Hon. Kate Doust questions the Treasurer regarding delays in the Perth Children's Hospital construction, potential penalties for John Holland, and protection of subcontractors. The Treasurer's response outlines ongoing monitoring and assurances regarding subcontractor payments.

AnsweredQoN 1296Legislative Council
Asked
18 November 2015
Portfolio
minister representing the Treasurer

QuestionView source ↗

PERTH
CHILDREN'S HOSPITAL — JOHN HOLLAND GROUP PTY LTD
1296. Hon KATE DOUST to the
minister representing the Treasurer:
(1) Given that
the new Perth Children's Hospital was scheduled for completion in
September 2015, and that date has now passed, can the minister advise the new
completion date for this project?
(2) What
communications have taken place between the government and John Holland
regarding the completion date delay?
(3) What penalties have been imposed on John Holland for the
delay?
(4) What steps
have been taken by the government to ensure that contractors and subcontractors
are not out of pocket because of these delays?

AnswerView source ↗

I thank the member for some notice of the question.
(1) The state's
project team is currently working with its managing contractor to update the
forecast completion date, which will in turn inform the program for the
transition to hospital operation in 2016.
(2) The
Minister for Health and the Treasurer have met with the chief executive officer
of John � Holland � Group and the CEO meets Department of Health
and Treasury executives each month to review construction progress. The state's
project team interacts with the managing contractor on a daily basis.
(3) Under the
contract, the managing contractor is liable for liquidated damages for delays
caused by the managing contractor. The state has formally reserved its rights
to apply liquidated damages.
(4) The delays
have no impact on the managing contractor's obligations to ensure all of
its subcontractors are properly paid under the terms of their subcontracts. At
the request of the state, the managing contractor has provided written
assurance to this effect, supported by documentary evidence.

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