Cordil Construction closes all sites

chickencurry02

I presume this means that the arthouse cinema will suffer more delays

McTigs

tough times for the people working there not to mention the suppliers and subcontractors.

not nice to hear

soundbyte

In fairness, I couldn't give a flying fcuk about the cinema.

There are 450 jobs at stake.

SparKing

IBTL
Any link?

SparKing

http://www.galwaynews.ie/19383-450-laid-galway-construction-firm-shuts-sites
51 jobs really, I've been hearing rumours about this for years.
hopefully they secure funding and finish those jobs, no word of suppliers affected in the article.

Fey!

Apparently the cinema will just go out to tender again, which may lead to some progress actually being made.

The press release blamed the weather in December and January for a lot of the problems, but not much has moved since the weather improved.

Hoki

They're also constructing that new building (Hibs new clubhouse?) in Bohermore.

biko

The company – well-known as a school and homebuilder – told its 51 permanent staff and more than 400 subcontractors yesterday (Wednesday) it was closing down sites for a fortnight while it attempts to secure a temporary overdraft from its bankers.

Some posts containing speculation and outright libel removed.

nuac

Hope they pull thru. had a deal with them. Found them to be good and reliable.

ftnbase

Fey! wrote: »

The press release blamed the weather in December and January for a lot of the problems, but not much has moved since the weather improved.

According to City Tribune they are also blaming the strict conditions in the new Government Contracts.

It looks like the chickens are coming home to roost for building contractors who made large profits during the good times but when "buying" jobs to maintain turnover are unable to make ends meet.

The new contract conditions were introduced to avoid cost overruns by placing more risk on contractors. Unfortunately the contractors did not price for that risk and are now struggling.

While I hope that the company survive I hope they will not get a payout (of taxpayers money) because they made a mistake and underpriced the job. During the good days when these types of companies made barrow loads of profit I do not recall them giving refunds to the clients.

If the state agencies concede in this case every school/hospital building project in the country will try the same trick!!!

snubbleste

Taxpayer seeks value for money - should be the headline of that article.

Toon--soldier

ftnbase wrote: »

According to City Tribune they are also blaming the strict conditions in the new Government Contracts.

It looks like the chickens are coming home to roost for building contractors who made large profits during the good times but when "buying" jobs to maintain turnover are unable to make ends meet.

The new contract conditions were introduced to avoid cost overruns by placing more risk on contractors. Unfortunately the contractors did not price for that risk and are now struggling.

While I hope that the company survive I hope they will not get a payout (of taxpayers money) because they made a mistake and underpriced the job. During the good days when these types of companies made barrow loads of profit I do not recall them giving refunds to the clients.

If the state agencies concede in this case every school/hospital building project in the country will try the same trick!!!

I think the problem is that they were being stung for the cost of having to rebuild the house beside the cinema which has now made their tendered contract price unviable

Sponge Bob

Toon--soldier wrote: »

I think the problem is that they were being stung for the cost of having to rebuild the house beside the cinema which has now made their tendered contract price unviable

Was that problem 'their' fault as contractor or the fault of the project promoters or that of the professional consultant engineer/architects who designed the cinema and were supposed to supervise Cordil

einshteen

Wonder why they're not getting paid from the government projects, is there some dispute over the money?

ftnbase

einshteen wrote: »

Wonder why they're not getting paid from the government projects, is there some dispute over the money?

It would be unusual to be waiting for payment for what you are due from Government departments.

However, it would not be unusual to have to wait some time for disputes over the value of extras to be agreed. This was bearable when there was good profits being made on the "agreed" works but when there is no profit (or possibly a loss) on the agreed works the speed of agreeing disputed costs is more important.

Unfortunately for the Contractor those responsible for making decisions on the value of claims and extras (architects, engineers and quantity surveyors) often lack an understanding of both the contractual entitlements of the Contractor and the importance of making quick decisions to maintain cashflow for the Contractor.

billyfromdublin

there still working away on a big job in blackrock library today

fat__tony

Id give it another month before the company goes under.

Much bigger firms such as Pierce construction have gone.

schween

It took less than a month.

http://www.rte.ie/news/2011/0526/cordil.html?utm_source=twitterfeed&utm_medium=twitter

soundbyte

Receiver appointed over major building firm
May 26, 2011 - 8:00pm
Cordil has estimated debts of over €30m
BY ENDA CUNNINGHAM
ACC Bank has appointed a receiver over the assets of major Galway building firm Cordil Construction, which has debts estimated at more than €30 million.

Company chief Gerry Dillon has admitted the receivership is set to have a “severe impact” on those owed money – trade creditors are understood to be owed more than €6 million.

The bank moved to protect its position in relation to the company, after negotiations over the past fortnight for an overdraft facility failed.

Cordil employed 51 people directly, and more than 400 more subcontractors.

