Guernsey campus construction contract withdrawn

A contract with the construction firm set to build Guernsey's campus for post-16 students has been withdrawn, the States has said.

Contractor RG Falla Limited was selected in May following a competitive tender process.

But a "recent restructuring of the company" now posed an "untenable level of risk" for the taxpayer-funded project, the States said.

RG Falla said it was "saddened" by the decision.

The States said its Committee for Education, Sport & Culture was now reviewing alternative construction firms.

Deputy Andrea Dudley-Owen, committee president, said it remained optimistic building of the campus would still be completed by September 2025.

Mrs Dudley-Owen said the "risk associated with entering into a multimillion-pound contract with a company that is reneging on key commercial terms represents too great a risk for the States," with its restructuring failing the States' "due diligence processes".

She added: "The States has been forced into taking this decisive action to ensure we fully uphold our responsibilities to taxpayers around safeguarding the public purse.

"To say this is very disappointing is an understatement but we felt we had no choice following recent discussions with RG Falla."

Director of Education Nick Hynes said delays to the project would be "likely".

He added: "All other changes as we reorganise into three 11-16 schools will continue to progress as planned."

RG Falla said it had "always remained committed to carrying out the project" but "the terms of the intended contract and overall programme were onerous and not commercially viable."

The company added: "We sought to undertake alterations to the proposed contract that would have enabled RG Falla to successfully undertake the project without undue risk to the company, its employees and other clients.

"RG Falla has committed substantial resources and costs to this over the past six months and it is very disappointing that the States of Guernsey have decided not to proceed."

Follow BBC Guernsey on Twitter and Facebook. Send your story ideas to [email protected].