Allroads collapse sparks chaos: Logan residents face roadwork nightmare
One of the country’s largest road construction firms has hit financial strife, stalling projects and leaving half-finished muddy work sites.
Logan
Don't miss out on the headlines from Logan. Followed categories will be added to My News.
One of the state’s largest road construction companies has gone into voluntary administration, abandoning three major southside projects, forcing residents to drive around open pits, massive potholes and half-finished muddy construction sites.
Allroads went into voluntary administration on March 4, almost two years after it started ripping up bitumen to widen roads in and around Eagleby for Logan City Council.
Documents revealed to residents this month showed that administrators Damien Lee Hou Lau and Tracy Lee Knight were appointed to affiliates of the company, formerly known as Allroads Solutions, in August last year.
Cor Cordis administrators Darryl Kirk and Stephen Earel, appointed on March 4, have been meticulously examining the company’s accounts, projects, and records to salvage what they can.
Allroads Pty Ltd, which originated with a single excavator 15 years ago, now faces uncertainties for the completion of many projects underway.
Eagleby residents are now bracing for prolonged road closures on major thoroughfares, including Fryar Rd and Logan St.
Mr Kirk said it was too early to determine which roads would be finished and whether the Logan City Council settled its debts with Allroads on time.
He also said Logan was not the only council to have projects with Allroads with the company managing projects across the state.
“In relation to filling in potholes, I probably do not have a lot to add at this point other than we are working through all the contractual positions that the company had with the various councils to try to ascertain the status of the works,” Mr Kirk said.
“Whether, in fact, there is any work that is yet to be completed is yet to be determined.
“It will be up to whatever we can negotiate with the various councils and principles on the contracts as to whether any further works get completed.”
Mr Kirk said Allroads Solutions, which went into administration in August, was one of the companies in the group that held employees.
News of the company’s demise and expected further delays, was the final blow for fed-up Eagleby resident Scott Kelly who said the road works had already dragged on for two years, damaged his car and wrecked his tyres.
“Our car has suffered premature wear to our suspension and tyres since the absolutely imperative drainage roadworks began on Fryar Rd and Logan Rd,” he said.
“I honestly feel like the rough roads, particularly late last year when the potholes were huge, now not so bad, would definitely have contributed to the more rapid degeneration of people’s cars.
“The works are now stupidly overdue and the road is still rough-as-guts and people can’t just travel down Logan St without a detour.
“I followed an ambulance with lights and sirens and they had to take the detour, coming down Logan St from the highway and negating the f*** around to get back onto Logan St.
“If someone was in dire need of paramedics this could have cost a life.
“The company can no longer compensate for damage to our vehicles and when will we get the direct path open again for the entire length of Logan St?
“There are a lot of retirement homes, so the elderly, blocked off from a direct path from the ambulance station to their homes is unacceptable.”
Eagleby resident Nate Hamon, who is running for a council seat in Eagleby, said it was hard to understand why the alarm bells were not raised earlier.
“It wasn’t until questions started arising on social media that we got a statement from the council, despite work being at a standstill for a couple of months.
“We’re not looking to point fingers but we do want some clarity as to how it got to this point and what the future looks like regarding the completion of these projects.”
When contacted for comment, the council remained silent on whether there were outstanding debts to the construction company or a timeline for resuming works in Eagleby.
The council also denied requests to temporarily reopen major thoroughfares including Fryar Rd and Logan St, claiming reopening those roads, even for a limited time before works recommenced, was not possible due to exposed pipes, pits and impacts to other services.
The council also did not answer questions about why it did not scrutinise the works when the first company went into administration more than seven months ago.
In a statement, the council said it was addressing “emerging issues” including the best option for delivering the large and complex projects.
Its website also said action was taken in late February to place its own crews on site to improve amenity and safety and patch up any major potholes and secure pits.
It also said it was undertaking regular watering to reduce dust ensuring signage was in place around detours and work areas.
The council said 83 per cent of the Cowper Ave project had been completed since works got underway in January last year, with 62 per cent of works completed in Kelly St after works started in March last year.
The council actions followed two months of slow progress when the council reported in December that ”unfortunately, progress has been slower than expected due to underground rock breaking”.
“Project upgrade works are expected to be ongoing until April 2024.”
Roads that are affected include Fryar Rd, Logan St, Girrawong, Sirius, and the roundabout entrance on to the M1 at Eagleby.