Construction on the Ambience retail and residential development stopped more than a year ago.

The site, at the corner of Elliotts Rd and the Princes Hwy, is owned by Belmorgan company SPV 7 Pty Ltd.

The company was placed in administration in January and a liquidator was appointed in July.

This week, contractors started removing the "hoarding" - the white temporary walls and covered walkways - surrounding the development.

CFMEU state organiser Mick Lane visited the site yesterday and was appalled that the site had been left unsecured.

He said the removal work would continue into next week.

"When there is no hoarding, anyone will be able to wander on to the construction site. It is a potential death trap," he said.

Scaffolding, metal poles, concrete blocks and rubble littered the site yesterday, while exposed steel rods protruded from the unfinished concrete slabs.

The hoarding is owned by another Belmorgan company, AJK Civil Engineering, which has hired contractors to remove the barriers. That company is also in external administration.

Mr Lane said WorkCover NSW had been contacted but could only oversee the safety of work practices.

"While there is no building work occurring, it is not a workplace so they have no control over it," he said.

Wollongong City Council said yesterday it had approved an application to occupy part of the road during the removal of the hoarding and temporary fencing would be installed in its place.

"Workers are currently removing the hoarding surrounding the development. As each portion of the hoarding is removed, temporary fencing will be installed to ensure the site is secure and public safety is not at risk," a spokesperson said.

Receiver KordaMentha also confirmed fencing was to be in place at the end of each day.

The Mercury understands the removal of barriers and covered walkways was in response to concerns over inadequate walkway lighting and pedestrians' safety at night.