11 Apr 2023

Company liquidation may further delay Christchurch sports facility project

7:18 pm on 11 April 2023
An elevated view of the Parakiore Metro Sport Facility complex taken in December 2022.

The opening of Christchurch's Parakiore Recreation and Sport Centre - scheduled for 2025 - has already been delayed by nine years. Photo: Ōtākaro Limited

Ōtākaro Limited says there may be further disruption to a Christchurch anchor project because a subcontractor has gone into liquidation.

The Parakiore Recreation and Sport Centre is due to open in 2025 - nine years later than planned due to ground conditions and Covid-19.

An Ōtākaro Limited spokesperson said it was notified on Friday that Benmax had been put into liquidation.

Benmax had previously worked on the city's town hall and its justice precinct.

It also had current contracts for Te Kaha - Christchurch's new stadium - and Ashburton's library and civic centre.

"Benmax was contracted by CPB [Contractors] to deliver the mechanical systems, including heating, ventilation and air conditioning, at Parakiore Recreation and Sport Centre," they said.

"Benmax was about three quarters of the way through its work on Parakiore. It had substantially completed the installation of all the ductwork, pipework and major mechanical plant.

"It was underway with the finishing work that follows plastering in the courts building at the time of liquidation. Similar work was yet to get underway in the aquatics building. Benmax would have had personnel onsite through the remainder of the build to commission the systems as construction progressed," the spokesperson said.

They could not disclose the value of the contract because it was "a commercial matter between CPB and Benmax".

Ōtākaro Limited, the Crown company overseeing the city's post-earthquake rebuild, said it was waiting for an update from CPB on the likely impact.

But the spokesperson said "it is reasonable to expect this will disrupt the construction programme".

Christchurch City Council's Te Kaha Project Delivery Chief Executive, David Kennedy, said it was aware Benmax had gone into liquidation.

"The council has contracted BESIX Watpac to design and construct Te Kaha, and BESIX Watpac had employed Benmax to deliver Te Kaha's mechanical services," he said.

"Although this sub-contractor had begun some detailed design work, the delivery of this work on-site was not scheduled to begin for at least six months, and BESIX Watpac believes the works can be delivered without impacting the opening date."

Benmax has been approached for comment.

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