School construction company goes bust

The building company that had originally been chosen to construct a new £9.1 million special school near Newtown has gone bankrupt.

ISG Construction went into liquidation on Friday, leaving several school and further education building projects across Wales in jeopardy.

Powys County Council confirmed that it parted ways with ISG on the project to build a new special school on land next to the Grade II listed Brynllywarch Hall on the outskirts of Kerry last year.

In 2022 it was announced that ISG Construction Ltd was commissioned by the council to complete the design stage of the project with an option for the company to carry out the building work.

A council spokesman said: “ISG Construction completed the design phase and following this, the council carried out a review of the project and took the decision not to progress with the construction phase until a further market testing exercise was carried out.

“A new competitive tender exercise has been undertaken and the submissions are currently being analysed by the council.

“We anticipate that the new contractor will be announced later in the autumn.”

The planning application was lodged with the council in May 2023.

The proposal faced opposition locally with 34 objections including one from Kerry Community Council lodged against the scheme.

The objectors believed the new school should be built on a brownfield rather than a greenfield site.

There were also concerns about the future of Brynllywarch Hall as it would no longer be used as a school.

A month later the process was halted as Welsh Government planning inspectors considered a request to call in the application and take over the process of deciding the application.

Despite this, the plans were approved by the council’s Planning committee in January.

In March, Welsh Government planning inspectors confirmed they would not be “calling in” the application which allowed the planning approval by councillors from January to come into force.

By Elgan Hearn, Local Democracy Reporting Service