A WELSH contractor who was awarded the task to build the new Sub Regional Children’s Assessment Unit in Colwyn Bay is set to be placed into administration.

Despite a significant order book of over £60m to be delivered within the upcoming 12 months, WRW Construction, with headquarters in Llanelli, Carmarthenshire, has come under "significant financial stress."

Work began on the children's complex in June.

Bwthyn y Ddol, next to Eirias Park, off Abergele Road, will be for children needing assessment. The scheme will stop children with complex needs being sent hundreds of miles away for care.

The first purpose-built unit of its kind in Wales is a joint venture between Conwy county and Denbighshire councils and Betsi Cadwaladr University Health Board.

It is being build on the former Meadow Lodge site which has lain dormant for seven years.

A statement, on behalf of the company’s board of directors, said: “Despite a significant order book of over £60m to be delivered within the upcoming 12 months, a supportive lender, fantastic staff and prospects, regrettably, owing to a series of events the last week, including an unfavourable adjudication outcome, the business was put under significant financial stress.

"The directors have worked tirelessly with their advisors and funders to look for solutions for the business to remain viable.

"Unfortunately, it has been regrettably determined that no viable options remain, and administration is the best course of action to preserve value for stakeholders and creditors.

"As a result of this, the directors are in the process of placing the company into administration.” 

A spokesperson for Conwy County Borough Council told the Pioneer: "The council understands WRW is being placed into administration.

"We are waiting for further information to establish the impact this will have on our development at Bwthyn Y Ddol."

A spokesperson for Denbighshire County Council said: “We are continuing to work with our partners on the development at Bwthyn Y Ddol while we await further information.”

BCUHB had nothing to add at this time.