Lend Lease to rescue LDS Olympic Village scheme
Construction of a Lifschutz Davison Sandilands’ building at the 2012 Olympics Athletes Village could be back on track thanks to a rescue package to take over the scheme
The builder behind the scheme, Irish contractor P Elliott, was placed in receivership last week (18 May) leaving the Olympic Delivery Authority (ODA) in crisis talks with Athletes’ Village developer Lend Lease.
Administrator KPMG is now finalising a deal with Lend Lease, with work on site to begin within days.
The Ucatt union has also pledged to ensure Elliott’s 250 staff receive wages for their work for the company.
An ODA spokesperson said: ‘Lend Lease, the ODA’s delivery partner for the Village, is working to agree arrangements to retain the existing supply chain and workforce where appropriate to deliver this plot.
‘This is one of one of 11 plots on the site and is 80 [per cent] complete.
‘The terms of Lend Lease involvement are subject to final agreement but it is our joint intention to have the site up and running as soon as possible. Construction work across the wider Village site remains unaffected and firmly on track.’
Jerry Swain, regional secretary of Ucatt’s London and south east region, added: ‘It is important that the parties involved move swiftly to guarantee that the workers will be fully paid and are able to quickly return to work.
‘The workers should not suffer a financial penalty as a result of problems which are not of their own making.’
Previous story (20.05.11)
Work halts on LDS’ Olympic Village scheme as contractor folds
Construction of a Lifschutz Davison Sandilands’ building at the 2012 Olympics Athletes Village in London has been suspended after the contractor was put into administration
An ODA spokesperson said: ‘With the contractor P Elliott entering receivership last night, their 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 discuss arrangements for the workforce and design team to resume their 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.’
The £40 million scheme to build 300 apartments over four blocks was one of 11 residential schemes being built at site and was scheduled to complete in August.
Workers arrived yesterday to find the site locked up prompting questions about whether the job would be completed in time, reported sister title Construction News.
P Elliott directly employs 250 people , with offices in London and headquarters in Cavan, Ireland.
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 Construction News that a ‘way forward’ had been agreed with P Elliott to ensure the work on the Olympic plot would continue.