Caddick Construction will complete the construction of the £154m Angel Gardens project in Manchester following the collapse of previous contractor Carillion.
Developers Moda and Apache Capital have brought in Caddick, Moda’s sister company, to complete 466-home housing project, saving 500 jobs on the site.
As part of the agreement, 20 former Carillion employees will transfer to Caddick, with the firm acting as a construction manager and co-ordinating the scheme’s 30 subcontractors.
The move follows the triggering of a contingency plan put in place by the developers following Carillion’s first profit warning in July last year.
Apache Capital managing director and co-founder Richard Jackson said: “It was critical to Apache Capital that, as soon as we became aware of financial difficulties of Carillion in summer 2017, we implemented our contingency plans to ensure that we protected the interests of our investors and banking partner PBB.
“As a result, no loss of money or time will be suffered, job security is ensured to former Carillion staff, financial security on this project is secured for our subcontractors and onsite works have recommenced within two weeks to minimise delays and we will continue to deliver the project within budget.”
Carillion started work on the PRS scheme, which will be one of the biggest outside of London, back in 2016, with work scheduled to be completed in 2020.
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Moda Living was formed by Caddick Construction and Generate Land in 2014 to acquire sites and deliver housing projects for the private rented sector.
Caddick Group director Johnny Caddick said: “The wider Caddick Group, of which Moda is part, has huge strength and cross-sector experience and a long-standing and deep-rooted relationship with the supply chain, and we look forward to being able to draw from its expertise.”