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Ararat upgrade to resume

MAJOR construction on the troubled Ararat prison upgrade in western Victoria (pictured) is expected to resume early next year.
By · 24 Oct 2012
By ·
24 Oct 2012
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MAJOR construction on the troubled Ararat prison upgrade in western Victoria (pictured) is expected to resume early next year.

The Commonwealth Bank and Bendigo and Adelaide Bank have reached agreement with builder Brookfield Multiplex that allows it to begin preliminary works at the site immediately.

Further negotiations are continuing, with major construction works expected to resume early next year.

Victorian Corrections Minister Andrew McIntosh said the deal was an important step in rescuing the project. He said 49 claims worth $8.6 million had been paid to subcontractors, whose claims were being assessed by KordaMentha.

Most of the payments had been made to small subcontractors in Ararat and across western and central Victoria, Mr McIntosh said.

Work on the site stopped in May after St Hilliers Construction went into voluntary administration and the consortium overseeing the project went into administration.

Premier Ted Baillieu said in August the cost of the deal to taxpayers would be revealed later.

The Ararat jail upgrade was expected to be completed about the end of 2014.

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Frequently Asked Questions about this Article…

Major construction on the troubled Ararat prison upgrade is expected to resume early next year, with preliminary works already allowed to begin at the site.

The Commonwealth Bank and Bendigo and Adelaide Bank reached an agreement with builder Brookfield Multiplex that allows Brookfield Multiplex to begin preliminary works immediately at the Ararat site.

Work stopped in May after St Hilliers Construction went into voluntary administration and the consortium overseeing the project also went into administration.

Victorian Corrections Minister Andrew McIntosh said 49 claims worth $8.6 million had been paid to subcontractors, and those claims were being assessed by restructuring firm KordaMentha.

Yes — most of the payments were made to small subcontractors in Ararat and across western and central Victoria, according to the minister.

The article reports that major construction works are expected to resume early next year, while preliminary site works can begin immediately under the agreement.

Premier Ted Baillieu said in August that the cost of the deal to taxpayers would be revealed later; the article does not provide a final taxpayer cost.

The Ararat jail upgrade was expected to be completed around the end of 2014, according to the article.