RAJ CAIRNS REPORT


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Cairns Regional Council must tender again for Tobruck Pool and publish Feasibilty Study——-NSW council suing Tobruk pool builder Adco for $5 million over defects in $18 million Annette Kellerman Aquatic Centre | Business News | Business and Finance News | | Cairns Post


 

 

ADCO Constructions, which has won a contract to redevelop the Tobruk pool in Cairns, is being sued by a NSW council for more than $5 million over defects at its new aquatic centre.

The Marrickville Council is suing Adco in the Supreme Court of NSW for defective and incomplete works of the $18 million Annette Kellerman Aquatic Centre, which opened in December 2010.

The centre includes a 50m pool, learn-to-swim pool and leisure pool, seating, changing facilities, office and reception area, toilets and lockers, cafe, and fitnes

 

NSW council suing Tobruk pool builder Adco for $5 million over defects in $18 million Annette Kellerman Aquatic Centre | Business News | Business and Finance News | | Cairns Post.


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Cairns Regional Council is going to have the same problems as Port Lincoln Council with Aquatic Centres——Port Lincoln Council to buy and refurbish city pool – Australasian Leisure Management——————Former Port Lincoln Mayor Peter Davis was with Council when it created the city’s existing aquatic centre, and warns of its ongoing financial difficulties. He recalls that when the facility, then known as the Port Lincoln Leisure Centre was first built it was predicted to financially break even, but design faults and insufficient patronage created significant losses. Davis explained “at the end of the first financial year the loss turned out to be about $117,000. That loss spiralled upwards to about $300,000 within about five years.” Davis said attempts to increase patronage and reduce losses, by building a stadium alongside the swimming facility, were unsuccessful. He adds “the losses spiralled upwards … the cost of the Leisure Centre complex then was about $700,000 a year, including the repayments.”


 

 

Former Port Lincoln Mayor Peter Davis was with Council when it created the city’s existing aquatic centre, and warns of its ongoing financial difficulties. He recalls that when the facility, then known as the Port Lincoln Leisure Centre was first built it was predicted to financially break even, but design faults and insufficient patronage created significant losses. Davis explained “at the end of the first financial year the loss turned out to be about $117,000. That loss spiralled upwards to about $300,000 within about five years.” Davis said attempts to increase patronage and reduce losses, by building a stadium alongside the swimming facility, were unsuccessful. He adds “the losses spiralled upwards … the cost of the Leisure Centre complex then was about $700,000 a year, including the repayments.” As a result, the facility was sold in 2000 to the Sarin Group for $1.5 million, from whom the Councuk are now buying it back. – See more at: http://www.ausleisure.com.au/news/port-lincoln-council-to-buy-and-refurbish-city-pool/#sthash.5TYYsGdJ.dpuf

 

Port Lincoln Council to buy and refurbish city pool – Australasian Leisure Management.


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Council should be very carefull in building Aquatic Centres——-Subject: ANNETTE KELLERMAN AQUATIC CENTRE – STATUS OF WORKS AND LEGAL PROCEEDINGS AGAINST ADCO CONSTRUCTIONS PTY LTD ————–Prior to and since Council began operations at the Centre on 11 December 2010, there has been a growing list of identified defective and incomplete works that together with a significant dispute regarding practical completion, commissioning of services and the recovery of monies already paid to ADCO (as a result of a Building and Construction Industry Security of Payment Act determination – see below) has resulted in Council taking action against ADCO in the Supreme Court of NSW. The action seeks repayment of monies and damages in excess of $5million.


 

 

 

 

Item No: C1213 Item 16

Subject: ANNETTE KELLERMAN AQUATIC CENTRE – STATUS OF WORKS AND

LEGAL PROCEEDINGS AGAINST ADCO CONSTRUCTIONS PTY LTD

File Ref: 1493/79721.13

Prepared By: William Blunt – Executive Manager, Major Projects

SYNOPSIS

This report provides a summary of the ongoing issues with the completion of the Annette

Kellerman Aquatic Centre, the defective and incomplete works, the commissioning of systems

and the proceedings in the Supreme Court of NSW against ADCO Constructions Pty Limited

(ADCO).

