Budget blowout, building ‘defects’ impact Allan Border Oval upgrade after builder placed into administration

Rising costs and construction defects have hit a major upgrade on a north shore sporting oval after the lead builder on the project was placed into voluntary administration earlier this year.

Rising costs and construction defects have hit a major upgrade of a north shore sporting oval after the lead builder on the project was placed into voluntary administration earlier this year.

Mosman ratepayers are expected to foot the bill for a $2m blowout in the budget for redevelopment works at Allan Border Oval in Mosman that includes the construction of an upgraded pavilion and landscaping works.

Mosman Council, which is leading the development, has revealed the total cost of completing the project has risen to $7.88m – 34 per cent higher than the original $5.88m budget.

The rising cost comes after the original contractor on the project, Lloyd Group, was placed into voluntary administration in March – forcing work on the upgrade to temporarily come to a halt.

Mosman Council in June appointed new construction company Reitsma to complete the remaining stages of the upgrade which is now earmarked for completion in April.

A photo of the upgrade works, pictured earlier this year.

A breakdown of the rising budget shows some of the funds have been used to cover legal costs and advice relating to Lloyd Group’s administration.

It has also been revealed $300,000 has been allocated to rectify “defects” and “damage” that Mosman Council say occurred during construction phases overseen by Lloyd Group.

A photo of the upgrade, pictured during early construction works.

A council spokeswoman said the defects related to concrete facades of the upgrade along with stormwater, plumbing, roofing and electrical works.

“Defects ranged from incorrect material being used or works not in accordance with the approved plans,” the spokeswoman said.

“In some circumstances repairs have been undertaken but the majority of defective items and works have been fully replaced.”

Asked whether the council had avenues to recoup the cost from Lloyd Group through the administration process, the council spokeswoman said “the matter is still with the administrator”.

The oval hosts a range of sporting events including cricket.

The spokeswoman said the defective work was identified by the council once it took possession of the site after Lloyd Group was placed into administration.

“Council undertook a detailed audit of the site and commenced some repair work (and) the remainder is being rectified by council’s current contractor,” she said.

A council report shows about three quarters of the $2m budget increase has been attributed to inflation including rising costs of material and labour.

The report states the rising costs associated with the project could be funded through the council’s general fund reserves.

The report further notes “the impact on council’s finances due to the increase in costs of the project has been manageable given council’s past positive budget positions, prudent expenditure management and the large contingency originally afforded to the project”.

The upgrade was originally due for completion by the end of this year – a date that was set prior to Lloyd Group entering into administration.

The delays have impacted some sporting activities at the site including Mosman Cricket Club which is facing a third consecutive season without access to the main pavilion.

The council states significant progress has been made since Reitsma was appointed to oversee the final construction stages of the upgrade, which once completed will include new change rooms and a kiosk.