Shellharbour City Rugby League Club was building the grandstands as part of upgrades at Ron Costello Oval, paid for in part thanks to a $1 million federal government grant and with its own funds.

But club president Peter Blaine said work had stopped on the stands earlier this year after it was discovered the pre-cast concrete steps failed to comply with Australian standards.

Each step was 240mm deep, falling short by one centimetre, Mr Blaine said.

"We physically can't change it so at the end of the day it may come down to a high level risk assessment, or it may mean we need to take out additional insurance, or we may need to pull them down," he said.

The new grandstands were fenced off to spectators for most of the season as a safety measure.

It is understood several other issues had been identified but were easier to fix.

Pulling the structures down would be a major blow for the club and is considered to be a worst-case scenario.

Shellharbour City Council described it as a "last resort".

Mr Blaine said the concrete blocks and steps in question were originally used at the Sydney Olympic Park Aquatic Centre during the 2000 Olympics and later at WIN Stadium.

"I am shattered, but it was an oversight, it was just an assumption that because they were at the Olympics, because they were at WIN Stadium they were within standards," he said.

Ron Costello Oval is owned by the council, which fenced off the grandstands in May to "ensure that the site was not a danger to the public".

A council spokeswoman confirmed that a private certifier engaged by the club had identified "a number of non-compliances", but she did not reveal the extent of any risks.

"Council does not wish to contemplate a demolition at this point as we are confident that a favourable outcome can be achieved through negotiations between the [club] and the [certifier]," she said.

The sport's governing body Country Rugby League has also stepped in to help resolve the problems.

Southern regional manager Kevin Felgate said the stands were not complete and had not received a certificate of occupancy for public use.

"They're fenced off because at the present time they're not covered under the Country Rugby League's public liability," he said.

"It's a precautionary measure. I believe there's little or no risk but until they're completed the fences are to remain in place."

An independent assessment would be prepared to determine any changes that had to be made, and Mr Felgate and the club were confident the stands would be open next season.