Up to 200 jobs at Lagan Construction Group under threat

As many as 200 jobs are at risk following the announcement that four companies within a major UK construction company are set to go into administration as the industry continues to show signs of difficulty.

It is understood that four companies within Lagan Construction Group are affected. These being Lagan Construction Group Holdings Limited, Lagan Construction Group Limited, Lagan Building Contractors Limited and Lagan Water Limited. Staff were only made aware their jobs could be at risk earlier this morning.

The company’s group chairman Michael Lagan has issued a statement to try reassure jobs lost will be kept at a minimum. “It is with great sadness and reluctance that we have had to take this course of action,” he added. “We have had long standing relationships with many of sub-contractors and suppliers. We hope that the process of administration will be smooth and that disruption to both projects and jobs will be minimal.”

The group which employs 800 people could see approximately a quarter affected by the announcement. The company has suggested it hopes that some of those jobs could be transferred to joint venture partners, while others may be relocated to existing divisions within the group.

It is believed that Lagan has been impacted by delays and disputes on several of its projects which include a new Belfast campus for Ulster University.

Commenting on the announcement, the Construction Employers Federation has said the news is another example that emphasises the challenges the construction sector faces as a whole.

The statement added: "Given the huge contribution that Lagan Construction Group have made to Northern Ireland’s economy and society since their establishment, today’s announcement is extremely regrettable. They have been a pillar of our construction industry for decades and it is our express hope that a solution can be found. As the Federation has long said, the industry has faced a challenging period in respect of its sustainability. From issues related to low margins on works, to insufficient pipelines of activity, to the current political and budgetary challenges within Northern Ireland, there are significant tests which go much beyond today’s news.”