Construction News

Sat September 25 2021

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Carillion subcontractor falls into administration

3 Apr 18 Mechanical & electrical contractor Vaughan Engineering Limited has gone into administration under the burden of a £600,000 debt owed to it by Carillion.

The collapse of Carillion in January had also reduced Vaughan Engineering’s order book to the tune of £1.1m for the first quarter of the year.

Vaughan Engineering Limited (VEL) is based in Broxburn, West Lothian. It also operates from Warrington and Newcastle in England.

Tony Friar, Blair Nimmo and Stuart Irwin of KPMG were appointed joint administrators of Vaughan Engineering Limited on 26th March 2018. Most of the 154 staff have been let go.

Blair Nimmo said: “Unfortunately, while VEL was a leading company in its field, the business was unable to continue trading in light of cash flow and recent events within the challenging construction sector.

“As a result of the difficult financial position facing the company, we had no choice but to make the vast majority of employees redundant.

“We will be working with all affected employees and relevant government agencies to ensure a full range of support is available.

“We will also be exploring the possibility of securing a sale of the company’s assets and contract novation’s and would encourage any interested parties to contact us as soon as possible.”

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