It's confirmed - Builder's going into administration

Construction company Jistcourt, tasked with building a flagship £3.5 million development in Newtown, has told a local authority that it is going into administration.

All week, rumours have been rife of the company’s demise in Newtown where it was supposed to build 26 flats at the Bowling Green site on Back Lane for Powys County Council.

Work was supposed to start on Monday, but the site has been closed and sub-contractors involved in the development have been given “verbal notification” that the firm has gone bust.

Calls to Jistcourt asking for a comment are going unanswered.

While PCC refuse to comment, Bristol City Council has told the Local Democracy Service that Jistcourt will go into administration.

A Bristol City Council spokesperson said: “We have been notified that Jistcourt have served a notice of intention of going into administration. They are currently contracted by us to install kitchens in a number of our council homes.

“We are meeting daily with Jistcourt and they have informed us that they intend to complete all works that are currently underway and we have visited all tenants concerned to keep them informed and reassured.”

Back in Powys, questions are being asked.

Newtown East County Councillor and anti-poverty champion, Joy Jones  said: “This has come as a shock. This site has stood neglected for many years and it was good news to know that the development had begun.

“It’s only been a few weeks since we attended the start of the new development.

“This isn’t this first company that has been awarded a contract to do work for the council that has gone into trouble this year bringing work to a standstill. There are many questions that need to be answered to try to prevent this situation happening again.”

Cllr Jones added that she was worried there would now be a significant delay completing the scheme.

Plaid Cymru group leader, Elwyn Vaughan (Glantwymyn), added: “Following the experiece with Dawnus, surely there’s better risk assessment?”

Conservative AM for South West Wales, Suzy Davies, who lives in Machynlleth, is set to ask an emergency question at the Welsh Assembly next week on Jistcourt.

Ms Davies, said: “Hearing some very worrying news coming out of Port Talbot that construction firm Jistcourt has gone into administration. I have asked Welsh Government whether they knew this was happening and what their plans are now.”

The scheme in Newtown is of importance to PCC as it’s the first affordable housing development for social rent commissioned by PCC in over 40 year.

On Monday, June 24, the economy, residents, communities and governance scrutiny committee was to receive a report on future building projects as PCC look to build 250 homes by 2023, which includes the Bowling Green development..

The report said the building was to be completed by September 2020 and that over £695,000 has already been spent on the project.

The report also points out that on May 22, Jistcourt told PCC that its bank could not provide a ‘performance bond’ due to the company “exceeding their limit.”

A performance bond guarantees to a project owner that the project will be completed (performed), even if the contractor fails.

In March, construction firm Dawnus went into administration  leaving three school building projects for PCC in limbo.

By Elgan Hearn, Local Democracy Reporter