Cordil Construction closes all sites

chickencurry02

I presume this means that the arthouse cinema will suffer more delays

McTigs

tough times for the people working there not to mention the suppliers and subcontractors.

not nice to hear

soundbyte

In fairness, I couldn't give a flying fcuk about the cinema.

There are 450 jobs at stake.

SparKing

IBTL
Any link?

SparKing

http://www.galwaynews.ie/19383-450-laid-galway-construction-firm-shuts-sites
51 jobs really, I've been hearing rumours about this for years.
hopefully they secure funding and finish those jobs, no word of suppliers affected in the article.

Fey!

Apparently the cinema will just go out to tender again, which may lead to some progress actually being made.

The press release blamed the weather in December and January for a lot of the problems, but not much has moved since the weather improved.

Hoki

They're also constructing that new building (Hibs new clubhouse?) in Bohermore.

biko

The company – well-known as a school and homebuilder – told its 51 permanent staff and more than 400 subcontractors yesterday (Wednesday) it was closing down sites for a fortnight while it attempts to secure a temporary overdraft from its bankers.

Some posts containing speculation and outright libel removed.

nuac

Hope they pull thru. had a deal with them. Found them to be good and reliable.

ftnbase

Fey! wrote: »

The press release blamed the weather in December and January for a lot of the problems, but not much has moved since the weather improved.

According to City Tribune they are also blaming the strict conditions in the new Government Contracts.

It looks like the chickens are coming home to roost for building contractors who made large profits during the good times but when "buying" jobs to maintain turnover are unable to make ends meet.

The new contract conditions were introduced to avoid cost overruns by placing more risk on contractors. Unfortunately the contractors did not price for that risk and are now struggling.

While I hope that the company survive I hope they will not get a payout (of taxpayers money) because they made a mistake and underpriced the job. During the good days when these types of companies made barrow loads of profit I do not recall them giving refunds to the clients.

If the state agencies concede in this case every school/hospital building project in the country will try the same trick!!!

snubbleste

Taxpayer seeks value for money - should be the headline of that article.

Toon--soldier

ftnbase wrote: »

According to City Tribune they are also blaming the strict conditions in the new Government Contracts.

It looks like the chickens are coming home to roost for building contractors who made large profits during the good times but when "buying" jobs to maintain turnover are unable to make ends meet.

The new contract conditions were introduced to avoid cost overruns by placing more risk on contractors. Unfortunately the contractors did not price for that risk and are now struggling.

While I hope that the company survive I hope they will not get a payout (of taxpayers money) because they made a mistake and underpriced the job. During the good days when these types of companies made barrow loads of profit I do not recall them giving refunds to the clients.

If the state agencies concede in this case every school/hospital building project in the country will try the same trick!!!

I think the problem is that they were being stung for the cost of having to rebuild the house beside the cinema which has now made their tendered contract price unviable

Sponge Bob

Toon--soldier wrote: »

I think the problem is that they were being stung for the cost of having to rebuild the house beside the cinema which has now made their tendered contract price unviable

Was that problem 'their' fault as contractor or the fault of the project promoters or that of the professional consultant engineer/architects who designed the cinema and were supposed to supervise Cordil

einshteen

Wonder why they're not getting paid from the government projects, is there some dispute over the money?

ftnbase

einshteen wrote: »

Wonder why they're not getting paid from the government projects, is there some dispute over the money?

It would be unusual to be waiting for payment for what you are due from Government departments.

However, it would not be unusual to have to wait some time for disputes over the value of extras to be agreed. This was bearable when there was good profits being made on the "agreed" works but when there is no profit (or possibly a loss) on the agreed works the speed of agreeing disputed costs is more important.

Unfortunately for the Contractor those responsible for making decisions on the value of claims and extras (architects, engineers and quantity surveyors) often lack an understanding of both the contractual entitlements of the Contractor and the importance of making quick decisions to maintain cashflow for the Contractor.

billyfromdublin

there still working away on a big job in blackrock library today

fat__tony

Id give it another month before the company goes under.

