The council intends to complete work on the three schools
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A West Yorkshire council has pulled out of a £25m school-building contract with loss-making construction firm Jarvis.
The company had been in line to build three special schools for children with learning and physical disabilities in a deal with Kirklees Council.
But the council cabinet has decided the work will go instead to a consortium led by Wates Construction Ltd.
The new schools will be built at Newsome and Longley in Huddersfield and Fairfield in Heckmondwike.
Future 'uncertain'
In July, Jarvis reported annual losses of more than £246m.
And the company, which was criticised over track maintenance at the site of the Potters Bar rail crash, announced on Wednesday that its chief executive had resigned.
Geoff Alvy, Kirklees Council's cabinet member for children's services, said: "We have been having detailed discussions with Jarvis and its bankers since the company made its financial statement during the summer.
"However, due to the uncertainty of the future ownership of the accommodation services division, Jarvis has not been able to reassure the council as to when it would be able to sign the contract and start the construction programme.
'Smooth transfer'
"Consequently, today's (Wednesday) cabinet meeting agreed to recommendations that officers negotiate an alternative option with a consortium that had also submitted a bid to undertake the project.
"The council intends to work with Jarvis to ensure a smooth transfer to the reserve consortium (Wates)."
Jarvis will continue to carry out repair and maintenance work at 18 mainstream schools in the Kirklees district as part of a separate earlier contract with the council.
In addition to the new schools, more than £1m will be invested by the council in refurbishment and modernisation works to Lydgate Special School in Holmfirth, the council added.