Clients are scrambling to reappoint contractors after ISG’s UK subsidiaries filed for administration.
Some have moved to secure the safety of sites while others have sought to reassure the public they are taking steps to manage the impact, including finding firms to finish jobs.
Queen Square – £281.6m
One of ISG’s largest ongoing projects was a neurology centre for University College London (UCL). The new home for the university’s Queen Square Institute and hub for UK Dementia Research Institute was due to open to students and researchers for the 2025 academic year.
A UCL spokesperson said that while ISG’s insolvency was “disappointing news”, it had contingencies in place for the eventuality.
They added: “We will now consult with other construction companies and our project’s incumbent suppliers, to ensure this pioneering project is delivered, and the hard work of all those involved is rewarded.”
Fairwater Community Campus – £110m
Cardiff Council appointed ISG in 2022 as preferred bidder to design and build a new education campus joining three schools.
Last Tuesday (17 September), the council joined the contractor in celebrating the topping out ceremony. Three days later it was compelled to issue a statement as the project’s future was thrown into doubt.
In the statement, the council said it had been informed ISG had filed for administration and it was working to resolve the contractual situation so its interests were protected.
The statement added: “Our immediate priority is to ensure that the site of the project remains safe and secure and we will work to ensure subcontractors get paid for the work they have completed to date.”
UCB Windlesham – £60m (Glenigan estimate)
ISG had been building a new Surrey headquarters for global pharmaceutical company UCB, which included a three-storey timber building designed by celebrity architect Thomas Heatherwick.
UCB told Construction News it stopped working with ISG in April. It was unclear at the time of publication whether the firm was taken off the project or had completed its role.
Coventry City Centre Cultural Gateway – £44m
A scheme to convert a former IKEA into a culture hub for Coventry was the last contract win that ISG announced before chief executive Zoe Price told staff the firm was up for sale. At the time, construction was expected to be completed in 2025.
Coventry City Council said it had contacted project partners as it considered its next steps.
Caerphilly Leisure Centre and Wellbeing Hub – £33.6m
Planning permission for a new leisure facility in the Welsh town of Caerphilly was granted only a few months ago. A Caerphilly County Borough Council spokesperson said it was aware of main contractor ISG’s insolvency and is currently seeking clarification and further details.
“We remain committed to progressing the new leisure and wellbeing hub and will consider any impacts arising from this emerging news,” they added.
Moseley Road Baths – £33m
ISG announced it had won the contract to restore the 120 year-old listed swimming baths in Birmingham at the end of August, adding that it would erect scaffolding for crucial roof and facade repairs in September.
In a joint statement, Birmingham City Council and Moseley Road Baths said: “We are aware that ISG Ltd, our main contractor for the Moseley Road Baths Diving In project, has notified us of its intention to appoint a receiver. Where requested, we will work closely with the receiver over the coming days.”
Woodlands Meed College – £21.6m
West Sussex County Council confirmed works were suspended on the Woodlands Meed College project.
“We are extremely disappointed at this news and had no prior warning that this was about to happen,” it said in a statement. It added that it would seek to complete the works as soon as possible, potentially with another contractor.
Ysgol Y Deri – £20m
ISG started work on expanding a school for pupils with complex physical, health and educational needs in April this year.
The chief executive of Vale of Glamorgan Council confirmed that construction stopped after ISG entered administration.
He added: “The council is fully committed to delivering this much-needed expansion to additional learning needs provision in the Vale of Glamorgan and is working with its partners to identify new contactors to deliver the scheme and minimise any disruption to the programme.”
Orchard House Secondary School – £16m
ISG celebrated completing the steel frame at Orchard House Secondary School in Manchester just a week before its demise. The school was due to welcome 150 pupils with additional educational needs in the 2025 academic year.
A Manchester City Council spokesperson said it was taking advice on next steps, and remained committed to ensuring the school opens to pupils as planned.
HiVe and Ysgol Gymraeg Tredegar – £12m and £13.5m
ISG had two ongoing projects for Blaenau Gwent Council: the High Value Engineering (HiVE) facility and Ysgol Gymraeg Tredegar primary school.
The council was awarded £12m in central government funding to convert a former factory into an engineering-focused post-16 education centre. Work had been due to complete in July 2024, ready to welcome students this autumn.
Meanwhile, work on the primary school had already slipped in schedule and doubled in budget, from £6.2m in September 2022 to £13.5m in December 2023.
Blaenau Gwent Council said it had terminated its contract with ISG for both projects and taken the sites into its control. It admitted a “high likelihood” the completion dates of both projects would be affected, adding that ISG’s insolvency was “unforeseen and beyond our control”.
The council added: “We can confirm that we are working with the Welsh Government and all other key partners to ensure both projects will continue to be delivered. We will be able to provide further information in due course.”
