Viridor has served Interserve with a notice of termination on its energy from waste (EfW) Recycling & Renewable Energy project in Glasgow.

The £154 million development at Polmadie is one of a number of contracts in the firm’s exited energy from waste (EfW) business.

Interserve revealed in May that it would have to take a £70 million hit on the delayed contract after further deterioration in the project “significantly adversely impacted” its expectations for the UK construction division as a whole.

The issues related to the design, procurement and installation of the gasification plant, together with continuing challenges with the supply chain that will result in further cost overruns and delays.

The project was then months behind schedule and was also subject to strike action the previous month.

Waste gasification specialist Energos, which was involved in an ongoing contract to deliver the Glasgow centre, fell into administration in July.

Interserve then announced it would quit the EfW sector after problem contracts in the sector forced it into a £34m half-year loss.

In a trading update to the City, the contractor said it was now “assessing the implications of this development with our legal advisers and will issue a further update in due course”.