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Mon June 14 2021

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Galliford Try inherited liability for faulty Edinburgh schools

12 Apr 16 Galliford Try has confirmed that its 2014 acquisition of Miller Construction included contractual liability for four schools built by Miller in Edinburgh that have now been shut for structural safety fears.

Brickwork fell off Oxgangs Primary School in January
Brickwork fell off Oxgangs Primary School in January

While Edinburgh City Council has made contingency plans for the education of the 2,000 affected pupils, surveys at 17 recently-built schools are continuing. These are being carried out under the auspices of Edinburgh Schools Partnership, which is responsible for school buildings in the city.

Galliford Try today issued this statement to the City in a bid to calm investors after seeing its share price fall by more than 7% yesterday: “Galliford Try acquired Miller Construction in 2014.  In March this year we were notified that Oxgangs Primary School, built by Miller Construction more than 10 years ago, lost part of one external wall which blew off in Storm Gertrude.

“Oxgangs was built as part of Edinburgh's PPP schools programme between 2002 and 2005.  The programme, which comprised 17 schools in two phases, was managed by an SPV [special purpose vehicle], Edinburgh Schools Partnership.  ESP subcontracted the construction of the schools to a number of contractors including Miller Construction.

“Through its acquisition of Miller Construction, Galliford Try has contractual responsibility for four of the seventeen schools.  Remedial work required to remedy defects in those four schools is nearing completion and the costs are not material to the Group.

“Galliford Try takes its role as a responsible contractor very seriously and the safety of the pupils and staff is paramount.”

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