Wingecarribee Shire Council yesterday received advice from the NSW Public Works and AJ Lucas regarding the company placing a voluntary trading halt on its Australian shares.
Shares in AJ Lucas Group Pty Ltd were halted on Monday 23 May followed by a temporary suspension for a period of up to six weeks from Wednesday 25 May 2011.
The AJ Lucas Group Pty Ltd were awarded the two main contracts for the Robertson sewerage scheme on 18 March 2011, following a detailed tender review process carried out for Council by NSW Public Works.
The financial aspects of the tender were closely scrutinized prior to acceptance of the tender.
NSW Public Works undertook an independent financial assessment of the company. Detailed financial analysis of the contractor at the time of the awarding of the contract concluded that the company met the minimum desired financial requirements to carry out these contracts.
In addition to a tender recommendation and detailed tenderer assessment validated by the NSW Public Works, the awarding of the tender was subject to the inclusion of additional securities.
“Council has been reassured by AJ Lucas that the financial concerns raised do not affect their Australian operations and will subsequently not impact local construction activities,” said Wingecarribee Shire Council’s General Manager, Jason Gordon.
“Whilst I’m confident in the tender review process and independent financial assessment undertaken by NSW Public Works, I am seeking further assurances. I have asked that AJ Lucas provide a specific guarantee in relation to their commitment to the Robertson project.”
Preconstruction activities for AJ Lucas’s Robertson sewerage scheme contracts are continuing as per normal and the Open Day organised by AJ Lucas for this Saturday 4 June will proceed as planned.