Residential developer Pinnacle Group Companies has ceased working with long-standing construction partner PHD1 Construction, impacting three schemes in Liverpool and Manchester.
The three affected sites are:
- Angelgate, Dantzic Street, Manchester
- The Paramount, London Road, Liverpool
- The Quadrant, Shaw Street, Liverpool
Pinnacle said in a statement issued on Wednesday: “Pinnacle Group Companies can confirm that last week we ended our commercial relationship with PHD1 Construction.
“This was strictly a commercial decision in order to protect our relationships with investors and other stakeholders. PHD1 construction were employed as a construction company on a number of developments. A number of projects were successfully delivered by PHD1 for us initially, but there have been significant performance issues and delays, eroding our confidence that the business is capable of delivering as promised on the developments.
“We have not entered into any new commercial arrangements with PHD1 Construction since mid-2014. We did have some active developments and the development companies have now taken sole charge and responsibility for their respective projects. Although it is not yet confirmed who the new construction companies will be, we are in negotiation with three major contractors to complete the works and expect to start back on site imminently.
“Our purchasers and other stakeholders have all been contacted regarding this announcement. We are communicating with each of them directly and regularly regarding the latest updates and developments for each project. All funds associated to the developments are ring-fenced and we remain fully committed to our purchasers and the completion of each project.”
Warrington-based PHD1 was appointed by Pinnacle Alliance to build Angelgate in September 2014.
Work began on site and piling finished in autumn 2015. A crane was erected but work ground to a halt late last year. A revised application was submitted in October, reducing the height from 50m to 45m to improve the economic viability of the scheme. The revised application was approved in January 2016.
The last project PHD1 completed for Pinnacle completed in 2014.
PHD1 Construction declined to comment.