Much bigger firms such as Pierce construction have gone.

schween

It took less than a month.

http://www.rte.ie/news/2011/0526/cordil.html?utm_source=twitterfeed&utm_medium=twitter

soundbyte

Receiver appointed over major building firm
May 26, 2011 - 8:00pm
Cordil has estimated debts of over €30m
BY ENDA CUNNINGHAM
ACC Bank has appointed a receiver over the assets of major Galway building firm Cordil Construction, which has debts estimated at more than €30 million.

Company chief Gerry Dillon has admitted the receivership is set to have a “severe impact” on those owed money – trade creditors are understood to be owed more than €6 million.

The bank moved to protect its position in relation to the company, after negotiations over the past fortnight for an overdraft facility failed.

Cordil employed 51 people directly, and more than 400 more subcontractors.

In a statement tonight (Thursday), Managing Director Gerry Dillon said: “Over the past fortnight since we temporarily suspended works on our sites, we have been in negotiation with our banks who in turn have tried to resolve the issue of a floating charge over the company by ACC Bank.

“We continued to approach Ministers, TDs and local councillors to generate support and highlight the impact on suppliers and subcontractors should we fail to obtain temporary working capital.

“We must inform you that ACC Bank have appointed a receiver to Cordil Construction. Unfortunately, a solution could not be found and we regret the severe impact that this situation will have on our suppliers, subcontractors, their staff and families,” he said.

As revealed by the Galway City Tribune a fortnight ago, the company ran into serious cashflow difficulties and closed down its sites around the country – including work on Coláiste Iognáid, the Solas arthouse cinema project and Hibernians Football Club in the city.

Cordil is owed in the region of €4m for contracts with the HSE and Department of Education.

The most recent accounts for the company (up to December 2009) show creditors are owed a total of €27.5m.

The company’s €21m in bank debt is secured against developments in Furbo and Ballindooley in Galway, as well as in Sligo; personal guarantees of €1.7m; mortgage over 15 apartments at Cúirt and Dolain in the Claddagh and an adjacent site and other guarantees given by Mr Dillon and Mr Corrigan.

http://www.galwaynews.ie/19662-receiver-appointed-over-major-building-firm

Sponge Bob

They got caught with unsold and unused shops and apartments beside the petrol station in Furbo, I think they may have sold the houses.

They also got caught with that new apartment block slap in the middle of the Claddagh. The auctioneer has been leasing out the car park spaces for some time.

timmy00

not a bit sorry for them, they were always slow to pay out themselves, and pushed many subcontractors to the limit, what goes around, comes around !!!!!!

chickencurry02

i agree a lot of sub contractors owed alot of money. Cordil notorious for not paying. I'm sorry for employees but not for management

chickendinner

Company closes screwing over the subcontractors.

Directors establish new construction company at any sign of
recovery in market under a new name.

Robbo

Can I spoil the fun and point out that having a receiver appointed is not the same as going into liquidation (voluntary or otherwise). That's not to say that one doesn't usually follow the other but it is a step (sometimes more) away from it.

I can't quite make out from the story which way the receiver was appointed but it'ss one of two things (1) the bank had a receiver appointed over some assets who will now take the equitable ownership of them and try to sell them. Whatever he gets for them will go towards paying off their debt to the bank. The company are free to deal with other unencumbered assets in the normal course of business and to trade.

(2) The receiver has been appointed over the entire company and becomes a receiver manager, the running of the business is in his hands. It's up to him whether he thinks he can better satisfy the debt through an asset sale, continuing to trade, winding up or anything else he can deal with.


You can ruin just about any thread with facts...

Sponge Bob

chickendinner wrote: »

Directors establish new construction company at any sign of recovery in market under a new name.

You register Dilcor so , oh WAIT...What is THIS ???.

JohnCleary

Robbo wrote: »

You can ruin just about any thread with facts...

Never let facts get in the way of a good story though, eh?!

dell1211

Robbo wrote: »

Can I spoil the fun and point out that having a receiver appointed is not the same as going into liquidation (voluntary or otherwise). That's not to say that one doesn't usually follow the other but it is a step (sometimes more) away from it.

