Construction giant Carillion has not only won back its position on the stalled £70 million Median Quay tower in Swansea, but the contractor also appears to have emerged victorious in a payment argument while doing so.
The Wolverhampton firm has secured favourable payment terms to restart work on Wales’ tallest residential tower after it abandoned the scheme in early April following three late interim payments.
While developer Earthquake was in talks with rival Opco Construction to complete the job, Carillion managed to not only restart negotiations but convince the client to pay part of the sums for the work up front.
The developer had been arguing it would only pay Carillion post-completion on the units.
A spokesman for developer Earthquake has also revealed, in addition to the up-front payments, the remaining sum will be kept in a joint bank account to be “drip-fed” in payments as work is completed.
The deal was signed off last Friday night, securing the contractor’s much-anticipated return to site.
Workers were back on site on Monday to rebuild the project office, while managers are inspecting the tower over the course of the week to ensure it meets health and safety standards prior to construction work recommencing.
Some internal works have restarted, but external activity on the façade and the grounds will not begin until next week after scaffolding has been re-erected.
Chris Hope, a senior partner with main selling agent Dawsons and spokesman for the project, said the first 17 floors of the 29-storey building would be completed by the first week of September. The rest of the tower should be handed over by late October.