Willmott Dixon has made a £10.3m provision to settle all claims against it relating to cladding and fire-safety remediation on completed projects.
The contractor’s full accounts for the year ending 31 December 2020 reveal that the provision is a rise on the £6.2m figure set aside in 2019. The directors have forecast that remediation costs could range from £3.3m to £13.6m in the next one or two years, adding that £10.3m was considered an appropriate figure to set aside.
Group chairman Colin Enticknap said: “A smaller but still material impact related to the evolving and increasingly complex issue of cladding and fire protection to previously completed buildings, where a natural desire to ‘draw a line’ under the financial uncertainty, led us to conclude upon the need to increase our previous provision. The adjusted figure, which stood at £10.3m, now reflects our view on the group’s liability net of insurance recoveries to settle all claims.”
The number of administrations in the sector in December was at its highest level since May,
Construction News can reveal.
A total of 20 firms collapsed in December, up from 19 in November and just seven in October, according to data provided by Creditsafe. In May, the total number of new administrations was 34.
The final quarter of 2020 had the least administrations with a total of 46 firms going under during the period. The average number of firms collapsing per month decreased throughout the year, from 30 per month in the first quarter, to 20 in Q2 and 18 in Q3.
Construction Products Association economics director Noble Francis said: “The indications are that activity in December was similar to November, which is buoyant in housing new build and refurbishment, as well as infrastructure activity, while activity was falling away on schools, hospitals, factories and some parts of the commercial sector.
Willmott Dixon lands £63m resi scheme in Bristol
Willmott Dixon has won a £63m residential scheme for Cubex in Bristol.
The project will see 297 apartments built across two buildings on the former headquarters of Avon Fire and Rescue Services at Finzels Reach.
Rental specialist Grainger has agreed to fund the 14-storey larger building, Millwrights Place, while a deal has been agreed with Yarlington Housing Association for the 10-storey Coopers Court next door.
It is the fourth project Bristol-based Cubex has chosen Willmott Dixon to deliver in the city. The firm is currently working on the nearby £33m Halo office scheme for the same client.