ISG’s collapse has sent shockwaves through the UK construction sector, placing many projects in peril and putting a number of subcontractors in a precarious position.
But while many commentators have focused on ISG’s £1.15bn-worth of government projects, its private sector workload is even greater.
According to Glenigan, industrial, commercial and private housing projects on ISG’s books total more than £2.8bn.
Overall ISG currently has projects totalling over £2.5bn on site and has been awarded contracts on a further £1.7bn of work yet to start.
This means that 33 awarded contracts, 57 projects in progress on-site and three imminent completion have been left up in the air. This includes:
- Fujifilm Diosynth Biotechnologies Facility in Billingham, Cleveland – a £200m contract
- Slough Data Centre Campus Phase 2, Berkshire – £200m
- Institute of Neurology for University College London – £158m
- A data centre for Vantage Data Centers in Ealing – £150m
- A data centre for Colt Data Center Services in Hillingdon – £150m.
ISG was also on 19 construction frameworks with a combined value of more than £104bn.
Glenigan economic director Allan Wilen said: “ISG’s demise is set to dampen overall industry workload in the near term as clients look for contractors to complete projects currently on site and as recently awarded projects are re-tendered. Its subcontractors and suppliers will be under increased financial pressure and contractors’ nationwide will need to review and work with their own supply chains to minimise financial stress and avoid any additional loss of industry capacity.”
