UPDATE: Kyogle levee contractors advised to contact administrator
KYOGLE council has assured none of the subcontractors working on the water augmentation and flood mitigation project will be out of pocket following the collapse of the lead contractor CivilTeam.
Council issued the assurance after the Murwillumbah-based company went into voluntary administration on March 8.
Contract provisions make council lead
Engineering, Kyogle Council Executive Manager Urban and Assets Graham Kennett said council had terminated the contract with CivilTeam Engineering on Monday due to the company’s insolvency.
“Under the provisions of the conditions of contract, this allows council to novate the subcontractors who were working on the project in order to complete the works,” he said.
“This process sees council effectively becoming the head contractor, managing the completion of the remainder of the works with the nominated subcontractors, and taking responsibility for any amounts owing to the subcontractors associated with the contract.”
Mr Kennett said CivilTeam Engineering staff had provided council with a schedule of the nominated subcontractors involved in the project, and details of all outstanding invoices for each subcontractor.
Sub-contractors/suppliers will be contacted
“In the coming days council staff will be making contact with the nominated subcontractors and suppliers and the appointed administrator to initiate the process required to novate the subcontractors and to make arrangements for the payment of outstanding invoices,” he said.
“This process is expected to take three to four weeks to complete.”
Kyogle Council engaged CivilTeam Engineering in July last year to undertake a civil works contract involving the construction of a new water supply storage dam, a fishway over the town weir, and a levee bank and floodway in Kyogle.
The company had completed about 70% of the work before it went into voluntary administration.
Necessary information required
Mr Kennett urged subcontractors and suppliers who have outstanding invoices or claims for payment with CivilTeam to make contact with the administrator.
He said the subcontractors must ensure that they have provided all the required information and evidence to the administrator if they had not already done so through CivilTeam Engineering prior to the administrator’s appointment.
The Administrator is Mr Brendan Nixon, who has advised of the following contact details; e-mail email@example.com or phone (07) 3832 6816.
The first Meetings of Creditors is to be held at the United Services Club, 183 Wickham Terrace, Spring Hill QLD 4000 on Friday 18 March commencing at 2:30pm
INITIAL: HEAD contractor for the work on Kyogle’s levee, CivilTeam Engineering Pty Ltd has gone into administration.
The Northern Star reported last December on work being well under way for the new levee bank, floodway, weir and off-stream storage dam for Kyogle’s drinking water supply.
At the time Kyogle Council’s executive manager urban and assets, Graham Kennett said the levee was expected to be completed before Christmas, but wet weather had delayed the work.
However, CivilTeam, based in Murwillumbah, had an administrator appointed on March 8 and a creditor’s meeting is to be held in Spring Hill,QLD on March 18.
Mr Kennett told the ABC, CivilTeam was assessed as part of the expression of interest process and shortlisted.
“At the time they were invited to tender and that they were awarded the contract they had passed the financial assessment process undertaken by NSW Public Works,” he said.
The council will now step in to ensure the levee will be completed.
The levee is designed to reduce a one-in-100-year flood peak by 200mm and delay floodwaters isolating residents in The Flats until water backing up from the Richmond reaches the new levee bank.
This will allow a dry road evacuation route for residents in that area.