Ganellen to take on Kell & Rigby projects as Reed Construction also faces difficulties

Sydney contractor Ganellen will start negotiations with clients, subcontractors and workers to take over 15 projects worth $50 million that were being managed by collapsed construction firm Kell & Rigby.

Current Kell & Rigby projects include Scots College in Sydney, facilities for Elgas and Sealy, and the new Apple store in Brisbane. 

Kell & Rigby collapsed last month owing staff and creditors around $37.5 million.

News of the likely take-over of the Kell & Rigby projects comes as the Construction, Forestry, Mining and Energy Union said that Reed Construction was also at risk of collapse, owing between $60?million and $80 million to more than 1,500 subcontractors.

The union warned its collapse would have a “devastating” impact on the construction industry in NSW.

Reed is working a number of major NSW projects including highway upgrades and the Law Courts building in Sydney.

Reed is currently in talks with NSW Finance Minister Greg Pearce after it advised that it was “facing financial difficulties”.

Ganellen’s current projects include apartments for Lend Lease, substations for Endeavour Energy and the Westmead Hospital car park for the NSW government.