Councillors were given the latest progress report on the Shell Cove Project this week. It shows the project has a healthy surplus of $51 million, and the expected income from lots that have not yet settled is about $39.3 million.

However, questions have been raised about the falling percentage of Illawarra-based workers on the overall project.

The Shell Cove Management Agreement has a set performance agreement that for the "combined project works", a minimum of 50 per cent of labour must be from the Illawarra.

At the end of 2010, the amount of overall local labour was 88.3 per cent. At the end of January 2015, this had fallen to 64.9 per cent.

According to Australand, Illawarra-based Coastwide Civil, which is working on stage two of the harbour works, has 58 to 60 workers on site every day and all of them are Illawarra residents.

Councillor Peter Moran pointed out if Coastwide Civil was providing 100 per cent local labour content for its work, then the rest of the project would be providing well below 64 per cent of local labour.

"This seems to be a significant reduction in local employment levels we've had in the past," Cr Moran said.

Shell Cove commercial manager Kevin James said as an overall trend, there was a lot of housing activity at the moment.

"The ability to attract local trades is low in some areas and companies have sought people from outside the area, which ... has lowered the percentage," Mr James said.

Design planning for The Waterfront Town Centre continues, and detailed road designs for the proposed Harbour Boulevarde, which will run from the intersection of Shellharbour Road and Wattle Road out to Bass Point, are contained in construction certificate applications that are being finalised.

aarnold@fairfaxmedia.com.au