Construction halted indefinitely on Siltasaarenkatu in Helsinki due to contractor bankruptcy

Construction work on Siltasaarenkatu next to Kallion Lyyra has been halted indefinitely and may not resume until next spring, according to the City of Helsinki. The project was originally scheduled for completion in November. The delay is attributed to the bankruptcy filing of the contractor, E.M. Pekkinen, in September. The company was responsible for five ongoing projects in Helsinki, all of which are now incomplete.

Before work can continue, the city must find new contractors, as noted by Liisa Taskila, head of the project management unit in Helsinki’s urban environment department. Currently, the city is focused on addressing critical phases of other affected projects, including significant works in Longinojanpuisto park, nearby bridge and street renovations around the former Maria Hospital in Kamppi, and remediation at Katajanokanlaituri, as well as the restoration of the Havis Amanda statue.

New contractor Stara has taken over the critical tasks in Longinojanpuisto to avoid impacting local trout spawning. Taskila stated that critical water barrier work on Siltasaarenkatu and concrete work on the bridge in the Kamppi area are expected to be completed before winter sets in.

While some situations are being negotiated with companies that previously bid for these contracts, others may be put out for tender again. The overall financial impact on the city remains uncertain, although costs will undoubtedly arise from necessary changes, as transitions between contractors are rarely seamless. Taskila noted that such situations are uncommon, recalling a similar case five years ago, though the simultaneous closure of multiple projects due to bankruptcy is even rarer.