John Holland-Fairbrother terminates contract with AMS Hydraulics for plumbing works on Royal Hobart Hospital revamp

John Holland-Fairbrother is negotiating with new plumbing subcontractors for the RHH redevelopment after terminating its contract with Canberra-based business AMS Hydraulics.

JOHN Holland-Fairbrother is negotiating with new plumbing subcontractors for work on the Royal Hobart Hospital redevelopment after terminating its contract with Canberra-based business AMS Hydraulics.

AMS withdrew its labour from the site last week, axing about 20 jobs, and has since been under investigation.

A John Holland-Fairbrother spokeswoman said the managing contractor was “disappointed” AMS was unable to complete its $12 million contract.

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“Our first priority is ensuring local workers get continuing employment with the project,” the spokeswoman said.

“We are in the process of finalising a solution to ensure jobs for local workers.”

It is understood there were questions about AMS’s solvency.

AMS is the second company to have its contract for work on the $689 million redevelopment terminated.

Last year, Accuracy Interiors was accused of underpaying more than 100 workers for up to nine weeks, leaving John Holland-Fairbrother with a hefty backpay bill.

The Royal Hobart Hospital redevelopment.

The State Government has continually said the project is on track for completion mid-2019.

RHH Redevelopment project director, Ben Moloney said the contract termination was a commercial matter between the managing contractor and AMS Hydraulics.

“We expect that all contractual matters are administered fairly by both parties and that all Australian and Tasmanian laws continue to be adhered to,” Mr Moloney said.

“The delivery of the project remains on budget and the managing contractor’s forecast date for practical completion of the building works remains mid-2019.”

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