Melville Dundas

Melville Dundas was a major Scottish construction company.

The business was established by Alexander Dundas in 1908; it was incorporated as Melville Dundas & Whitson during 1932.^[1] Kenneth Dundas took over as chairman of the business in 1937.^[1] During the Second World War the company was one of the contractors engaged in building the Mulberry harbour units.^[2]

During 1981, the company was acquired by F J C Lilley plc,^[3] which traded as Lilley plc from April 1989.^[4] until it went into receivership during January 1993.^[5][6] Melville Dundas was bought out of receivership by its management team.^[7][8] The revived company was able to achieve profitable operations early on.^[9] In June 1999, the company recorded a pre-tax profit in excess of £1 million, a 24 per cent increase over the previous year.^[10]

Record growth was achieved during 2000 although profitability decreased, which was attributed to protracted contractual negotiations.^[11] As early as 2001, Melville Dundas had encountered financial hardship due to difficulties encountered in collecting due payments for jobs which were disputed.^[12] During 2002, in response to declining turnover, the firm opted to focus on smaller and less risky jobs.^[13][14] In July 2002, following a sharp drop in profits that placed the firm in breach of a covenant to its lenders, Melville Dundas was compelled to renegotiate the terms of its bank borrowings.^[15]

During May 2003, Melville Dundas went into administration.^[16][17] The auditing firm Ernst & Young was brought in to administrate the process; Carillion was amongst the several parties interested in acquiring assets that formerly comprised the company.^[18][19] Ernst & Young partially attributed the collapse to the firm's management having overstated the value of multiple contracts.^[20] In August 2003, a group of the company's creditors publicly called for an investigation into the collapse to be conducted by the Department of Trade and Industry.^[21] Legal ramifications pertaining to employer payments, in spite of the firm's collapse, were still ongoing in late 2007.^[22][23]

Major projects undertaken by the company included the George V Bridge, Glasgow completed in 1928,^[24] the Glasgow College of Building and Printing completed in 1964,^[25] the extension to the Glasgow Dental Hospital and School completed in 1970,^[26] University Hospital Crosshouse completed in 1978,^[27] and the conversion of Queen's Hall, Edinburgh completed in 1979.^[28]

• Hartcup, Guy (2011). Code Name Mulberry: The Planning Building and Operation of the Normandy Harbours. Pen & Sword Military. ISBN 978-1848845589.