North Cronulla surf club redevelopment work suspended amid contract dispute

The project is running well behind schedule - it was expected to have been finished by early 2023 - and there has been no obvious sign of work for a considerable time.

A spokeswoman for Sutherland Shire Council told the Leader the council was "aware of challenges that have been encountered by North Cronulla Life Saving Club in the redevelopment of their clubhouse facilities, with work on this project temporarily suspended".

"As a major stakeholder in this project, council continues to liaise closely with club management to ensure we are kept well informed of how these challenges are to be resolved," the spokeswoman said.

"Council recognises the strong value that our local surf lifesaving clubs bring to our community and is committed to working with [the club's] management to ensure this community asset is completed in a timely and financially responsible manner."

The building contractor is Lahey Constructions, which is part of the Parkview Group of companies.

Parkview is also building the fourth and final stage of the Woolooware Bay Town Centre after building the first three stages.

Lahey Constructions operations manager Matt Fearnley said, "I can't discuss anything other than there is a contractual negotiation going on with the client at the moment".

Surf club president Geoff Budd declined to comment.

Chris Feros, chief executive of the Feros Group, which has been awarded the contract to operate an upstairs bar-restaurant and downstairs kiosk, said, "We are still committed to the project, and looking forward to it opening some time in 2024."

Project Phoenix was planned by the surf club for close to a decade .

Construction officially began in February 2022 with a sod-turning ceremony involving then prime minister and Cook MP Scott Morrison.

At that time, the project was costed at $10.6 million and was expected to take a year to complete. There has been no cost update since.

The project has been given substantial funding by the federal and state governments and the council.

The council has also guaranteed loans taken out by the club totalling more than $5.2 million.

A council report in May 2023, when the loan guarantee was increased by $1 million, said work had been delayed by soil contamination, prolonged wet weather and higher subcontractor costs and lack of availability.

The report said, based on the financial information provided, the club had the capacity to service the total loan with a moderate risk level.

At that time, the project was expected to be completed by October 2023.