A council has not overspent on its budget to deliver 55-town centre apartments, despite two contractors going bust during the project.

The delayed project to build 55 flats at Carnival Place, Wokingham, was planned to be completed by September 2023, but has now been pushed back to mid-2025.

Wokingham Borough Council appointed Feltham Constructions as the third contractor for the ongoing development after the first two went into administration.

The authority has confirmed that the new flats will be delivered within the £12.6 million budget allocated for the scheme.

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It could not confirm the total amount spent on the scheme.

The project will deliver 55 one- and two-bedroom apartments in Carnival Place as part of the regeneration of Wokingham town centre.

Currently, internal works are being done to the building, including mechanical and electrical systems.

The Local Democracy Reporting Service revealed in June that £1.6 million had been paid to the second contractors hired, Osborne, for works between July 2023 and April 2024.

The homes were supposed to be ready by September 2023, but progress came to a half after the first construction group hired, The Mid Group, went into administration in 2022.

The same then happened for second contractors Osborne, who hit money troubles this April.

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Upon the hiring of a third company, Sarah Morgan, assistant director for commercial property at Wokingham Borough Council said there were ‘robust procurement policies in place for the appointment of all contractors’.

Ms Morgan said: “Recognising that there will always be a risk that business circumstances change after selection, the council uses industry standard contracts which minimised the council’s risk of exposure and allow them to act swiftly should issues arise.”

Councillor Imogen Sheperd-DuBey said: “Although residents may not immediately see any visual signs of progress being made at Carnival Place, we can assure you that we are moving forward, and it is really exciting to see things take shape.”

The executive member for finance and governance said that there had been some ‘unavoidable bumps along the way’.

The completion of the scheme will form the last phase of the council’s wider regeneration programme of the town centre.