Sunderland City Council has started searching for new contractors to take forward the redevelopment of a former brewery site in the city.

The local authority and its development partner, Siglion, had to halt construction at the Vaux site in January following the collapse of industry services firm, Carillion.

The contractor had been appointed to complete the first building on the flagship site, which is being transformed into a new business district to boost city centre jobs, offices and pedestrian traffic.

With Carillion's construction contract now officially terminated, a tender process to hunt for other contractors is now underway.

Council Leader Harry Trueman said: "Though the news of Carillion's collapse was a set-back, this has only served to galvanise the city in its determination to deliver job creating development at Vaux.

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"Vaux has always been a flagship site and many have described it as a 'once in a lifetime' opportunity. This development is one about expanding the footprint of our city centre, and bringing more jobs and economic prosperity to Sunderland."

John Seager, Chief Executive of Siglion, said: "The process to appoint a contractor for the final construction phase on site is underway, and we hope to be in a position to announce more details on that soon."

Mr Seager added that the priority had been to ensure that the project would be delivered in a way that provides continuity, in terms of the sub-contractors and ensuring minimal impact on the warranties and terms of the original contract.

He said: "It's been a complex and very involved process to move this forward, but we have been resolute in our aim to fulfil the original vision for this stunning building - the priority from the moment work was stalled, was to ensure that we were able to get back on site as quickly as possible, and deliver this important building to the city."

Overlooking the River Wear at the northern edge of the city centre, Vaux is widely regarded as one of the North East's most significant regeneration sites.

Subject to the tenders, an announcement about site work starting again will be made in coming weeks.

(LM)