Pierse Contracting plans to make more than half its staff redundant if an application for examinership succeeds, according to the independent accountant's report drawn up by Kieran Wallace of KPMG.

The company has a workforce of 211 but management plans to make 110 staff redundant "in order to align the cost base with the projected turnover and work volume". A number of employees are already on protective notice.

Pierse is also planning to sue the OPW because a decentralisation office project was cancelled by the body, after Pierse had already spent €5m on planning and fees. The legal claim is being prepared for the cost of the fees.

The company is also owed "substantial amounts" by joint ventures, partnerships and subsidiaries for developments where there are vacant units. The money has been used to pay interest on outstanding loans and Pierse is still owed substantial amounts for construction works by those vehicles.

The report shows Pierse Contracting has bonding facilities in place with Allianz and Euler Hermes. The bond gives clients recourse to the bond provider if Pierse is unable to complete a contract for any reason.

The company turned over €161m in the 15 months to the end of July, making a loss of €577,000. It notes the company's strong record in relation to public-private partnerships, pointing out it has won the four it tendered for this year.

"We note that profit margins experienced on PPP projects appear to be strong which would assist in facilitating an overall improvement in profit margins in 2011," the report states. However, the report warns that where tenders were unsuccessful, it was mainly because competitors were submitting tenders below cost price.

Pierse Contracting's subsidiary, Pierse Building Services, has also sought to go into examinership. That company has been profitable for the last five years but a fall in projects has seen turnover decline. It remains profitable, however, and contracts include a €1.1m office fit-out for internet giant eBay. PBS is owed €6.25m by Pierse Contracting.