Chesterfield Borough Council has announced it will re-tender the refurbishment of its Market Hall, after failing to agree a price on the estimated £4m job with preferred contractor Wates.
The council has issued a fresh invitation to tender the work after the project failed to get underway at its expected February start date.
Councillor John Burrows, leader of the authority, said: “It’s disappointing that we’ve not been able to accept Wates’ tender, but ultimately we could not reach agreement on price.
“Although a re-tender will mean a six month delay to the project, we believe that by opening the contract up to fresh competition, the council will be able to get the best possible price for the work.”
Andy Hands, business manager for Wates Construction, Midlands, said: “We have worked hard with Chesterfield Borough Council to try and bring this project in line with the council’s financial limitations.
“In times of austerity we appreciate the need for tight financial planning, but we were unable to feasibly deliver the project within the budget. It is with regret that we will not be delivering Chesterfield Market Hall and we look forward to working with the council in the future.”
Planning permission was given for the scheme in November.
Cllr Burrows emphasised that the council remains committed to the project, which is being part funded by the European Regional Development Fund and the Chesterfield Townscape Heritage Initiative.
He added: “The delay is frustrating but for now it’s business as usual and the Market Hall will remain open six days a week until further notice.”