Broadmeadows Leisure Centre hits major hurdle

The $13.23 million redevelopment of Broadmeadows Leisure Centre has hit a hurdle with its key builder in financial strife.

Melbourne-based Walton Construction Pty Ltd was placed in administration last Thursday after suffering heavy losses in its building operations. Lawler Draper Dillon has been appointed administrator.

Walton was in charge of the construction of a 50-metre indoor pool and a new main entrance to the leisure centre from Tanderrum Way.

Hume chief executive Domenic Isola last week confirmed the council was aware the company was having financial problems.

“In the past few days we understand they have had some financial difficulties and were having some problems with paying their tradespeople,’’ Mr Isola said. “They had a few little things to complete before they had finished their part of the project.”

Mr Isola said the council would consider finishing the project itself. “We are holding some bank guarantees and some retention money, which will be used to finish the project. “We’re lucky that the project is 95 per cent completed; it’s in the final stages.”

Mr Isola said council representatives would meet the administrator soon to ensure the project is not delayed. The council still expects the redevelopment to be finished in December.

“There are a few things we will need to look at and there will be a fair bit of work with the administrator to say this is where we are with things,” he said.

Mr Isola said it was disappointing to hear that some tradespeople had not been paid. He added that it would be the role of the administrator to look after them.

The works began in August last year.

In addition to the new pool and entrance, the redevelopment includes a new crèche, an upgrade of the ground floor and amenities area, refurbishment of the change rooms, improved disabled access and a new car park. The Victorian government contributed $3.5 million to the project.

Broadmeadows Progress Association secretary John Rutherford said he was shocked to hear of Walton’s problems. “I was at the gym [at the centre] this morning [Friday] and I didn’t hear a thing about it. From the community’s
point of view, we hope it’s worked out as quickly as possible and the redevelopment is completed on time.”

Walton, founded in 1993, had 340 employees at its peak and turned over $360 million a year. But its workforce had shrunk to about 110 this year because of the downturn in the construction industry.