Minister liaising with Ard Scoil management
LOCAL sub contractors fear that they could be forced out of business following the appointment of a receiver to the Galway based Cordil company.
Cordil Construction, the building management company associated with the €5.5million refurbishment and upgrade building works at Ard Scoil Ris secondary school, closed its business last week with the loss of 51 permanent positions as well as hundreds of construction worker jobs.
The Limerick Post newspaper has learned that local subcontractors associated with the onsite school building works still remain unpaid to the tune of almost €300,000.
Those associated with similar projects managed by Cordil claim that cheques were returned by banks, marked unpaid.
The issue first came to light in February for one subcontractor when a Cordil cheque bounced.
A second cheque was issued but the contractor was asked not to present it as a “director told me there was no money to match it”.
Grant Thornton has been appointed as receiver.
Cordil Construction laid off 450 staff from their Galway base in mid May, initially on a temporary basis, but now permanently, after the company said they were in an eleventh hour bid to secure its future. That bid failed as the company were unable to secure temporary finance from their banks.
However, in recent days, onsite subcontractors still claim that they have not seen any of the Government money allegedly paid to Cordil.
It is also understood that a “large cheque” was paid to Cordil in the days running up to the closing of the site.
Cordil’s contract is to be terminated and a new contractor will be sought.
It is understood that the company’s cash flow was put under severe financial strain because of strict conditions associated with the Government contract.
A spokesperson for the Department of Education said that “all money owed under the terms of the contract have been paid to date”.
The company was working on 15 projects around the country, including the Ard Scoil Ris refurbishment, worth over €27million in total. Half of those projects were Government awarded.
Managing director Gerry Dillon, said that “inclement weather” and being “owed substantial monies,” contributed to the cash-flow of the company being put under strain.
Ard Scoil Ris school principal, Brid de Brun, says that they are working with the Department of Education to ensure the completion of the building programme.
Deputies Niall Collins and Willie O’Dea, posed Dail questions to Ruari Quinn, Minister for the Department of Education and Skills, as to when contractors would be paid and when the work would was likely to resume.
The written response from the Minister stated: “The contract for the project is between the Board of Management and the main contractor. There is no contractual relationship between any of the subcontractors engaged on this project and either my Department or the Board of Management.
“In general, all subcontractors employed on school building projects are employed directly by the main contractor or indirectly by the main contractor through other subcontractors. It is a matter for all subcontractors to agree terms and conditions and a schedule of payments with the main contractor, as their direct employer.
The ministerial response went on to say, “I can confirm that all moneys due to be paid under the terms of the main contract have been paid to the main contractor.
“My Department is liaising with the Board of Management and their design team in relation to next steps”.
