Hundreds of jobs hang in the balance after a major construction company involved in the controversial Beddington incinerator project went into administration yesterday.

Lagan Construction Group confirmed four companies associated with it have entered administration on February 20, who were being part of the plans to build the Beddington Energy Recovery Facility (ERF) for Viridor in Beddington Lane.

It is currently unclear how this will affect the project following the news.

Michael Lagan, Lagan Construction chairman, said: “It is with great sadness and reluctance that we have had to take this course of action.

“We have had long-standing relationships with many of subcontractors and suppliers. We hope that the process of administration will be smooth and the disruption to both projects will be minimal.

“The difficulties which have arisen with the Civils and Building divisions has meant that the directors of the affected four companies had no option but to immediately serve notice on the court to appoint the administrator.”

A Lagan spokeswoman said up to 200 of the 800 people it currently employs may be affected by the announcement, while some may be transferred to joint venture partners and others could be relocated to existing divisions.

When asked what it would mean for the project in Beddington, Sutton Guardian did not receive a response.

A Sutton Council spokesman said: “We are working closely with Viridor, the future operator of the Energy Recovery Facility in Beddington and colleagues at the South London Waste Partnership, to establish what the news regarding Lagan Construction may mean.

“We will update residents and local businesses once we know more.”

A Viridor spokeswoman said: “Viridor is aware that four companies associated with Lagan Construction Group Holdings Limited are set to enter administration.

“Lagan Construction is a member of the joint venture construction team working on Beddington ERF in south London.

“Viridor has been consulting with CNIM, the lead member of the joint venture team [and] Beddington ERF is already in commissioning and no changes to current timeline are expected.”