Council monitoring construction firms

Powys County Council (PCC) said the move is in case the firms run into difficulties during the coronavirus pandemic. The council has faced problems in the recent past with the collapse of Dawnus and Jistcourt last year.

At a meeting of the authority's finance panel on Thursday Cllr John Morris, who is also the chairman of the audit committee, said: “Obviously we have a rather large capital programme and it’s about the viability of some contractors going forward and whether we are able to monitor that?

“We all know about Dawnus and Jistcourt and we need to keep this on the agenda.

“Some of these contractors may be at risk,”

PCC's Head of Finance, Jane Thomas, said: “We are monitoring the situation on a daily basis.

“Some contractors have suspended work, while others are still working or coming back online.

“It depends very much on whether they can operate safely due to the social distancing requirements.”

Ms Thomas added that one of the measures being taken by PCC during the pandemic was to set up a “Supplier Relief” scheme.

This would support firms who provide services to the council to remain viable.

But she warned that this would be reliant on “open book accounting.”

In March 2019, Swansea-based construction firm Dawnus collapsed affecting three school building projects in Powys.

They left Welshpool Church in Wales Primary School half built.

They had been expected to build the new Ysgol Bro Hyddgen all through (4-18) school in Machynlleth and Ysgol Gymraeg y Trallwng, a new Welsh medium school.

In January, Shropshire based builders Pave Aways were contracted to finish off building the Church in Wales School in Welshpool

Before the pandemic struck, work had re-started on the other two school building projects, which still need to go through the planning process.

Jistcourt were supposed to build 26 flats for PCC at the former bowling green just off Newtown town centre.

They went into administration at the end of June 2019.

In September 2019, PCC’s Audit Committee held a special meeting to probe the downfall of both Dawnus and Jistcourt.

They concluded that the Welsh Government should have shared information with local authorities about Dawnus’ precarious financial situation.

Before being given council contracts members also wanted to see more rigorous checking of companies financial health, looking in greater depth including director turnover, before being given council contracts.