Developers have said they will continue to work with the community after campaigners raised fears workers were destroying badger habitat.
Hyde is currently building 71 homes on the former Park House site in Old Shoreham Road, Hove.
But locals fear the construction work is harming the environment with pictures apparently showing active badger setts left uncovered as building work takes place around them.
After receiving complaints, officials from Brighton and Hove City Council visited the site but said there was no sign of the firm breaching planning legislation.
But Valerie Paynter, of conservation group Save Hove, said: “It’s the saddest and most appalling application I have ever had to fight.
“It’s the nastiest example of poor planning practice that I have ever seen.
“When will we stop abusing nature for our transient human lives?”
Planning permission to demolish the former Bellerby’s language school was approved in April 2012.
It will be replaced by the One Hove Park development of 71 flats, 30 of which will be affordable homes.
In total there will be 26 one-bed flats, 29 two-beds and 16 three-beds and 71 parking spaces.
A spokeswoman for Hyde said work was progressing under the terms of the planning permission, which included the need for expert guidance from an ecologist and arboriculturist.
She added: “The badger setts remain in active use and the ecologist is satisfied that they are not suffering disturbance from the construction work.”
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