Construction of Royal Adelaide Hospital facing delays

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Construction of the new Royal Adelaide Hospital (RAH) is three months behind schedule, a South Australian parliamentary inquiry has heard.

Government project director Judith Carr told the Budget and Finance Committee that the SA Health Partnership consortium, which included Hansen Yuncken, Leighton Contractors, Macquarie and Spotless, was blaming the delay on soil contamination.

“They have simply put us on notice that they intend to claim an extension of time,” she said.

Mr Carr said the consortium sought $30 million in compensation for remediation work.

“On December 11, I have to give a decision on whether or not they have proven their case that it [the soil contamination] was unknown and they are entitled to compensation,” Ms Carr said.

“Following that, they have flagged their intention to claim an extension of time for the time it took to remove the contamination and that will be submitted after I have made a decision.”

Opposition spokesperson for health Stephen Wade said the notification came as no surprise.

“It’s been an open secret in South Australia for months that the new Royal Adelaide Hospital would not be delivered on time,” he said.

“The Government has denied it time and time again.”

The $1.8 billion hospital at the western end of North Terrace is being built to replace the current RAH and was due to open in April 2016.

An independent certifier would make the final decision on whether an extension for the project would be granted or not.