Developers behind the £700 million Paradise project in Birmingham say they do not expect the project to be adversely affected by the collapse of Carillion today.

The Wolverhampton-based infrastructure services giant is leading the construction of the first building on the city centre project - One Chamberlain Square - which is being built on the site of the old Central Library.

The eight-storey office block is due for completion in summer 2019 and will house financial services firm PwC which has agreed a deal to take the entire office space there.

Rob Groves, regional director of Argent which is the development manager of Paradise, said today: "One of the contractors working for us at Paradise, Carillion, has been put into compulsory liquidation.

"Our strong relationships with the supply chain and main contractors, along with a robust contingency strategy, means we are confident that One Chamberlain Square will not be adversely affected.

Work on One Chamberlain Square will not be "adversely affected" by Carillion's collapse
Work on One Chamberlain Square will not be "adversely affected" by Carillion's collapse

"The site-wide works are now over 80 per cent complete and BAM will be on site in February starting construction of Two Chamberlain Square as programmed.

"We have had an excellent relationship with Carillion, having partnered with them for more than 25 years on many projects, and our thoughts are with their staff today who are not just colleagues but friends."

The UK Government has advised Carillion staff to attend work today as normal.

Carillion was placed into compulsory liquidation after struggling under £900 million of debt and a £590 million pension deficit and has been without a permanent chief executive since July when Richard Howson stepped down in the wake of the firm issuing a profit warning.

The Paradise project will comprise eight office buildings, a new hotel, public space and redrawn traffic routes around the old Paradise Circus island.