East Lindsey District Council (ELDC) has insisted that work will continue on the new £12m Louth Leisure Centre despite the project's contractors going into administration.

Linpave Building had been appointed to build the new facility, but the scheme will now be taken on by its parent company, UCS Civils, after administrators Pricewaterhouse Coopers allowed the council to transfer the contract. The council remains confident that the centre will be completed, on schedule, by autumn 2009. It is also hoped that transferring the contract to UCS Civils, a subsidiary of the Lincoln-based Rand Group, will protect sub-contractors working on the project.

Plans for Louth Leisure Centre include a 25m, eight-lane swimming pool with moveable floor, a multi-purpose space, a sports hall, a fitness suite and dance studios. External pitches and a multi-activity community area are also to be created at the site. Adam Grist, ELDC's portfolio holder for leisure, said: "It is regrettable that this has happened but UCS has a broad public sector consumer base and is positioned well to deliver the contract we have agreed."

Chief executive of Rand Group, Jonathan Wells, said: "Fortunately, Linpave's parent has been able to step in to safeguard the delivery of the Louth project to the benefit of the council and the sub-contractors. The project remains on schedule and on budget."