Civil engineering firm is latest victim of Carillion collapse

A Cheshire civil engineering firm has become the latest victim of the collapse of Carillion.

Contractor DG Cummins & Co is heading for administration after failing to agree terms with the HMRC for a tax bill.

The company was working on the project to upgrade the M6 to a smart motorway in Cheshire.

But it was left owing £1.8m when Carillion went into administration. As a result, it has not been able to find £600,000 to pay a tax bill.

Cummins chief executive Terence Cummins told Construction Enquirer that the firm is facing administration.

He said: “We set out a payment plan to HMRC to pay down over 12 months but got back a seven-day demand.

“It left us no choice but to file a notice of intent to enter administration to protect against a winding up order.”

Kier took full control of the project when Carillion collapsed and the work came to an end.

Cummins is now struggling to save 50 jobs and honour existing contracts.

The company has taken on insolvency specialist Duff & Phelps to look into entering into a pre-pack arrangement.

Mr Cummins said: “We feel let down by everybody. Carillion which went bust and HMRC could have been more supportive given the Government’s commitment to help firms hit by Carillion’s liquidation.”

DG Cummins was set up in 1987 and has worked for many of the country’s major contractors.