The £73 million Marine Lake Events Centre (MLEC) in Southport has encountered a significant setback after its main construction partner, Graham Construction, withdrew from the project. This development marks the second time a contractor has exited the agreement, pushing back the construction start date and raising concerns about budgetary pressures.
Sefton Council has confirmed the termination of the Pre-Construction Service Agreement (PCSA) and is now seeking a new partner to deliver the flagship regeneration scheme. The project is a key component of Southport's economic development, supported by substantial public funding.
Key Takeaways
- Graham Construction has withdrawn from the £73m Marine Lake Events Centre project.
- This is the second construction partner to exit the project, following Kier Group in late 2023.
- The planned construction start at the end of this year is now cancelled, causing significant delays.
- Sefton Council is facing "budgetary pressures" and is already in talks with three new potential contractors.
- A new target of March 2026 has been set to finalize pre-construction work with a new partner.
Second Contractor Withdraws from Southport Project
Sefton Council has officially confirmed that Graham Construction (GC) will no longer lead the construction of the Marine Lake Events Centre. The company was appointed as the preferred development partner in December 2024, with a formal agreement signed in March of this year.
However, a council report scheduled for a cabinet meeting on October 2 reveals that ongoing commercial negotiations failed. In April 2025, Graham Construction informed the council they would not proceed with building the MLEC under the agreed terms.
This is the second major blow to the project's procurement process. In December 2023, the council terminated a similar pre-construction agreement with the Kier Group, initiating a new search for a contractor that led to the appointment of Graham Construction.
Project Background and Funding
The Marine Lake Events Centre is the most ambitious scheme in Sefton's regeneration plans. The project secured £37.5 million from the government's Town Deal fund for Southport and received an additional £17.7 million from the Liverpool City Region Combined Authority, highlighting its regional importance.
Impact on Timeline and Budget
The withdrawal of Graham Construction has halted the project's immediate progress. Site clearance and demolition works are already well underway, with the main construction phase previously scheduled to begin at the end of 2025. That timeline is now unachievable.
The upcoming council report will ask councillors to formally acknowledge the project's "budgetary pressures." The search for a new contractor is underway, but the report indicates that all three interested firms have provided cost estimates that exceed the council's original budget.
Despite the higher cost projections, the council believes that securing a new partner quickly will result in significant time and money savings compared to prolonging the now-defunct agreement with Graham Construction.
Timeline of Events
- December 2023: Agreement with first contractor, Kier Group, is terminated.
- December 2024: Graham Construction selected as the new preferred contractor.
- March 2025: Pre-Construction Service Agreement (PCSA) with Graham is signed.
- April 2025: Graham Construction confirms its withdrawal from the project.
- October 2025: Sefton Council cabinet to discuss budget pressures and next steps.
- March 2026: New target date to finalize pre-construction works with a third contractor.
Council's Response and Next Steps
Sefton Council is moving swiftly to find a replacement for Graham Construction. According to the cabinet report, engagement has been positive with three new contractors, all of whom have the necessary experience for a project of this scale and have confirmed their interest.
A spokesperson for the council addressed the end of the partnership.
"We are concluding the Pre-Construction Services Agreement with Graham Construction and would like to extend our thanks for their work over the past nine months. Following on from the cabinet report, we will share further updates on the next stages of the project in due course."
The process with Graham Construction involved securing cost certainty by tendering work packages to subcontractors. It was during this phase that commercial disagreements appear to have arisen, leading to the company's withdrawal.
The council has now set a target date of March 2026 to conclude pre-construction works with a new partner. Once this phase is complete, a main construction contract is expected to follow, allowing the physical build of the events centre to finally begin.
The MLEC remains a central pillar of the council's vision for Southport's future, intended to attract visitors, create jobs, and boost the local economy. The current challenges with contractors and budget highlight the complexities of delivering large-scale public infrastructure projects in the current economic climate.