A controversial potential contractor to build Greater Dandenong Council’s $100-million-plus aquatic centre was recommended as the “best value” bid.
On 24 February, councillors had voted narrowly 6-4 to appoint ADCO Constructions to build the Dandenong Wellbeing Centre for $108 million.
However, the decision was put on hold, in light of ADCO Group and its director facing 18 fresh charges over the Kew Recreation Centre steel roof collapse in 2022.
ADCO has been previously charged with an alleged workplace safety breach by WorkSafe Victoria over the Kew incident.
Both matters have been yet to be decided, with ADCO stating it was strongly defending the allegations.
In opposition, Cr Bob Milkovic said allegations against the contractor needed to be resolved before the council could “commit” on this major investment.
“My question is…can I award $100 million of ratepayer’s money to the company who are before the court?”
In support, Cr Sean O’Reilly said further delays would contribute to rising constructions costs.
“We would have to start a whole new tender process which would than cost this community several million dollars at least due to ongoing construction costs.
“Our decision as councillors is to acknowledge the process the tender panel has gone through.”
According to a council report, the tender panel was aware of the “pending legal matters”.
“Council understands that this matter has not yet been resolved in the courts, as such is not able to make a pre-determination on the outcome of these pending legal matters.
“That being said, it is understood the other aquatic project has re-commenced construction with the contractor and is expected to be completed by the end of 2026.”
Risk-mitigating measures included nominating the ADCO parent company – rather than the prosecuted ADCO Group – as the preferred contractor.
During the tender panel process, ADCO and another unnamed, shortlisted tenderer had submitted competitive bids, the report stated.
ADCO was deemed “technically competent, legally compliant and financially sound” and offered the “best value”.
The report warned of escalating construction costs and the likely loss of a $20 million federal funding agreement, if the contract didn’t proceed.
ADCO managing director Neil Harding said the company was “working closely with Greater Dandenong Council officers” to ensure “accurate details and context” ahead of the next council meeting on 11 March.
“No findings have been made in either (legal) matter and ADCO Group intends to strongly defend these charges.
“As these matters are now before the courts, we are bound by confidentiality and cannot provide any further comment.”
Harding said ADCO was a “recognised industry leader in the design and delivery of sport and leisure facilities in Victoria and Australia”.
The company completed 50 large-scale aquatic, sport and community leisure developments, including FINA-certified pools and more than 10 high performance centres of sporting excellence.
Since the Kew roof collapse, ADCO had been appointed to build Kingston’s $87 million aquatic and leisure centre, as well as just finished a $75 million Carnegie Memorial Pool redevelopment.
In a statement, Victorian Building Authority alleges ADCO Group knowingly carried out building work outside of what was allowed under their building permit.
This includes that the company allegedly fabricated and erected a steel roof truss containing four spliced sections, instead of a single length of steel as required under the permit.
The welding of the structural steel framework was non-compliant and the steel used in the truss did not meet Australian standards, VBA alleges.
If found guilty director John Conroy could face imprisonment and a fine of up to $108,000 on each charge. The company also faces fines of up to $540,000 for each offence.
The VBA says it continues to investigate other practitioners associated with the build and has inspected other ADCO projects.
Since the council’s endorsement of its Aquatic Strategy in 2019 and early talks of the new Dandenong Wellbeing Centre to replace the 40-year-old Dandenong Oasis, costs have risen multiple times.
The entire project including new hockey pavilion and contingency costs swells to $122.15 million.
Works will include a 50-metre pool along with a 25-metre 10 lane pool, two warm water pools, integrated hockey pavilion, new forecourt, extensive landscaping and car park, spa and sauna and a temporary hockey compound
Its unique features are said to include breastfeeding/parents room/prayer room, a capacity to isolate warm water pool for women’s only swimming programs and for special needs groups, and an allied health facility.
