by Paul Donovan
Birse Construction has walked off the St David's Adventurers Quays
Development in Cardiff Bay after disagreement over payment.
The contractor began on the flats development in March last year
but spiralling costs have led to Birse terminating the contract to
cut its losses.
The £6 million project is being developed by the Berkeley
Group.
Birse managing director John Elders claimed that there were delays
and the cost of the project had increased.
"It was never clear how many blocks of flats would go up. We have
chosen to get out now rather than finish and have a big argument
over payment in the future," he said.
Elders confirmed that a writ would be issued against the client for
non-payment in the future.
Birse is trying to ensure that obligations to subcontractors are
taken on by the contractor who completes the work.
A spokeswoman for the Berkeley Group said: "Due to significant
programme delays and problems in achieving the specified quality
standards for the works, detailed discussions have taken place over
the past two months culminating in the decision by Birse
Construction to withdraw from the contract and its contractual
obligations."