The contractor appointed to redevelop Lavington Sports Ground has entered into voluntarily liquidation, leaving a number of matters and site certifications incomplete.
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Since the project begun costs have increased from $9.5 million to $17.5 million after the scope was expanded and unsuitable material was discovered onsite.
Removing the unsuitable material cost $3.2 million.
On Friday, Depan Group entered into liquidation.
Albury City general manager Frank Zaknich said despite Depan Group's financial difficulties stage one of the redevelopment would be completed on time and at no extra cost to ratepayers.
He said the ground would still be ready to host cricket matches in October.
“We’re concerned about any potential impact on sub-contractors and encourage any that might be owed money by Depan to make contact with the liquidator to seek recompense,” he said.
“As that process continues, we’ll work with those creditors to provide them as much support as possible to help them through this difficult time.”
PREVIOUSLY:
- Lavington Sportsground redevelopment works have been increased to $17.5 million
- Albury Council to take no further action on unsuitable soil at the Lavington Sportsground redevelopment
- $2million budget blowout looming for redevelopment
- Albury Council rejects Lavington Sportsground amenities building design and creates further budget blowout on redevelopment
- Lavington Sportsground redevelopment works have been increased to $17.5 million
Mr Zaknich said Depan's financial situation had been examined as part of a rigorous assessment process before they were appointed.
“Council has been extremely diligent in holding the contractor to a high standard of workmanship and while we’re disappointed the company has gone into liquidation, we’re pleased to note that these high standards will be met,” he said.
Mr Zaknich said the situation would not add an extra financial cost to the stage one works because Council is holding a bond, in line with usual contractual arrangements.
“The funds from that bond will be used to perform those works needed to certify the project as completed and as required by law, any money left over will dealt with in accordance with the contract through the liquidation process,” he said.
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