Royal Redevelopment Update

The Hodgman Liberal Government is fixing Tasmania’s broken health system and is now in a position to say the Royal Hobart Hospital redevelopment has been rescued from the turmoil of the past and is on track to deliver world class hospital care.

Today I am pleased to announce the 10-storey inpatient precinct, known as K-Block, is guaranteed, with the $389 million Guaranteed Construction Sum (GCS) being approved by cabinet for acceptance.

This $389 million is under the $392 million project cost estimate agreed by the Rescue Taskforce and means the project remains on track to be delivered on time (by end of 2018) and within budget.

The GCS is the maximum price payable to the Managing Contractor to perform the agreed scope of work as required in the Managing Contractor’s Contract.

The Managing contractor, John Holland Fairbrother Joint Venture, will publicly advertise trade packages.

This will commence in early 2016 with advertising for the demolition and continue throughout 2016.

This is the single largest public construction project in the state with work packages to directly employ 300 tradespeople including apprentices, as well as creating many more indirect jobs.

The Tasmanian Government has accepted the recommendation of the Executive Steering Committee that an additional $20 million should be set aside as a prudent measure to ensure project risk is properly covered as we commence construction.

This is fiscally responsible and unused funds will be returned to consolidated revenue at the end of the project if it is not drawn down to cover unexpected costs.

The Government has also approved an additional $12 million funding for a new hyperbaric chamber previously supported in principle, but requiring a detailed business case to secure funding.

Replacement of the hyperbaric chamber ensures continuity and safety of services throughout the redevelopment and after.

Now that the GCS has been secured the timeframe for the relocation of hospital services can be confirmed. Relocation of services will take place in multiple moves from January to make way for the construction program.

Patient safety is the priority during the relocation of hospital services and ward moves will be carefully sequenced and appropriately resourced.

The occupancy of the 54-bed capacity inpatient temporary facility in the hospital forecourt is the most complex move and will now occur in May 2016.

B-Block demolition work remains on track to commence in April 2016 as previously announced.

Initial demolition works will involve removal of hazardous materials and fixtures in vacated areas prior to the structure being dismantled.

The RHH Redevelopment is jointly funded by the Australian and Tasmanian Governments.

For more information on the RHH Redevelopment visit the website www.rhhredevelopment.tas.gov.au
Michael Ferguson, Minister for Health