Key Points
- Phase 2b of the Britannia masterplan worth millions of pounds has now been entrusted to major contractor Wates by Hackney Council.
- This is after the failure of the initial developer, Ardmore Construction Group Ltd (ACGL), who went into administration in June.
- The initial developer had been involved in building four blocks of housing on the site of the old Britannia Leisure Centre for 36 months when the company became insolvent.
- This project entails the completion of 51 social rental homes, 30 shared ownership homes, and 290 homes for outright purchase.
- The inside housing quoted council papers indicated that the sale of 290 houses had been undertaken as a means of assisting in the cross subsidization of building the new Britannia Leisure Centre, City of London Academy Shoreditch Park secondary school and improvement of the public realm in the locality.
- According to Construction News, the Hackney Council contacted 14 contractors but all refused to take part in the competitive tender due to huge risks involved in taking up the incomplete building.
- Wates has taken charge of the safety procedures on the site and has signed a Pre-Construction Services Agreement (PCSA) with the council.
- A construction contract is scheduled to be presented to the Cabinet Procurement and Insourcing Committee not later than the autumn for approval with an expected completion date of summer 2027.
- Council papers confirmed that the collapse would result in cost overrun in the construction process beyond the approved budget of £196.875 million.
London (Extra London News) September 1, 2026 – Hackney Council has formally initiated steps to salvage one of east London’s most prominent regeneration initiatives by bringing in Wates Construction to complete phase 2b of the Britannia masterplan, following the dramatic collapse of its original builder, Ardmore. The project, which centers on the site of the former Britannia Leisure Centre, ground to a halt earlier this summer when Ardmore Construction Group Ltd (ACGL) entered administration on June 11, leaving roughly six months of remaining construction work. As local authorities scramble to manage the fallout of contractor insolvencies across the UK housing sector, Hackney’s latest move sheds light on the complex hurdles public bodies face when taking over unfinished high-rise developments.
Why Did Ardmore Collapse and Leave the Britannia Project Stranded?
As reported by John Lubbock of Inside Housing, Ardmore’s construction business fell into administration in June after working for 36 months on four new residential tower blocks intended to complete phase 2b of the sprawling masterplan. The original contract, which commenced on July 21, 2023, tasked the north London-based family contractor with building 371 mixed-tenure homes.
As reported by Construction News, the collapse touched a broad range of stakeholders. As noted in council documents authored by major capital projects delivery lead Justin Feltham and Britannia Phase 2b project director Hayley Craig, the sudden corporate failure impacted prospective residents, alongside a vast network of suppliers and consultants in Ardmore’s supply chain who have reportedly gone unpaid for materials and labor.
Furthermore, council documents outlined by Inside Housing emphasized that
“as the council is the developer, the delivery of 290 outright-sale homes was intended to help provide the leisure centre, affordable housing and new school”.
The financial model relied heavily on private sales to cross-subsidize community assets that have already been delivered in earlier phases, including the state-of-the-art Britannia Leisure Centre and the City of London Academy Shoreditch Park secondary school.
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How Did Hackney Council Overcome Market Hesitation to Find a New Builder?
As detailed by Construction News, Hackney Council realized it was “critical to work with a new contractor” to mitigate further delays. However, finding a willing replacement proved exceptionally difficult. Construction strategist Jude Squirrell noted on LinkedIn, as highlighted by Inside Housing, that “Hackney canvassed 14 contractors to complete the job. Every one declined to compete through a conventional mini-tender. Taking over someone else’s partially finished structure carried too much risk to price”.
Expanding on this procurement dilemma, Justin Feltham and Hayley Craig wrote in their report to the cabinet, as cited by Construction News:
“The main risk to cost escalation on the project is the time taken to recommence the works… Contingency planning has thus focused on being in a position to move forward with a replacement contractor as soon as the administration process has allowed”.
Because competitive tendering failed due to the immense risk profile of stepping into an abandoned project, the local authority pursued a direct appointment strategy utilizing a contractor framework run by Notting Hill Genesis. Following comprehensive due diligence, the council targeted Wates Construction due to its strong financial standing, proven track record with similar large-scale schemes, and history of rescuing stalled jobs following insolvencies.
What Are the Next Steps Under the Agreement With Wates?
As reported by Inside Housing, Hackney Council has officially entered into a Pre-Construction Services Agreement (PCSA) with Wates. Wates management had already assumed physical control over site security and management immediately following the departure of administrators on June 29.
Paul Nicholls, London residential managing director at Wates, stated that:
“We are pleased to have entered into a PCSA with Hackney Council, marking an important step towards progressing and completing this significant regeneration project”.
Mr Nicholls added, as noted by Inside Housing:
“Hackney Council has shown a clear commitment to delivering affordable homes for local residents and we are proud to be supporting that ambition. We look forward to working closely with the council and our partners in the supply chain to safely recommend the recommencement of construction and to deliver these homes”.
According to Construction Enquirer, Wates teams are currently on-site assessing completed structural works, auditing structural integrity, identifying any potential defects or damage left behind, and negotiating terms with members of Ardmore’s former supply chain. A full, binding construction contract is scheduled to be presented to Hackney’s Cabinet Procurement and Insourcing Committee for formal approval “no later than the autumn”.
How Much Will the Delay Cost Local Taxpayers?
While exact figures remain heavily guarded due to commercial confidentiality, local officials have conceded that the financial parameters of the development have fundamentally changed.
As warned in official council reports cited by Construction News:
“Following the administration of ACGL, it is no longer feasible to complete the Britannia Phase 2b project within the currently approved capital budget of £196.9m”.
Inside Housing noted that the overall expense of securing the site, conducting engineering audits, and mobilizing Wates under the PCSA means that delivery costs will inevitably surge past the £196.875m threshold before any recovery of funds can be achieved. Although Hackney’s cabinet has formally approved a revised financial budget, the updated figures have been withheld from the public domain.
With Wates now steering the remediation phase, the timeline for completion has been pushed back. Construction is currently projected to wrap up by the summer of 2027, leaving local housing applicants, shared-ownership buyers, and private purchasers waiting months longer than originally anticipated for their keys.
