DEVELOPER Richard Carr has signed a new contract to get the landmark Vespasian development on Poole Quay finished.

The agreement includes compensation for subcontractors who were not paid when the scheme’s builder, Hampshire-based Brymor Construction, went into administration last month.

Brymor Construction workers downed tools on the former Poole Pottery shop site when their loss-making employer went into administration.

Brymor’s assets and work were immediately bought out of administration by a new venture owned by Winchester-based Portchester Equity.

The deal saved all 107 jobs at Brymor but left unsecured creditors owed £16million and unlikely to see any of their money.

Mr Carr’s company Fortitudo has since signed a contract with Brymor’s successor to get the building finished.

A statement from Fortitudo said: “Fortitudo are pleased to announce that we have signed a new JCT (Joint Contracts Tribunal) fixed price agreement to complete the 64-apartment scheme Vespasian, on Poole Quay.

“The new agreement states that the contract will compensate the subcontractors who were not paid after the collapse of Brymor Construction.

“Richard Carr, chief executive of Fortitudo, wishes to thank everybody who has worked tirelessly over the last few weeks to get the issue resolved amicably for all parties.

“He adds that over half the apartments are sold and he is looking forward to a successful conclusion to the matter.”

Mr Carr said the new price was considerably more than under the previous agreement with Brymor, amid galloping inflation in the building industry.

He is expecting the scheme to be finished in February or March next year, around four months behind schedule. 

Brymor, based at Denmead near Portsmouth, was working on around 13 sites at the time it went into administration.

Administrators from Alvarez & Marsal said the company had experienced difficult trading conditions because of Brexit, Covid-19 and cost inflation.

Brymor’s decision to put itself in administration prompted warnings that such moves could have an impact on the wider economy.

Garry Lee, regional chair of insolvency industry body R3, has pointed to a series of high-profile administrations in construction and said more were expected.

“Clearly, the administration of a main contractor will have repercussions in the supply chain and carry the risk of contagion to the wider economy,” he said.