Who mentioned liquidation? people were talking about subcontractors getting burned in a big way which is what happens with a receivership

Robbo

dell1211 wrote: »

Who mentioned liquidation? people were talking about subcontractors getting burned in a big way which is what happens with a receivership

Not necessarily. If a receiver manager seeks to keep on trading, they'll need to have the subcontractors onside if there's to be any progress made. Other than that, subcontractors have the same level of priority as all other unsecured creditors bar the Revenue.

Sponge Bob

I would be surprised if they could liquidate what they have at more than around €11-15m so the subbies will get up to half but could be waiting years for it. The apartments in the Claddagh would be their most valuable single asset but even that will not fetch more than €2m I'd say and cost a lot more to buy and build.

Storm 10

What about the people whose house was damaged where they are to build the Art House cinema how will they fair out, speaking of the Art House I see where the one in Dublin closed due to rent increases and not pulling in the punters so if they think it will be a success in Galway I doubt it.

Another white elephant

chickendinner

Robbo wrote: »

Can I spoil the fun and point out that having a receiver appointed is not the same as going into liquidation (voluntary or otherwise).

You can ruin just about any thread with facts...

dell1211 wrote: »

Who mentioned liquidation? people were talking about subcontractors getting burned in a big way which is what happens with a receivership

Exactly

Robbo wrote: »

Not necessarily. If a receiver manager seeks to keep on trading, they'll need to have the subcontractors onside if there's to be any progress made. Other than that, subcontractors have the same level of priority as all other unsecured creditors bar the Revenue.

If you had knowledge of said company, you would realise subcontractors are screwed.

Robbo wrote: »

You can ruin just about any thread with facts...

You can ruin just about any thread with irrevelant facts thats nobody was questioning.

Robbo

chickendinner wrote: »

Exactly



If you had knowledge of said company, you would realise subcontractors are screwed.



You can ruin just about any thread with irrevelant facts thats nobody was questioning.

I'd see my posting as stating the factual position rather than resorting to the kind of rampant speculation that skirts the defamation minefield. Moreover, I'd regard the kind of fatalistic posting that "the subbies are screwed" as being the kind of self fulfilling prophecy that would hasten the demise of a faltering company, but if that's your level of concern for the subcontractors, so be it. I'm sure your whispering campaign will pay their bills into the future.

chickendinner

Robbo wrote: »

I'd see my posting as stating the factual position rather than resorting to the kind of rampant speculation that skirts the defamation minefield. Moreover, I'd regard the kind of fatalistic posting that "the subbies are screwed" as being the kind of self fulfilling prophecy that would hasten the demise of a faltering company, but if that's your level of concern for the subcontractors, so be it. I'm sure your whispering campaign will pay their bills into the future.

Would it not be a factual position to suggest when a major construction closes down, the majority of people who get screwed over are the subcontractors?

dell1211

Robbo wrote: »

I'd see my posting as stating the factual position rather than resorting to the kind of rampant speculation that skirts the defamation minefield. Moreover, I'd regard the kind of fatalistic posting that "the subbies are screwed" as being the kind of self fulfilling prophecy that would hasten the demise of a faltering company, but if that's your level of concern for the subcontractors, so be it. I'm sure your whispering campaign will pay their bills into the future.

Ive worked on plenty of receivership's and its always the unsecured creditors that get screwed and in this case it will be the subbies

In this case the bank has a charge on some assets and they get first dibs, then the other secured creditors and the revenue and then the unsecured creditors get whats left. In all the cases ive worked on there is rarely any money left after the first few get their share and if there is its never usually more than 20c in the euro, if the subbies weren't going to get screwed then that would mean that there is enough money to pay them after the preferential creditors, and if that was the case then the company would not be in receivership,

If its a case that the company is sold by the receiver as a going concern then the creditors will be asked to vote on it and they nearly always take whats offered which again is rarely more than 20c in the euro

its as simple as that

Robbo

chickendinner wrote: »

