17/10/24
Cardiff Council has developed plans to safeguard the £108m Fairwater Campus project from the fallout of ISG Construction Ltd going into administration.
The council hopes its emergency proposals will save hundreds of jobs, minimise delays and costs, and ensure the project remains on track with minimal disruption.
After ISG Construction Ltd went into administration on 19th September 2024, the council took immediate steps to secure the site while developing plans to get the project up and running as soon as possible. The council has been working closely with the administrator and external advisors to deliver an emergency plan that ensures continuity. The council's primary goals are to get workers back on site as soon as possible, ensure workers are paid for work done, minimise delays, keep costs down, protect jobs, and safeguard the supply chain while protecting the public investment that has already taken place in what is one of the UK's largest education projects.
The council is now working on an urgent basis to novate the existing contracts to a subcontractor who had been working on the project. In practice, this means transferring sub-contractor contracts from ISG Construction Ltd to a new partner. This construction company will be in place on an interim basis until a full tender process can be held to find a contractor to take over the whole site and see the project through to completion. The re-tender will commence early in November.
Doing this will allow the council to maintain progress on the project without an extended stop period. Not doing this would result in work stopping on site for an extended period while a full procurement process is carried out. It would also lead to the dissolution of the supply chain, job losses, longer delays, and likely significant cost increases.
Despite the challenges, the council is focused on finishing this important project. The new Fairwater Campus will offer high-quality educational facilities, benefiting our community. The campus will include state-of-the-art facilities for Cantonian High School, Riverbank School, and Woodlands High School, providing modern educational environments for students.
At its meeting on Thursday, 17th October, Cardiff Council's Cabinet agreed the urgent action to begin novating the existing ISG contracts, and to commence a tender exercise for the remaining works to complete Fairwater Campus with the least possible disruption.
We appreciate the support of our residents and stakeholders as we work towards a better future for Cardiff's education system.
Timeline for Fairwater Campus Project:
- Immediate Actions (October 2024)
- Secure the site and ensure safety measures are in place.
- Employ the ISG site team on a short-term basis.
- Open communication channels with the supply chain and administrators.
- Continue working with legal and commercial advisors.
- Novation of Contracts to Supply Chain Partner (October - November 2024)
- Novate existing ISG contracts to a new partner.
- Ensure continuity of work on site with limited scope.
- Tender Process for Remaining Works (November 2024 - March 2025)
- Commence the tender exercise for the remaining works.
- Evaluate bids and select a new main contractor.
- Recommencement of Remaining Works (March 2025)
- New main contractor takes over the project.
- Full-scale construction resumes on site.
- Completion of Key Milestones (2025 - 2027)
- February 2027 (phases earlier if possible)
- Final Inspections and handover.
This timeline aims to ensure that the project progresses smoothly and is completed with minimal disruption, safeguarding jobs, and maintaining the quality of the educational facilities.