The £1.7 million social housing contract at Barn Park, was awarded by Argyll Community Housing Association (ACHA) to Stewart McNee (Dunoon) Ltd in July 2014.

When the building firm called in the administrators a year later, the eco-friendly development - comprising four one-bedroom flats, four two-bedroom flats and four three-bedroom houses was stalled.

The project was supported by funding from the Scottish Government, Argyll and Bute Council and from ACHA itself.

ACHA chief executive, Alastair MacGregor said this week that housebuilder M&K MacLeod from Lochgilphead was appointed on December 3 following a process to re-tender the works.

He added: “None of the properties have been pre-allocated and we anticipate that the work will be completed by April 2016.”

The contract comes as M&K MacLeod reported a rise in profit and turnover.

Accounts recently filed at Companies House show M&K, set up by twin brothers Murdo and Kenny MacLeod in 1975, reported a more than seven per cent rise in turnover from £17.26 million to £18.53m in the 12 months to May 31.

The growth in revenue was put down to new housing association contracts, delayed work from the prior year coming through and a small increase in private house sales. That helped pre-tax profits increase almost 14 per cent from £709,744 to £807,262.

Ms MacLeod said it was a pleasing overall performance as the business had to deal with a number of planning and legal delays during the year.

Along with housebuilding, quarrying and construction M&K manufactures products such as conservatories, doors and windows, as well as providing plumbing and electrical maintenance services.

The company also owns a shop and petrol station in Lochgilphead.

Jane MacLeod, company secretary, said an extension of the Help to Buy scheme would be welcomed as M&K had seen house purchasers using it in areas such as Oban and Campbeltown.

She said those two towns, along with the island of Islay, are among the most buoyant across Argyll and the islands.

She said: “It is interesting in the terms of Argyll and Bute as a whole as the population is dropping but there are pockets where there is growth and strong signs of growth.”

Ms MacLeod confirmed the business is continuing to look to buy land around the regions it operates in.

*An earlier version of this story referred to the site as being ‘abandoned’ following the administration of the original contractor. ACHA has stated for the record that the site was not abandoned but instead was under the control of administrators KPMG and ACHA with a security company on-site.

ACHA chief executive, Alastair MacGregor told Scottish Housing News: “When any company goes into administration on a building site a legal process has to be gone through which includes an agreed way forward with the appointed Administrator. ACHA followed this and then re-tendered to building companies for the remaining works to be completed. M&K MacLeod was successful in that tender process like any other. If anyone rescued this development it was the ACHA Investment and Regeneration staff who diligently went through the due legal process following the administration of the previous contractor which will result in us having 12 much needed homes by April 2016.”

SHN would like to apologise for its initial coverage and is happy to set the record straight on the matter.