{"id":524065,"date":"2025-07-01T12:45:02","date_gmt":"2025-07-01T11:45:02","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=524065"},"modified":"2025-07-01T14:06:10","modified_gmt":"2025-07-01T13:06:10","slug":"isg-collapse-hits-council-for-3m","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/contractors\/isg\/isg-collapse-hits-council-for-3m-01-07-2025\/","title":{"rendered":"ISG collapse hits council for \u00a33m"},"content":{"rendered":"

The fallout from ISG\u2019s collapse last year led to a six-month delay to a project in Manchester and cost the council \u00a33m, Construction News <\/em>can reveal.<\/p>\n

Manchester City Council was forced to redo some of ISG\u2019s<\/a> work on the affected project \u2013 believed to be the \u00a316m Orchard House Secondary School \u2013 following \u201cwinter weather\u201d, according to a Freedom of Information (FOI) response it sent to CN<\/em>.<\/p>\n

The additional work and delay to the project caused a combined \u00a33m hit, it confirmed.<\/p>\n

The firm<\/a> was working on a single contract for Manchester City Council when it went under, the council said in its FOI response.<\/p>\n

ISG celebrated completing the steel frame<\/a> just days before it went under. The school was due to welcome 150 pupils with additional educational needs in the 2025 academic year.<\/p>\n

It is unclear whether it will still open for the 2025 academic year, or whether a replacement contractor has been appointed.<\/p>\n

CN <\/em>approached the council for comment.<\/p>\n

The council also had to shell out a further \u00a3100,000 remediating defects on unnamed projects \u201crecently completed\u201d by ISG, it said in the FOI response.<\/p>\n

ISG was the sixth biggest contractor in the UK when it went under, with a \u00a32.2bn turnover. The collapse hit subcontractors, government clients and projects up and down the country as clients scrambled to replace ISG on jobs and minimise the exposure to the supply chain.<\/p>\n

Last week, CN <\/em>revealed that ISG\u2019s collapse caused a \u00a31.5m cost hike on a project to build a sports centre<\/a> in Chesterfield.<\/p>\n

In January, the Ministry of Justice said ISG\u2019s collapse\u00a0would cost it around \u00a3300m on<\/a>\u00a0its new prisons programme, and could have an even bigger impact on fire-safety remediation work.<\/p>\n","protected":false},"excerpt":{"rendered":"

The fallout from ISG\u2019s collapse last year led to a six-month delay to a project in Manchester and cost the council \u00a33m, Construction News can reveal. Manchester City Council was forced to redo some of ISG\u2019s work on the affected project \u2013 believed to be the \u00a316m Orchard House Secondary School \u2013 following \u201cwinter weather\u201d, …<\/p>\n","protected":false},"author":90643,"featured_media":524075,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[547,535],"tags":[],"class_list":["post-524065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buildings","category-isg","issue-online-news"],"yoast_head":"\nISG collapse hits council for \u00a33m | Construction News<\/title>\n<meta name=\"description\" content=\"The fallout from ISG\u2019s collapse last year led to a six-month delay to a project in Manchester and cost the council \u00a33m, Construction News can reveal.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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