Critical day for Connaught contract talks

Crunch talks take place today over Connaught Partnership’s 280 contracts as administrators KPMG try to get as many sold on as possible before the end of the day.

Companies including Mears, Kier and Morgan Sindall have indicated their interest in the contracts, although it is thought they possibly want to renegotiate terms on much of the work.

One source close to the talks said: “The administrators clearly want to package as many contracts as possible on day one.
“But it depends on the terms of each one. Some may be trickier than others, and this is clearly quite a messy affair.”

As well as scouring over the potential profitability of the contracts, the parties have to be wary of possible legal complications, with most of the deals coming from public sector clients. Lawyers have warned that some contracts may have to be retendered.

Connaught continues to trade as usual today, with vans going to sites, and subcontractors and staff being promised pay for work they carry out, sometimes on a daily basis.

Connaught Partnerships fell into administration on Tuesday night, becoming the largest victim of the recession so far.