Health Minister Jack Snelling faces claim that State Government computer system caused hospital building delay, in $185m suit
BUILDERS of the new Royal Adelaide Hospital have claimed that delays with a State Government computer system made it “impossible” for the project to finish on time, as they sue for $185 million.
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BUILDERS of the new Royal Adelaide Hospital have claimed that delays with the State Government’s troubled new electronic patient records system made it “impossible” for the project to be completed on time, as they launch a $185 million suit in the Federal Court.
The Advertiser yesterday revealed a new legal battle had broken out over the $2.3 billion project, set to open on September 5, and has now obtained documents detailing the claim.
The case has been brought by two building firms that combined in a joint venture to construct the new RAH — CPB Contractors and Hansen Yuncken — against the private consortium overseeing the project, Health Minister Jack Snelling and the state of SA.
It centres on allegations that government actions made it “impossible” for the build to finish on time and achieve the original opening date of April, 2016. The Government plans to run the new RAH without old-fashioned patient records and instead use the computerised Enterprise Patient Administration System, which has been dogged by cost blowouts and time delays. The builders claim they were delayed because EPAS was not ready on time for installation.
“For technical completion to have been achieved under the construction contract, the state ICT was required to have been successfully installed, tested and commissioned,” the claim states.
“The state’s failure ... means that it was impossible for the builder to achieve technical completion and, as such, commercial acceptance under the construction contract.”
The builders also raise complaints about the dispute resolution process around alleged minor defects including floor sizes, and dispute Government claims the building wasn’t safe.
They say the Government engaged in “unconscionable conduct” by withholding information about problems with EPAS during negotiations about new timelines for building completion.
Mr Snelling said the Government had “a strong contract that protects taxpayers”.
“This action won’t impact on the opening date of the new RAH,” he said.
“Everyone in SA is excitedly counting down til the opening of the new RAH. Everyone, apart from the desperate Opposition, that is.”
In Parliament, Mr Snelling also rejected concerns about ongoing problems with EPAS, but said a “mixed system” of computerised and paper records would be in place when the new RAH opens.
“The reason we are doing that is because, while EPAS is ready to be rolled out in full at the new RAH ... we want to make the move as simple for our clinicians as is possible,” he said.
“The safest way to achieve this was by having a limited activation of EPAS at the new RAH when we move and then to proceed to full implementation ... some time after.”
Opposition health spokesman Stephen Wade said Mr Snelling must be upfront with taxpayers about the legal dispute and the potential financial impact they faced from the case.