Birmingham-based O’Donnell Developments went into administration last week.
It was working as a subcontractor for Bam on phase two of the Aston University Student Village Complex in Birmingham.
Now Bam has taken over the job itself and taken on all 70 former O’Donnell workers on the project to keep the project on track. A further 100 former employees are still out of work since being laid off, however.
O’Donnell ran into cash flow problems as turnover dried up, from £17m in 2009 to £8.7m last year.
It was scheduled to start work on a new teaching block at University College Birmingham for Shepherd Construction next week.
Administrators PKF are looking to see if any other contracts can be transferred to bring in money to pay creditors. “The company has been a victim of the problems currently affecting the construction sector,” a spokesman said.
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