Council strikes solution for Goulburn re-use centre after Lloyd Group pulls out

Goulburn Mulwaree Council commissioned Lloyd Group to complete the $8.44 million "state-of-the-art" recycling facility in 2021. However the company entered voluntary administration on March 31, leaving this and 58 other projects in limbo.

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Council CEO Aaron Johansson told The Post this week that the organisation was not a creditor and had not lost money on the project.

"With the company in administration, we've been advised Lloyd Group wouldn't honour the contract. We've gone through a process to set aside that contract," he said.

A report to Tuesday's council meeting stated that subcontractors that contacted the council had been advised to register as creditors with administrators, Deloitte.

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In a closed session on Tuesday, councillors chose project management company, Capital 2 Coast, to deliver the re-use centre, in conjunction with the council. They will take an estimated 33 weeks at a cost of $645,975 excluding GST.

Mr Johansson has been given delegated authority to approve variations equivalent to four weeks additional project management assistance, to the value of $78,300.

He said the firm was previously onsite, under Lloyd Group's direction. Capital 2 Coast will effectively take over the project and manage existing subcontracts. Work was suspended when Lloyd Group entered administration.

"It will ensure we continue to develop that project in a timely and fiscally responsible way," Mr Johansson said.

"...We feel this is the most appropriate way of reinvigorating (it) and ensuring it is delivered."

The council had spent $4.56m on the work, an April report stated. A slab had been placed, roof and framing was complete and part of the main building slab poured. Wet weather and the need for waste excavation has delayed work.

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The project includes a tip shop, modern recycling shed into which vehicles can drive, weighbridge, education centre, site offices, vehicle-wash-bays and an upgraded stormwater network.

The centre is being funded through a $1,035,951 grant, council borrowings and developer contributions.

Mr Johansson said it was too early to say whether the centre, popularly known as RUG, (Re-use Goulburn) would go over budget.

"The subcontractors pricing in place meets our requirements and with the cost escalation in regard to construction projects in particular, this (arrangement) should ensure it stays within budget," he said.

"However we can't guarantee that until the subcontractors are back on board and we're working through the project."

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