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Apple Replaces Lead Contractor on New 'Spaceship' Campus

New construction firms have been brought in to complete the work.

Apple via City of Cupertino

Apple has fired the Swedish contractor working on the main “spaceship” building on its new Cupertino, Calif., campus, sources confirm.

Skanska issued a statement saying that it had reached an impasse in negotiations with an unidentified customer over changes in the scope of work, and that it had been terminated from the project. It said the lost work would cost it roughly $800 million.

A Cupertino city official, who asked not to be identified because he is not authorized to speak publicly about the matter, confirmed that the joint venture partnership of DPR/Skanska had been replaced on Apple’s high-profile project.

New contractors — Rudolph & Sletten and Holder Construction — have taken over construction of the main spaceship-shaped building, the source said.

Neither Apple nor the architect overseeing the Campus 2 project could immediately be reached for comment. The Silicon Valley Business Journal initially reported the lead builders would leave amid an impasse.

The Cupertino city council approved the Apple Campus 2 project, which calls for 2.8 million square feet of office space and other amenities, such as a theater and fitness center, in October 2013. Most of the 175-acre construction site is on the former Hewlett-Packard campus near I-280.

This article originally appeared on Recode.net.