Little impact on Ashburton library, civic centre expected from liquidation

Officials remain confident Ashburton's new library and civic centre will be delivered by the end of the year, despite the recent liquidation of a subcontractor.

Ashburton District Council chief executive Hamish Riach said the project control group continues to "work through the implications" of the liquidation but it will not cause any major delays or additional costs.

"It's unlikely that the liquidation of subcontractor Benmax will have significant impact on the overall project," Riach said.

Benmax NZ had been subcontracted to install and commission the air conditioning and heating system in the $56.75 million project, encompassing the library, Te Pātaka o kā Tuhituhi, and civic centre, Te Waharoa a Hine Paaka, but was put into liquidation by its Australian parent company on 6 April.

The project control group, which includes the council, lead contractor Naylor Love, and Ōtākaro (which is changing its name to Rau Paenga), had its monthly meeting last week and the impact of the liquidation was discussed.

It is understood Benmax had completed a substantial amount of the work installing the air conditioning and heating system before going into liquidation.

Naylor Love was working through options, Riach said, and he expected "to hear further details in the next two weeks".

"Once a new subcontractor is in place more details of the timeline and budget will be known.

"We are not currently anticipating additional cost implications for the project."

The project completion date remains the fourth quarter of 2023, he said.

"All parties are doing everything they can to have the building completed by the end of the year."

The project control group is set to meet again on 16 May.

Local Democracy Reporting is Public Interest Journalism funded through NZ On Air.