The opening of the new Scottish parliament building is likely to be delayed as a result of the collapse of timber supplier, US-based Flour City.

Non-payment of Flour’s subcontractors has resulted in work on the Holyrood building’s £8m timber cladding grinding to a halt. It is feared this will contribute to a 10-month delay to the project that was due to be completed in early 2003.

On the day Flour City crashed it had unsuccessfully tried to get chief contractor Bovis to take over responsibil-ity for its subcontractors.