Salford City Council is preparing to award Seddon the main construction contract for 144 low-energy homes at Robert Hall Street in Ordsall.
The site forms the A2 phase of a wider 274-home development covering Robert Hall Street and West Park Street.
Vistry was appointed in spring 2024 to progress design and carry out enabling works funded through the Brownfield Land Release programme.
Infrastructure and remediation works have since been carried out, but following detailed negotiations the council has decided not to take Vistry forward into the main build.
The existing agreements will now be brought to an end through a settlement agreement.
Seddon was subsequently brought in through the Innovation Chain North framework and appointed under a pre-construction services agreement to firm up costs and prepare the scheme for construction.
The council is now seeking approval to award Seddon a £40m contract, with overall costs for the 144-home phase put at around £46m.
Work is scheduled to start in October.
The council said Seddon had worked with the design team during pre-construction to improve buildability and identify cost savings.
