Work to complete a long-delayed new block of town centre apartments has hit trouble again after a second contractor hired by Wokingham Borough Council has run into money problems.
Geoffrey Osborne Limited was appointed earlier this year to complete the Carnival Place flats on Wellington Road after previous contractors ceased trading.
Osborne has now filed for administration, and the council is preparing to take over the site again ‘should this be necessary.’
A council spokesperson said earlier this week: “Wokingham Borough Council has been advised that Osborne Ltd, the main contractor at Carnival Place, has issued a notice of intent to appoint an administrator.”
The spokesperson said the council would ‘move to secure the site and complete the works should this be necessary’.
A total of 55 one-bed and two-bed homes were first expected to see residents move in during September last year, as part of initial plans to redevelop the Carnival Hub.
Construction first ground to a halt when the company building the flats – The Mid Group – went into liquidation in 2022.
The council announced in February this year they had appointed Osborne to finish the job, and that work had begun.
A statement from Osborne said: “The decision was reached after an 18-month program to restructure the firm to focus on the core construction business and following an extensive effort to secure new investment into the business.
“The company, with its advisors, are currently working with interested parties with the ambition that aspects of the business will be sold and will continue to trade.”
“Osborne has faced significant headwinds common to the entire construction over the past two years, fuelled by high inflation, the lingering impacts of COVID-19 and Brexit, and a slowdown in public sector procurement.”
It added: “Despite the management team ensuring the current business is profitable with a good pipeline of work, the business has struggled to secure the necessary investment to continue as a going concern.”
It is not known what the move could mean for the Carnival Place development as the administrator has not yet been appointed to make decisions.
Work appeared to have ceased, and the construction site had been secured on Wednesday morning.
The council spokesperson said: “It is premature for the council to comment further at this time.
“Given the risks inherent in all building contracts of this type, the council has rigorous policies in place to manage situations like this.”
Insolvency risk reporting company Red Flag Alert said it gave its clients more than six months warning to this week’s event, adding it has listed the company as a severe credit risk as far back as September 2023.
Wokingham Today reached out to trade publication Construction News, who confirmed it would be unusual, although not impossible, if Wokingham Borough Council had paid Osborne in advance for phases of the work it had commissioned.
