North Cronulla Surf Life Saving Club is seeking a new builder to complete its clubhouse redevelopment after parting ways with the initial contractor, Lahey Constructions.
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There has been no work on the project since late January due to a contract dispute.
It is understood about 75-80 per cent of the work has been completed and is close to fit-out stage.
Club president Geoff Budd said in an email to members on Thursday afternoon, "The club is disappointed that construction of Project Phoenix has stalled, due to the contractor unexpectedly stopping works in late January".
"We are now working to secure a new contractor to restart construction of the project as soon as possible," he wrote.
"We are incredibly grateful for the past and current support of the Sutherland Shire Council, NSW state and federal governments and their continued support and commitment to revitalise our treasured clubhouse, which holds a special place in Sutherland Shire's history and provides a vital volunteer service in our local community."
Mr Budd acknowledged "the past and current support and commitment of the Feros Group, which has been awarded the contract to operate the upstairs and ground level food and drink areas.
Feros Group was "continuing to work with and support us whilst we complete this fantastic project," he said.
"It is also important that I thank our club members and local community for their continued support, patience and understanding as we get this project back on track," he wrote.
"I will provide updates as we progress. I remind all members, that if you have any questions regarding the project to make contact directly with myself."
Construction officially began in February 2022 with a sod-turning ceremony involving then prime minister and Cook MP Scott Morrison, and was expected to be completed by early 2023.
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.