Whitehall departments are actively monitoring ISG’s public sector jobs, as DfE says it will pursue all forms of redress on its contracts with firm

The government is working to minimise disruption caused by the collapse of ISG.

The fall of the contractor, which confirmed yesterday that it was set to go into administration, is the biggest corporate construction failure since Carillion subsided six years ago.

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While ISG is working on a number of public sector school schemes, the Department for Education said face-to-face learning would not be affected by its downfall

ISG, which posted turnover of £2.2bn in its latest results, found a major source of income in public sector work, with a particular focus on prison building.

A government spokesperson said today: “We have implemented our detailed contingency plans and affected departments are working to ensure sites are safe and secure.”

A Building analysis of the government’s Contracts Finder website, showed that, since the beginning of 2022, ISG was awarded roughly £175m worth of public sector contracts, some of which are ongoing.

Roughly £58m worth of public sector work won in this period came from the Ministry of Justice.

More on ISG

>> Offices closed and sites shut as ISG set to file for administration, chief executive confirms

>> Clients told to move quickly to find replacements for ISG, or risk sites being stalled for months

>> ISG staff vent frustration at firm’s collapse after weeks of uncertainty

>> Timeline: How ISG went from ‘wholly inaccurate’ claims about its financial health to ‘ISG has filed for administration’

>> ISG’s collapse: a huge blow to construction that raises urgent and difficult questions

The contractor was also appointed to public sector frameworks worth a combined £9.5bn over the same period.

Recent public sector work won by ISG includes a £43.5m contract with Coventry City Council to build a new “city centre cultural gateway” and a £13.9m contract with the Department for Education to renovate office space at St Pauls Place in Sheffield.

According to the DfE there are “robust” plans in place to mitigate impact on the school estate and the department is working closely to ensure schools and responsible bodies can find alternative ways to deliver projects.

It reiterated the diligence of its own procurement process and said it was working to minimise additional costs and would pursue all forms of redress.

No schools will be impacted in terms of provision of face to face education.

Coventry City Council has been approached for comment.

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