An interim contractor has been appointed to the South Newcastle Beach skate park project after head contractor Lloyd Group collapsed into voluntary administration in March.
Daracon Group took possession of the site on May 15 and will remain until City of Newcastle appoints a contractor to complete construction.
Daracon has been engaged to manage site safety, address remaining defective work items not completed before Lloyd Group left the site and assist with confirming remaining works and associated costs.
The project has faced lengthy delays and additional costs after storms and big swells smashed the site numerous times.
City of Newcastle executive manager project management Robert Dudgeon said the departure of Lloyd Group would have "unavoidable impacts" on the overall cost and timing.
"During their contract Lloyd Group delivered key components of the project scope, however there were a number of delays and quality issues during this time that extended the delivery program," Mr Dudgeon said.
"Those defects now need to be quantified so a new contractor can come on board and complete the works.
"While it is disappointing that Lloyd Group's departure has left us in this difficult position, this initial contract with Daracon will give us a clear picture of the way forward for this project so it can be completed for the community to enjoy."
The Newcastle project was one of hundreds across New South Wales and Victoria affected by the decision.
City of Newcastle executive director city infrastructure Joanne Rigby said it was important to finish the project for the community.
"Daracon were highly ranked during the original tender process and are experienced working on complex infrastructure projects in coastal environments, with a track record of successful delivery of major projects across Newcastle, including the current restoration of the Newcastle Oceans Baths," Ms Rigby said.
"We know that the community are keen to see this project completed, and we look forward to recommencing work at the site shortly."
The South Newcastle Beach Bathers Way project features a shared path from Shortland Esplanade to King Edward Park to improve access to South Newcastle Beach and King Edward Park.
It also includes parking, landscaping, lighting and accessibility improvements, new fitness equipment, shade, seating, viewing areas, and a new café/kiosk and accessible amenities.
The council said the wheelchair accessible skate bowl and terrain park would "complement" the advanced-level facilities at Empire Park, and were designed to "withstand coastal impacts and minimise impacts to the surrounding environment".
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