Lansgrove Limited (09096325): administration
- Status
- Administration ended
- Administration began
- 2024-07-11
- Administrators' firm
- Bretts Business Recovery
- Incorporated
- 2014-06-20
- Location
- Dartford
- Industry
- 41100 Development of building projects
Why it went into administration
- COVID-19
- Creditor pressure / legal action
- Loss-making contracts / project overruns
- Weak consumer demand
- Rising costs / inflation
- Property / lease costs
- Competition / price pressure
From the administrators' statement
Covid19 — The Company’s Employers are generally based overseas and with lockdown restrictions imposed in 2020, tenders ceased almost overnight - the industry came to an abrupt halt and consequently, new projects due to commence we're either postponed or shelved indefinitely. This, coupled with the ‘lockdown’ delays to live projects marked the beginning of a challenging series of events.
All the Company’s projects are under the JCT form of contract, which at the time, made no provision re parties’ responsibilities in a pandemic situation. At the time JCT effectively provided that the contractor is responsible for the delays relating to Covid19 and the associated costs — this has been addressed in subsequent revisions of the JCT suite. The Joint Contracts Tribunal (JCT) publishes a suite of standard form contracts which are commonly used in construction projects in the UK. Established in 1931, the JCT is comprised of a number of contributing organisations, including the British Property Federation, the Contractors Legal Group, RIBA and the RICS.
Employers and Cost Consultants alike used the scarcity of projects as a negotiating position to drive down tender pricing, whilst the impact of Covid was in fact driving material costs higher, labour too was becoming significantly more expensive.
Administrators' statement of proposals (2024-09-13) · Companies House register