Statement by Minister for Education and Skills following the announcement that Sammon Contracting Ireland Ltd is being placed into liquidation

The Minister for Education and Skills, Richard Bruton TD, expressed his disappointment that Sammon Contracting Ireland Ltd (SCIL) has not emerged from examinership and is today being placed into liquidation.

The Minister said:

“I note with regret the confirmation by the Court-appointed examiner that it has not been possible to secure the survival of Sammon Contracting Ireland Ltd as a growing concern and that it is today being placed into liquidation. I know that this development will come as a particular blow to employees of the company and to its sub-contractors."

"As of today, Sammon Contracting Ireland Ltd was involved in the construction of one school building project – the Maynooth Education Campus – which consists of two new 1,000 pupil post-primary school buildings. This project was due to be completed in May 2019. Following the announcement of the liquidation, a retendering process will now need to be done to complete the school buildings. I have requested my department to provide me with a critical path for the completion of this campus project and to consider how each stage in that critical path can be delivered as quickly as possible – while also ensuring that the quality and integrity of the project is fully protected.”

The Department of Education and Skills can also confirm that SCIL formed part of a tender for the completion of construction of the Schools Bundle 5 PPP project following the liquidation of Carillion Construction Ltd. This PPP project encompasses five school buildings and one further education college across four sites in Bray, Wexford, Carlow and Kells. The tender process to identify a replacement contractor or contractors for the completion of the buildings and for facilities management services is at an advanced stage.

The SCIL examinership which commenced on 5 April, and now liquidation, has added additional complexity to the process of confirming the arrangements for completion of the Schools Bundle 5 schools. The arrangements are currently being worked through by DIF (representing the PPP company), the Project Funders and the National Development Finance Agency (NDFA), in close consultation with the Department of Education and Skills. The Project Funders anticipate that the pathway forward to completion of the schools will become clearer within the next fortnight. The school authorities have been advised of developments in relation to SCIL and will continue to be kept updated. It is still the case that the schools which are closest to completion remain best positioned to be finished for September and all efforts are being made to achieve this. The department is also working with the school authorities on any necessary contingency arrangements for September.