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Home / Business

Mainzeal 'shortcuts' blamed for Baywave's up to $4 million repair bill

Samantha Motion
By Samantha Motion
Regional Content Leader·Bay of Plenty Times·
5 Mar, 2019 07:00 PM3 mins to read

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Bay Venues chief executive Gary Dawson on Baywave's issues, which could cost up to $4 million to repair.

Failed construction company Mainzeal built the Mount Maunganui aquatic centre now in need of up to $4.1 million in urgent repairs.

Cracking walls and a leaking roof are among the structural issues found in the 13-year-old Baywave TECT Aquatic and Leisure Centre.

Yesterday Tauranga City Council approved funding of $2.01m for the most urgent repairs, in order to have them done before the AIMS Games in September.

The councillors also signed off in principle another $2m in contingency funding - with conditions - in case more serious problems were uncovered, a risk identified by engineers.

Gary Dawson, chief executive of Bay Venues, the council-controlled operation that manages Baywave, told councillors the building was "in bad shape" for its young age.

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"We have a lot of cracks ... there are weather-tightness issues. The roof is partially leaking, the windows are leaking. There is corrosion in a number of areas."

An example of corrosion inside a steel structure in Baywave. Photo / George Novak
An example of corrosion inside a steel structure in Baywave. Photo / George Novak

He said the building was constructed by Mainzeal and he believed some of the issues were due to the company's use of "inferior materials" and "shortcuts" as well as other factors including budget constraints.

Mainzeal went into liquidation in 2013 owing creditors $110 million and last week a High Court judge ruled its four directors, among them former Prime Minister Dame Jenny Shipley, were liable for $36 million in damages.

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Dawson estimated Baywave would cost $30 million to replace so its issues needed to be sorted now, before the building deteriorated further.

The complex will close for maintenance for at least three weeks from June 24. It would reopen in stages over July and August.

Gary Dawson, chief executive of Bay Venues, at Baywave. Photo / George Novak
Gary Dawson, chief executive of Bay Venues, at Baywave. Photo / George Novak

Funding was already in place for other projects to be done at the same time, including work on the lap pool tiling, a new splash pad, family changing rooms, public viewing areas and upgrading the outdoor area.

Asked if funding for those improvements could be diverted, Dawson said the projects were important to keep drawing people to use Baywave, and to increase its revenue streams.

Discover more

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Pool Runnings win hearts at AIMS - and something else

12 Sep 12:00 AM
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Mainzeal's Richard Yan to appeal High Court ruling

24 Mar 10:09 PM
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Shipley, other Mainzeal directors to appeal $36m decision

25 Mar 09:27 PM
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Mainzeal liquidators: Appeals will delay settlement for creditors

26 Mar 12:42 AM

Both councillor John Robson and deputy mayor Kelvin Clout said the council had little choice but to approve the funding.

The extent of the structural damage was discovered in 2017 after a review by engineering firm Beca.

Baywave closed in August of that year for urgent seismic repairs, reopening just days before the AIMS Games.

Baywave closed for nine days for seismic strengthening in 2017. File photo
Baywave closed for nine days for seismic strengthening in 2017. File photo

According to reports presented to the council, Beca warned more issues might arise, including unsound roof framing or the necessary replacement of roof cladding, the water bore or windows.

The "worst case scenario" could blow the repair bill out to $4.1m, Beca estimated.

The Baywave repairs contributed to the council's $128m capital project budget blowout.

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Leaks and cracks: Baywave's issues

- Corrosion and cracks around the hydroslide
- Cracks in the precast concrete panels on the outside of the building
- Cracks in tanks, walls, floors and overflow channels in the plant room.
- Bore system needs realigning
- Partially leaking roof
- Leaking windows and a skylight

Baywave repairs timeline

2003/4 - Baywave designed and constructed
2005 - $16.3 million aquatic centre opens
2013 - Corrosion damage repaired, cracked wall panels noted
2015 - Remedial work undertaken on plant room floor
2017 - After more structural damage noted during remedial works around hydroslide, Beca engaged to do a structural condition assessment
2017 - Baywave closes for urgent seismic repairs
2018 - Pools unheated for several days due to water bore issue.

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