Work on a new council housing site is likely to start in autumn following a successful re-tendering exercise.
CHAP Construction has been appointed to build 87 homes at the former Craighill Primary School at Kincorth in Aberdeen.
The development had been put on hold because of soaring sector costs – but a redesign has brought it back on budget, Aberdeen City Council said.
An update will go to the Communities, Housing and Public Protection Committee on September 5.
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Councillor Miranda Radley, Committee convener, said: “I am delighted that the Craighill project is proceeding following the re-tendering exercise for the development.
“Aberdeen City Council is committed to providing high quality social housing for tenants in years to come and I look forward to seeing the Craighill site developed in months to come.”
A revised planning application was approved earlier this year, and the ground works are complete.
It is anticipated that the £26 million development – comprising a mixture of property types – will be constructed in a single phase.
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