“SUBSTANTIVE steps” have been taken to salvage ongoing major projects contracted to the doomed Lloyd Group construction company, Frankston Council says.
Lloyd Group entered voluntary administration in March. Lloyd Group was responsible for four ongoing major council projects – the Healthy Futures Hub at the former St Kilda training base in Seaford, the Jubilee Park Stadium, Lloyd Park Senior Pavilion, and Eric Bell Pavilion.
The Jubilee Park redevelopment is one of Frankston Council’s most expensive projects in its history. It was projected to cost more than $35 million, and was nearly finished.
Tenants were due to move into both the new Jubilee Park Stadium and the Healthy Futures Hub in April. The collapse of Lloyd Group has seen the imminent completion of those projects delayed.
Frankston councillors have agreed to issue an update on the affected projects. A report on the future of those projects was considered behind closed doors at last week’s council meeting.
“Council officers are continuing to work through all of the many components associated with the Lloyd Group voluntary administration process, and our four affected projects,” the statement approved by councillors read. “As a further step towards resolution, council considered a confidential report at [last week’s] meeting and has taken substantive steps to empower the organisation to expeditiously resolve outstanding matters.
“Council understands the community is concerned and looking for information about these projects and we will continue to provide weekly updates to all stakeholders on progress. In the interim, and to ensure all facilities are secured and protected, council has placed fencing and security monitoring at the sites to protect key assets.”
Frankston Council has confirmed it has discussed the unfinished projects with contractors. “All discussions are subject to a full review of works completed to date, outstanding payments to subcontractors, costing of outstanding works and agreement on best possible contractual terms,” the council report read.
The Jubilee Park redevelopment was expected to cost $35.32 million. Frankston Council committed more than $20.5 million to works. The state government allocated $10 million, the federal government $4.56 million, and Cricket Victoria/Cricket Australia $200,000.