WORK ON the multi-million-pound upgrading of four bus stations across Fife came to a dramatic halt yesterday after the main contractor announced it had gone into administrative receivership.

The company, Dew Pitchmastic, which has its UK headquarters in Lancashire, was the main contractor on the near-£4 million redevelopment contract at the bus stations in St Andrews, Leven, Kirkcaldy and Glenrothes.

However, shortly after 10 am yesterday the firm’s 60 employees were pulled off the work following the shock announcement.

The news has been met with disbelief and anger, with the council and Stagecoach Fife expressing “extreme disappointment,” while one councillor called for a full inquiry into the issue—in particular in relation to the £750,000 contract at St Andrews, which has been dogged with problems and is more than three months behind schedule.

The grant for the work at the bus stations was awarded two years ago to Fife Council by the Scottish Executive through its Public Transport Fund. The financial package for the project at St Andrews also included a £100,000 contribution from Scottish Enterprise Fife.

Stagecoach are the owners of St Andrews bus station and the major provider of bus services across Fife and a key stakeholder in the project in the town.

Responding to the news, Dr Bob McLellan, head of the council’s transport services, said, “Although we have yet to receive formal notification, we understand that Dew Pitchmastic has gone into administration.

“At the moment construction staff have left the sites, so our first priority is to ensure public safety.

“We are currently arranging for the sites to be made safe and they will be secured until such time as work can be resumed.

“Obviously we are very disappointed about the situation, and are seeking legal advice, but we also have to await the appointment of an administrator.

“I would like to reassure the public that bus services will continue to run on the existing arrangements, and we will be working to ensure that a positive solution can be found.”

According to a spokesman for Dew Pitchmastic, work at the Glenrothes depot is virtually complete. However, the St Andrews and Leven contracts were not due to be finished until the end of next month, while at Kirkcaldy the programme had been expected to be completed by early July.

As in all major contracts it is understood that a bond has been lodged with Fife Council. However there is likely to be an inevitable delay until the full legal processes can be investigated.

A spokeswoman for Stagecoach East Scotland said, “This news has dealt a terrible blow to the Fife bus station projects.

“We are awaiting details on how the work at St Andrews bus station will continue, but at this stage it is too early to say what the next steps may be and when the projects may be completed.”

Councillor Bill Sangster (St Andrews Central) said, “This is undoubtedly a massive blow to the town, its businesses and commuters that this situation should arise without any warning.

“After so many hold-ups at St Andrews and poor forward planning, an inquiry must be held.”

Mr Sangster said it was of “great concern” that around 40 parking spaces would continue to be out of commission at the Petheram Bridge car park.

He added, “They were being held open for buses to use while the bus station work was being carried out.

“With the height of the tourist season imminent, visitors will be unable to take advantage of these parking facilities.”

One Dew Pitchmastic employee at the St Andrews site—who wished to remain anonymous— said, “While the direct consequences have seen some 60 men out of work, a number of local sub-contractors have also been hit. It is anyone’s guess when work will start again.”

He said that while the firm’s headquarters are in Oldham, it has several regional offices, including one at Rosyth.

The worker understood that the Scottish operations were financially successful and the company’s problems were in England.

He added, “Although it is very early days I understand the Scottish division will be holding urgent discussions with the administrators to assess the probability of continuing as a Scottish company.

“However, it could be months before something is sorted out and work eventually resumes on the contracts.”

Dew Pitchmastic is privately owned and had a turnover in its last financial year of £175 million. According to its official website, it offers specialist construction nationwide through its network of regional offices.