{"id":530923,"date":"2025-10-17T12:45:52","date_gmt":"2025-10-17T11:45:52","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=530923"},"modified":"2025-10-17T09:12:53","modified_gmt":"2025-10-17T08:12:53","slug":"london-council-lines-up-specialist-on-decarb-job-after-contractors-collapse","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/financial\/administrations\/london-council-lines-up-specialist-on-decarb-job-after-contractors-collapse-17-10-2025\/","title":{"rendered":"London council lines up specialist on decarb job after contractor\u2019s collapse"},"content":{"rendered":"

Lambeth Council is due to hire a replacement contractor on a \u00a315.7m non-residential retrofit programme after its previous appointee went into administration.<\/p>\n

The \u00a363m-turnover Cenergist was an energy and water efficiency specialist and had completed 90 per cent of the work on the local authority\u2019s programme when it went under in August<\/a>.<\/p>\n

Work involved retrofitting 10 schools and two leisure centres to install low-carbon heating systems to replace end-of-life gas-boilers as well as installing onsite renewable energy systems. Energy efficiency measures such as insulation and LED lighting were also part of the project.<\/p>\n

Central London-based GEM Environmental Building Services is in line to take over the job.<\/p>\n

A report by administrators at Interpath said Cenergist, the only direct trading subsidiary of Eneraqua Technologies plc, which was listed on the London Stock Exchange AIM market, employed more than 144 people in the UK, with another 42 based overseas.<\/p>\n

The report said it faced \u201cmultiple legal threats\u201d, including a credible winding-up threat from a supplier owed \u00a3500,000, and in early July was hit by an adverse adjudication decision meaning it needed to pay \u00a31.1m within five days.<\/p>\n

Cenergist subsidiaries included underfloor heating specialist Mathewson, which changed its name to M Realisations shortly before going into administration in August<\/a>.<\/p>\n

Eneraqua\u2019s AIM listing was withdrawn in late August.<\/p>\n

A paper published by the South London local authority stated that it needs the programme to be completed urgently or it risks losing \u00a310m in funding from its lender under the terms of the grant received under the Public Sector Decarbonisation Scheme.<\/p>\n

It is also spending \u00a35,000 a week across four sites to run temporary gas boilers, the paper added.<\/p>\n

The final costs of the works are currently being confirmed with a consultant, the paper stated, and are estimated to be between \u00a3175,000 and \u00a3250,000.<\/p>\n

The paper added that due to the complexity and partial completion of the works, it was not practicable to carry out a full procurement exercise.<\/p>\n

GEM Environmental Building Services is in line for a direct award as a result of this, with the paper saying that the specialist is an existing Lambeth supplier \u201cwith a proven track record in heat monitoring and emergency call-out services for schools and leisure centres\u201d.<\/p>\n

It added: \u201cThey have the necessary skilled supply chain and infrastructure to complete the mechanical, electrical, and builders\u2019 works required across the 12 sites.\u201d<\/p>\n

Work to be done includes completing hydraulic balancing and commissioning, water treatment and flushing, building and electrical works in order to bring air source heat pumps online.<\/p>\n

A final decision on the award is due next week.<\/p>\n","protected":false},"excerpt":{"rendered":"

Lambeth Council is due to hire a replacement contractor on a \u00a315.7m non-residential retrofit programme after its previous appointee went into administration. The \u00a363m-turnover Cenergist was an energy and water efficiency specialist and had completed 90 per cent of the work on the local authority\u2019s programme when it went under in August. Work involved retrofitting …<\/p>\n","protected":false},"author":43915,"featured_media":477802,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[554,547,556],"tags":[],"class_list":["post-530923","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-administrations","category-buildings","category-sustainability"],"yoast_head":"\nLondon council lines up specialist on decarb job after contractor\u2019s collapse | Construction News<\/title>\n<meta name=\"description\" content=\"Lambeth Council is due to hire a replacement contractor on a \u00a315.7m non-residential retrofit programme after its previous appointee went into\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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