Collapsed contractor Lakesmere has been replaced on Carillion’s delayed No8 First Street project. Altrincham-based contractor FK is understood to have taken on the office’s cladding package.
The development, managed by Ask on behalf of Patrizia and the Greater Manchester Property Venture Fund, is understood be running around six months behind schedule, was cited as one of the problem jobs that contributed to Lakesmere calling in administrators last month.
The 173,000 sq ft office was originally scheduled to complete in autumn this year, but this has been pushed back to spring 2018.
FK has previously worked with Carillion on a number of high-profile development across Manchester, including 2 St Peter’s Square.
Administrators from Deloitte were appointed at Lakesmere in early November, citing “a number of unprofitable contracts” as the reason for its collapse, one of which is understood to be First Street. The company made 109 staff redundant, including some in its North West office in Altrincham.
The company’s McMullen Facades, which remained profitable, initially avoided administration but followed its parent company on 21 November. McMullen has since been bought by Hertfordshire-based construction group JRL.
Occupiers at No8 First Street include Gazprom, which signed as a pre-let tenant early in the construction process. The energy giant has now taken access of the building to fit out 51,500 sq ft over two floors.
Engineering consultancy WSP is understood to be close to finalising an agreement to move around 900 staff to the building next year, and is set to take around 60,000 sq ft.
The move will see Parsons Brinckerhoff relocate from premises on Oxford Road, WSP move out of offices in Salford Quays, and Mouchel move from St James House on Queen Street.
FK and Carillion both declined to comment.