WORK will not resume on a council housing project until the new year after the contractor went into administration.
The project at the Templeman House site in East Howe, Bournemouth, ground to a halt several months ago.
BCP Council awarded the contract for the work to flatten the care home building in Leedam Road and construct a new four-storey block of flats to Chichester-based W Stirland Limited.
However, the company went into administration in September having ceased trading shortly before the appointment of administrators Chris Stevens and Philip Harris from firm FRP.
All staff at W Stirland were made redundant, with financial difficulties due to inflation and its impact on the wider construction sector cited as the reason for constructor’s demise.
Chris Stevens, partner at FRP, said: “The construction sector has been significantly affected by inflation and the rising cost of raw materials which has led to the financial challenges at W. Stirland and its insolvency.
“Regrettably, while some employees were retained to assist with the administration process, all staff have now been made redundant. Our focus now is on the realisations of the assets of the company and working with staff to access appropriate redundancy support.”
The housing scheme on the Templeman House site, which is part of the local authority’s council newbuild housing and acquisition strategy (CNHAS), is for 16 one-bed and 11 two-bed flats, with car parking and electric vehicle charging points.
Council officers have secured the land with a padlocked gate preventing access.
A BCP Council spokesperson said: “It has been confirmed that W. Stirland are in administration.
“We have only paid for work on the Templeman House project that has been completed in accordance with contractual requirements. We will be looking to resume the project in the new year.”
The Templeman House care home building, which has been demolished, was built in the 1960s. The block of flats were due to be ready for social renters on the housing register from spring next year, however, it appears the project will be delayed due to the contractor issue.
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