The decision was made in a confidential session this week, but beforehand Cr Murray King took aim at council's process for ensuring sub-contractors were paid for work on its projects which he said had led to the "debacle" at Lavington.

"I don't work for Albury Council, but I have contracts with other government departments and I have to fill out the (statutory declaration) naming all the sub-contractors, their addresses and their phone numbers and they ring up and check," he said.

"If that had happened this debacle with Depan would never have happened.

"This has caused hurt and problems.

IN OTHER NEWS

"I'm sick to death of asking (engineering director Brad Ferris) about the procedures he doesn't adopt that causes these problems time and time again."

Mr Ferris explained the council's standard procedure is to enter into a contract with a head contractor, who then engages sub-contractors.

"We are not privy or not involved in the engagement of sub-contractors," he said.

"As part of our contract documentation a stat dec is provided with every progress payment.

"If that is disputed by the sub-contractor then we assist them through the Security of Payments Act.

"As per previous discussions the sub-contractor is under contract with the head contractor and not with council.

"We shouldn't interfere with that relationship."

In the event of a payment dispute the matter could be reported to Fair Trade.

Mayor Kevin Mack rebuked Cr King for raising the matter in open council.

"This is an operational matter and you cannot discuss it in this chamber," he said.

Cr Henk van de Ven flagged the need for a councillor workshop on the matter.