Kirwan Community Health Campus expansion facing delays after St Hilliers goes into administration
A $40 million expansion to a Queensland health facility is facing major delays after its builder entered voluntary administration just months after being awarded the tender, Queensland Health has confirmed.
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A $40 million expansion to a Townsville health facility is facing major delays after its builder entered voluntary administration just months after being awarded the tender, Queensland Health has confirmed.
Construction giant St Hilliers stopped work this week on more than 20 projects nationally after amassing losses of $12 million over the past two years.
St Hilliers had been awarded the $40m tender of the Kirwan Community Health Campus in Townsville in June last year.
Queensland Health today confirmed that work had been ceased on the project.
“We are aware the building contractor for the Kirwan Community Health Campus has entered voluntary administration and work has ceased on site,” the spokeswoman said.
“We are working to understand the impacts of this announcement and will work closely with all stakeholders and staff in order to recommence project works at the earliest opportunity.”
The spokeswoman said the administrators were set to make contact with Queensland Health in due course to determine the next steps.
“We will keep the community updated regarding site works and any changes to project completion timelines,” she said.
The expansion includes a new two-storey facility which expands the existing centre to provide midwifery community clinics and dental services, minor refurbishments and an additional carpark.
Construction had been expected to be completed by September 2024 and support about 115 jobs.
St Hilliers is also behind a $6.1m expansion to a library in Stanthorpe and several Department of Defence contracts, according to projects listed on its website.
The Southern Downs Regional Council confirmed the Stanthorpe library expansion had been impacted after it was notified that St Hilliers had “encountered significant financial challenges due to continued hard economic conditions in the Queensland building industry”.
“There are contract matters to work through with the builder, which council will do,” a council statement read.
“Which council remains under contract with the builder, careful considerations are being applied to contingency plans to ensure that any time in transition is minimised.
“Council is focused on the project’s timely completion and quality while ensuring local subcontractors are treated fairly. Regular updates will be made as we progress this matter.”
The Sydney-based group appointed Glenn Livingstone and Allan Walker of WLP Restructing at the weekend with the administration including St Hilliers Contracting and six other entities in the group. The property development and investment division St Hilliers Property remains unaffected.
WLP Restructuring said it had secured and paused all works across St Hilliers’ 21 active construction sites while it undertook an urgent assessment of its financial position and operations.
“As this assessment is completed, approximately 80 staff members will remain employed while 22 have unfortunately been made redundant.”
St Hilliers was approached for comment.
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