Salta Constructions has commenced winding down its operations at Raine Square after spending the past three weeks trying in vain to negotiate a settlement with project developer Saracen Properties.
Its withdrawal leaves Westgem Investments, a company under the Saracen Properties umbrella, to find a replacement builder to complete the project.
Salta terminated its contract for the construction of Raine Square on February 25, citing a dispute over variations to the lead builders' contract.
The Raine Square site has been shut down for over a month, after Salta ordered its workers off the job on February 8.
In a statement released today, Salta said it had always been the company's wish to complete the project and had maintained its infrastructure in place in the hope of recommencing work under a new arrangement.
According to the statement, Salta has provided various extensions to the timeframe for reaching a resolution, but the final extension date expired on Friday.
It is understood the frontrunners to take on the remaining $60 million of base build work at Raine Square are Diploma Group, Arccon Constructions and Broad Constructions.
All three builders declined to comment when contacted by WA Business News.
