Work on the new Stroud Medical Centre will carry on despite the main contractor going bust.

The Stroud Regeneration Company has stepped in to take over and directly manage the £6.5 million project after the main contractors Yorkshire-based P.D.R Construction went into administration.

The new Five Valleys Medical Practice, at the former Woolworths and Poundland site, is due to open this autumn. Construction work had only begun in October.

Five Valleys Stroud is owned by Stroud Regeneration Company which is a wholly owned subsidiary of Dransfield Properties Ltd.

The development is the fourth phase of Dransfield Properties' regeneration work in the centre of Stroud and includes the redevelopment of the Five Valleys Shopping Centre.

The new medical centre will provide GP services to more than 15,000 patients in Stroud for two of the town's GP practices, Locking Hill Surgery and Stroud Valleys Family Practice. There will also be a pharmacy and space for complementary health providers.

A spokesperson for SRC said: "We have met with all contractors and stakeholders to reassure them that nothing has changed. They remain committed to working with us and to the project. We will honour all contracts and maintain our valued relationships to ensure the project is delivered with the minimum amount of delay and with integrity.

"We have a full team on site today and work is steaming ahead to continue the necessary demolition works, installing lift shafts, ventilation systems and fitting ceilings. At the same time the site is receiving deliveries of materials to keep the project on schedule to be open in the autumn."

Patient parking will be available at the multi storey car park with access from the King Street entrance or by the lift from the top floor of the car park.

PDR Construction, based in Hessle, in East Yorkshire, had been principal contractor on a number of major schemes across the country.

The 29-year-old company employed 115 staff and had a turnover of £83m for the year to April 30, 2020.

But it had posted its first loss in a decade, which was blamed on social distancing measures due to Covid and disruption to the supply chain.