Council signed $200k contract before collapse

New job despite $1m being owed

THE City of Greater Bendigo is “considering its options” after Archies Electrical Contracting was placed into administration.

The council awarded a contract worth $202,000 to the business about a month before the company was placed into liquidation with debts of $1 million.

The contract was signed under delegation on November 11, and a liquidator was appointed on December 13.

The city was not aware of any of the issues (when) the contract was signed. - Marg Allan

City of Greater Bendigo organisation support director Marg Allan said the council was not aware of any issues when the contract was signed.

The contract is for lighting upgrades at multiple sites around Bendigo.

“The City was not aware of any of the issues relating to the operations of this business at the time the contract was signed,” Ms Allan said.

"The City is required to meet its legal obligations under the contract and is investigating its options."

Acting organisation support director Neal Wrigley said the council became of aware of issues in late 2013.

He said the council was confident the project will be completed.

“The City became aware that the contractor was encountering difficulties towards the end of last year,” Mr Wrigley said.  

“We are currently considering our contractual position in relation to this matter.

“However we remain confident that the project will be completed within the existing timeframes and budget.”

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