Balfour Beatty has become the second contractor to back out of the £1bn One Nine Elms scheme in Vauxhall after failing to agree terms for the main build contract.
Balfour announced today that it had walked away from Chinese developer Dalian Wanda Group’s twin tower luxury residential project after having signed a pre-construction services agreement in July.
In a joint statement issued today, Balfour Beatty and Dalian Wanda’s UK subsidiary, Wanda One, stated: “We can confirm that Balfour Beatty’s pre-construction services agreement with Wanda One (UK) Ltd for the main contract for the One Nine Elms development comes to a close in 10 days’ time.
“Wanda One (UK) Ltd and Balfour Beatty will not be proceeding to a full contract award for the development.”
Balfour Beatty is the second company to pull out of the scheme after it was rebid when a joint venture of Interserve and China State Construction Engineering Corporation abandoned the project in April.
Balfour Beatty had beat rival Multiplex to the job and it is now thought that Dalian Wanda is back in talks with Multiplex about bringing the project forward.
Once completed One Nine Elms will comprise two skyscrapers and homes, as well as the first Wanda Hotel outside of China.
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Is this a sign that contractors are starting to stand up up to clients who have unrealistic expectations and are now prepared to walk away from prestigious projects?