Lucas Ross have been jointly appointed as Administrators with FRP over North East based construction giant and shortlisted property awards candidate, Surgo Construction Limited.
Surgo was a company with a rich history spanning over a century and was renowned for its reliability and expertise in delivering diverse construction projects across various sectors. It delivered notable projects including Bede 6th Form College, Dame Allan’s School and South Tyneside Council’s South Shields Crematorium refurbishment. The latter of these projects saw it shortlisted for the Contractor of the Year and Retrofit and Refurbishment awards at the highly competitive 2023 Insider NE property awards.
Despite these accolades, Surgo lost an adjudication with a supplier, Roundel Manufacturing Limited, in relation to the supply and installation of kitchens for a development for Bellway Homes. Surgo was ordered to pay over £180,000 to Roundtel, which it assessed on a ‘true value’ valuation.
Roundtel assigned their rights to the ultimate customer, Bellway Homes, who then took Surgo to court seeking a summary judgement. Surgo lost and the court awarded summary judgement leading to Bellway seeking to petition for the winding up of the company.
Sadly, this led to Surgo’s financial woes culminating in its administration, signalling a dramatic turn of events for the company and its employees. The announcement has left many shocked and saddened, with employees now facing an uncertain future following their redundancy days before it fell into administration.
The Administrators will now take charge of Surgo’s affairs as its stakeholders begin to grapple with the implications of its collapse.
As the administration process unfolds, stakeholders will be closely monitoring developments, hoping for a resolution that minimises the impact on local suppliers, its lenders and HM Revenue & Customs while offering insights into the circumstances surrounding Surgo’s downfall.
Stephen Lancaster commented that “Surgo’s administration serves as a stark reminder of the fragility of success in today’s economic climate, highlighting the unpredictable nature of the construction industry and the challenges faced by businesses within it”.
