NHS Leicestershire County and Rutland has ripped up its contract with Modcon UK Ltd following delays with the contract to build a new endoscopy and day care unit at St Luke’s Hospital in Harborough.

The primary care trust is now looking for a new contractor to complete the job and has retendered the project with the target of starting on site again by the autumn.

Health officials will look again at their procurement methods after Modcon won the job with a bid to import prefab units from the UAE.

Some of the modules were understood to have been damaged in transit before being craned into position on site in March.

Remedial work stopped completely in May sparking the row between contractor and client.

Sue Bishop, NHS Leicestershire County and Rutland’s director of finance, said: “This was not a decision taken lightly and unfortunately it will mean further delays to a project which has been beset by several difficulties over the last year.

“We are extremely disappointed that it has come to this, but we could not allow the contract to continue when the promised work and contractual obligations were not being fulfilled by Modcon UK Ltd.

“NHS Leicestershire County and Rutland remains fully committed to getting the project completed as quickly as possible and we are going out to tender for a new contractor to finish the work on site.

“The tendering process is expected to be completed during August with work starting soon afterwards.

“Having thoroughly reviewed the project timescales in light of these changes, we hope to see the doors of the Day Case Unit open to the public in January.

“We fully understand how frustrated local people will be by this delay and I apologise for that, but it is vital we act in the best interests of patients, taxpayers and the NHS.

“There are clearly questions for us to ask and to answer about the development and we are committed to being as open as we can be with local people.

“I will be meeting personally with local councillors and other key stakeholders on Tuesday, June 14, to explain our position and to answer questions.”

Modcon was unavailable for comment.