Cardiff Council intervenes to secure £108m Fairwater Community Campus after ISG collapse, allocating over £7m to protect supply chain.
- The council appoints Borley Engineering Services as an interim contractor to restart halted construction work.
- A tender process is underway to find a permanent contractor, expected to commence in April 2025.
- ISG’s collapse leaves numerous projects in suspension, but Cardiff prioritises Fairwater as a key development.
- ISG was the UK’s sixth-largest contractor, impacting several major projects upon its fall.
Cardiff Council has taken decisive action to safeguard the continuation of the Fairwater Community Campus project after the abrupt collapse of ISG, one of the UK’s leading contractors. The council has injected over £7 million into the project to ensure existing subcontractors and suppliers are paid for completed work, effectively stabilising the supply chain and averting further financial distress among stakeholders. Borley Engineering Services, a local Cardiff firm, has been appointed as an interim contractor under emergency measures, which allows construction work to resume swiftly and with minimal delay.
The council’s proactive measures include launching a tender process to appoint a permanent contractor. This new contractor is expected to begin work by April 2025, with the goal of opening the campus in early 2027. This action reflects Cardiff Council’s commitment to not only completing the Fairwater project within revised timelines but also ensuring the quality and standards initially set out by ISG.
The project’s significance cannot be overstated, as Fairwater Community Campus represents one of ISG’s largest undertakings prior to its financial difficulties. The campus is set to house three new school buildings catering to Cantonian High School, Riverbank School, and Woodlands High School. While ISG was unable to see the project through, the council remains dedicated to realising these educational facilities for the community.
Following ISG’s insolvency, numerous projects have been left in a state of uncertainty. The Fairwater Community Campus, however, has been given priority due to its scale and importance, receiving the urgent attention of local authorities. Meanwhile, other significant projects initially managed by ISG, such as Mace’s £300m neuroscience building for University College London and a Chesterfield leisure centre, are also seeing new contractors taking over their completion.
ISG’s sudden downfall, given its position as the sixth-largest contractor in the UK, sent shockwaves through the construction industry, affecting projects nationwide and leaving a significant financial void. The company owed over £301 million to its supply chain, highlighting the scale of its operations and the far-reaching impact of its collapse. Cardiff Council’s handling of the Fairwater project sets a precedent in managing such crises, showcasing resilience and steadfastness in the face of industry setbacks.
Cardiff Council’s interventions underscore a strategic approach to safeguarding key infrastructure projects amid industry disruptions.
