State Government outlines defects in court case over the delayed new Royal Adelaide Hospital project
THE dispute between the State Government and the builders of the new RAH will land in the Supreme Court on Thursday — and the Government’s statement of claim reveals 12 alleged defects with the building.
THE legal dispute between the State Government and the builders of the new Royal Adelaide Hospital will progress to an urgent hearing in the Supreme Court on Thursday.
As revealed last week, the government launched the Supreme Court action against SA Health Partnerships over ongoing alleged defects and delays in opening the $2.3b RAH.
The government’s statement of claim — accompanied by an affidavit twice the size of the Bible — outlines 12 alleged defects including floor plans and room sizes, ceiling heights and vinyl flooring.
Other alleged defects include room temperature and fresh air control, loading dock ceiling height, faulty sewer pipes in a data equipment room and problems with a hot lab isotope store.
The statement of claim was accompanied by a 2685 page affidavit outlining the history of the contract and alleged defects.
However, SA Health Partnerships claims the problems are minor and do not cause any economic loss or loss of amenities.
The company claims the matters could be resolved through a “modification notice” — instead of a more serious defect notice which would lead to SAHP paying compensation back to the government.
The case involves determining whether SAHP or the government is responsible for deciding when the hospital is ready to be handed over.
The government is also seeking an injunction to stop Sydney building lawyer Steven Goldstein from acting as an independent Expert in the case.
Mr Goldstein, a specialist in construction law, was appointed as an independent expert last week and had planned to finalise his report on the seriousness of the defects by mid-September.
However, lawyers for the State argued that Mr Goldstein had no powers under the legislation to take on the role.
Government lawyers also opposed SAHP’s request for a modification notice, arguing that it was the “sole discretion of the State to accept or reject” such a notice.
The Supreme Court on Tuesday heard an urgent interlocutory application and ordered the State to provide a new statement of claim by noon on Thursday, ahead of another hearing in the afternoon.
The new RAH has been plagued with delays and was scheduled to open early this year.
SAHP says it is aiming for technical completion of the project by September 16, with a final acceptance by the State Government in mid-December.
SAHP has requested the government to take over the hospital before all work is completed, however Health Minister Jack Snelling has rejected that, saying “we will not open a hospital that is not ready for patients”.
It is unlikely that patients will begin moving into the new hospital before next year, however the court action is not expected to affect when that occurs.