A Hilton hotel project on Grosvenor Estates’ £1bn Paradise Street scheme in Liverpool is understood to be running up to three months behind schedule, writes Sarah Richardson.

Site sources say the landmark scheme, which is being built by Kier Build and is one of the last remaining components of the Paradise Street scheme, is about 12 weeks behind and will miss its completion date of March next year.

However, it is understood that Kier is confident it can make up time on the scheme, and is working to a revised completion date of April. The contractor confirmed it had been granted an extension of time by the client, but declined to say how long this was for.

The reason for the delay was unclear as Building went to press, although sources attributed part of the problem to disputes among subcontractors. It is understood that there have been problems with payment between firms lower down the supply chain.

One source said: “Kier is having a bad time on the scheme.

It’s behind programme, and some firms are complaining that they haven’t been paid on time by others.

“The original handover was the end of March, but now they’re trying for the end of April.”

Kier does pay its subcontractors; however, whether they pay theirs, I don’t know

Kier spokesperson

A Kier spokesperson said: “Kier does pay its subcontractors; however, whether they pay theirs, I don’t know.” Regarding the issue of potential cost overruns, he said: “We don’t discuss financial matters.”

The 10-storey hotel project, designed by Aedas Architects, is one of the final parts of the Grosvenor scheme on the Mersey waterfront, also known as Liverpool One.

Most of the 70ha scheme has been completed; the first phase of the retail development opened in May, the second in October.

Liverpool One has 40 buildings, including shops, apartments and offices, with the bulk being constructed by Laing O’Rourke and Balfour Beatty.

Balfour Beatty was responsible for £110m of work to the east of Paradise Street and Laing O’Rourke looked after the £400m west side.

  • The masterplan for the scheme was carried out by Building Design Partnership.