ONE PART of the failed Lilley construction group -- employing 730 of

the 2800-strong workforce -- is already on the point of being saved.

Negotiations are at an advanced stage for a management buy-out at

Robison & Davidson, the construction and housebuilding group based in

Dumfries.

A spokesman for Mr Bob Robison, the company's managing director,

confirmed to The Herald last night that talks on the buy-out had been

well under way before the receivers were called in at the request of

Lilley's board on Thursday. Meetings were continuing yesterday.

The Dumfries-based company, which first joined the Glasgow-based

Lilley group in 1979, was not included in the various divisions and

subsidiaries put into the receivers' hands. That implies the buy-out

negotiations are likely to succeed.

Robison & Davidson is widely regarded as one of the soundest parts of

Lilley. In 1990, it made pre-tax profits of #3.12m on turnover of

#28.07m. Net assets were #6.57m and borrowings a modest #478,000.

Meanwhile, the receivers from Price Waterhouse are so confident of

finding buyers for the 30 companies involved that a closing date for

bids has already been set.

Less than 24 hours after being appointed, the insolvency experts

confirmed offers must be in by noon next Friday -- with new owners

likely to be known by the close of business on Monday, January 18.

Joint receiver Iain Bennet justified such a swift timetable on several

grounds.

He argued the deadline is important to preserve the current value of

businesses -- partly based upon contracts in hand, worth about #100m

according to some reports.

Mr Bennet also said the receivers had to show Lilley customers that

there is a clear strategy for moving forward while, at the same time,

demonstrating works will resume.

He was adamant the strategy offers the best prospects for preserving

jobs in the group, which employs 1800 in Scotland and has net

liabilities of #13m.

Mr Bennet confirmed there will be job losses of ''more than 100'' but

is hopeful the final total could fall below 250.

However, a shareholder yesterday began moves to mount a rescue

operation for the group, insisting it is not too late to resurrect

survival plans which the group's banking consortium abandoned.

The banks' role in the collapse remains a sore point with investors

and politicians alike.

However, Clydesdale bank chairman Sir David Nickson continued to fend

off criticism of the bank's role in Lilley's receivership.

Sir David told The Herald he had been kept fully informed of the

decision not to back a proposed rescue package.

The package had the support of Lilley's three main institutional

shareholders and some of the other funding banks, including the lead

bank, Bank of Scotland.

But unanimity among the banks was necessary and, when the Clydesdale

refused to give its support, and two others refused to subscribe any

additional funding, receivership became inevitable.

That led Mr Graeme Knox of the biggest shareholders, Scottish

Amicable, to accuse the Clydesdale of putting a major Scottish company

out of business.

Sir David said yesterday that both the Clydesdale board and the bank

were very comfortable with the decision they had taken. He did not

expect the outcome to do the bank any lasting damage.

Liberal Democrat trade and industry spokesman Malcolm Bruce, calling

on the banks to reconsider, said: ''It is both tragic and ridiculous

that Scotland's largest construction company should have been destroyed

for want of #2m.''