Wingecarribee Shire Council has terminated the contract with Matrix Group Co. Pty Ltd for the refurbishment of the Moss Vale Civic Centre.
The decision to terminate the contract follows allegations of increased delays, performance breaches and failure on behalf of the builder to manage sub-contractors and tradespersons.
Wingecarribee Shire Council's general manager Lisa Miscamble said the council had been left with no choice but to terminate the contract.
"The extended delays and performance issues were ultimately unacceptable," she said.
"On behalf of the council I apologise to all residents who have been inconvenienced by the delayed construction."
The repair and refurbishment of the 50-year old Civic Centre began in early 2020 and was originally scheduled to be completed by January 2021.
The completion date was thereafter extended by agreement with the builder to June 2021.
The general manager said the council would manage the remainder of the refurbishments utilising existing vendor arrangements and local tradespeople.
"Fortunately, our contingency plans enable us to step in and complete the remainder of the project," Ms Miscamble said.
"The majority of remaining works are located externally and back of house," she added.
"They will have little impact on customers.
"We're now putting the finishing touches on the new public atrium, customer services area and refurbished library and look forward to welcoming residents back in November."
Notwithstanding existing contract arrangements and lead times for manufacture, the council anticipates practical completion of the project to be finalised by the end of the year.
Matrix Group Co. Pty was contacted for comment.
Did you know the Southern Highland News is now offering breaking news alerts and a daily email newsletter? Keep up-to-date with all the local news: sign up below.