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Uncertainty surrounds the £3 million upgrade of the Arnish renewable energy yard on Lewis following the collapse of the building contractor.

Exter-based building company Rok which is being put into administration was fast-tracking the yard’s refurbishment.

The Arnish manufacturing yard upgrade was Rok’s first project under its new £32 million four-year property framework contract with Highlands and Islands Enterprise (HIE).

The development agency ramped the Arnish refurbishment  work to the top of the list following concerns it would be hampered by winter gales and rain.

It decided to slice through a tender process and manage the works through the prime contractor route to speed up the process.

Now it is feared it may be delayed by Rok’s own financial collapse which follows a £3.8 million loss in the first six months of 2010 compared to a £6 million last year.

If the administrator cannot find a buyer and decides to liquidate the firm then the Arnish contract and other HIE projects are expected to go back out to tender - a process which could take months.

HIE chiefs are discussing the implications of Rok’s administration.

Arnish renewable energy manufacturer Bi-Fab is not affected by the Rok announcement and continues to trade normally.

The Arnish project includes re-cladding of the existing 12,000 square metre fabrication facility using advanced technology materials and was originally expected to be completed in spring 2011.

The Scottish Government awarded a grant to improve the manufacturing facility leased by Highlands and Islands Enterprise (HIE) from landlord Stornoway Trust. HIE sub-leases the yard to Bi-Fab which currently employs about 40 personnel on the site.

Rob Hunt, Mike Jervis and Jeremy Webb of PricewaterhouseCoopers (PwC) have been appointed joint administrators.

Mike Jervis said: “Due to difficulties in meeting the company’s financial obligations, the company and certain subsidiaries have been placed into administration to protect the business and assets.

“Our immediate priority is to urgently review the financial position of the company and seek a buyer of the businesses.

“We will work with the existing management team, employees, suppliers and customers to try and ensure that we achieve a positive solution.”

Uncertainty over Arnish revamp as building firm collapses     8/11/10