The company which built the £4.5m pedestrian footbridge over Lincoln High Street level crossing has been appointed to build the eastern bypass after Carillion went into liquidation.
Galliford Try has been appointed to oversee the bypass project and arrangements have begun to resume work as soon as possible.
Karen Lee MP and Shadow Minister for Fire said: “I have been informed by the County Council that the liquidation of Carillion has resulted in the ending of its contract on the construction of the Lincoln Eastern Bypass.
“The County Council has noted that Galliford Try are on the site as of today to assess the required necessary arrangements for carrying on the work. This process will ensure there is no break in the construction period while a new firm is found to continue the project long-term.
“This new arrangement is expected to be finalised by the summer.”
“Yet, this approach only solves the issue short-term. The overarching issue is that the system is broken.
“After months of profit warnings, the government failed in its due diligence measures, continuing to award Carillion contracts worth billions of the taxpayers’ money.”
The news comes after the collapse of Carillion amid debts totalling around £900 million.
The deal with Galliford Try is a short term solution by the council to ensure the huge £100m road project continues as Lincolnshire County Council looks for a new firm to manage the work in the longer term.
The move also safeguards the jobs of around 38 people who previously worked for Carillion.
Karen Lee MP has now called for the scrapping of the Private Finance Initiatives: “I support the Shadow Secretary for Business, Energy and Industrial Strategy, Rebecca Long-Bailey MP, in her calls for ending the rip off Private Finance Initiatives. This is a watershed moment.
“It is time to take contracts back in house and ensure these contracts serve the best interests of the many, and not the few.”