Directors at the Centre for Alternative Technology (CAT) admit they are facing a “critical time” after launching an urgent cash appeal to recover from a costly legal wrangle.
The centre needs to urgently plug a £530,000 hole in its cashflow to secure the completion of its flagship project, the Wales Institute for Sustainable Education (WISE).
The institute is due to open to the public in June with a programme of launch events, which included confirmed keynote speakers such as Sir John Houghton, formerly of the Intergovernmental Panel on Climate Change and Lord Elis-Thomas.
Originally a £5 million project, the building costs for WISE have risen because of a legal dispute between CAT and the main contractor, Frank Galliers Ltd.
In a statement to launch the WISE Appeal this week, the centre explained: “They [Frank Galliers] were formerly a family-run company with whom we formed a friendly and innovative partnership that sadly deteriorated after the company was bought by a venture capitalist firm.
“Following the dismissal of Galliers, after numerous difficulties, several defects were discovered in the building, some structural. Last month, in the High Court, CAT was awarded over £530,000 in costs and our actions in terminating Galliers' contract were exonerated.
“Unfortunately, within a week of CAT obtaining judgment, Galliers went into administration and a short time later, liquidation. Given the magnitude of Galliers' debts (almost £10m), it is unlikely that we will see a penny.”
The court case has left CAT in an “incredibly difficult position” and its statement added: “As a busy educational charity, our committed staff, volunteers and other resources have been significantly affected by this financial predicament.
“Whilst we are amply able to deal with long-term financial issues through careful planning and sophisticated management systems, the immediate impact on our present cash flow threatens to mar an otherwise amazing year in CAT's unique history.”
The centre confirms its new building firm, C. Sneade Construction, has a good track record in environmental building and is repairing the damage.
It added: “Unfortunately for us, we now have to meet the cost of this repair bill through no fault of our own.
“The amount we need to raise is £530,000 and we have a short and challenging timescale in which to achieve this target.”
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