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The Palmerston, Dunback and Goodwood water supply upgrade has been delayed by pipe quality and testing issues on sections of the Dunback and Goodwood water mains.
Waitaki District Council assets group manager Neil Jorgensen told the Waihemo Community Board this week there had been several pipe failures on the new mains.
Twelve pipe lengths out of 2000 lengths had been found to have possible non-standard pipe joints. Ten failed in testing and were replaced at the manufacturer's cost.
The project should have been completed in 2011 but the full cost of repairs, re-testing and supervision had been borne by the contractor, Mr Jorgensen said.