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Galliford Try faces £6.5m faulty work bill
00:00 01 Aug 2001
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by Glenda Thisdell
Galliford Try could be hit with a £6.5m bill for a faulty job following the discovery in July of voids in a high-performance concrete floor laid as part of a warehousing project in Daventry, Northants.
The construction group last week issued a trading statement warning of the potential loss, which would mar an otherwise successful year to 30 June.
Deputy chief executive George Marsh said the £6.5m figure, which is being taken as an exceptional provision in the year-end accounts, is a "worst case scenario" should it become necessary to remove and replace the entire 23,225m2 floor, a job that could take as long as 14 weeks. The potential loss includes possible damages for late completion.
The floor is made of steel-fibre-filled concrete poured over a steel mesh; clumping of fibres appears to have left widespread voids, said Marsh. The extent of remedial work needed should be known in two to three weeks.
Galliford Try is the main contractor. The flooring subcontractor is Rochdale-based Seamless Floors and the concrete supplier is Lafarge Aggregates. Both firms said they had followed specifications. The consulting engineer is WA Fairhurst and Partners.
Galliford built the original multi-modal rail port at junction 18 of the M1 for Daventry International Rail Freight Terminal (DIRFT) four years ago under a £14m contract. It also supplied the infrastructure for the logistics park. Other completed contracts for DIRFT include two warehouses worth £6m and £8m.
In its announcement, the company stressed that the benefits forecast for last September's merger of Galliford and Try Group "are being realised according to plan and the company expects results to be in line with market expectations".
The company described the 21% increase to £419m in its year-end order book as "satisfactory".
Also in the year to 30 June, its housebuilding division achieved a target of 781 completions and the new financial year began with sales in hand of 190, an increase of 51%.
Year-end results will be released on 10 September.
Galliford Try could be hit with a £6.5m bill for a faulty job following the discovery in July of voids in a high-performance concrete floor laid as part of a warehousing project in Daventry, Northants.
The construction group last week issued a trading statement warning of the potential loss, which would mar an otherwise successful year to 30 June.
Deputy chief executive George Marsh said the £6.5m figure, which is being taken as an exceptional provision in the year-end accounts, is a "worst case scenario" should it become necessary to remove and replace the entire 23,225m2 floor, a job that could take as long as 14 weeks. The potential loss includes possible damages for late completion.
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The floor is made of steel-fibre-filled concrete poured over a steel mesh; clumping of fibres appears to have left widespread voids, said Marsh. The extent of remedial work needed should be known in two to three weeks.
Galliford Try is the main contractor. The flooring subcontractor is Rochdale-based Seamless Floors and the concrete supplier is Lafarge Aggregates. Both firms said they had followed specifications. The consulting engineer is WA Fairhurst and Partners.
Galliford built the original multi-modal rail port at junction 18 of the M1 for Daventry International Rail Freight Terminal (DIRFT) four years ago under a £14m contract. It also supplied the infrastructure for the logistics park. Other completed contracts for DIRFT include two warehouses worth £6m and £8m.
In its announcement, the company stressed that the benefits forecast for last September's merger of Galliford and Try Group "are being realised according to plan and the company expects results to be in line with market expectations".
The company described the 21% increase to £419m in its year-end order book as "satisfactory".
Also in the year to 30 June, its housebuilding division achieved a target of 781 completions and the new financial year began with sales in hand of 190, an increase of 51%.
Year-end results will be released on 10 September.
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