A HAMPSHIRE-BASED building firm has gone into administration with money owed to more than 200 creditors, many of them sub-contractors.

The Construction Partnership Limited, which has offices in Southampton and Surrey and an annual turnover of £11m, has ceased trading and its 14 staff have been made redundant.

Matthew Fox, a partner at insolvency and restructuring firm CVR Global, has been appointed joint administrator of the company.

He said the company - formerly known as Ashe Construction (Southern) Ltd - had been hit by a cash flow crisis and were unable to pay contractors after entering into a dispute with two local authorities.

Mr Fox said: “This was a successful, profitable company which has delivered hundreds of schemes but disputes around projects delivered for two local councils left it with serious cash flow problems.

“This meant the directors had no choice but to appoint administrators. All its building projects have ceased and all staff have been made redundant.

“Typically companies in this sector have large networks of subcontractors and in this instance we believe that may number over 200 companies and individuals.

“We are currently investigating the possibility of further legal challenges over the two council contracts where payment has been withheld.”

He said the disputes with the two councils, which the administrators are not naming, were ongoing and involved “significant amounts”.

“Should the disputes be resolved in favour of the company and a significant sum realised for the benefit of creditors then we will be looking to distribute funds to creditors,” he said.

The Construction Partnership worked across the south of England, including London It specialised in new build, refurbishment and alteration work operating in various markets including residential, education, health and commercial.

High-profile clients have included the RNLI at Mudeford, Exbury Gardens, the University of Chichester and and Royal Holloway College in London.

The crisis at the Construction Partnership comes just six week after Wilding Butler Construction Limited, based Colden Common, went into administration in similar circumstances with the loss of 11 jobs.

Administrators Quantuma said Wilding Butler ran into “cash flow difficulties arising from contractual issues and an unsuccessful arbitration process”.

The firm, which frequently used a significant number of locally-based sub-contractors, had clients in the automotive, education, ecclesiastical, health, housing, leisure and retail sectors.