In a statement tonight (Thursday), Managing Director Gerry Dillon said: “Over the past fortnight since we temporarily suspended works on our sites, we have been in negotiation with our banks who in turn have tried to resolve the issue of a floating charge over the company by ACC Bank.

“We continued to approach Ministers, TDs and local councillors to generate support and highlight the impact on suppliers and subcontractors should we fail to obtain temporary working capital.

“We must inform you that ACC Bank have appointed a receiver to Cordil Construction. Unfortunately, a solution could not be found and we regret the severe impact that this situation will have on our suppliers, subcontractors, their staff and families,” he said.

As revealed by the Galway City Tribune a fortnight ago, the company ran into serious cashflow difficulties and closed down its sites around the country – including work on Coláiste Iognáid, the Solas arthouse cinema project and Hibernians Football Club in the city.

Cordil is owed in the region of €4m for contracts with the HSE and Department of Education.

The most recent accounts for the company (up to December 2009) show creditors are owed a total of €27.5m.

The company’s €21m in bank debt is secured against developments in Furbo and Ballindooley in Galway, as well as in Sligo; personal guarantees of €1.7m; mortgage over 15 apartments at Cúirt and Dolain in the Claddagh and an adjacent site and other guarantees given by Mr Dillon and Mr Corrigan.

http://www.galwaynews.ie/19662-receiver-appointed-over-major-building-firm

Sponge Bob

They got caught with unsold and unused shops and apartments beside the petrol station in Furbo, I think they may have sold the houses.

They also got caught with that new apartment block slap in the middle of the Claddagh. The auctioneer has been leasing out the car park spaces for some time.

timmy00

not a bit sorry for them, they were always slow to pay out themselves, and pushed many subcontractors to the limit, what goes around, comes around !!!!!!

chickencurry02

i agree a lot of sub contractors owed alot of money. Cordil notorious for not paying. I'm sorry for employees but not for management

chickendinner

Company closes screwing over the subcontractors.

Directors establish new construction company at any sign of
recovery in market under a new name.

Robbo

Can I spoil the fun and point out that having a receiver appointed is not the same as going into liquidation (voluntary or otherwise). That's not to say that one doesn't usually follow the other but it is a step (sometimes more) away from it.

I can't quite make out from the story which way the receiver was appointed but it'ss one of two things (1) the bank had a receiver appointed over some assets who will now take the equitable ownership of them and try to sell them. Whatever he gets for them will go towards paying off their debt to the bank. The company are free to deal with other unencumbered assets in the normal course of business and to trade.

(2) The receiver has been appointed over the entire company and becomes a receiver manager, the running of the business is in his hands. It's up to him whether he thinks he can better satisfy the debt through an asset sale, continuing to trade, winding up or anything else he can deal with.


You can ruin just about any thread with facts...

Sponge Bob

chickendinner wrote: »

Directors establish new construction company at any sign of recovery in market under a new name.

You register Dilcor so , oh WAIT...What is THIS ???.

JohnCleary

Robbo wrote: »

You can ruin just about any thread with facts...

Never let facts get in the way of a good story though, eh?!

dell1211

Robbo wrote: »

Can I spoil the fun and point out that having a receiver appointed is not the same as going into liquidation (voluntary or otherwise). That's not to say that one doesn't usually follow the other but it is a step (sometimes more) away from it.

Who mentioned liquidation? people were talking about subcontractors getting burned in a big way which is what happens with a receivership

Robbo

dell1211 wrote: »

Who mentioned liquidation? people were talking about subcontractors getting burned in a big way which is what happens with a receivership

Not necessarily. If a receiver manager seeks to keep on trading, they'll need to have the subcontractors onside if there's to be any progress made. Other than that, subcontractors have the same level of priority as all other unsecured creditors bar the Revenue.

Sponge Bob

I would be surprised if they could liquidate what they have at more than around €11-15m so the subbies will get up to half but could be waiting years for it. The apartments in the Claddagh would be their most valuable single asset but even that will not fetch more than €2m I'd say and cost a lot more to buy and build.

Storm 10

What about the people whose house was damaged where they are to build the Art House cinema how will they fair out, speaking of the Art House I see where the one in Dublin closed due to rent increases and not pulling in the punters so if they think it will be a success in Galway I doubt it.

Another white elephant

chickendinner

Robbo wrote: »

Can I spoil the fun and point out that having a receiver appointed is not the same as going into liquidation (voluntary or otherwise).

You can ruin just about any thread with facts...

dell1211 wrote: »

Who mentioned liquidation? people were talking about subcontractors getting burned in a big way which is what happens with a receivership

Exactly

Robbo wrote: »

Not necessarily. If a receiver manager seeks to keep on trading, they'll need to have the subcontractors onside if there's to be any progress made. Other than that, subcontractors have the same level of priority as all other unsecured creditors bar the Revenue.

If you had knowledge of said company, you would realise subcontractors are screwed.

Robbo wrote: »

You can ruin just about any thread with facts...

You can ruin just about any thread with irrevelant facts thats nobody was questioning.