Rapid handovers on Ardmore’s 10 major sites could help limit the fallout from the £350m-turnover contractor’s collapse and reduce disruption for subcontractors and suppliers caught up in the failure.

One industry source told the Enquirer: “It was clear that Ardmore was in trouble because of the backlog of legacy claims from house builders and the recent High Court ruling on the Building Liability Order in its Crest Nicholson case.

“Clients had already started to approach the market as a contingency.”

De Group Contracting has emerged as the first contractor to secure one of the stranded projects.

The firm was on site yesterday finalising terms to take over the Cambridge House redevelopment in Mayfair, where Ardmore had been converting the former military services In & Out Club on Piccadilly into a luxury hotel and residential scheme for the Reuben family.

The landmark project still has tens of millions of pounds of construction work left to complete.

A source close to the scheme said: “The client is very keen to minimise disruption and the aim is to take over and support the existing supply chain on the job with a smooth transition.”

Meanwhile, RED Construction is understood to be closing in on a deal to take over another major London retrofit project from Ardmore.

The scramble to secure replacement contractors comes as clients seek to avoid lengthy delays across a portfolio that spans life sciences, commercial, hotel and residential developments across the capital.

The race to secure new builders follows yesterday’s revelation that while the main Ardmore Construction Group and several trading subsidiaries have entered administration, directors have simultaneously sought a Moratorium for the wider Ardmore Group.

The move allows this business to continue trading while its future is assessed.

Ardmore is using the breathing space to pursue an appeal against the recent High Court Building Liability Order judgment that left companies across the group jointly liable for remediation claims linked to historic residential developments.

Industry sources believe potential liabilities could run to as much as £300m.

Earlier this week the Court of Appeal granted Ardmore permission to challenge the High Court ruling and agreed to fast-track the case because of its wider significance.

Ardmore argues the appeal raises important issues for the entire construction sector, including when Building Liability Orders can be made and how far liabilities arising from historic projects can extend across corporate groups.

Commenting on yesterday’s administration a spokesperson for Ardmore said: “This is a deeply disappointing outcome for the construction group, its employees and its stakeholders.

“Our focus is now on preserving value in the wider Group, protecting the continuing businesses where possible, and pursuing the appeal against a judgment which we believe raises important questions for the wider industry.”

Ardmore added it would continue to work with the administrators, employees, clients and other stakeholders during this process.