Shellharbour Mayor Chris Homer has said the council is addressing financial risks in the builder of two signature projects at Shell Cove.
This week, The Mercury revealed that two of the iconic apartment buildings that will frame Shell Cove marina have been delayed, with buyers of the Ancora development told to wait over a year to move in.
Subcontractors working on the site reported that payments were delayed or knocked back and this had led to work largely grinding to a halt over the summer break.
On Tuesday, the Ancora site was largely deserted, despite scaffolding around one of the three buildings and the other two appearing ready for fit out.
Holes in the roof facade remained while sprinklers watered plants recently installed at ground level.
Numerous builders around Australia have been caught out by rapid price rises in the cost of materials since COVID and being tied to fixed-term contracts have had to renegotiate or step away from projects. In some cases, this has led to builders collapsing.
Mayor Homer said Shellharbour council was closely watching progress, or the lack of it, on the project.
"We're keeping a close eye on it," he said.
When asked whether there were concerns around the builder's financial capacity to complete the project, Mr Homer said it was a concern "that is being addressed".
"Obviously we hope it's not a worst-case scenario concern that has any basis in reality, but in this current environment, what's happening with construction in NSW and Australia, it's definitely something that's got to be discussed."
The Mercury is not suggesting that Parkview, the builder contracted by Frasers Property Australia and Shellharbour City Council to complete the two apartment projects, is at risk of collapse.
Nearby, work is ongoing to repair facades that were affected by a design fault, causing water to gush into newly built homes in Shell Cove.
Mr Homer said ongoing issues with projects built in Shell Cove warranted a response from Frasers, as there was the risk of damaging the reputation of the entire precinct.
"The development of the land is largely a relationship between Frasers and the contractor, making sure all the thresholds and timelines are being adhered to, but ultimately, I probably have to take a further deep dive into the detail of what's going on," he said.
"I want to see the best outcome for people that are buying their dream property.
"We want to keep things moving in a way that does deliver outcomes that are favourable.
"Obviously there are timelines that have been blown out. It's not a great outcome.
"We're ready to address concerns if things should go further south."
Questions were sent to Parkview.
When contacted for a response on Monday as to why the project was delayed, Frasers replied with a one line statement.
"Frasers Property has advised its customers about the delivery program for their apartment and we will continue to do so."