Would it not be a factual position to suggest when a major construction closes down, the majority of people who get screwed over are the subcontractors?

dell1211 wrote: »

Ive worked on plenty of receivership's and its always the unsecured creditors that get screwed and in this case it will be the subbies

In this case the bank has a charge on some assets and they get first dibs, then the other secured creditors and the revenue and then the unsecured creditors get whats left. In all the cases ive worked on there is rarely any money left after the first few get their share and if there is its never usually more than 20c in the euro, if the subbies weren't going to get screwed then that would mean that there is enough money to pay them after the preferential creditors, and if that was the case then the company would not be in receivership,

If its a case that the company is sold by the receiver as a going concern then the creditors will be asked to vote on it and they nearly always take whats offered which again is rarely more than 20c in the euro

its as simple as that

Yes and yes to both posts. But's let's not conflate this with a liquidation which it isn't for the time being, that's been my point all along.

kinetic

Subbies will get nothing. Thats what let building companies get so big so quick in this country, because subbies have no rights whatsoever
and were bullied and shafted while big companies got richer and richer.

Mrs OBumble

kinetic wrote: »

... because subbies have no rights whatsoever
and were bullied and shafted while big companies got richer and richer.

So why did they do subbing then?

Provizer

Check this out!! CORDIL backwards. How creative!!

COMPANY NAME: LIDROC CONSTRUCTION LIMITED
Registered Number: 494972
Company Type: PRIVATE LIMITED BY SHARES
Incorporated: 14/02/2011
Company Status: NORMAL

Sponge Bob

Domain Lidroc .com registered by a Galway company for a client

http://www.whois-search.com/whois/lidroc.com

Created on the 16th of June 2009 . There is planning for ya

dell1211

JustMary wrote: »

So why did they do subbing then?

Industry practice, if you are a subbie for a large builder you have to give credit or you get no work. Just like most industries really....

Toon--soldier

dell1211 wrote: »

Industry practice, if you are a subbie for a large builder you have to give credit or you get no work. Just like most industries really....

Not entirely true if the sub-contractor is a nominated sub-contractor (quite common in Ireland) they sign a contract directly with the client and not the main contractor.

galwayrush

kinetic wrote: »

Subbies will get nothing. Thats what let building companies get so big so quick in this country, because subbies have no rights whatsoever
and were bullied and shafted while big companies got richer and richer.

Thankfully i did not get caught with this company, but i have been done by quite a few companies in similar circumstances. Liquidator, Vat, Tax and Banks, they come first, and will get 100% of what they are owed if there is enough there, if there is anything left over after those 'preferencial' 'clients' get theirs, the remainder is divided between other debtors, but at that stage, there is usually nothing left.
I had 4 such problems last year alone, only one had some money left after the rich elite got all theirs, i got 3.5 cent in the euro.
I now have a tax problem because of such a ****ed up system, there is no help available for the self employed. Is something is not done about this unfairness soon, people will take the law into their own hands.

Provizer

Toon--soldier wrote: »

Not entirely true if the sub-contractor is a nominated sub-contractor (quite common in Ireland) they sign a contract directly with the client and not the main contractor.

Being nominated is not common at all now. Not with the new Gov. contract, you can be a novated but it's rare. The Gov. contract is all about pushing the risk onto the MC and they are supposed to price that risk into their bid, but with the crazy below cost pricing last year, coupled with the new contract it's all coming home to roost now. The Gov. need to have much tighter checking procedures for MC's before they award them these contract. It's the subbies and the taxpayers picking up the pieces now.

Sponge Bob

There should be a mandatory schedule of outpayments to subbies in the tender and 50% of the subbies payment + 100% of materials should be paid before the government will even entertain overrun discussions with the MC. As well as that that 50%+100% should be paid in full immediately on receipt of goverernment funds or the directors are personally liable for the cash ...big mansions and all.

