好色先生TV

Subcontractors in the North-east have been left assessing the financial impact of yesterday鈥檚 collapse of Gateshead-based contractor Tolent, with some believed to be owed six-figure sums.

Administrators for the 40-year-old firm have made more than 300 staff redundant after it sank into administration along with five of its operating subsidiaries.

The demise of the business, one of the country鈥檚 best-known regional contractors, left subcontractors scrambling to offload now surplus plant and equipment and work out how much they are owed.

Dominic Snowdon, of Durham firm Snowdon and Wallace Groundworks, was working on a job for Tolent in Shildon, County Durham, building 15 bungalows.

He said his firm was looking for more work after losing 鈥渘ot only a lengthy job but also a sizeable amount of cash鈥�.

鈥淚t鈥檚 a big blow to not just myself but the rest of the supply chain and the region as a whole,鈥� he told 好色先生TV, explaining that the administration had left his firm 拢30,000 out of pocket 鈥� an amount he said he 鈥渧ery much doubts鈥� he will see anything of.

Snowdon had heard rumours that the firm was in trouble a few weeks ago but was reassured by the site manager on the Shildon job that 鈥渆verything was OK鈥�.

He said he was lucky to have been working for a newly formed Tolent subsidiary and was therefore only supplying labour and plant on the scheme.

鈥淗ad I been supplying the materials, I would have been gone. I would have lost everything,鈥� he added.

Administrator Interpath Advisory said Tolent had faced significant challenges in recent years including 鈥渞ising costs of raw materials, supply chain issues, material and labour shortages and the collapse of a number of developers, contractors and supply chain partners鈥�.

Snowdon said material prices were partly to blame but also highlighted the government鈥檚 decision to scrap red diesel as an aggravating factor.

鈥淵ou鈥檝e gone from paying 70p a litre for red diesel to 拢1.70 a litre for white diesel 鈥� that has a massive impact across the board,鈥� he said.

Snowdon said his firm would 鈥減ull through鈥� but that the mood in the region was 鈥渁 bit sombre鈥�, claiming some subcontractors are owed in excess of 拢100,000.

According to the administrators, losses on one particular project 鈥� the 拢85.5m Milburngate development in Durham 鈥� had a 鈥減rofound impact on the [Tolent鈥檚] working capital鈥�.

One ex-Tolent staffer told 好色先生TV blame for the 鈥渢ruly awful鈥� situation rested on the 鈥渟tupid鈥� decision to carry out the mixed-use scheme, which it began in 2019, in the first place. 鈥淭aking on a job too big [Milburngate] has killed a great company and put a lot of good people out of work,鈥� he said.

Neal Robinson, managing director at Billingham M&E firm Geoffrey Robinson, said the administration was 鈥渁 surprise鈥� but there were warning signs last autumn with an expected payment last November not being made.

鈥淏ecause we were so close to practical completion on both our main schemes with them, we didn鈥檛 hold the commercial view and allowed them time which looking back was the wrong thing to do,鈥� he said.

Robinson said the firm鈥檚 top line would be hit but that its cash reserves would allow it to 鈥渨eather the storm鈥�, adding that it would look to pick up 鈥渜uality new staff鈥� made redundant by Tolent鈥檚 collapse.

Asked whether Tolent staff were likely to have a hard time finding work in the region, he said: 鈥淚 would like to think that because the North-east is about to kick off with some fairly serious projects, most people will get a fix.

鈥淭here has been a huge increase in salary expectations across the region on the back of British Volt kicking off and this might just calm that market, which is another factor affecting smaller companies that just can鈥檛 sustain these large salary expectation increases.鈥�

Weston Malone, managing director at Gosforth mechanical services firm H Malone & Sons, said the loss of Tolent was 鈥渢errible news鈥�.

鈥淭olent have been a particularly good client of ours, we have delivered a number of high-profile schemes together over many years and have got to know their people very well. Really sad to see it end this way for them,鈥� he said.

鈥淎lthough we have been affected, we take it on the chin and move on, we have a strong order book with some fantastic clients who have been in touch to check on us and offer their support.鈥�

Andrew Rickaby, director at Wearvalley Groundworks and Civils, said Tolent鈥檚 demise was 鈥渁 big lump to swallow鈥� and 鈥渁 huge hit to our company鈥�, as he looked to offload vans and excavators which his firm no longer has use for.

Other subcontractors and suppliers in the region were quick to offer their support, with John Hounam, director at County Durham specialist Instaseal, saying: 鈥淚t鈥檚 devastating seeing so many [LinkedIn] posts from good people now looking for work and the knock-on effect this will have the subcontractors.鈥�

Sunderland-based regeneration specialist Re:gen has offered guaranteed interviews to anyone recently made redundant in the region鈥檚 construction sector, listing a range of vacancies from joiners and plasterers to legal counsel.