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Replacement contractor saves £150m Ryder scheme after Carillion collapse

Ryder's Angel Gardens in Manchester
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Work has restarted on Ryder’s £150 million Angel Gardens scheme in Manchester after a replacement contractor was found for Carillion

The 466-home project, part of the NOMA regeneration site north of the city centre, will now be built by Caddick Construction.

Newcastle-based Ryder is acting as delivery architect on the scheme, which was initially designed by HAUS Collective and Fuse Studios.

But the project’s future became uncertain when construction giant Carillion collapsed into liquidation earlier this month.

Andrew Parker, director of projects at developer Moda, said: ‘We have had contingency plans in place for some time and wanted to prioritise saving jobs, as we hugely appreciate the critical role played by the main subcontractors and small businesses that support major projects.

‘We have always remained close to the key subcontractors and suppliers throughout the process and this has proved to be an essential part of the solution to keeping Angel Gardens on track.’

Ryder partner Gareth Callen said: ‘Moda’s swift action has avoided any material delay or cost overrun on this scheme and we’re delighted that Caddick Construction will now be taking the lead.’

Ryder Angel Gardens scheme

Ryder Angel Gardens scheme

Moda’s sister company, Caddick Construction, has directly hired 20 former Carillion employees and its involvement will save about 500 jobs across some 30 subcontractors.

Carillion started work on Angel Gardens in January 2016 after Apache Capital and Moda agreed an £85 million debt facility with Deutsche Pfandbriefbank.

Apache Capital managing director Richard Jackson said: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 on-site works have recommenced within two weeks to minimise delays and we will continue to deliver the project within budget.’

Civil Engineering Contractors Association chief executive Alasdair Reisner has warned that hundreds of architects could suffer from Carillion’s collapse.

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Readers' comments (1)

  • Well done to those that have seen the bigger picture, and grasped the nettle on this one.
    The fundementals of the situation are that on every Carillion job, the work is still there to be done, the clients are still there to pay for it and the workers are still there to do it, so there should be a way to keep things going. The real problems are going to be for subcontractors and to a degree consultants, with significant outstanding invoices.
    I hope that wherever these transfer deals take place, those making the decisions can see the need to give extra support to the supply chain.

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