NEARLY 70 jobs in Hampshire have been saved after a troubled construction company in the UK was snapped up by a rival for £3m.

Benson was placed into administration after suffering cash-flow difficulties.

Various divisions of the national company, including the profitable Benson South arm, which covers Hampshire, were bought up by competitor Bluestone, part of Morgan Sindall's national construction brand.

Benson, hamstrung by losses on its Midlands operation, had been placed into the hands of administrators PricewaterhouseCoopers (PwC) before Bluestone came to the rescue.

Matters did come to a head locally two days ago when sub-contractors building a £3.5m production facility for contact lens manufacturer Coopervision at Hamble, near Southampton, reportedly downed tools and walked off site for reasons that have yet to be made clear.

The project was due for completion in February, 2005, according to the website of Benson, which has its regional headquarters at Hedge End, near Southampton.

A Coopervision spokesman said: "We still anticipate that the building will be completed by next year as planned."

According to PwC, the majority of the Benson South projects will be honoured by Bluestone, which has safeguarded 175 jobs across the divisions, including 69 locally.

Bluestone, which has a base in Fareham, described Benson South as "profitable".

Benson South landed a string of contracts, funded by taxpayers, earlier this year in Hampshire.

They included extensions to Westgate School, Winchester, Fordingbridge Infant School and Hamble Community Sports College.

The company also refurbished seven police stations across the county to the tune of £239,000.

Just two months ago the Daily Echo reported how Benson South's joint managing directors Grahame Pettit and Kevin Lendon were celebrating £100m worth of contracts in five years.

Grahame said at the time: "Much of the achievement is down to the large number of clients who award Benson second contracts."

PwC joint administrator Michael Gercke said: "I am delighted that we have been able to secure a sale of the great majority of Benson Limited's business, preserving 175 jobs and providing continuity of service to so many of Benson's customers."

Bluestone managing director Graham Shennan said: "Benson has a strong regional presence in these areas making it an ideal fit for Bluestone's ongoing business development."

Benson's office at Hedge End will run its operations alongside Bluestone.