State Government takes legal action as new Royal Adelaide Hospital misses major building milestone

THE new Royal Adelaide Hospital is now unlikely to open until next year, and the State Government has taken legal action against the consortium in charge over chronic delays.

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THE new Royal Adelaide Hospital is now unlikely to open until next year, and the State Government has taken legal action against the consortium in charge over chronic delays.

The Advertiser can reveal Health Minister Jack Snelling has issued a “major default” against SA Health Partnerships, after it officially failed to meet a major building milestone yesterday.

The action is the strongest legal move possible other than tearing up the more than $2 billion contract, and aimed at forcing the consortium to set a realistic date for the handover.

Such a move is likely to likely to put pressure on SAHP by signalling concerns to its banks.

The State Government has commissioned its own independent analysis of the sluggish construction progress at the new hospital, which was originally scheduled to open this month.

Mr Snelling revealed that he believed the new RAH was as much as six months further behind schedule than he has been told, putting the planned November 30 opening in grave doubt.

Last night, he said the “ridiculous situation” of “pie in the sky” finishing dates had to end.

“What I’m after is a realistic delivery date for this hospital,” Mr Snelling said. “We can’t continue this ridiculous situation where they’re telling us one date and they’re not able to deliver.

“We need to have from them a delivery date that they can achieve.

“Our independent advice is it will be about four to six months late, from today, for technical completion. But we can’t plan around an estimate, we need to plan around a commitment.”

Asked if the hospital would now not open until 2017, Mr Snelling said: “If it does prove to be four to six months, it does make November 30 pretty unlikely”.

“It means very, very early next year (is) most likely,” he said. “That would be putting it into territory where it would be very, very difficult for us to be able to move in by November.”

Yesterday was to mark practical completion, a building milestone which triggers a three-month window in which the State Government can examine the work done and seek corrections.

Based on the Government’s estimates, practical completion is now likely to be as late as October, meaning testing and correction would end in January. However, there are concerns that final phase could take longer than three months, depending on the speed of work.

The Opposition will seize on the latest delay as evidence the most expensive construction project in the state’s history, and one which will take 35 years to fully pay back, is out of control.

A helicopter tests the helipad at the new RAH. Pic: Mike Burton

Mr Snelling said uncertainty around the opening of the new RAH created knock-on problems for staff wanting to schedule leave, and planning across the entire network of SA hospitals.

Mr Snelling said he was “not terribly fussed” about the RAH opening date being pushed back, but he was infuriated by a continual lack of clarity from SAHP. He emphasised that it was critical that safety not be compromised to meet unrealistic deadlines, because two workers have already died on the site.

“With the complexities of the move, we need to be able to plan,” Mr Snelling said.

“We need to be able to ramp down the (old) RAH, and it has significant implications for the rest of the health system. Other hospitals are going to have to take a significant load.

“Another thing that I’m concerned about is our staff, around when they can take leave and are going to have to work. We can’t have this situation where we’re not able to be clear.”

Any delays in the RAH handover also push back the date on which the Government must begin paying a $1 million per day fee to the consortium, delivering a State Budget saving.

Grey clouds hang over the new RAH on North Tce. Pic: Tait Schmaal

Speaking earlier yesterday, Opposition health spokesman Stephen Wade said the builders should compensate taxpayers if they missed the latest deadline and were found to be at fault.

“Not only is the nRAH running way behind schedule, but it is also way over budget,” he said.

“The private-public partnership model chosen by the Labor State Government as a means of financing the project was meant to protect taxpayers from cost blowouts and delays.”

Mr Wade said the eventual opening of the hospital was also likely to be marred by major problems with the trouble-plagued electronic patient health records system.

The system is riddled with glitches and the new hospital is not built to store paper records.

Mr Wade said: “The mismanagement of SA’s health system is why the Government is closing the Repat and downgrading services at the QEH, Modbury and Noarlunga”.

Slow going - the constant delays

■ When first announced, the new RAH was to open in April this year.

■ Last month, the builder claimed it would be ready for handover to the Government on May 25.

■ The Government now thinks the hospital is actually between four and six months behind the original April handover schedule.

■ When handed over, there is a further three-month period of testing and correction required.

■ To avoid clashing with the peak winter flu season the new RAH was meant to open on November 30 this year. But this is now likely to be delayed until next year.

New RAH Labor’s election present — if it’s ready

Analysis — Daniel Wills

ADELAIDE’S new major hospital looks likely to be opening as campaigning for the March 2018 election starts getting serious.

The State Government’s frustration with the new Royal Adelaide Hospital builder has been simmering for years, and boiled over last night with severe legal action. While constant delays in construction have been politically frustrating, the Government has long hoped they would be long forgotten by polling day as a glistening new hospital opens.

Like the tram extension, Adelaide Oval rebuild and roadworks, senior Labor figures have been confident that people will love the new RAH once they see what it has to offer.

But the closer the opening goes to election day, the less likely it is that voters will see the new hospital in its best light.

From old to new RAH is going to be a circus as machines and equipment are shuttled down North Tce like a medical Christmas pageant without the magic.

The first few months will also be an immense technical battle as staff wrestle with the new electronic patient records system.

The new RAH has been an asset to Labor at two elections. It may be again, but the Government needs as much time as possible get through what is likely to be a painful teething period before patients and voters see its value.