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LAGUNA HILLS

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The contractor hired by the city to construct the community recreation center building on Alicia Parkway has backed out of the project, city officials announced.

Vahdani Construction Inc., which began building the 42,000-square-foot center last October, told the city last week that because of unspecified financial issues the company could not complete the $4.47-million project. The building is about 45% complete.

City Manager Bruce Channing said construction delays should be minimal because of the contractor’s Faithful Performance Bond. The city filed a notice with the bond’s surety company, National Fire Insurance Co. of Hartford, which will now take over the project. It will be its responsibility to complete the construction on time for the center’s scheduled opening next year.

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Contractor M. Ali Vahdani, who was the lowest of eight bidders for the project, was hired in September after being questioned by the City Council about his building experience.

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