SA to check on York civil payments

An investigation is underway to check if subcontractors have been paid after a leading construction and engineering company working on two large SA government projects went into voluntary administration.

York Civil is involved with the delay-plagued but almost complete North Terrace tram extension and the $800 million upgrade to parts of the city's South Road corridor.

Work is continuing on the projects but Premier Steven Marshall says the government wants to make sure the proper arrangements have been put in place to pay contractors.

The investigation follows concerns subcontractors may miss out on some payments because of the company's issues.

There have been similar concerns raised about York Civil projects in Western Australia, including the Perth Stadium footbridge.

Mr Marshall said the government was looking very closely at the relationship between York Civil and their subcontractors.

"I just think we need to be assured as taxpayers that when our money has been paid it has ended up where it has actually been required.

"I'm sure that our money has been paid.

"But there are protocols in place when governments pay accounts that subcontractors are paid."

Administrators Ferrier Hodgson are also conducting an urgent assessment of York Civil's financial position and the status of its contracts.

"At this stage, the company will continue work on the contracts which are subject to the administrators' review," partner Martin Lewis said in a statement.

Mr Lewis said meetings will be held with key stakeholders, including clients, ahead of a creditors' meeting on August 16.