Developer St James Homes appoints contractor one week after Mace departed from first phase of project

Contractor Laing O’Rourke has won a £65m contract to build the second phase of an exclusive residential scheme in Chelsea, west London.

It beat off competition from Wates to win the design-and-build scheme for 450 apartments on the Grosvenor Waterside scheme for developer St James Homes, a subsidiary of the Berkeley Group. The apartments will be built in three blocks of eight to 11 storeys.

The news comes after construction consultant Mace departed from phase one of the scheme last week. St James said the decision had been reached “by mutual consent”.

Mace left after completing just one of the three buildings it was contracted to build. The company had been on site for two years, managing works worth £65m. The contractor was also due to deliver site-wide infrastructure works.

A source close to the scheme said there were many factors that led to Mace's departure, but stressed that not all of them were the contractor’s fault.

The scheme has been affected by flooding in one of the blocks and delays in obtaining planning permission delayed the scheme.

The starting price for a flat is £400,000, rising to £1.3m for a penthouse

A St James spokesperson said the company would take over the management of the site up to the completion of the next two buildings, as it had the skills to finish the job in-house.

Laing O’Rourke would then come in as construction manager on the site for phase two of the development, thought to be at the beginning of October.

The apartments have been designed by leading architects, including Make and Twigg Brown.

The starting price for a flat at Grosvenor Waterside is £400,000, rising to £1.3m for a penthouse apartment.

Grosvenor Waterside is expected to be completed in 2008.