Work has been paused on a new special needs school in the Vale following the collapse of a construction firm.
For the last five months, ISG was working on the £20 million Ysgol Llyn Derw, which was being built near Cosmeston Lakes country park.
But last week, the US-owned company ceased trading immediately after administrators were called in, with the loss of 2,200 jobs.
Vale Council confirmed that work on the new school has since been ‘paused’.
But the local authority insists it remains committed to the project, designed as a sixth form site for Penarth’s Ysgol y Deri, which is due to accommodate around 200 pupils.
In a letter, Ysgol y Deri’s executive headteacher Chris Britten told parents he had met with project leaders and council officials following ISG’s collapse on Thursday.
He said: ”They are still committed to delivering the school and are actively working with their partners to continue the build as soon as possible. As I get more specific details I will, of course, update you.”
The contractors had also been planning to fundraise for Ysgol y Deri by entering a team of runners for next month’s Cardiff Half Marathon.
Vale Council chief executive Rob Thomas said: “Construction on Ysgol Llyn Derw has paused…following lead contractor ISG entering into administration.”
“The council is fully committed to delivering this much needed expansion to additional learning needs provision in the Vale of Glamorgan and is working with its partners to identify new contactors to deliver the scheme and minimise any disruption to the programme.”
The group’s then-operations director, Kevin McElroy, said in August: “Ysgol Llyn Derw stands as a model for carbon-neutral educational facilities, demonstrating our commitment to building spaces that are both innovative and environmentally responsible.”
But ISG’s collapse has also affected the progress of other school construction projects, such as the new Fairwater Community Campus in Cardiff.
The city council announced last week that work on the £110 million project, which will house three local schools, had reached its “highest point”.
Cllr Chris Weaver, cabinet member for finance at Cardiff Council, said: “There will be disruption when a company goes into administration like this.”
“Right now, work is ongoing to try and minimise that disruption.”
“There will be lots of things in the coming days and weeks to work with sub contractors, the parent company just to try and minimise that as they go through that process.”
“At this stage, that is all we can really say because it is very early news for everybody.”
“Lots of projects around the country are going to be affected by this.”
“What we are doing is just prioritising, making sure that site is safe and secure and looking to minimise any disruption there will be to it.”
“The project is a very important one for us. It is going to be very exciting when it is delivered.”
It’s understood ISG staff were informed of the collapse last Thursday in an email from chief executive Zoe Price, who was appointed to the role in February.
She said large loss-making contracts secured before the Covid pandemic began had affected the company’s performance - and efforts to secure a buyer for the firm had failed.
Additional reporting by Ted Peskett - local democracy reporter for Cardiff and the Vale of Glamorgan.
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