Construction of Sydney's $2.1 billion light rail line along much of George Street in the central city has missed completion deadlines for the second time.
And retailers whose turnover has tumbled since work began more than 18 months ago in the CBD are concerned the disruption from construction will drag on for months.
Despite a deadline extension last year, seven of 10 zones on George Street have failed to meet the latest completion dates – some by several months – for laying of tracks, curbs and other civil construction work.
High-end health and beauty shop Orogold said its revenue had halved over the past six months due to customers avoiding the area because of the construction.
Vivo Cafe owner Con Vithoulkas says revenue has fallen by 30 per cent.Credit: Christopher Pearce
"All of our neighbours are closing down. We are in a bind," co-owner John Leonardos said. "We are losing money right now."
Mr Leonardos said transport officials told him construction in front of his store near Martin Place could now last until Christmas, while a best-case scenario was October.
Transport for NSW said the discovery of about 1000 underground utility and service cables under the route of the line in the CBD had required investigation, design changes and "much negotiation with stakeholders about matters such as stormwater, gas, power and design stops".
It said civil construction would be completed on the first of three zones on George Street "from the middle of the year", but declined to elaborate further.
Light rail construction along George Street has again missed completion deadlines.Credit: Christopher Pearce
"We are on track for overall completion in early 2019 and have always been upfront in stating that we would need to adjust the schedules of individual zones," it said.
The transport authority said it had been working to send a "strong message that Sydney is open for business along the light rail route during the construction", which extends from Circular Quay to Randwick and Kensington in the city's south east.
Businesses complain of noise and dust from construction on George Street.Credit: Christopher Pearce
But Bek Benitez, the manager of the Oakley store on George Street, said the disruption had resulted in a major decline in customers.
"It is something that should have taken a minimal amount of time. The project wasn't thought through properly," she said. "It is absolutely frustrating."
The ALTRAC consortium that won the $2.1 billion contract to build and operate the 12-kilometre line faces "significant financial penalties" if it spends longer than the allocated time in any construction zone.
But Transport for NSW declined to say whether the consortium had paid penalties, citing commercial in confidence.
In Surry Hills and along Anzac Parade in Kensington, small businesses are also counting the cost. The owners of The Book Kitchen closed their well-known cafe and restaurant permanently last month after almost eight years, blaming construction on Devonshire Street for a plunge in customers.
Amelia Birch, who ran the Book Kitchen with her husband David, said the disruption from construction had taken a huge emotional and financial toll, and she estimated they had lost more than $100,000.
"It has uprooted our whole life. Our revenue was so low and we were unable to pay the rent. We liquidated our business and had to move out of our house because we couldn't afford to rent," she said. "We are living with family now."
Labor's transport spokeswoman, Jodi McKay, said the government should consider financial assistance to help struggling businesses.
"It's clear some are doing it tougher than the government expected and so it needs to do the right thing and look at individual circumstances," she said.
In November, the state's Auditor-General released a damning report into the light rail line, in which it was revealed the government misled the public about the reasons for a $549 million blowout in the cost of the project in 2014.
Con Vithoulkas, who co-owns Vivo Cafe on George Street with City of Sydney councillor Angela, his sister, said his revenue had dropped by 30 per cent since construction began.
"It is a disaster. As a small business owner, I am mortgaging my house to pay my bills and my lease here," he said. "We don't know when it's going to end."
Mr Vithoulkas said his business paid almost $400,000 a year in rent for a premium spot in the CBD, yet noise and dust from construction of the line was deterring customers.
The cafe used to attract an after-work crowd until 8pm on Fridays. But that dried up quickly after construction started and the cafe now closes at 4pm.
"It's not a little problem, it's a major problem," he said. "I have to go to the landlord and beg. There is no compo – nothing, zero."
However, Transport for NSW said the major civil construction was progressively being completed with systems work for the line, including installing the third rail, signals and station equipment.
"By combining the two stages of work we're able to complete as much of the project as possible in the one sequence," it said.