Newcastle City Council says it will “assess its options” over three prominent building projects left in limbo by the collapse of construction giant Tolent.
The Gateshead-based building firm was put into administration earlier this month, with more than 300 jobs lost after the company suffered big losses on the £85m Milburngate development in Durham. Tolent’s demise has left question marks over a number of other projects it had been contracted to build.
In Newcastle, that includes the next phase in the revamp of Central Station – which is due to see two new entrances and a new concourse built, as well as the taxi rank being moved out of the Orchard Street tunnel. Tolent was also working on the ongoing regeneration of the nearby Pattern Shop, once a part of Robert Stephenson’s steam locomotive works, as it is transformed into office space.
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And the firm was also involved in a controversial development in the outer west of the city, with new housing and a children’s home being built on a playing field in West Denton – a plan that has been a source of anger for some locals.
There has been news this week that Sunderland-based Brims Construction was stepping in to save around half of the lost Tolent jobs by taking on its Teesside operations, while regeneration specialist RE:GEN Group has appointed 33 staff made redundant by Tolent. However, there is no clarity yet on the future of the three council projects in Newcastle.
A Newcastle City Council spokesperson said: “Tolent is a respected long standing local construction company that has provided employment opportunities for people in the region since its creation in the 1980s. We are very saddened to hear that it has gone into administration and appreciate this will be a very worrying time for staff who have lost their jobs.
“As a client of Tolent with a number of contracts we are working closely with their administrators to find a way forward which is in the best interests of the city. The council will assess its options and endeavour to keep any disruption to a minimum.”
At Northumberland County Council on Wednesday, Labour councillor Rebecca Wilczek asked for assurances about a regeneration project in Bedlington town centre that Tolent had been leading on. Coun Wojciech Ploszaj, the Tories’ portfolio holder for business, replied that council development company Advance Northumberland was working to secure the construction site and is meeting with companies in Tolent’s supply chain to discover the cost and timescale of completion.
He added: “Following receipt of costs and the required due diligence and approval process, we aim to restart phase one, which is Greggs’ unit, by the end of March and complete in June this year. This will allow Greggs to fit out the unit and open during summer 2023. In parallel to the above, phase two will be rendered with a view to starting work in summer 2023.”
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