The way many contractors operate is fraud, this should not be tolerated with public money.

emptybladder

Four former directors of Cordil Construction – which collapsed into receivership last week with debts of well over €30 million – are ‘going forward backwards’, after forming a new company called Lidroc Construction.
Lidroc was formed in mid-February and its four directors are Gerry Dillon, Padraig Higgins, Morgan Darcy and Tom O’Callaghan – all former directors of Cordil.
Meanwhile, the Receiver Manager’s staff began the lengthy process of trawling through Cordil accounts yesterday (Monday) morning and have already found that a series of contracts are tied up in arbitration.
Michael McAteer of insolvency specialists Grant Thornton was appointed as Receiver Manager over Cordil last Thursday night.
He is now also assessing the viability of ‘finishing out’ existing contracts, including the new arthouse cinema on Lower Merchant’s Road, the extension to the ‘Jes’ school and the new clubhouse for Hibernians Football Club.
All four directors of the new Lidroc entity (Cordil spelt backwards) were directors in Cordil, which was formed more than a decade ago by joint owners Gerry Dillon and Pat Corrigan.
According to documents filed with the Companies Registration Office on May 16, Tom O’Callaghan resigned as a director of Cordil, a change which was listed as having taken effect from last January.
On May 12, our sister newspaper, the Connacht Tribune revealed that Cordil had closed down its 15 sites around the country, with the loss of 51 direct jobs and more than 400 subcontractors’ jobs.
The company blamed restrictive clauses in Government contracts, and claimed to be owed around €4m by the HSE and the Department of Education for completed work and work in progress.
Attempts by the directors over the following fortnight to secure a temporary overdraft facility from bankers failed, and last Thursday, Mr McAteer was appointed Receiver Manager over the entire assets of Cordil by ACC Bank, which had a charge over all of the company’s fixed and floating assets.
Meanwhile, it has emerged that Cordil had suffered further cashflow problems because of a series of unpaid contracts which are tied up in arbitration and conciliation processes.

http://www.galwaynews.ie/19705-troubled-construction-firm%E2%80%99s-directors-form-new-company

Interesting sequence of events. Not-so-subtle signposting too LOL.

yosemite_sam

snubbleste wrote: »

Taxpayer seeks value for money - should be the headline of that article.

Cordill were a good firm to work for, paid up no messing even the retention. Not like most of the scum bag builders out there

yosemite_sam

kinetic wrote: »

Subbies will get nothing. Thats what let building companies get so big so quick in this country, because subbies have no rights whatsoever
and were bullied and shafted while big companies got richer and richer.

I heard there is aa new EU law coming in on that, From what I have heard the Company are owed by the Government far more than what is outstanding to the suppliers. I may not be right here, but their overdraft was taken away and that is where the problem is. But they are not alone, the banks have slashed loads of peoples overdrafts, me included

Provizer

yosemite_sam wrote: »

Cordill were a good firm to work for, paid up no messing even the retention. Not like most of the scum bag builders out there

What are you talking about? They owe me and a lot more people a lot of money.I am sorry if you worked for them and the way things have worked out for all Cordil's staff but don't try and tell me they "paid up no messing even the retention"...your going to pi$$ a lot of people off with that statement..and then you go calling other people scum bags! What's that about?
I have just joined Boards.ie because i would like to discuss statements like this and maybe give you some insight into my side of the story. I have done work for most of the contractors in Galway and around the country and I think I have a fair idea of what they are like.

kinetic

yosemite_sam wrote: »

I heard there is aa new EU law coming in on that, From what I have heard the Company are owed by the Government far more than what is outstanding to the suppliers. I may not be right here, but their overdraft was taken away and that is where the problem is. But they are not alone, the banks have slashed loads of peoples overdrafts, me included

Its not a new EU law.
Its been passed in the seanad and is set to go through the Dail. it basically gives subbies some much needed protection. i.e. a builder cannot hand over the project to the client until subbies have signed off with it and are happy with their payment.
I guarantee you a lot of builders would not have been in business here in the last 10 years if this legislation was in place.
A lot of the builders who are now out of business will not be missed in the trade.

Provizer

Where to next?

http://www.gmpenterprises.co.uk/Portfolio