The contract with Paddy Burke Builders Ltd., worth in excess of €3m, commenced in August 2009. The scheme comprises 16 affordable units and six step down units.
Bernadette Kinsella, Director of Housing Services and Shannon Town Manager commented: "The contract for phase one of the Council's housing development at Glaise na Rinne, Shannon was terminated today for reason of failure by the contractor to comply with the terms and conditions of the contract.
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"Arrangements are in hand to meet with the Bondsman to get an alternative contractor to complete Phase 1 of the scheme. Security will also be arranged on site. Elected Representatives in Shannon Town and Area will be kept informed of further developments," she said.
"The construction of the scheme has experienced some delays in the past 12 months due to the severe weather conditions of last winter, the extinguishment of rights of way, and the general economic climate.
"However, the Council anticipates that a new contractor will be on site by the end of November and that the development can be completed by late spring," Ms Kinsella added.
(GK)
