Lloyd Group's collapse impacts Goulburn and Crookwell projects

It joins Crookwell's aquatic centre as one of 59 projects across NSW and Victoria left in limbo by the company's financial difficulties.

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Lloyd Group, which employs 200 people, entered voluntary administration on March 31.

"We do appreciate that this news will be unsettling and potentially disruptive for employees and project stakeholders, contractors and suppliers," Deloitte restructuring partner and voluntary administrator Sam Marsden said.

"In these early days, we will be undertaking an urgent assessment of the business's financial position and project-by-project status, and immediately commence communication with project principals and stakeholders."

Deloitte is trying to negotiate a sale.

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In August, 2021, Goulburn Mulwaree Council selected Lloyd Group from a field of three tenderers to build its Re-use Goulburn (RUG) centre at the waste management facility. The $8.44 million project comprised a 'tip shop,' state-of-the-art recycling shed, weighbridge, education centre, site offices, vehicle-wash-bays and an upgraded stormwater network.

A report at the time recommended Lloyd based on both price and non-price criteria, including experience, capability and management systems.

Council general manager, Aaron Johansson has declined further comment on the implications for the project and financial exposure. He would only say that the development attracted Local Roads and Community Infrastructure grant funding.

This represented $1,035,951 but in 2021 a report also detailed $4.2m in borrowings, to be complemented by developer contributions and reserves.

Construction started in November, 2021 and was expected to be completed in 2022. But the project has experienced delays, including wet weather, ground conditions and waste excavation needed on the operational site.

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A March, 2023 update to councillors stated that the re-use hub's slab had been laid, the roof and frame was complete and the main building's slab and beams were to be poured that month. A zig-zag wall and drainage were finished and steel was to be erected throughout March and April.

At that stage, $4.56m of the $8.4m had been spent and $133,168 in contract variations approved.

Meantime, Lloyd Group was also working on Crookwell's much-waited Multipurpose Aquatic Activity Centre (MAAC), which has been under construction since mid 2021.

"Sadly Upper Lachlan, like several other Councils and schools, has been caught up as yet another builder going into administration," Mayor Pam Kensit said in a statement.

"This is such a complicated area of commercial law and we've only just been notified so we are still processing this news."

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Acting general manager Alex Waldron said she was also disappointed.

"This is disappointing and extremely stressful for anyone caught up in it, but I want to assure the community that the council is committed to finishing the project," she said.

The council was working with Lloyd's appointed administrators to secure assets and "find a path forward."

The collapse has also dealt a blow to the community which has been awaiting the redevelopment since the Crookwell pool closed in 2020. Parents have instead brought children to Goulburn for swimming lessons and recreation.

In February, the state government announced $829,915 in funding to complete the project, complementing $2m in earlier federal funding. The redevelopment was worth more than $5m.