Vinci has won the stalled £20m Guildhall restoration project in York, which Interserve had previously been awarded.
Interserve originally won the contract for the regeneration project in August 2017 but was dropped from the project by York Council last year over concerns about spiralling costs.
The council had expected Interserve to provide a build specification and target cost for the first phase of the project, but they could not agree on a price.
The redevelopment includes new offices, a restaurant and a café in the new plans for the medieval grade I and II listed buildings.
Remedial works will also need to be carried out to repair significant structural problems with the building’s tower which is subsiding and cracking, and repairs to the roof to prevent further water damage.
City of York Council leader Keith Aspden said: “This is the first significant investment in Guildhall for 60 years. The extensive restoration will protect the building for another 50 to 60 years.
“It isn’t enough to just restore and secure the building, respecting its heritage means reviving Guildhall’s central role in the civic, social and business life of our city.”
Executive member for finance and performance Nigel Ayre added: “The work will address the key issues facing the building’s structure and also improve the site to maximise income for the council and the wider city.
This will be done by opening up this nationally significant building to more of York residents than ever before.”
He added that the project will create 250 jobs and add £117m to the economy over five years.
Vinci began work on the buildings at the beginning of September, with the project expected to complete in spring 2021.
The project has received £2.3m from Leeds City Region Enterprise Partnership, delivered in partnership with the West Yorkshire Combined Authority, through the £1bn Leeds City Region Growth Deal.
Waterways charity Canal & River Trust is also supporting the project by enabling Vinco to use the nearby River Ouse to make site deliveries, in an attempt to reduce disruption to local roads.
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