Salford city council has switched a £39 million contract to build 177 new homes in Little Hulton to an alternative construction firm after the company that tendered successfully for the job went into liquidation.

Bolton-based Seddon Construction will now build the homes at Longshaw Drive on the site of the former Harrop Fold School, 92 of which will be affordable and a further 85 for the private rented sector.

In July last year, Salford awarded the contract to Crossfield Construction Ltd, but the company founded in 2012 went into liquidation in April.

The city’s procurement board approved has approved the new deal with the build expected to take three years and three months to complete.

The authority has received a contribution of nearly £3 million from brownfield grant funding and a further contribution has come from Homes England.

“Social value commitments” have also been secured from Seddon to the value of £10.5 million, Salford City Mayor Paul Dennett and Councillor John Merry were told.

Meawhile, Seddon has been in discussions with local charity The Mustard Tree, which aims to transform the lives of people in Greater Manchester trapped in poverty or homelessness.

Seddon will help them gain the skills and self-confidence needed to “reach their full potential” and a support worker will be funded to the tune of £25,000.

Coun Merry said: “We should be delighted that we’ve got to this stage. It’s been a fairly long slog and I’m happy to support it.”

Mr Dennett echoed his views saying: “It’s really important we increase the supply of truly affordable housing. Ninety-two affordable homes are fantastic.

“When we are looking for the positive economic impact of schemes like this, I’m really heartened that we are working with organisations like The Mustard Tree.

“We are keen to work with the community around volunteering and trying to give people who are long-term unemployed into long-term job opportunities.”

Mr Dennett also hailed the fact that the project has been developed as low energy low carbon to exceed current building regulations on energy efficiency and carbon reduction.

“These are the standards of properties we are trying to get to fulfil our ambitions to become carbon neutral in Greater Manchester by 2038,” he added.