RAH builders Hansen Yucken Leighton say Government failed to test soil on site before construction

BUILDERS of the new Royal Adelaide Hospital say the State Government failed to test the soil before construction work began so they could be liable for the cost of remediation.

BUILDERS of the new Royal Adelaide Hospital say the State Government failed to conduct soil vapour testing before construction work began meaning it could be liable for the cost of remediating contamination.

Hansen Yucken Leighton Contractors development director Peter Salveson yesterday told a parliamentary committee that soil vapour testing was done at the cost of the builder.

The State Government faces paying developers up to $30 million in remediation costs for cleaning up the worse-than-expected soil contamination on the former North Tce railyards.

Budget and Finance Committee chairman and Opposition treasury spokesman Rob Lucas said it was “extraordinary” that the Government did not conduct testing at the site, especially given the recent soil contamination concerns around homes in Clovelly Park and Mitchell Park.

“It exposes the taxpayers of South Australia (to paying) part of the $30 million claim that ... (has been) made against the state for contamination,” he said.

“Part of their claim is due to the fact they’ve done the soil vapour testing which the State Government didn’t do.”

A spokesman for Health Minister Jack Snelling said “appropriate testing for contamination” was conducted at the time.

“However, there is an agreed process that the builder can submit claims for what they believe is unknown contamination,” he said.

“Their latest claim has been submitted but has yet to be determined or settled.”

Mr Salveson also told the committee the builders were still working towards an April 2016 delivery date, despite the consortium’s master works program indicating the scheduled finish date could be as late as August 2016.

“In my mind, it’s probably giving a sort of worst-case scenario ... but we don’t want to look into that because the minute we lock in the later date it means that is the date it’ll finish, so we need to remain vigilant and finish on time,” Mr Salveson said.

“I think we’ve had lots of conversations and all been working together to try to achieve the original completion date.”

Mr Snelling’s spokesman said the Government hoped for an April 2016 handover but would “consider” a request by the builder to extend the date.