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State Govt loses patience with new RAH builders

The South Australian Government has launched legal action against the consortium in charge of building the new Royal Adelaide Hospital after more construction delays.

Apr 05, 2016, updated Apr 05, 2016
Swan's resignation leaves his successor to oversee the transition to the new Royal Adelaide Hospital and the ongoing rollout of Transforming Health. Photo: Nat Rogers/InDaily

Swan's resignation leaves his successor to oversee the transition to the new Royal Adelaide Hospital and the ongoing rollout of Transforming Health. Photo: Nat Rogers/InDaily

While the hospital was due to reach technical completion in April and then May, the government has new, independent advice that this is likely to blow out until July or August.

Health Minister Jack Snelling says the major default notice is the most serious sanction currently possible against the SA Health Partnership (SAHP).

The long-awaited hospital was meant to open to patients in November.

“SA Health needs certainty around the timing of the project to accurately plan patient movements, staff requirements and technical moves well in advance of the new hospital opening,” Snelling said on Tuesday.

“The major default notice is likely to result in very significant financial repercussions for the consortium and I expect it to provide a big motivation to them to resolve any outstanding issues as quickly as possible.”

He said moving the Royal Adelaide Hospital from one end of North Terrace to the other would be “one of the biggest and most intricate moves of its type ever seen in Australia”.

Snelling insisted the State Government would only begin paying for the new hospital once it had been delivered “safely”.

“Under the terms of the contract, the State Government will not pay one cent for the hospital until Commercial Acceptance has been achieved.”

– with AAP

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