Last November the company disclosed that delays to the project had cost it £2m. A further review has revealed that cost overruns and delays are even worse than it originally thought. Completion has been put back again further, at a cost of an additional £1.5m.
This £3.5m hit will be taken in the accounts of the group’s North Midland Building subsidiary for 2011.
A major reorganisation has now been undertaken within North Midland Building. Heads have rolled and it is now under new management.
A significant claim for losses incurred on this project is currently being pursued.
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