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GB Building clients seek new contractors for stalled schemes

Developers have scrapped contracts and are looking at alternate ways of completing schemes that had been awarded to GB Building Solutions following its administration.

Construction News has contacted a number of clients of GB Building Solutions to determine the next steps in their schemes.

Among them is Countryside Annington, which is developing The Mount, Millbrook Park in London.

GB Building Solutions had been on site at the residential development, for which Glenigan estimated the deal was worth £25m.

However Countryside Annington confirmed to Construction News it had terminated the contract agreement with GB Building Solutions.

A spokeswoman said: “We are aware that GB Building Solutions, our contractors at The Mount, Millbrook Park, have gone into administration.

“As a result, Countryside Annington (Mill Hill) Ltd. has terminated its contractual agreement with GB Building Solutions.

“We are looking at all the options to progress the development as soon as practicable and mitigate the effects of the current situation as far as is possible.” 

Meanwhile the Leeds City Region Enterprise Partnership has pledged its commitment to the Leeds Hilton hotel to which it is an investor, with GB Building Solutions to be replaced as contractor.

A spokesperson for the LEP said: “Following a thorough due diligence process undertaken by our professional advisers alongside other private lenders, the provided loan funds to Oxford GB Two Limited to bring forward construction of a large-scale hotel development in Leeds city centre, which the company would operate as a Hilton franchise.

“While we are sad to learn that GB Building Solutions has gone into administration, the LEP has provided loan funds to Oxford GB Two Limited – a separate company within the wider GB Group, which is understood to be still active and committed to the hotel project.

“The LEP and other private sector lenders will work with Oxford GB Two Limited towards immediate plans to begin procurement of a replacement contractor to finish the construction and complete this key project.”

Asked about the impact on the 190-bed Hampton by Hilton hotel being developed by the GB Group, Marick Real Estate and two private shareholders in London’s docklands, a spokesperson for Hilton Worldwide said: “We are making enquiries with our franchisee to better understand what effect, if any, the insolvency of GB Group may have on the proposed hotel.”

Readers' comments (1)

  • GB Building Solutions; accomodation build for MMU Birley Campus in Hulme, Manchester.

    Nick Hood, business risk analyst at Company Watch said on 11th March 2015, that GB Buidling Solutions had "been in or very close to our warning area for the past five years." [since 2010]

    Professor John Brooks, vice-chancellor of Manchester Metropolitan Universitysaid [in September 2012]:
    “We are delighted to have appointed GB Group to build our accommodation scheme at Birley Fields."

    Why exactly, when GB Building Solutions were already known to have been in trouble for 2 years, was the Vice President of MMU delighted to appoint them at all?

    Unsuitable or offensive? Report this comment

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