Setback for Bedlington town centre project after contractor Surgo Construction enters administration

The Newcastle firm was appointed as the contractor for Northumberland County Council owned developer Advance Northumberland’s Bedlington town centre redevelopment project last year.

FRP Advisory was appointed to handle the administration of the firm on March 14.

Joint administrator Steven Ross said: “Despite the best efforts of the directors and support from the wider group, Surgo Construction has faced a number of challenges with projects in recent months that have been exacerbated by the headwinds facing the wider construction sector.

“This has left the directors with no choice but to place the company into administration.

“The joint administrators will now focus on assessing the position of the company in relation to ongoing work as well as supporting impacted colleagues in making claims to the Redundancy Payments Service.”

This is the second contractor linked to the Bedlington redevelopment project to go bust, having been appointed following the demise of the previous contractor, Tolent.

The project’s current phase involves a new terrace of three retail units and six flats being built on Market Place.

A spokesperson for Advance Northumberland and the county council said: “We have received notification that Surgo Construction has gone into administration and extend our sympathies to all involved.

“Surgo was the appointed contractor to complete the second phase of the Bedlington town centre development project. Advance Northumberland and Northumberland County Council remain committed to delivering the project as planned.

"We are currently assessing the situation and impact this might have on the project. Discussions will also be ongoing to secure a new contractor and to restart works as soon as possible.

"While it is inevitable that some time will be lost, we will work hard to keep this to a minimum and new completion dates will be communicated once contractors have been appointed".