Shropshire Star

Builder of £3.5 million flats is in administration

A construction company tasked with building a flagship £3.5 million development has gone into administration.

Published

It has been revealed Jistcourt, which has a contract to build 26 flats at the Bowling Green site in Back Lane, Newtown, for Powys County Council, had gone into administration.

Work was supposed to start on the Mid Wales project on June 17 but the site has been closed and sub-contractors involved in the development were given “verbal notification” the firm had gone bust.

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.”

Risk

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

Plaid Cymru group leader Elwyn Vaughan added: “Following the experience 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 this 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 the council’s first affordable housing development for social rent commissioned in over 40 years.

Yesterday, the council’s economy, residents, communities and governance scrutiny committee was to receive a report on future building projects as the authority looks to build 250 homes by 2023 – including the bowling green development.

The report said the building was to be completed by September 2020.