Subcontractors who helped build Amazon’s massive new warehouse in Dublin claim that the project’s main contractor – British construction giant ISG – owes them millions of euros in late payments.
Amazon’s 630,000-square-foot facility in Baldonnell Business Park opened earlier this month, but several subcontractors have been in talks Sunday independent stated that they were struggling to get paid in full by ISG for invoices totaling at least €4.5 million.
ISG insisted the payments “were in line with standard practice”. But the Irish Plant Contractors Association (IPCA) has written to the Competition and Consumer Protection Commission (CCPC) asking them to investigate after receiving “worrying complaints” from their members. The CCPC is currently examining the more than EUR 1 billion takeover of Jones Engineering by the ISG parent Cathexis.
IPCA’s Brian Coogan said in a letter to the CCPC that “ISG’s continued failure to pay uncontested bills … and continued failure to pay its subcontractors appropriately and on time” is “materially affecting” cash flow and finances. Forecasts for various subcontractors.
“The repeated and consistent nature of the complaints received and reported against ISG is, in our opinion, of serious concern and warrants further investigation on your part,” he wrote.
A specialist sub-contractor said he now fears a backlog of payments could put him out of business.
The subcontractor said the delay in receiving payment meant he was unable to pay for the materials used in the job.
“We’ve paid our wages, but we’re well overdue on the materials, and my major concern is that the suppliers will foist a settlement notice on us,” the company owner said Sunday independent.
“It can happen any day now. Suppliers on the continent have rigid payment regimes and do not understand such a scenario.
“We’ve been in business for a long time, but this is the direst situation we’ve ever faced.”
Other subcontractors said the problem caused them serious cash flow problems.
One claimed hundreds of thousands of euros remained unpaid even after the Department of Enterprise’s Construction Contracts Adjudication Service ruled in their favour.
The owner of another large subcontractor who claims to have owed ISG millions said the issue has “caused us significant financial pain and our supply chain has suffered.”
Late payments began towards the end of the project when ISG issued notices outlining counter-fees to recover the amount owed, he claimed.
When contacted, an ISG spokesperson said: “Our supply chain partners are an integral part of our business success and therefore prompt payment is a primary focus and cornerstone of our operations, as is our consistent industry-leading performance in the UK Bi-Annual Construction Sector Payments Performance Rankings.
“Our Baldonnell Business Park location is now complete. As usual, we are working with our supply chain to complete the final settlement.”
Mountpark Developments, the owner of Baldonnell Business Park, which has a number of tenants including Amazon, did not take the opportunity to comment.
https://www.independent.ie/business/irish/amazon-site-builder-in-payments-row-41939333.html Amazon Site Builder in the payment line