The Shire of Northam has said they are not concerned that the company they have awarded tender to for the construction of a $10 million pool went into voluntary administration earlier this year.
After 12 months of detailed design and tendering the Shire of Northam resolved to appoint Cooper & Oxley to build the new aquatic facility, which has been designed by Donovan Payne Architects.
Cooper & Oxley went into administration in February this year, owing unsecured creditors $45 million but returned from voluntary administration in May.
The aquatic facility will incorporate an eight lane 50m heated outdoor swimming pool, four lane 25m heated lap pool to swim pool, a heated learn to swim area as well as heated leisure / ‘tots’ pool and shaded water play area.
In addition, the new aquatic facility will incorporate up to four water slides.
Shire of Northam chief executive Jason Whiteaker said after undertaking the tender process the Shire is confident in Cooper & Oxley’s ability to deliver the project.
“In agreement with Cooper & Oxley we will also be establishing a joint project bank account system, as an added layer of financial security for both the relevant sub-contractors and Council,” he said.
“There are inherent risks associated with major construction projects, Council has done its best to mitigate these risks, Council has also ensured that it has extensive major project risk insurance in place.
“With a project of this scale, theses are all measures aimed at minimising financial and project deliver risk to Council.
“We would have been looking at these measures whether it was Cooper & Oxley who was the successful tenderer or not.
“The Shire of Northam has great confidence in their ability to deliver this project, if we did not, they would not have won the tender.”
Shire president Chris Antonio said the Council voted unanimously to award the tender and deliver this project for the community
“This is a very exciting project for our community and indeed the region,” he said.
“Having access to such an outstanding facility, with lots of different elements to attract people will, I am sure, be appreciated.
“Given our region’s climate, developing more than just a swimming pool was viewed as important.
“We are developing a regional facility, not only to provide a recreational place for our youth, but also for families and all generations.
“Everyone will be able to utilise these great facilities, which will not only provide swimming and recreation over the hot summer months, but will also be a meeting and social hub.
“In making our decision, Councillors recognise that this is a significant financial commitment.
“However, we have assessed that Council has both the financial capacity to construct the pool, and the financial ability to operate such a significant facility.”
Mr Whiteaker said that while the new aquatic facility development will be delivered at a greater overall cost than was originally projected, the net financial impact to Council will only be $570,000 more than was originally planned.
“Our long-term financial planning had an estimated net cost to Council of $5.7 million, based on the tender just awarded this net cost will be $6.277 million,” he said.
“Council staff did an outstanding job in securing $4.7 million in external grant funding for the project; $1.5 million from the State Government CSRFF and $3.2 million from the Federal Government BBRF.”
The project is planned to be open in the 2019/20 season.