RECOMMENDATION

THAT:

1. Council move into closed session to deal with this matter as the information

contained in CONFIDENTIAL ATTACHMENTS 6 and 7 of this report are classified as

confidential under the provisions of Section 10A (2)(c), (d) and (g) of the Local

Government Act 1993 for the following reasons:

a. the information within this report, if disclosed, could confer a commercial

advantage on persons with whom the Council proposes to or may conduct

business;

b. it is not in the public interest to reveal all details of these tenders of the

assessment process. Companies have provided sensitive information about their

operations in the confidence that their details will not be made public by Council.

The practice of publication of sensitive information provided by companies could

result in the withholding of such information by companies and reduction in the

provision of information relevant to Council’s decision; and

c. as it contains advice that would otherwise be privileged from production in legal

proceedings on the grounds of legal professional privilege.

And in accordance with Sections 10A (4) of the Local Government Act 1993, that the

Chairperson allow members of the public to make representations as to whether this

part of the meeting should be closed.

OR, WHERE THE MEETING IS NOT CLOSED:

1A. Council resolve that CONFIDENTIAL ATTACHMENTS 6 and 7 to the report be treated

as confidential in accordance with Section 10A of the Local Government Act 1993,

as it relates to a matter specified in Section 10A(2),(c) and (d) of the Local

Government Act 1993, and as such is to be treated as confidential;

2. Council receives and notes the report;

3. Council approves an Expression of Interest and Selective Tender process to appoint

one or more specialist contractors to undertake rectification, completion and

commissioning works;

184Council Meeting

3 December 2013

4. Council notes that funding for rectification works from the Property Reserve will be

proposed in the December 2013 budget review;

5. Council seek recovery of all funds spent on rectifying defects, completing the works

and commissioning from ADCO under the terms of the Contract and otherwise via

the proceedings in the Supreme Court of New South Wales; and

6. The General Manager responds appropriately to any media and community

concerns and enquiries.

BACKGROUND

Council entered into a Contract with ADCO Constructions Pty Limited (ADCO) in September

2009 for the construction of the new Annette Kellerman Aquatic Centre at Enmore Park,

Enmore.

On 15 August 2013 an article appeared in the Inner West Courier regarding recent

temperature issues experienced at the Centre. A copy of the article is included as

ATTACHMENT 1. This was not the first time patrons had raised issues with regard to the

Centre.

Prior to and since Council began operations at the Centre on 11 December 2010, there has

been a growing list of identified defective and incomplete works that together with a significant

dispute regarding practical completion, commissioning of services and the recovery of monies

already paid to ADCO (as a result of a Building and Construction Industry Security of Payment

Act determination – see below) has resulted in Council taking action against ADCO in the

Supreme Court of NSW. The action seeks repayment of monies and damages in excess of

$5million.

This report provides Council and the community with an overview of the ongoing issues.

Notwithstanding these issues, the Centre continues to perform above expectations remaining

as one of the top performing aquatic centres in Australia with strong support from the

community. It is also recognised that the Centre‟s construction has been funded by the

community via a special purpose aquatic projects rate levy and that the community has a high

expectation that the Centre has been constructed appropriately and has a long life

expectancy.

DISCUSSION

For a brief explanation of some of the contract terms and the methodology for the

administration of the building contract by the Superintendent – see ATTACHMENT 2.

Council and ADCO signed a contract for the

 

 

Disputes
Within a month of commencing the works, in November 2009, ADCO claimed it had
discovered material in the ground remaining from the former aquatic centre which they said
was classified as General Solid Waste (material meeting this classification has to be disposed
of at higher tipping rates than natural ground). They claimed additional costs of $514,253 and
20 days extension of time.
The Superintendent issued a determination rejecting the claims.
ADCO lodged the matter into the formal dispute resolution process under the terms of the
contract. ADCO claimed they had excavated 5,500 tonnes of material. The claim was backed
up by “tipping dockets” issued by their subcontractor, but as the Expert (appointed to
determine the dispute) later said, the tipping dockets and ADCO‟s load counts were not cross
referenced by ADCO to any plans or narratives in their evidence.
In preparing its submission to the Expert, Council and consultants reviewed the matter
extensively and with the assistance of land surveyors and the project‟s cost planner, Council
identified that the maximum amount of material that could possibly have been removed as
General Solid Waste, was no more than 1,859 tonnes.
The Expert agreed with Council‟s position but ordered that a component of the claim be paid
being $158,049. This was a substantial reduction from ADCO‟s claim of $514,253. The
Expert did not offer an explanation for the significant discrepancy between ADCO‟s claimed
tonnes and what was identified by the surveyors to be possible. The Expert reduced ADCO‟s
claimed extension of time from 20 days to 12.
During the remainder of the onsite works and up to December 2011, ADCO did not lodge any
other notices of dispute for any other determination issued by the Superintendent with regard
to practical completion, liquidated damages, variations, notices of defective works or any other
matter.
187Council Meeting
3 December 2013
As identified in ATTACHMENT 3, ADCO included a contractual statement with their Payment
Claims lodged on 1 June 2011, 30 June 2011 and 26 August 2011 that there were no disputes
between them and Council.
But, on 22 July 2011 and 23 September 2011, ADCO lodged their applications under the
SOPA legislatio

