false},"author":3175,"featured_media":382134,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[534],"tags":[],"class_list":["post-382133","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tilbury-douglas","editorial-administrations","editorial-carillion","editorial-cn-views","editorial-financial","editorial-free-24","editorial-interserve","editorial-sme","issue-22-march-2019"],"yoast_head":"\nInterserve joins Paragon and Dawnus in administration - what happens next? | Construction News<\/title>\n<meta name=\"description\" content=\"The project in question is the\u00a0Glasgow Recycling and Renewable Energy project. 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