Blow to Benfleet company over £12,000 contract (From Echo)
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Blow to Benfleet company over £12,000 contract
5:00pm Friday 26th October 2012 in Local News By Jacqueline McMillan
A Benfleet company claims it has been left £12,000 out of pocket after one of the major contractors for the £5million revamp of Waterside Farm Leisure Centre went into administration.
Castle Point Council is splashing the cash to renovate the Seventies-built facility in Somnes Avenue, Canvey, to enable it to stay open for another 20 years.
The council hired major contractor Morgan Sindall to carry out the work, who then hired A P Thompson Sports Engineering Limited which then hired local contractors in the area to complete the renovation.
However, A P Thompson fell into administration on September 27 placing local businesses in jeopardy.
Ronald Downs, director of Unidig, based in Rhoda Road North, in Benfleet said they have been left in turmoil as they have not been paid £12,000 owed for installing the new football pitch on land behind the leisure centre.
The issue had meant the company has been forced to lay off almost a third of its staff.
Mr Downs, who has owned the company for six years, said: “It is absolutely disgusting that the company would hire us at the start of September, literally weeks before they went into administration. Surely they could see they were in financial trouble.
“Now we’ve been left in such a predicament as £12,000 is a huge amount of money for a business like ours. Unfortunately we’ve been forced to let people go because we cannot afford to keep them on, which is the last thing we want. We bought all the materials, did a good job and are getting nothing for it.”
This comes after the council announced last week it would have to spend an additional £1million on the revamp to install a new roof meaning the project would be delayed for three months.
However, the authority maintains the problem will come at no extra cost to the taxpayer.
A spokeswoman forCastle Point Council said: “We became aware once the company had gone into administration, but we had no prior knowledge. Our contract is with Morgan Sindall, how the works are completed is a matter for them to decide. There are penalty clauses in our contract with Morgan Sindall if this phase of the works overrun.
“The Council has no contract with the companies hired by AP Thompson so its powers are very limited. The Council would recommend that the companies seek legal advice.”
The project has already seen some controversy after the Echo reported scores of staff members at Waterside and Runnymede Swimming Pool in Benfleet were asked to take up voluntary redundancy while the work was carried out.
A spokesman for Morgan Sindall said: “The construction industry has undoubtedly been affected by the downturn and it’s always disappointing to hear of a company experiencing serious financial difficulties.
“However, the contracts that AP Thompson Sports Engineering Limited entered into with its supply chain are wholly a matter for that business. Its creditors therefore need to address their enquiries to the parties handling that business.”
The Echo telephoned A P Thompson numerous times for a comment but was unable to get a response.
Comments are closed on this article.
Comments (18)
6:22pm Fri 26 Oct 12
upset says...
6:39pm Fri 26 Oct 12
Brunning999 says...
Then the preferred contract subs out to non preferred contractors and this is a typical result.
It is wrong and hard for all those involved.
7:10pm Fri 26 Oct 12
John T Pharro says...
If poor old Mr Downs will not be paid, why will the Council expect to get their money.
Worse how much have the Council already paid the contractors?
7:15pm Fri 26 Oct 12
John T Pharro says...
10:08pm Fri 26 Oct 12
Nebs says...
2:59pm Sat 27 Oct 12
John T Pharro says...
8:19pm Sat 27 Oct 12
marshman says...
Not a good idea, leads to all kinds of allegations of under the table dealing.
In the case of the former it ultimately resulted in the range being snatched back and a motion passed at full council banning poor old Bill from doing any future business with the council (don't know if it's ever been rescinded, but he's still a councillor so maybe he can tell us) .
Dave of course, lost his job as Leader of the Council a few elections back, but still I believe, retains the contract (forgive the error if his company has since lost it).
No, the tendering process we have is the fairest even if it means small local firms appear to be disadvantaged by the process. Many local councillors have links to local businesses (and visa versa) and it has to all appear above board after all.
6:17am Sun 28 Oct 12
upset says...
7:57pm Sun 28 Oct 12
iknowbetter says...
8:01pm Sun 28 Oct 12
iknowbetter says...
10:41pm Sun 28 Oct 12
marshman says...
There also a proven case of maladministration because he was a Freemason and forgot to withdraw from meetings when applications came in from other masons (some in the same lodge).
6:26am Mon 29 Oct 12
upset says...
10:34am Mon 29 Oct 12
marshman says...
Anything else, or should we get back on topic?
5:04pm Mon 29 Oct 12
John T Pharro says...
7:47pm Mon 29 Oct 12
iknowbetter says...
8:12pm Mon 29 Oct 12
John T Pharro says...
5:28pm Tue 30 Oct 12
marshman says...
Did they actually come to blows or did bully boy Bill grab him by the throat and push him up against a wall?
I can't remember the issue any more, some contentious development no doubt.
Fine upstanding member of the Tory party imho ;)
6:31pm Tue 30 Oct 12
John T Pharro says...
Now the RUMOUR was that Southend was not a mason led court. Let me make it clear I cannot prove this, but can anyone who knows better than me like Councillor Sharp, or anyone with more accurately knowledge that it was not moved and my memory is wrong