Loddon Shire Council has terminated its agreement with construction group Global Contracting, which was were awarded the project worth $1.8 million.

The council's acting chief executive Ian McLauchlan said Global Contracting staff had not been on site since November and the company had given no explanation as to why they stopped work. 

"We issued notices seeking clarification on why the work had ceased," he said.

"We have received no response to date. That enacted our rights under the contract to terminate the agreement." 

Mr McLauchlan said the park was due to open this summer but the expected opening has now been pushed back to Easter. 

He said it was disappointing the caravan park, that was ravaged by floods in 2011, had suffered another setback.

“It’s certainly frustrating. Ideally we would have liked the project to go smoothly," he said.

"It’s disappointing for the council and for the town. 

Mr McLauchlan said the council had paid just over $1.7 million to Global Contracting for works that have already been completed.

The $100,000 of outstanding works include installation of boom gates, electrical connections of barbecues and development of an irrigation system.

Global Contracting did not return calls on Wednesday.