Work on the construction of a new £7.7m building at Ulster University’s Magee campus in Derry will not restart for several months, it has been revealed.
It emerged last month that the company in charge of the construction of a new teaching block Derry campus had gone into administration, resulting in work on the building being halted.
The university has now said it will be ‘late summer’ before the work is expected to restart.
T&A Kernoghan Ltd won the contract last year to build the new teaching block at Magee.
The foundations and steel work on the building have been completed (pictured).
When a company is put into administration, it means that it does not have sufficient funds to continue trading.
If the company cannot be saved then it usually goes into liquidation which means that everything is sold off to pay its debts.
The difficulties faced by T&A Kernoghan have had a huge impact on other companies involved in the construction of the teaching block at Magee.
It is understood a number of local companies have not been paid for the work they have already carried on the teaching block on a sub-contract basis from Kernoghan’s.
These companies now face the prospect of losing huge amounts of money.
A source within the construction industry said some of the smaller companies involved could themselves struggle to survive following this latest blow.
Work on the teaching block started last September and had been due to be finished by March next year.
The project involves the construction of a new four-storey teaching block adjoining the existing library.
The new building will provide teaching facilities, lecture theatres, 20 classrooms and a café.
An Ulster University spokesperson said the original completion date for the new teaching block was March 2017.
“However, the main contractor entered administration on 3 May 2016 and as a result, all construction works have ceased.
“A process has been established, aimed at minimising the impact on the University, for the appointment of a new contractor to complete the works.
“The new tender process is programmed to complete in mid-July with construction works expected to restart in late summer 2016 and complete in Autumn 2017.”
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