Both tenders for the $30,000 Quipolly Dam Project have been rejected.
Liverpool Plains Shire Council says the final two applicants were denied the contract due to technical concerns.
The project was meant to hit the ground at the start of the year, but was delayed after council was unable to secure a contractor.
Negotiations have re-commenced with both parties, to see if a more suitable agreement can be reached.
Council hopes to lock in a deal by the end of the month.
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