Stanthorpe Art Gallery and Library $6.1m project stalls amid construction firm crumble

It can be revealed the construction firm handling a mammoth $6.1m project in Stanthorpe has gone into administration, a matter of weeks before the project was set to be finished.

Concept designs from Conrad Gargett show what a new Stanthorpe Regional Art Gallery could look like.

A major project in the Southern Downs has hit a huge hurdle weeks before it was expected to open to the public, with the reason finally revealed.

On Tuesday, Southern Downs Regional Council said they had received word from the project’s contractor that the upgrade had encountered “significant financial challenges”.

The Stanthorpe Art Gallery and Library project was announced at the end of 2022, with the major work essential to project millions of dollars worth of books and artworks.

It is understood the project has stalled due to the contractor encountering challenges with financing the project due to “continued hard economic conditions” in the state’s building industry.

On Tuesday construction giant St Hilliers called in administrators, halting work on more than 20 projects across Australia

The firm is currently handling the Stanthorpe Art Gallery and Library upgrade project, valued at $6.1m, as well as work on RAAF Amberley base, east of Cunninghams Gap.

Glenn Livingstone and Alan Walker of ALP Restructuring have taken over the construction division of St Hilliers after accumulating $12m in losses over the past two years.

In a statement, the administrators said they “have secured and paused all works across St Hilliers’ 21 active construction sites while they undertake an urgent assessment of the business’s financial position and operations”.

“There are contract matters to work through with the builder, which council will do. While council remains under contract with the builder, careful considerations are being applied to contingency plans to ensure that any time in transition is minimised,” SDRC acting chief executive Leon Love said last week.

Work was well underway in upgrading Stanthorpe's new library and art gallery back in October 2023. (Photo: SDRC)

The project was expected to be complete in March, however, it is unknown if the “financial challenges” will impact the expected completion date.

The previous building, built in 1988, housed the works of Picasso and Margaret Olley, and kept art in the same room as the electrical switches, which posed significant risk to the art and personnel.

“Council is focused on the project’s timely completion and quality while ensuring local subcontractors are treated fairly,” Mr Love said.

“Regular updates will be made as we progress this matter.”

As of February 9, council has said they have established a working relationship with the contractor’s administrator for the Stanthorpe Regional Art Gallery and Library Expansion Project.

“Council must work within the constraints of the contracts for the works, and is focused and committed to getting the project finalised.”Another regional project has also stalled, the $15m upgrades to the historic Warwick police station.

The project was expected to begin in early 2023, which included a demolition of the offices at the back of the property, and creation of a two-storey building to house the officers as well as extensive interior modifications of the original building to ensure its continued use.