WORK on the new extension at Teignmouth Hospital is due to restart on Monday.

The £800,000 contract came to an abrupt halt after only three weeks when builder Rok went into administration earlier this month.

Now the health authority has negotiated a new deal with contractor MBF to complete the work, which had only reached the foundation laying stage.

Teignmouth Hospital League of Friends is contributing £605,000 to the project, and the chairman, Graham Russell, told the Post yesterday: 'This is excellent news and means the extension should now be completed on schedule next summer.

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