Council to prop up theatre build in wake of Lloyd Group exit

Leeton Shire Council has voted to push ahead with its Roxy Community Theatre build following the collapse of contractor, Lloyd Group, with Council to assume the role of Head Builder and enter into direct negotiations with relevant trades.

The Council also voted to direct $250,000 from its original budget to the architects and range of consulting engineers and specialists required to advise on the build and issue compliance certificates. 

While the overall cost to complete – which has been verified by a Quantity Surveyor – has increased since the Lloyd Group’s original estimate in 2020, Council will only spend on the build what monies it has already committed to date ($5.284 million), in favour of value managing out aspects of the project until additional grant funds can be found, it said in a statement. These include a second lift to the dress circle, kitchen fit-out and equipment, fit out of upstairs dressing rooms and fit out of the Roxy 2 Theaterette. If necessary, further value management will occur along the way to bring the project in on budget, the Council said.

It also has the benefit of $350,000 of bank guarantees from the Lloyd Group that will be utilised to complete the build.

“Nobody wanted to be in this position but I’m pleased to say Council has taken stock, considered its options carefully – and the associated risks – and determined a proactive path forward. We’ve made provisions to set up our own Roxy Project Management Office to manage the project, let contracts and oversee the works,” said Mayor, Tony Reneker.

“Doing the job ourselves, as opposed to bringing in another Head Contractor, is the most cost-effective approach and certainly the preference of our local trades.”

“Where possible, Council will continue with the local trades who have already been working on the project and to whom we remain fully committed.”

Deputy Mayor and Portfolio Lead for Arts and Culture, Cr Michael Kidd said the next steps include formally convening a Project Management Office with relevant expertise and letting the trades during the month of June.

“We hope to see action on the ground from July,” he said.

“If all goes exactly to plan, the build will be completed in May 2024. However, being a 90-year-old state heritage building that was built during the depression years, the Roxy tends to throw up surprises from time to time, so further latent conditions may have to be anticipated along the way. Council has therefore set aside $430K in the voted budget as a contingency.”

The original Lloyd Group build price was $7.136 million. To date, $2.257 million was paid to them by Council.

It says the latest forecast to complete-the-build estimate is $6.4 million.

Council has separately procured seating and specialist equipment which remains unchanged as these were procured independently of the Lloyd Group. 

Mayor Reneker thanked the Roxy project funders Create NSW and the Commonwealth – who together are contributing more than $6 million to the build – for being accommodating under the circumstances, as well as Council staff for their efforts to determine a path forward, stating “the situation we face is certainly not in the textbook”. 

“Our resilience as a community serves us well as we roll our sleeves up and make this happen. While the delayed completion date of the Roxy Community Theatre will be disappointing to many, Council can now move on from the devastating news of the Lloyd Group’s demise and progress the build with full control,” he said.

Council will be presented a build progress report every second month.