RG Falla had put money, resources into Les Ozouets contract

The business was awarded the contract in June to clear the large site and build the post-16 campus .

Signage had gone up and skips had been placed on site, but in a shock move this week the States pulled out of the deal, claiming the company had tried to change the terms of the agreement.

RG Falla broke its silence yesterday with a short statement, but did not respond to any follow-up questions.

‘We are saddened that the States of Guernsey have chosen to end negotiations with RG Falla with regard to the construction of the Les Ozouets Campus,’ a company representative said.

They added that they had been committed to carrying out the project.

‘However both the terms of the intended contract and overall programme were onerous and not commercially viable,’ they wrote.

‘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.’

Clearance work has now stopped, with all RG Falla signage removed.

It has been confirmed that the demolition work was part of the original contract that the States announced yesterday that it had withdrawn from.

RG Falla’s parent company, Garenne Group, which is also involved with Geomarine and AFM among others, did not comment on the deterioration in the relationship between the construction firm and ESC.

The exact relationship between the two companies remains unclear, after Garenne announced a restructuring of the group in August, placing ownership of the individual companies in the group more directly into the hands of the senior directors of each trading company.

At least one senior figure from RG Falla has left the business in the past few days.