Developer Pinnacle sacks construction partner PHD1

Grant Prior 8 years ago
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Developer Pinnacle Group Companies has fallen out with its main construction partner and is now looking for replacement contractors.

A progress shot of the Angelgate site last November
A progress shot of the Angelgate site last November

PHD1 Construction was working on a number of developments for Pinnacle including the £77m Angelgate residential scheme in Manchester.

The developer blamed “significant performance issues and delays” for its decision to halt work.

Pinnacle said: “Pinnacle Group Companies can confirm that last week we ended our commercial relationship with PHD1 Construction.

“This was strictly a commercial decision in order to protect our relationships with investors and other stakeholders.

“PHD1 construction were employed as a construction company on a number of developments.

“A number of projects were successfully delivered by PHD1 for us initially, but there have been significant performance issues and delays, eroding our confidence that the business is capable of delivering as promised on the developments.

“We have not entered into any new commercial arrangements with PHD1 Construction since mid-2014.

“We did have some active developments and the development companies have now taken sole charge and responsibility for their respective projects.

“Although it is not yet confirmed who the new construction companies will be, we are in negotiation with three major contractors to complete the works and expect to start back on site imminently.

“All funds associated to the developments are ring-fenced and we remain fully committed to our purchasers and the completion of each project.”

PHD1 was unavailable to comment.

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