Steel subbie on the edge after Kier Northern stops payments

A dispute between Kier Northern and a steel subcontractor over who is to blame for delays on a £12.5m leisure complex in Dumfries has allegedly left the subbie on the brink of insolvency, it has told CJ this week.

Lockerbie-based T.A. Kirkpatrick (TAK) warned that 30 jobs were on the line after Kier Northern stopped issuing payments, claiming the subbie was 13 weeks behind schedule.

Meanwhile, TAK blamed Kier Northern for the delay, asserting that the main contractor took over a year to provide full and final designs for the project.

Kier Northern originally won the contract to design and construct the Dumfries and Galloway Leisure Complex (DG1) in April 2006 and awarded a £1.5m subcontract for steelwork, roofing and cladding to TAK.

But TAK managing director Geoff Kirkpatrick told CJ that Kier stopped paying his company in May, and that it was still owed £458,000.

“Kier Northern said we were 13 weeks late and they weren’t going to pay us any more.

“It’s a serious situation. I’ve never encountered anything like this in 36 years in the business. To refuse to pay point blank is beyond anything I have ever heard of,” he said.

Kirkpatrick, whose firm remains on site despite the fact it is not being paid, also claimed that Kier Northern had seized steel and cladding material that Kirkpatrick had bought from Corus and Kingspan and brought onto the site.

He said the company was now struggling to pay its suppliers and was relying on their goodwill while it went to the banks for more money.

“We now have to decide if we can raise enough cash to take this to adjudication,” he said.

In response to the allegations, Kier said in a statement: “T.A. Kirkpatrick remain contracted to Kier to carry out steelwork, roofing and cladding works on the DG1 Project.

“It would be inappropriate for Kier to comment beyond that fact or for Kier to speculate on TA Kirkpatrick’s financial position or arrangements with its employees.

“Kier remains committed to delivering the DG1 project for its client, Dumfries and Galloway Council, in accordance with its contractual obligations.”

A spokesman for Dumfries and Galloway Council said that the dispute was for the contractor and subcontractor to resolve, and that it was not getting involved.