ADCO wins $108m contract for Dandenong Wellbeing Centre amid legal battle over Kew Recreation Centre collapse
A building company facing serious legal action over the collapse of Kew Recreation Centre roof is the top pick for a $108m contract for a similar project in Melbourne’s southeast.
South East
Don't miss out on the headlines from South East . Followed categories will be added to My News.
A building company facing serious legal action over one of the state’s “biggest construction collapses” was awarded a $108m contract for a similar project just hours after being slapped with 18 charges by the Victorian Building Authority.
Greater Dandenong Council on Monday night endorsed ADCO Constructions by six votes to four as its preferred tender to build an aquatic and wellbeing centre.
Earlier the same day the Victorian Building Authority charged the ADCO Group – a subsidiary of ADCO Constructions – over its involvement in the Kew Recreation Centre redevelopment which crashed to a halt after the new roof collapsed in 2022.
During the council meeting Mayor Jim Memeti said no charges had been laid over the roof collapse.
Councillor Rhonda Garad told the Herald Sun she didn’t know about the VBA charges until after the council meeting.
“As soon as I heard I called for the decision to endorse ADCO to be rescinded,” she said.
The move means the decision to award the contact has been paused until March 11 when it will be reconsidered by councillors.
Ms Garad said the council was “maxed out” to pay for the “once in a lifetime” project which was also supported by a $20m federal government grant.
“This is an enormous decision and we have to be sure we make the right one,” she said.
ADCO Managing Director Neil Harding said the company was ready to respond to any requests for more information and would continue to work closely with the council to ensure accurate information and context was available to all councillors.
He said ADCO was a recognised industry leader in the design and delivery of sport and leisure facilities in Victoria and Australia.
Concerns about ongoing legal action between ADCO and Boroondara Council over the Kew project were raised during Monday’s meeting by Ms Garad and councillors Bob Milkovic and Isabella Do.
Mr Milkovic said he could not agree to hand over more than $108m ratepayers’ money to a company while it was involved in legal action with another local council over a similar project which collapsed during construction.
“No determination has been made so we’re left in the dark as to which way that will go,” he said.
Ms Garad said the Kew collapse was the one of the state’s “second biggest construction collapse, second only to the West Gate Bridge disaster in 1970.
“Why would we take this risk?” she said.
Ratepayer lobby group Council Watch has reported the decision to endorse ADCO as the preferred tender to the Local Government Inspectorate and IBAC.
President Dean Hurlston said a probity audit review was needed to determine if there had been any breaches of governance, delegations, policies or processes.
“The public has a right to know why officers recommended any company in this situation,” Mr Hurlston said.
Greater Dandenong City Futures executive director Sanjay Manivasagasivam said councillors received a detailed briefing ahead of Monday’s meeting.
“A comprehensive report was prepared and published in the council agenda prior to the meeting,” he said.
Boroondara Council issued a statement on its website following the VBA laying charges against ADCO.
“While prosecutions continue, we can’t comment further on the cause and responsibilities for the collapse, but we will keep our community informed about progress on site,” the statement read.
The VBA has charged ADCO and nominee director John Conroy with knowingly carrying out work outside of what was allowed under its building permit, using steel that did not meet Australian standards and non-compliant welding of the structural steel framework.
The charges came after WorkSafe charged ADCO in 2024 for failing to ensure a workplace under its management or control was safe and without risks to health.