Work has stopped on one of 11 plots at the 2012 Athletes’ Village after Irish contractor P Elliott was placed into receivership last night.
The Olympic Delivery Authority said it was in talks with Athletes’ Village developer Bovis Lend Lease “as a matter of priority”over the N14 tower.
An ODA spokesman said: “With the contractor P Elliott entering receivership last night, its construction plot in the Olympic Village site is now in the hands of the receivers and work has temporarily stopped on this specific plot only.
“As a matter of priority we are working with Lend Lease and the receivers to keep the workers affected briefed on the situation and to also discuss arrangements for the workers to resume work on site under alternative site management.
“This issue relates to only one of the 11 residential plots in the Village - construction work across the wider Village site remains unaffected and firmly on track.”
P Elliott has a directly employed staff of more than 250 with offices in London and a headquarters in Cavan, Ireland.
A spokeswoman at P Elliott’s London office said the company would not be making a comment, and that the ODA was handling media statements.
One contractor told CN that workers arrived at the site this morning to find it locked up. He questioned whether work would be completed by August, as was expected initially, and said a number of firms would be affected by the receivership.
The news of receivership follows the submission of at least two winding up petitions in Ireland, one of which was on behalf of construction recruitment consultants M CR Personnel, trading as MCR Group.
The application was brought by solicitors Dempsey & Co, who confirmed that MCR was chasing payment of around €1.7m (£1.5m) from P Elliott. That petition has been adjourned until May 30 because it had not been advertised.
A second, separate petition, being handled by law firm MacSweeney & Co, is scheduled for Monday 23 May.
Earlier this week, the ODA told CN that a “way forward” had been agreed with P Elliott to ensure the work on the Olympic plot would continue.