Powys Council has seen no indication of struggle among its construction contractors, as it keeps a close eye on their financial health during the coronavirus crisis.

The authority vowed to monitor the finances of construction companies carrying out projects for the authority in case they run into difficulties during the Covid-19 outbreak.

Powys Council had its fingers burnt last year with the collapse of two contractors – Dawnus and Jistcourt – which left projects in the county incomplete.

At a meeting of the audit committee on Thursday, head of finance Jane Thomas confirmed that the risk had not materialised.

Councillor Tim Van-Rees said: “This crisis has had an adverse effect on many businesses.

“Has there been any indication so far that any business which is a debtor to the county council may fail and we may be endeavouring to recover what we could from any liquidation?”

Ms Thomas, answered: “Not as yet.”

Councillor Karen Laurie-Parry said that she was concerned that a company had been given three building contracts just before the pandemic struck, questioning the wisdom of putting "all our eggs in one nest”.

But Ms Thomas assured councillors that all the procurement criteria had been met before the contracts were awarded and that the council were continuing to talk to firms about the schemes.

She said: “Discussions have taken place with companies to see if they are still confident and stand by what they submitted.

“That risk is going to exist across all of our contracts for some time. I can’t guarantee anything at the moment.”

Ms Thomas added that they were doing “all we can” and will continue to “review” the situation.

In March 2019, Swansea-based construction firm Dawnus collapsed affecting three school building projects in Powys.

The company left Welshpool Church in Wales Primary School half built, and the new Ysgol Bro Hyddgen all through school in Machynlleth and Ysgol Gymraeg y Trallwng new Welsh medium school with no contractor.

Jistcourt was supposed to build 26 flats for the council at the former bowling green just off Newtown town centre, but it entered administration at the end of June 2019.

In September 2019, the council's audit committee held a special meeting to probe the downfall of both Dawnus and Jistcourt, concluding that the Welsh Government should have shared information with local authorities about Dawnus’ precarious financial situation.