Demolition work started in March after McLaren was named as preferred bidder on the City North job by joint venture clients United House and landowners the Business Design Centre.

The clients have now gone back out to the market to re-tender the scheme after detailed contractual discussions broke down with McLaren.

Robert Jenkins, Project Director for City North said: “Following discussions between the developers, City North Finsbury Park Ltd and preferred bidder, McLaren Construction; the two parties have been unable to agree all contract matters and have mutually agreed to part on the project.

“We are absolutely committed to the delivery of a development of the highest quality that will transform Finsbury Park and bring new focus and energy to the area, and hope to make an announcement in the near future about the delivery and completion of the scheme.”

The City North scheme will see construction of of 308 one – four bedroom private apartments in two 21 storey buildings.

Works will also include 47 affordable homes and 10,776 sqm of retail, office, restaurant and leisure space.

One rival contractor said: “No-one is really sure what happened here.

“McLaren were all sorted then things seemed to have fallen apart and the job is back on the market again.”

McLaren declined to comment