 

 

 

https://www.marrickville.nsw.gov.au/Documents/Council Business Paper 3 DECEMBER 2013 FINAL-1.pdf.


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Biggest White Elephant in Cairns History—Council should also show the feasibilty study on this project——-My Grandchildren will be paying for this project with the Tennis Centre——Cairns Regional Council under fire as local builders hit out at Tobruk Pool tender process | Cairns Post


 

A GROUP of Cairns builders is accusing the Cairns Regional Council of unfair treatment in the awarding of the $26 million Tobruk pool redevelopment contract to a southern-based company.

The Cairns Construction Alliance, which includes Prime Group, Keir Queensland and Bryant Queensland, said their tender was the lowest by $280,000 yet were never given the opportunity to clarify the pool and tiling subcontractor aspects of their submissions and provide to council “additional comfort” over risk factors, unlike their competitors.

But Mayor Bob Manning has hit back, saying Adco Constructions were awarded the tender because they were the most experienced in building FINA standard pools.

“The alliance hasn’t not built one,’’ he said

 

 

Cairns Regional Council under fire as local builders hit out at Tobruk Pool tender process | Cairns Post.


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Saudi funding of Australian Mosques needs to be looked at —-Mosques hooked on foreign cash lifelines – smh.com.au——–But the co-editor of Muslim Communities in Australia and a politics lecturer at Monash University, Shahram Akbarzadeh, said it was time for Muslims here to “cut the cord” from overseas funding sources. “Having a reliance on Saudi funds makes a community indebted to the Saudi [religious] line,” Dr Akbarzadeh said.


 

 

in frank interviews, members of the Sydney Islamic community discussed the development of their mosques and fund-raising that they say has been wholly focused on construction and community development.

In fund-raising circles, Saudi Arabia is a five-star destination. The Saudi government first gave to Australian Muslims in 1974 – a donation of $1.2 million – and since then, some observers guess, about $100 million has followed.

But the co-editor of Muslim Communities in Australia and a politics lecturer at Monash University, Shahram Akbarzadeh, said it was time for Muslims here to “cut the cord” from overseas funding sources.

“Having a reliance on Saudi funds makes a community indebted to the Saudi [religious] line,” Dr Akbarzadeh said.

The chairman of the Supreme Islamic Council of NSW, Gabr Elgafi, also believes that mosque and school fund-raising committees should be more self-reliant.

 

 

 

Mosques hooked on foreign cash lifelines – smh.com.au.


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Labor Party and Bill Shorten are a study in hypocrisy —-Why Vote for the bill and then ask for a review——-An Australian Labor leader feigns concern over terror laws – World Socialist Web Site


 

Albanese’s comments are a case study in hypocrisy. They also reveal anxiety within the media and political establishment at the prospect of rising popular opposition to the police-state laws being introduced by the Abbott government, and the US-led Iraq-Syria war that is providing the excuse for these laws.

First, Albanese did not vote against, or utter a word of criticism of, thelegislation when it was debated and passed. He joined hands with the government, as did every other Labor MP, in defeating limited amendments by independent and Greens MPs purporting to curb any threat to journalists. Albanese also backed Labor leader Bill Shorten in brushing aside similar criticisms by one Labor backbencher, Melissa Parke.

 

 

 

 

 

An Australian Labor leader feigns concern over terror laws – World Socialist Web Site.

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