Carillion has walked off the construction of the tallest residential building in Wales in a dispute over payment.
While the 29-storey Meridian Quay Tower – being developed by Ferrara Quay in Swansea – is only two months from completion, Carillion has confirmed it is withdrawing from the £70 million project.
A spokeswoman for the contractor would not comment on the payment row, but said: “We have determined our contract and are in the process of withdrawal on site.”
About 100 builders are currently employed on the scheme. Workers have spent the past week removing scaffolding and equipment from the site.
The scheme consists of seven individual blocks – six of which have already been handed over. The main tower, to be Wales tallest, was due to be completed in eight to 10 weeks.
The developer admitted the withdrawal would result in a delay, but said it had every intention of completing the tower.
A statement from Ferrara said: “A dispute arose over the last number of weeks between Ferrara Quay and Carillion.
“Unfortunately a resolution to this dispute could not be found and as a consequence Carillion plc exercised their right to determine the build contract on 3 April last despite the fact that Carillion had been paid in full under the terms of their contract with Ferrara.
“Ferrara Quay now intends to regroup with a view to completing the remainder of the development.”
Work on site began in August 2006 and the main tower – nearly 110m high – is to include 123 apartments.