Builder takes council to court for $28m over North Sydney pool debacle

The construction company rebuilding North Sydney’s Olympic pool is taking the local council to court, seeking $28 million in compensation for cost overruns and delays to the $122 million project.

Icon – the developer who built the infamous Opal Tower at Sydney Olympic Park – filed the lawsuit in the NSW Supreme Court, claiming the council breached its contract by repeatedly revising designs for a pool roof structure, which eventually had to be pulled down due to “significant flaws”.

The North Sydney Olympic Pool redevelopment has triggered a wave of litigation years after some councillors raised concerns about the project.Credit: Dean Sewell

In a statement of claim, Icon said it sought damages and an extension of time to complete the project under its contract due to problems caused by myriad changes to the steel roof structure’s design by Brewster Hjorth Architects and structural engineering consultants Mott MacDonald.

“Icon says the time taken to revise the upper roof design, and the revisions to the upper roof design and associated works, caused Icon to incur additional costs and delay on the project,” the claim said.

The council is mired in a separate legal battle with Brewster Hjorth over costs and delays caused by the roof, which was pulled down in 2023 and later replaced. The court cases represent more controversy for the drawn-out redevelopment, which has been dogged by cost blowouts and delays, years after dissenting councillors raised serious doubts over its scale, heritage matters and design.

The project is among a clutch of costly NSW redevelopments stoking debate about whether councils should take on such large infrastructure projects.

The pool closed in February 2021 and work started in March. It was originally forecast to reopen in November 2022. The cost of the project has nearly doubled from an initial estimate of $58 million.

In late 2023, the council revealed the steel roof frame for the 25-metre indoor pool had to be torn down due to a “significant” design and construction problem.

A project update a few months later said the disassembled steel could not be reused, and had caused delays that could drag out completion to late 2024 or early 2025.

North Sydney Mayor Zoe Baker said Icon’s claim was “not a surprise”, and the council had anticipated such litigation since mediation talks with the builder and architects collapsed last year.

The famous pool opened on a prime slice of waterfront land next to the Harbour Bridge in 1936. Luna Park is on the other side. Credit: Dion Georgopoulos

“The failure of the structural steel is the source of considerable time delays and cost recurrences,” Baker said.

“Council is confident the litigation with Icon and the architect will allow the responsible parties to be held accountable for the costs and delays to the project.”

Baker said the council would file a defence to Icon’s claim in due course. She said construction work would not be affected by the court case. Councillors recently voted to request a whopping 87 per cent rate rise for property owners, which it partly blamed on the rising cost of the redevelopment.

An Icon spokesman said the company had poured extra resources into the project, and it expected to finish construction this year.

“While it is disappointing that we have been forced to initiate legal proceedings over delays caused by significant flaws in the design of the North Sydney pool development by council’s design consultants, Icon continues to work cooperatively with council to progress the project.”

An independent review of the project by consultants PwC was critical of the former council’s rush to sign the construction contract with Icon on New Year’s Eve in 2020. The report also criticised the council’s decision to have separate design and construction contracts for the project.

The pool was most recently forecast to be completed in May; however, the council’s project update in April said Icon had pushed the date to the end of August due to “continuing program slippages”.

The council’s update said a specialist programmer’s analysis suggested the developer might not achieve “practical completion” of the pool until November.

An artist’s impression of the North Sydney Olympic Pool redevelopment. Credit: Image courtesy of North Sydney Council

The pool would likely be ready to open six to eight weeks after construction finished, raising the prospect that it might not be ready for swimmers until early 2026.

The redevelopment of the Milsons Point complex, which opened in 1936, includes upgrades to the indoor and outdoor pools, a grandstand for 970 spectators, a children’s water play area and an expanded gym. There will also be a spa and sauna, and a revamped Ripples café.

Icon built the Ruth Everuss Aquatic Centre in Auburn and the Lane Cove Aquatic Centre. The company’s spokesman said: “With a track record of successfully completing numerous world-class aquatic projects across Australia, we remain confident that when completed, North Sydney pool will meet and exceed the high standards expected by the community for this iconic Sydney asset.”

The Opal Tower became a lightning rod for debate over the standards of residential construction across Sydney after a crack developed in a load-bearing concrete panel on Christmas Eve in 2018.

The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights. Sign up here.