Surgo Construction - Administration

Surgo Construction, a Newcastle-based contractor which has been trading for over a century, entered administration on 14 March.

Over the past couple of years, the company has been involved in a payment dispute with house builder Bellway Homes. Last month, Bellway Homes issued a winding-up petition against Surgo Construction over a £1.1m outstanding adjudication settlement.

Joint administrator Steven Ross of FRP Advisory did not expressly refer to the issue with Bellway Homes, but said that Surgo Construction had “faced a number of challenges with projects in recent months that have been exacerbated by the headwinds facing the wider construction sector”, leaving the directors with no choice but to put the company into administration.

Ldf Finance No.3, White Oak UK (Cbils) and Barclays Bank have registered charges against the company.