South Australian Government launches court action over new Royal Adelaide Hospital delays
UPDATED: New Royal Adelaide Hospital builders SA Health Partnership will lodge a 500-page document giving its side of the story over the project delays, after the State Government took them to court.
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NEW Royal Adelaide Hospital builders SA Health Partnership will today lodge a 500-page document giving its side of the story over the project delays, after the State Government took them to court.
The document claims the $2.3 billion hospital is “substantially complete”, backing the builders’ push for the Government to accept the hospital with minor final work still to be done.
However, Health Minister Jack Snelling took the court action saying he is not prepared to accept a hospital that is “not ready for patients”.
SAHP wants the Government to take over the hospital with work still to be done, which would trigger payments to it of about $1 million per day, but the State Government wants all the work finished.
Technical completion — when the hospital is handed over for three months of tests prior to full handover — was supposed to occur early this year but has been repeatedly delayed.
The builder now says it is aiming for September 16, which will be followed by 90 days of testing before possible commercial acceptance by the Government on December 15.
This is when it would start paying SA Health Partnership $1 million a day for 30 years under the contract to build and operate the hospital.
A parliamentary committee was told the builder had asked for five extensions so far this year and the consortium had been issued with three default notices and threats to terminate the contract.
Termination would see taxpayers hit with a bill for at least $2.5 billion.
Mr Snelling said he was sick and tired of ongoing delays and excuses.
SAHP chief executive Duncan Jewell today said the consortium is committed to continuing to work with the State Government “to the letter and the spirit of the contract to deliver a world-class hospital for the South Australian public”.
“Disputes on a contract of this size and complexity are not unusual and the contract regulates how such disputes are resolved,” Mr Jewell said.
“The referral of a dispute to an independent mediator in no way detracts from SAHP’s commitment to deliver a state-of-the-art hospital or its intention to work closely with the State Government.
“This afternoon, SAHP will lodge a 500-page plan which demonstrates that the new Royal Adelaide Hospital is substantially complete and outlines a clear path forward for completion of minor works and testing, commissioning and accreditation.
“Today’s lodgement date of this plan has been agreed to and known by both parties since mid-July.”
The court action hinges on deciding who is responsible for deciding when the hospital is ready for handover.
With commercial acceptance now late December at the earliest, patients are not expected to be admitted to the hospital until next year.
Health Minister Jack Snelling told The Advertiser: “We will not open a hospital that is not ready for patients.”
The court action hinges on which party — the builder or the Government — is responsible for signing off on final building works.
Court action is not likely to impact on when patients actually start being admitted to the NRAH.
It comes amid ongoing discussion about whether the Transforming Health changes are working in the best interest of patients.
SA Health yesterday released figures showing the average time spent waiting in both Modbury and Lyell McEwin emergency departments had dropped by about an hour.
