The managing director of David McLean Construction has been suspended over cost overruns on developments in North West England.
Ken Dalton has been suspended while the company investigates £2.5m of losses on student accommodation projects, which were not reported to the company’s board.
Two of the schemes are in Liverpool, while the other is in Manchester.
Company founder David McLean is believed to have come out of retirement to manage the situation.
He told the Liverpool Daily Post: “It is not so much that there have been cost overruns, it’s the manner in which they were handled.
“If it had been handled in a different manner he would not have been suspended.”
The issue does not affect the company’s development division, which is developing the Liverpool garden festival site in joint venture with Langtree Group.
Mike Wickham has been appointed acting MD of the construction arm.
References: EGi News 17/10/05
