Work has restarted at a major housing development in Cardiff after the construction company that was building it fell into administration. The development at the former site of the Three Brewers pub in Penylan was at an "advanced" stage when historic building firm Jehu ceased trading in October, plunging the project into doubt.
Despite facing an uncertain future for a number of weeks the development is now back on track with work recommencing just before Christmas. Get the latest planning and development news from across Cardiff sent straight to your inbox by signing up to our newsletter.
The pub in Colchester Avenue closed in July 2019 and was later demolished to make way for a new apartment block. In total 50 flats are being built on the site with all of these apartments being developed as "much-needed" affordable housing.
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A four- and five-storey block will house 10 two-bed and 40 one-bed energy-efficient apartments while a ground-floor retail store is also being built. The development had already made significant progress when Bridgend-based Jehu Group, who were working on the project in partnership with Wales and West Housing, collapsed into administration after more than 85 years in business.
The family-run-and-owned firm ceased trading blaming the situation on spiralling construction costs with inflationary pressures decimating its cash reserves. In a statement at the time directors Marc and Simon Jehu said was a "truly devastating day" for the firm which had been hindered by fixed-price contracts it had struck before the pandemic with profit margins being wiped out by construction cost inflation spiralling by more than 25%.
They added that they had "completely exhausted every possible option" to keep the business going but "found themselves with no choice but to cease trading". Before falling into administration Jehu Project Services had 15 live contracts delivering construction and development projects for housing associations and local authorities in Wales and south-west England including the one in Colchester Avenue.
However work has now restarted at Three Brewers Court with Wales and West Housing now partnering with Neath-based Hale Construction to complete the project. A crane continues to tower over the site with bricklayers, roofers, plumbers, electricians, and carpenters all working hard to get the block ready for residents to move into later this year.
“Since work stopped on the site we have been working to keep the site safe and secure and find a new contractor to help us complete the work," said Wales and West Housing's regional development manager for south Wales Jon Harvey. "We are pleased that we have been able to appoint Hale Construction to help us finish the project.
"As one of our long-term construction partners they have already built more than 130 apartments for us across Cardiff so we are delighted that they are bringing their expertise to manage the project. People living and working in the area may notice activity in the area as many of the sub-contractors including bricklayers, roofers, plumbers, electricians, and carpenters who were working on site have returned to continue work on the buildings."
Mr Harvey added: "There is a desperate need for more homes for social rent across Cardiff. With Hale on board we hope the homes will be ready for residents to move in later this year.”
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