THE Edinburgh architecture firm responsible for the Scottish Parliament and the Falkirk Wheel has lost its contract with an American university because of concerns over the firm's finances and staffing.

RMJM – the firm that controversially employed former RBS chief Fred Goodwin as an adviser – had been taken on by West Virginia University to design a sports college and health building.

However, the university has now confirmed they have terminated their contract with RMJM.

The university's associate general counsel, Rossi Wiles, said the number of people leaving RMJM and problems paying staff on time had a bearing on their decision.

There have been a number of high-profile departures recently from RMJM's New York office, and the chief executive, Peter Morrison, confirmed to The Herald earlier this month some wages had been delayed due to recessionary pressures but he remained confident about the firm's long-term future.

The decision by West Virginia University follows the controversy over the appointment of Mr Goodwin.

Will Alsop, a former architect with RMJM, said of the appointment: "Why on earth would a practice with its HQ in Scotland want to take on someone who was the most hated man in Scotland?"