New homeless centre hit by fresh delays as builders go bust

11:00am Wednesday 3rd September 2008

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THE controversial relocation of a centre for York’s homeless people has been hit by another crisis after the firm involved in its construction folded.

Allerton Construction has gone into voluntary liquidation, meaning work on the new Peasholme Centre in York has stopped again.

A City of York Council spokeswoman said the news would “obviously” lead to further delays, and said the authority would work with receivers to try to get the building work back on course.

It is the latest in a series of problems to hit the project, which is already 14 months behind schedule, and costing £700,000 more than first anticipated.

The centre was being moved from its current home at Hungate to make way for City of York Council’s planned new headquarters, which is itself now in serious doubt.

Problems with the foundations have already caused lengthy delays, and Allerton’s collapse is set to push completion back by several months more.

Local Green councillor Dave Taylor said: “This is another sad episode in a catalogue of inter-linked errors by the council.

“The Peasholme Centre need not be demolished, Fishergate Business Centre need not have been demolished, and the council’s HQ building could have been a whole lot better. While I’m sorry for Allerton Construction, the firm’s demise just adds to the delay and chaos of this ill-conceived council project.”

Labour leader David Scott called the news a “great concern”.

He said: “We know that the Peasholme Centre was already over budget and delayed. This news just adds to fears that this centre will now be even further behind schedule, cost more and cause more concern for the residents at the centre.

Liberal Democrat council leader Andrew Waller said: “Clearly, this is an unfortunate situation for the company, and I’m sure officers at the council will be doing what they can to work with the receivers to get the work completed.

“This is unfortunately a situation that is happening to many building companies across the country.”

He said he was sure the council would still get the centre completed as quickly as possible.

Callers to Leeds-based Allerton were yesterday greeted by an answer machine message, advising them to contact accountants Armstrong Watson.

One sub-contractor, who claims he is owed money by the company and who contacted The Press, said: “I’m owed hundreds of pounds through some sub-contract work I have done for them, but when you phone them it redirects you straight to the receivers. I doubt I’ll ever get any of it back.”

A spokeswoman for Armstrong Watson said: “We are taking steps to place the company in liquidation. Letters are being sent out today and tomorrow to all known creditors inviting them to a meeting at our offices on September 22. We are unable to say any more at this stage.”

A City of York Council spokeswoman said: “The council’s property services team is working with its partners to protect the authority’s interests following the news that Allerton Construction has gone into voluntary receivership.

“The announcement will obviously cause further delay to the delivery of the new centre. We will be working with the receivers to establish their intentions and to take appropriate actions to complete the project.”

Timeline

2006: There is controversy over the relocation of the Peasholme Centre, which is earmarked for demolition to make way for City of York Council’s new HQ at Hungate. A new site is found next to the Masons Arms pub in Fishergate. The predicted cost is stated as £1.3 million.

April 2007: The design of the new centre draws criticism. English Heritage said it was “very disappointed”. A local resident dubs it an “appalling monstrosity”. But the building is approved after a fiery planning meeting.

November 2007: The Fishergate Business Centre is demolished to make way for the new Peasholme Centre.

January 2008: Problems are discovered with the foundations in Fishergate, leading to delays.

March 2008: Continuing problems mean completion is not expected until just before Christmas.

July 2008: The council withdraws the planning application for its Hungate HQ, placing a question mark over whether Peasholme even had to be relocated.

August 2008: The predicted completion date is put back again, to January. The estimated final bill is now put at £1.995 million.

September 2008: Builders Allerton Construction enters voluntary liquidation, leaving the project at a standstill.