Contractors have spoken of the ‘sickening’ blow left from the collapse of Dawnus which has left them out of pocket by hundreds of thousands of pounds.

The Swansea based company went into administration last Friday - with hundreds of people losing their jobs, projects and contracts left unfinished, and a massive financial black hole for dozens of North Wales firms.

Among the contracts in this region was a recently completed business centre in Llangefni and a multi-million pound flood defence scheme in Beaumaris.

Anglesey based John Kelly Construction was involved in both projects and is now counting the cost.

They were owed £100,000 from Dawnus for the work on the business centre and believe the Beaumaris flood scheme will cost them £75,000.

Dawnus was the contractor on the Beaumaris Flood Alleviation Scheme

It also means plant and workers that were due to be part of the flood scheme until June could soon be stood idle as the company searches for replacement projects to fill that gap.

Llandudno based Ombler Williams has taken a £60,000 hit on the business centre scheme after completing the internal fit-out of the building, which was finished in December.

The £500K black hole

Contractors believe in total North Wales firms could be £500,000 out of pocket from that project alone.

Anglesey MP Albert Owen says more protection for small firms involved in these projects must be brought in.

John Kelly, of John Kelly Construction, said: “It is shocking and it is wrong that this has been allowed to happen, there needs to be more protection for small businesses involved in these contracts.

“It is sickening for us and all the other small contractors that will be affected.

“We have lost £100,000 from the business centre. It’s an irony that a contract to create a centre to support small businesses will actually leave 20 firms out of pocket and suffering.

“We worked on that scheme for nine months and will make nothing from it.

“We think Beaumaris will cost us £75,000 at least and then there is the work we could have been going for if we didn’t have plant and workers there.

Dawnus was the contractor on the Beaumaris Flood Alleviation Scheme

“This project was due to end in June, we now need to find work to keep our workers busy.

“There must be millions owed across North Wales, a lot of businesses are suffering.”

He added: “We are a local firm, we spend money locally and our profits are spent in this area.

Losing money will have big impact

“We have bought a site for a new headquarters and office, we wanted to expand to employ more people on Anglesey, but we are now £175,000 out of pocket and this has to go on hold.”

Dave Ombler, director at Llandudno based Ombler Williams, said: “The business centre project was completed in December but we never received the final payment. I don’t think there is any chance now.

“Losing that sort of money will have a big affect on us.

Dawnus construction workers building a roundabout on the A470 at Dolgellau by-pass junction
Dawnus construction workers building a roundabout on the A470 at Dolgellau by-pass junction

“We are busy so it will not impact jobs but this could affect bidding on some future projects as you need capital in place.

“It will also put us off going for future contracts with national firms like this.

“We calculate that in total around £500,000 may be owed North Wales firms from the Llangefni project. This is money that should have gone into local companies and the local economy.

More protection needed

“In the future there needs to be more protection for local firms, like a bond paid by the contractor.”

Island MP Albert Owen said: “This is serious news for those facing the loss of their jobs and local businesses taking a financial hit.

“As a member of the British Select Committee, we are looking to change how these companies are awarded contracts and audited. Carillion should have been a warning to governments, both local and central, and that ‘big’ is not always best and local companies must have proper protection in these contracts.”