Australia’s construction crisis has hit clubhouse builds in two states, including the $4.56 million upgrade of the iconic Tamarama Surf Club in Sydney’s eastern beaches after commercial construction operator Lloyd Group, the company behind the build, collapsed.
“Our builder Lloyd Group entered voluntary administration on Friday,” Tamarama Surf Life Saving Club President Matteo Salval informed members today [Tuesday]. “We have already discussed with [Waverley] Council over the weekend a possible way forward and the urgent appointment of a new managing contractor to finish the job.
“I am sorry to give you this type of update, especially so close to completion. Rest assured we are working hard with Council to get the clubhouse finished as soon as possible.”
The construction company operates in Melbourne, Sydney, Brisbane and Geelong, and has executed several projects across local and state government, club and community sectors, as well as education, commercial, health and aged care and hospitality.
Lloyd Group was also working on the redevelopment of Allan Border Oval Pavilion at Mosman in Sydney with construction beginning last year, as contractors bulldozed the main pavilion. Mosman Cricket Club will now face a third consecutive season without access to pavilion facilities.
In Melbourne, Frankston City Council has four Lloyd Group projects in development including the $35m Jubilee Park Stadium. The now-delayed project, jointly-funded by Council, State and Federal Governments and local sports clubs was set to benefit resident clubs, Frankston District Netball Association, Peninsula Waves, Frankston Peninsula Premier Cricket Club and Frankston YCW Football Netball Club.
Bayside City Council projects under construction include Brighton Life Saving Club’s Dendy Street Beach Pavilion and the Tulip Street Basketball Stadium expansion.
The collapse of Lloyd has affected a total of 59 projects in the two states, impacting up to 200 employees, as well as subcontractors and suppliers. Established in 1979 by Trevor Lloyd, the current directors are Clinton and Dustin Lloyd. Deloitte Turnaround & Restructuring has been appointed voluntary administrators of the six Lloyd Group of companies.
According to Lloyd Group’s 2021/22 annual report, while turnover rose to $275.7m from $158.7m, profit was less than a quarter of the previous year’s $2.1m. The drop was attributed to severe weather events which delayed several projects, prompted insurance claims and was further impacted by subcontractor insolvencies.
The appointed administrators of Lloyd will now undertake an urgent assessment of the company’s financial position and assess the works on a project-by-project basis. An accelerated sale of Lloyds’ assets will also be undertaken.