Yet another delay on new Royal Adelaide Hospital opening as Opposition calls for financial penalties

THE State Government faces a race against time to have the new RAH ready for patients by its expected November opening, after being told the handover from the builder could be delayed by up to two months.

THE State Government faces a race against time to have the new Royal Adelaide Hospital ready for patients by its expected November opening after being told the handover from the builder could be delayed by up to two months.

It is also under pressure to impose financial penalties on the builder if it misses the original April deadline.

Health Minister Jack Snelling told The Advertiser the Government has been advised the technical completion date for the new hospital, set for early April, is likely to be pushed back by up to two months.

Mr Snelling said the building consortium remained “adamant” it would meet the April deadline but consultants tracking the project for the government had warned there was likely to be a further delay.

He could not give a reason for the latest delay, saying that was an “issue for the builder”. However, he noted the massive scope and complexity of the project.

The minister said he expected the hospital would still open to patients by November 30 but the news meant there would be less time to test the new facility and install or move all the necessary equipment.

A 7.5 tonne MRI machine is craned into level five of the new Royal Adelaide Hospital. Picture: Nick Clayton

Opposition treasury spokesman Rob Lucas has called on the Government to impose financial penalties if the builders do not complete the project on time.

Mr Lucas said it would have been “negligent” of the Government to sign a contract which did not allow for such penalties.

“The Treasurer and the Minister for Health have to explain to the people of South Australia why they haven’t imposed penalties which are available under the contract on a consortium that didn’t deliver a project on time and on budget,” Mr Lucas said.

Mr Lucas questioned Under Treasurer David Reynolds about the issue at a parliamentary committee meeting this morning.

“(He) has indicated today that he would have expected there would have been (penalties written into the contract). He’s gone off to check,” Mr Lucas said.

“If there weren’t (penalties included), they need to explain ... who’s responsible (for that).”

Mr Snelling later said the penalty built into the contract was that the builder would not begin receiving service payments from Government, of about $1 million a day, until it delivered the finished hospital building.

That represented a saving to the state Budget, he said.

Mr Snelling avoided directly answering repeated questions about whether the contract allowed for other financial penalties.

“My understanding is that in this contract the penalty is you don’t get paid,” he said.

“I’m certainly satisfied with that being a sufficient penalty.

“The builders themselves are quite adamant that it will be on time but we’re getting other advice that that might not be the case.

“It could be a few weeks, it could be a couple of months at the most. We don’t expect that it will have any effect on when we properly open and start to have patients in the hospital.”

A spokeswoman for the building consortium, HYLC joint venture, said it was still working to an April deadline.

The Government has released a tender calling for companies to undertake the mammoth relocation of 5638 items from the current RAH to the new building at the west end of North Tce.

They range from medical equipment such as microscopes, ventilators, blood pressure pumps and X-ray machines to exercise bikes, fridges, computers, furniture, books, artworks and CCTV cameras.

The new Royal Adelaide Hospital set against the rest of the CBD. Picture: Ethan Rohloff

Specialist skills will also be needed to safely transport drugs and dangerous chemicals.

Mr Snelling said the Government had allowed a “considerable buffer” in the schedule to avoid having to move during peak winter flu season.

Mr Lucas said the public would be “cynical” about Government claims the hospital would still open on time.

Mr Snelling said he would “not compromise” patient safety “for some sort of political outcome”.

The timeline

Building completion: Initially set for January 18, revised to April 4, could now be up to two months later.

Testing of new building: Initially tipped to take up to three months.

Final handover of hospital to Government: Originally set for April 18, revised to July 3, now could be up to two months later.

Opening of hospital to the public: Set for November 30, Government insists delays should not affect final opening date.