Subbies' fury as Hanson fails to pass on HA pay

by John Leitch

News that Hanson has pocketed a further £2m payment from the Highways Agency for valuation 8 (covering the period 6 May to 6 June) has infuriated subcontractors employed by Stenoak on the £18m M27 project north of Southampton as they continue to be unpaid for their work (CJ 14 August).

Valuation 9 (for the four weeks to 6 July) is imminent and will reward Hanson by a further £2m.

Tim Matthews, the Highways Agency's chief executive, has declared that he regards the contract to be a joint venture between Stenoak and Hanson. A spokeswoman confirmed this week that prior to 6 May, all monies were paid to Stenoak. "It is normal on a joint venture for all the payments to go to one party or another," she said.

Stenoak subcontractors are thought to be owed a total of £7m. Paul Hardie, one of the subcontractors not being paid, told CJ: "The only people losing out are Stenoak subcontractors. And if it is not a joint venture, why is Hanson getting all the money? Why can't I get the £60,000 I am owed direct from the HA as well?"

The HA spokeswoman said: "We're sympathetic."

A Hanson spokesman commented: "Hanson is not liable for those contractors employed by Stenoak."

l Stenoak's unsecured creditors, thought to be owed a total of £30m, have have been dealt two body blows - news that Stenoak owed £2.8m in VAT and the revelation that the receiver struck a deal with Aggregate Industries (AI). When it sold the Associated Asphalt and Associated Solutions subsidiaries, the receiver agreed that AI could scoop a major proportion of their outstanding debts.

The rumour is that the deal allows AI to retain 90% of all money it secures. A spokesman for the receiver confirmed that incentivisation is normal, but added "it is certainly not 90%".