The builder was left footing the bill after the developer behind the English Riviera’s
award-winning Abbey Sands development was placed into administration earlier this year.

As main contractor Balfour Beatty Regional Construction funded the land purchase and build-out, according to administrator’s documents.

Balfour has lodged a claim for £6.7m as a secured creditor of the development company Palm Court (Torquay), whose main shareholder was Harvard Estates.

But Balfour Beatty said this claim would rise to £10m once the final project account has been adjudicated.

In January, John Havard, the Palm Court company’s sole director, placed the company in creditor’s voluntary liquidation. Then Balfour Beatty served a formal demand on the company and appointed administrators from BDO.

The administrators said they would continue to market the remaining empty Abbey Sands flats with support and advice from a national real estate agent with a view to maximising value for the benefit of the company’s creditors.

A spokesman for Balfour Beatty said: “As the legal discussions with Palm Court (Torquay) Ltd are on-going, it would be inappropriate to comment further.”