Forrest has been replaced by Vermont on the £100m Aura project in Liverpool.
Vermont has now taken over the site and has employed the former Forrest team to deliver the project after their contracts were terminated.
The scheme, which is being developed by Elliot Group, includes 142 homes and more than 1,000 student beds. It was being delivered by Forrest before the contractor ran into financial difficulties last month.
Elliot Group director Elliot Lawless said: “They’re an excellent bunch of lads and I’m delighted that Vermont has ensured their Christmases won’t be spoiled.”
The developer has also replaced Forrest on another of its major schemes, the £70m, 34-storey Residence in Salford. Careys has been drafted in to deliver the concrete frame while the developer looks to appoint a permanent replacement as main contractor.
Mr Lawless added: “Our priority has always been to protect the interests of our investors and I’m pleased that we have put this issue behind us and can focus on delivering two great schemes for them.
“We’ve got a little bit of ground to make up in terms of schedule, but we’ve got a team in place well capable of getting us back on track.”
Last month Forrest failed in an attempt to refinance the business and announced that it was looking to sell off parts of the firm, with Engie understood to be one of a number of bidders for its refurbishment and energy division.
Construction News revealed earlier this month that the contractor had voluntarily withdrawn from a £200m framework while it worked on the refinancing deal.
At the time, the firm was also forced to deny reports that it could be placed in administration. A spokeswoman refused to comment when asked by CN whether the failure to refinance could see the company now enter administration.
Forrest has been contacted for comment.