Council chiefs are looking for a new contractor to complete a major affordable homes job in the London Borough of Sutton after contractor Real LSE filed a notice of intention to appoint an administrator last week.
The £19.4m-turnover contractor was awarded the £38m job in October 2022 to deliver 92 homes at Beech Tree Place.
At the time of the award Cllr David Bartolucci, Lead Member for Housing at Sutton said: “Real LSE are vigilant to the present challenges in the construction industry and are engaging with residents and Sutton Council on how we ensure the resident co-design scheme is fulfilled to the highest standard.”
A spokesperson for the London Borough of Sutton said: “We are committed to delivering Beech Tree Place that will provide our residents with high quality affordable homes. In light of recent developments, we are working closely with partners to ensure that the project remains on track and we deliver this vital scheme for the residents of Sutton.”
Council letters sent to local residents seen by the Enquirer state: “Once we know what the consequences are for Real LSE Ltd, the Council will find another way of delivering the scheme. This may require appointing another building contractor though the existing LA procurement framework.”
The council added: “There has been significant progress on site to date. The concrete frame on two of the four blocks is built up to the 1st floor level and the mains electrical diversion is complete along with a new substation.”