The offsite specialist ceased trading this week with all 37 staff made redundant.
Wokingham Borough Council is now looking for a replacement contractor to finish construction of new apartments at its Carnival Place scheme.
The residential project is part of the flagship Carnival Hub project where a new leisure centre opened this week and a new library is due for completion shortly.
The Enquirer understands that Wates is in discussions to complete the residential part of the project.
Cllr Clive Jones, leader of the council and executive member for business and economic development said: “Given the risks inherent in all building contracts of this type the Council has rigorous policies in place to handle situations like this and is reviewing options and risks to establish the best way forward.
“It is premature for the council to comment too much at this stage but, whilst the project is well advanced, a review of outstanding works will be carried out and, if necessary, the council will move forward with taking control of the site and appointing a new contractor to complete the final works.
“This situation has no impact on the Hub, which was built by our leisure contractors Pellikaan and opened as planned on Monday 25 July.
“The new library space at the Carnival Hub is also unaffected and remains on track to open in September this year.”
Mid Group was also working on a £37m contract for Clarion Housing Group for the 17-storey Boatyard scheme in Bristol.
Richard Cook, group development director for Clarion Housing Group, told the BBC: “We were saddened about the news relating to Mid Group.
“While it will mean a delay to the works, we are firmly committed to completing our Boatyard project on Bath Road and delivering vital affordable housing in Bristol.
“We are urgently seeking a solution and will provide an update when we can.”