Derbyshire council steps in as building firm ceases trading

A Derbyshire council says it has stepped in to complete a £36m housing project after the contracted building firm ceased trading.

Woodhead Construction, based in Edwinstowe, Nottinghamshire, was half-way through a four-year contract with Bolsover District Council.

The agreement was to construct up to 400 homes in Langwith and Shirebrook as well as a wellbeing centre in Creswell.

The council says it has now taken over the building contracts.

The Local Democracy Reporting Service said Woodhead Construction, which is believed to employ 150 people, made the announcement on Thursday.

In July, the firm confirmed it was two years into its Bolsover Homes contract. Only 37 homes had been built and 89 were in construction or under contract.

A spokesperson for the council said the building project had been delayed because of the pandemic.

They said the remaining homes were still in the design or planning stage.

Steve Fritchley, leader of Bolsover District Council, said: "Once we learned the contractor was to cease trading we took swift and decisive action to ensure our assets were protected.

"We have employed the current site managers where appropriate and are talking to the sub-contractors to ensure they are fully engaged to make sure the projects continue."

Follow BBC East Midlands on Facebook, on Twitter, or on Instagram. Send your story ideas to [email protected].