Wates is in line to take over the Wates Britannia Hackney housing development after Ardmore Construction Group Ltd (ACGL) entered administration in June, with Hackney Council warning that the cost of completing the £200m east London scheme will now exceed its approved capital budget of £196.9m.
Hackney Council’s cabinet heard that Wates would be drawn from a contractor framework operated by Notting Hill Genesis to deliver the residential phase of the Britannia Masterplan. The Surrey-based developer and builder has already taken over management and security of the site as contingency planning accelerates.
What the Britannia Masterplan was meant to deliver
ACGL was awarded a contract in July 2023 to deliver 51 homes for social rent, 30 for shared ownership and 290 for sale. The receipts from the market sale homes were intended to cross-subsidise the first stage of the wider masterplan, which created a new leisure centre, school and public realm.
The north London construction company appointed administrators on 11 June this year, bringing construction to a halt. With an estimated six months of work remaining on site at the point of insolvency, the council moved quickly to assess its options for rescuing the scheme.
Wates Britannia Hackney housing: the path to a replacement contract
During a contingency-planning exercise, the council canvassed 14 contractors about their likely response to stepping into an abandoned, insolvent project. The exercise produced a clear message. Given the complexity and risk profile of the situation, contractors confirmed they would not compete through a mini-competition for the work. They indicated willingness to engage only on a directly appointed basis.
Key criteria used to assess potential replacement contractors included financial standing, experience of comparable schemes, a track record of rescuing jobs following insolvencies, availability through frameworks, and willingness to work collaboratively. Following further due diligence, the council decided to progress discussions with Wates Construction specifically.
Hackney Council’s major capital projects delivery lead Justin Feltham and Britannia Phase 2b project director Hayley Craig set out the council’s position in a report to cabinet, describing “urgent steps” towards restarting construction. The pair warned that “the main risk to cost escalation on the project is the time taken to recommence the works.” Contingency planning had, they said, focused on being in a position to move forward with a replacement contractor as soon as the administration process allowed.
The next formal milestone is the signing of a preconstruction services agreement (PCSA) with Wates Construction, which the report described as expected “in the near future.” A full construction contract will subsequently be recommended to the Cabinet Procurement and Insourcing Committee for approval, with Feltham and Craig committing to bringing that recommendation forward “as soon as possible but no later than the autumn.”
The report acknowledged that greater clarity on cost risk, programme timelines and the future sales strategy would emerge as the council works with Wates and the supply chain over the next three months.
Budget implications of the administration
The financial consequences of ACGL’s collapse are already accumulating. Immediate costs include reclaiming and securing the site, auditing the structural integrity of works completed to date, and mobilising Wates Construction under the PCSA. Together, these will “inevitably escalate the baseline delivery cost” beyond the currently approved capital budget of £196.9m.
Hackney’s cabinet approved a revised budget for the scheme at its meeting, though the council has not disclosed the new figure publicly. The Wates Britannia Hackney housing situation is described in the cabinet report as “a fast-moving issue,” and Wates declined to comment when approached.
