New Royal Adelaide Hospital: NRAH builder launches fresh legal action
THE new Royal Adelaide Hospital is embroiled in fresh legal action just a month before it is set to open.
- Consortium prepares $800 million-plus legal action over hospital delays
- Government staring at $4 billion legal threat as new RAH stakes soar
- Judge demands tour of worksite amid RAH legal fight
- New RAH legal battle could cost taxpayers billions
THE new Royal Adelaide Hospital is at the centre of new legal dispute.
A month out from its opening, the new $2.3 billion hospital’s builders are suing its former consortium partners.
It has launched legal action against independent certifier Donald Cant Watts Corke Pty Ltd, SA Health Partnerships — now known as Celsus — the State Government and Health Minister Jack Snelling.
It’s understood the consortium — Hansen Yuncken and CPB Contractors, formerly Leighton Contractors - is seeking $185 million in compensation.
The claim, which the government insisted would not impact the hospital’s opening next month, was lodged in the Federal Court of NSW last week but the basis of the consortiums’ claims is unclear.
It is understood the legal row centres on “misleading and disceptive” claims surrounding building completion timings.
The Opposition claimed it also related to hospital’s electronic records system, EPAS. The Advertiser revealed the legal action earlier on Wednesday.
SAHP launched legal action against the Government after it rejected a “cure plan” to fix defects in the build — but that has since been dropped following an agreement.
The consortium has also previously threatened legal action against the Government and SAHP seeking up to $800 million in costs, alleging the Government was delaying the project to “cover up” failings of a trouble-plagued computer system.
Mr Snelling said the Government was “ entirely confident in its legal position” and the legal protections built into the NRAH contract but would not disclose how much money the consortium was seeking.
“This is, I think it would be fair to say, the last gasp by the builder, and we are very, very confident with our legal position,” he said.
He stressed the hospital’s September 5 opening would not be impacted by the legal action.
Liberal health spokesman Stephen Wade said: “Jack Snelling needs to be upfront with South Australians about the nature of the legal dispute and the potential financial impact upon taxpayers.
“The fact the Government is ensnared in another legal action despite the fact the hospital is now 17 months overdue and $640 million over budget indicates the contract is flawed.”
Celsus chief executive Duncan Jewell confirmed the action but declined further comment. None of the other parties would comment on Wednesday night.