Work held up as firm went bust

Rebuild work at a Christchurch school – which was already behind schedule – was further delayed when the construction firm went bust, owing more than $5 million.

Christchurch-based Corbel Construction went into liquidation in December 2018, owing $4.5m to unsecured creditors, $266,000 to BNZ and $960,000 to a private trust.

The company was partway through the first stage of Opawa School’s post-quake redevelopment at the time. The project – which included new teaching spaces and an administration area – was originally scheduled for completion by September 2017 but did not finish until June 2020, at a cost of $4.5m.

Corbel Construction was founded in 2000 and employed around

80 fulltime staff.

It secured several Ministry of Education contracts as part of the Christchurch Schools Rebuild Programme, including $5m for Shirley Primary School’s refurbishment and $2.2m for the construction of a classroom block at Tai Tapu School.

It was also chosen to deliver the

$16m upgrade for North Canterbury schools, expanding or improving facilities at Oxford Area, Rangiora Borough, Ashgrove and Southbrook schools.

Head of education infrastructure service Kim Shannon said the ministry was made aware of the firm’s liquidation at the time, and Opawa School was kept ‘‘fully informed’’. ‘‘The project was delayed by about five months while a replacement contractor, Contract Construction, was appointed,’’ she said.

Sally Ormandy, principal of Opawa School, said they were continuing to work with the ministry to complete their remaining building work.

One hundred and eleven greater Christchurch schools damaged by the earthquakes are being replaced or repaired over 10 years as part of a $1.3 billion education rebuild programme.

A Stuff investigation in October revealed that at least 18 school developments, which should have finished, have yet to have started.

Despite the delays, Education Minister Chris Hipkins said he was confident the project would be completed on schedule.

At Christchurch Girls’ High School, the construction of the main block will move into the design phase in the new year after the ministry backtracked on its original decision to renovate the building.

Repairs were expected to cost about $27m and, as of October 1, 2020, just over $7.5m had been spent before work came to a standstill in April 2019. It is not yet known what the budget will be for the new development.

However, information released under Official Information Act shows the cost of the original plan increased by 50 per cent.