Clutha District Council has been ordered to pay almost $2 million in liability costs over a building project.
Clutha district mayor Bryan Cadogan. Photo:
The council said in a statement the determination had been reached by an authority establishing that the Clutha District Council had a liability to pay $1.963m in relation to significant contractual works undertaken some years ago.
Mayor Bryan Cadogan said he was "sickened" by the situation. The frustration that a project from so many years ago had come back to haunt them was a concern for all ratepayers, he said.
The council will not say what the project was, saying all details are confidential under the Construction Contracts Act.
The Otago Daily Times has reported the costs were ordered over a $4 million Balclutha swimming centre upgrade in 2012, which was completed late after 60 building faults were found.
At the time, the council and the contractor, Lund South, were at odds over who was to blame and the contractor said the faults were caused by substandard council designs.