Newcastle University £39m project halted by construction firm collapse

The new £39m building was due to open in January

The collapse of a construction firm has halted work on Newcastle University's new £39m extension and £25m sports centre.

Clugston, which employs more than 600 people, called in administrators KPMG last week.

KPMG said the two projects were "on hold pending the outcome of current discussions". The university said it was liaising with the administrator.

The Unite union is seeking a meeting with KPMG over unpaid wages.

Regional officer John McIntyre said it was "devastating news for Clugston workers who have been told they will not be paid before Christmas".

The university's new sport and exercise science building on Richardson Road was due to open in January.

It was expected to house offices and teaching facilities for sport, nutrition, psychology and medical education disciplines.

A Newcastle University spokesperson said: "Work has currently ceased on the sites and the buildings have been secured while we are liaising with the administrator."

Clugston Distribution Services Ltd and Clugston Estates Ltd are not affected.

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