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The Chinese contractor doing the marine works on the 拢1.3bn Swansea Bay Tidal Lagoon has been thrown off the job, the project鈥檚 developer has confirmed.

China Harbour Engineering Company (CHEC) was named preferred bidder for a 拢300m deal last June to build a 9.5km seawall for the scheme.

But the marine construction giant鈥檚 contract will now be re-tendered after the client, Tidal Lagoon Power (TLP), conducted a review of all of the 鈥渁dvanced works packages鈥� on the project.

TLP said CHEC鈥檚 designs had 鈥渓imited workability鈥� and did not offer value for money, adding that the works will be retendered 鈥渋n line with the requirement to deliver optimal value-for-money to investors and to consumers.鈥�

The client also insisted retendering the contract was the only change to the project following its review and it will not have an impact on the project鈥檚 funding or delivery timetable.

The scheme is on hold until a government review on the feasibility of tidal lagoons is complete, with negotiations over a strike price postponed until after the review is completed in the autumn.

Other big winners on the scheme include Laing O鈥橰ourke, who were named preferred bidder last year for a 拢200m deal to build the lagoon鈥檚 turbine house, which is now reported to be worth 拢350m.

Local contractor Alun Griffiths is the preferred bidder for a deal to provide ancillary civil engineering for the project鈥檚 public realm works, the value of which has since increased by 拢10m from the time of the initial announcement to 拢35m now.

It has also emerged that Andrew McNaughton, the former Balfour Beatty chief executive, has left his role as construction director of Swansea Bay Tidal Lagoon.

Mike Unsworth, the project鈥檚 delivery director, will take over McNaughton鈥檚 role.

McNaughton is now in discussions with TLP over taking an ongoing advisory role on the project.

According to widespread reports, the overall cost of the Swansea Bay Tidal Lagoon has escalated from 拢800m last year to 拢1.3bn.

CHEC鈥檚 removal from Swansea Bay Tidal Lagoon comes a month after fellow Chinese contractor China State Construction Engineering Corporation鈥檚 joint venture with Interserve mutually agreed to end its deal to construct London鈥檚 One Nine Elms tower with client Wanda One.