HORSHAM Rural City Council was aware of financial problems with the major contractor behind a $1.2 million pedestrian bridge since November, about six months before the firm went into administration.
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The bridge was designed to connect Horsham’s Apex Island with the river bank along Major Mitchell Drive.
As part of the project, a $760,000 contract was awarded to Wangaratta firm J & R Industries to prefabricate major bridge components.
On May 16, administrators at Cor Cordis Chartered Accountants were appointed to J & R Industries, ASIC records show.
Horsham Rural City technical services director John Martin said the council was aware of two Wimmera subcontractors who were still yet to be paid in full by J & R Industries.
Horsham chief executive Peter Brown said the council had been in contact with the unpaid subcontractors and the administrator.
“We are having regular conversations and I believe we are all comfortable with what we are doing,” he said.
J & R Industries co-administrator Barry Wight said he was drawing up a creditors report.
“While we are still in the process of maximising the realisation of J & R Industries’ assets for the benefit of creditors, it would appear that the dividend prospects to unsecured creditors look challenging,” he said.
Mr Wight said the engineering business could be put up for sale.
“It is our intention to finish bridge component fabrication works for Horsham council, which I understand should be delivered next week,” he said.
Horsham council has known that J & R Industries was in difficulty since November, when subcontractors approached the council to complain about not being paid.
Mr Brown said measures were put in place for Wimmera subcontractors to get paid for their work on the bridge.
“Initially we asked the contractor ‘what is going on? Why aren’t you paying these people?’” Mr Brown said.
“We entered into lots of arrangements, and they were honouring them for a while.
“It was all fine but then they stopped honouring those arrangements and that’s when we became concerned.”
Mr Brown said Horsham council positioned itself to take over the bridge works if needed.
“This was always a possibility,” he said.
“But we tried to massage it as long as we could to get the project as far as we could before this happened.”
Mr Brown said no Wimmera contractors had bid for the project as a whole.
Council technical services director John Martin said he believed the added construction time would be short.
“Fortunately, it will have a reasonably small effect,” he said.
“The most complex parts of the process, the installation of the towers, cables and deck frames, has been completed.”
Mr Martin said Horsham council was in the process of finding qualified workers to carry out bridge assembly while suspended over the river.
Workers started installing the bridge’s framework earlier this month and cable suspension towers were installed last month.
The project has been delayed numerous times since the official sod turning in November 2015.
The bridge will be known as the Anzac Centenary Bridge, to commemorate the 100-year anniversary of the First World War.