Friday, January 25 14:24:24
The main contractor on a project to build a new E10m office for Pepsi in Cork has gone out of business with several sub-contractors threatening to blockade the site unless they are paid for work already done.
Brian McCarthy Contractors Ltd were the main builders on the project, but last week they ceased trading "due to the unavailability of profitable work".
A number of sub-contractors have already supplied Brian McCarthy Contractors with building materials and labour worth hundreds of thousands of euro, for which they are now unlikely to receive payment.
The potential blockade of the Pepsi building project in the city would not have arisen if the Government had passed the Construction Contracts Bill, according to the Construction Industry Federation (CIF).
The Federation said the Government's delay in bringing the Bill through the Oireachtas is leading to problems for construction contractors all over the country. The Bill has now been on the Oireachtas books for over 988 days.
The Construction Contracts Bill is a piece of legislation which seeks to ease the process of payments made to construction contractors. It removes the possibility of payments being withheld for extended periods of time.
In November last year another example of the problems caused by the delay in enacting the legislation came to light when subcontractors tried to remove materials from Kilfinane National School in Limerick. According to the CIF there are an increasing number of other conflicts along these lines happening all over Ireland.
"The problems at the Pepsi development are not the first high profile incident caused by the delay in passing the legislation," said CIF Director General Tom Parlon. "Late last year there was national coverage when subcontractors working on Kilfinane National School tried to remove fixtures and fittings from the school over payments that were not made."