R & D Construction Group

[HatterScaff]

from Construction Enquirer

Staff at one of south west Scotland’s largest contractors were not paid their wages last week as uncertainty surrounds the future of R&D Construction.

Dumfries based R&D Construction, which employs around 300 workers, blamed a banking glitch on Friday for the delay.

But BBC Scotland reported that staff were told not to report for work today and the main office number was redirected to an answering machine.

R&D is a house builder and design and build contractor and is currently working on a major housing renewal programme in Dumfries and Stranraer.

The renewal project is being funded by Dumfries and Galloway Housing Partnership (DGHP), the Scottish government and the local council.

Labour MP for Dumfries and Galloway, Russell Brown, said he had spoken to the chief executive of R&D at the weekend, and was now seeking urgent talks with the construction group’s bank.

R&D Construction is the building subsidiary of the R&D Construction Group.

 

[HatterScaff]

R&D Construction goes into administration

Update from Construction Enquirer

Joint administrators from Ernst & Young have been appointed at Dumfries based R&D Construction which employs 220 staff.

Andrew Davison and Colin Dempster of Ernst & Young have been appointed joint administrators at R&D Construction and its parent company Robison & Davidson (Holdings) Limited.

Davison said: “Difficult trading conditions arising from low demand in the private housing market that were further exacerbated by the harsh winter necessitated our appointment.

“We are currently undertaking a full review of the company’s financial position.”

Fears have been growing over the firm’s future since last week and work on its main £77m housing project has been halted.

Dumfries and Galloway Housing Partnership has padlocked sites across the region which were being developed on its behalf by R&D Construction.

Local workers and politicians contacted the Dumfries and Galloway Standard to voice their concerns over the contractor.

R&D employee Malcolm Campbell, 46, said: “No one from the company has spoken to us to tell us what’s going on. Site workers have been told just to not bother turning up.”

Concern about R&D first emerged last week when staff reported wages hadn’t been paid.

But a problem with the BACS wages system was blamed and payment was later made.

Bosses at the firm have not been available to comment and calls to the head office are met with an answering machine.

A DGHP spokeswoman said: “We are closely monitoring the situation surrounding the financial position of R&D Construction.

“In the meantime, we have taken over the security of the sites to prevent any attempts to take materials, machinery and plant equipment off site.”