Work on the Macedon Ranges Regional Sports Precinct at New Gisborne has been brought to a halt after the construction company entered voluntary administration on March 31.
Macedon Ranges Shire Council confirmed the work had paused as a result of the Lloyd Group’s status.
Council CEO Bernie O’Sullivan said the administrators had written to council indicating they would be in contact to discuss the project and next steps.
“There continues to be a security presence on site during this time and council is committed to finding a resolution as soon as possible, so construction on this priority project can continue,” Mr O’Sullivan said.
“Fortunately, no other Macedon Ranges Shire Council projects are affected.
“We thank the Victorian Government and partners for their support of this important project for the Macedon Ranges to date, and our thoughts go out to Lloyd Group staff and contractors, many of whom working on the project live locally or in neighbouring areas.
“We will endeavour to provide updates as appropriate.”
According to Lloyd Group’s 2021/22 financial report, while turnover rose to $275.7 million from $158.7 million, the profit amounted to less than a quarter of the previous year’s $2.1 million. The fall was primarily attributed to rain and flood events that led to procurement losses, project delays, insurance claims and subcontractor insolvencies, and affected a number of projects.
Deloitte Turnaround and Restructuring has been appointed voluntary administrator of six Lloyd Group firms.
“We do appreciate that this news will be unsettling and potentially disruptive for employees and project stakeholders, contractors, and suppliers,” Deloitte partner Sam Marsden said.
“Like others in the construction sector, and despite significant effort, Lloyd Group has been unable to overcome increasingly challenging circumstances over recent months that have eroded project margins.”
The administrators will now undertake an urgent assessment of the company’s financial position and project-by-project status, initiate communication with project stakeholders, and commence an accelerated sale process.
The MRRSP will encompass a 15-hectare regional park providing facilities for a range of sport and recreation activities.
It will be delivered over two stages.
Stage one, currently under construction, will include a three-court sports hub, a natural turf oval and sports pavilion, passive recreation facilities, landscaping and associated infrastructure.
The project is being jointly funded by local, state and federal governments.
