Paisley-based M&E subcontractor Power One Group is in a dispute over alleged non-payment of a £9 million bill by Galliford Try Infrastructure Limited over the fitting of energy-saving LED street light columns and bulbs in Northumberland.

The Herald has reported that the amount outstanding has become a material cashflow issue which puts Power One, which employs 65 staff, at risk of insolvency.

Power One, which specialises in electrical and communications works, was employed by Galliford Try Infrastructure to both replace and install 46,000 street lights with LED systems.

When the project was first started it had been hoped it would save Northumberland County Council £300,000 a year on energy costs.

Power One’s sub-contracting agreement with Galliford Try, the main contractor on the £25m scheme, was expected to be completed in January this year. It is understood the final completion date was then moved to late November

Power One asked for a delay to the completion of the project in late 2016, with Galliford Try giving the subcontractor an additional 14 weeks to complete the subcontract.

Now Galliford Try has indicated the project isn’t now expected to complete until “early 2018”.

Power One, however, is believed to be claiming that Galliford Try had not supplied the necessary information to allow it to complete the works and that further time was requested to complete the subcontract. However, both parties failed to reach an agreement.

Meanwhile, no payments are understood to have been made to Power One while Galliford Try are also said to have tried to cut the final amount to be paid.

A Galliford Try spokesperson said: “The total value of our contract with Power One is £9m and, to date, we have paid them £6.8m of this sum in line with the terms of the contract.

“We are currently liaising closely with Power One and their advisors to agree terms of payment for the balance.

“The project is due to complete in early 2018.

“We have consistently assisted Power One with their cashflow throughout the project and continue to do so.

“Galliford Try’s policy is always to deal fairly with subcontractors, suppliers and clients.”