Mansell was originally awarded the £65m contract by Catalyst Housing Group but walked away from the job “due to commercial reasons.”

Mansell had started groundworks and these will now be completed by Galldris Construction who are now on site.

Catalyst is currently looking for a new contractor to carry out the main construction work on the 1000-home scheme and plans to have a firm on board by the end of the year.

A spokesman said: “A tendering process for the appointment of a new contractor is currently well underway and we expect to make an announcement on the shortlisted candidate before Christmas.

“The new contractor will be on-site by January 2012.”

Firms chasing the job are believed to include Ardmore, Galliford Try, John Sisk, Leadbitter, Mace and Wilmott Dixon.