Construction was due to start on site early this year after O’Rourke was lined-up as main contractor and planning permission was granted in September.
But now the job is being retendered despite O’Rourke putting in a lot of pre-construction work.
O’Rourke was planning to make extensive use of offsite construction techniques and modular components from its factory in Derbyshire.
The contractor had even posted up a video on YouTube containing BIM images ahead of a site start at Whitechapel detailing how the scheme would utilise offsite techniques.
The video was suddenly taken down after the Enquirer started asking questions about the project.
Now L&Q has gone back out to the market for an alternative builder.
The developer confirmed to the Enquirer that O’Rourke was no longer main contractor but declined to discuss a revised timetable.
One rival firm said: “We were all a bit surprised because the job was O’Rourke’s.
“These things are more often than not a dispute over the contract price and build costs.
“It’s a nice looking job so there won’t be a shortage of interested firms.”
The Whitechapel central scheme has been designed by architect Stockwool and is set to transform the former Safestore facility into a new urban quarter, with nearly 30% of the site dedicated to new public realm.
The scheme includes a large proportion of family homes alongside 38,000 sq ft of commercial space.
Laing O’Rourke declined to comment.