❓ Hon. Kate Doust questions the Treasurer regarding variations, disputes, and subcontract details related to the Perth Children's Hospital project and head contractor John Holland. The Treasurer provides details on variations, disputes, and the extent of information provided by John Holland to the State.
AnsweredQoN 3402Legislative Council
QuestionView source ↗
I refer to the new Perth Children’s Hospital and the head contractor John Holland: (a) how many confirmed variations are there on the project to date: (i) what are the details and cost of each variation; (b) how many ongoing disputes are there between John Holland and subcontractors who have worked, or are working, on the site: (i) what are the details of each of the disputes; and (c) at any point throughout the life of the project, has the Government asked John Holland to detail all: (i) subcontract contract values; (ii) approved variations; (iii) items in dispute; (iv) superintendent's instructions to undertake work; and (v) payments made to each subcontractor?
AnswerView source ↗
Answered
14 October 2015
Responded by
Minister for Mental Health representing the Treasurer
Response time
29 days
(a) At 30 September 2015, there were 122 executed variations to the Perth Children's Hospital Managing Contractor (MC) Contract between the State and John Holland Pty Ltd.
Large numbers of contract variations are commonplace on highly complex, major projects such as the Perth Children's Hospital, particularly where design is an iterative process involving extensive and ongoing consultation with key stakeholders such as clinical user groups.
By way of example, for the Fiona Stanley Hospital project, there were in excess of 350 variations to the MC Contract. This contract achieved Practical Completion on time in December 2013 and the project was delivered within budget.
(i) The total cumulative value of the 122 variations approved to 30 September 2015 is $38,518,701. Summary details of the variations are provided in the attached table, including the value of each variation. [Please see tabled paper no...]
(b) John Holland Pty Ltd has advised that as at 30 September 2015, it was engaged in five contractual disputes with its subcontractors.
(i) The details of these disputes will not be disclosed as each of the matters is subject to ongoing, confidential dispute resolution processes involving the contracting parties to the relevant subcontracts and disclosure has the potential to adversely impact on those dispute resolution processes.
(c) John Holland Pty Limited has complied with its obligations under the Perth Children's Hospital MC Contract to provide details of its subcontractors to the State, either under its specified reporting obligations or where otherwise requested by the State. Specifically:
(i) John Holland Pty Ltd has provided details of the value of subcontracts it has executed where the award value exceeds $100,000;
(ii) John Holland Pty Ltd has provided the value of subcontract variations it has approved;
(iii) John Holland Pty Ltd has advised the number of contractual disputes under subcontracts it has executed and has provided further details of selected disputes when requested by the State;
(iv) The State has not requested that John Holland Pty Ltd provide details of all instructions it has issued to its subcontractors to undertake work; and
(v) John Holland Pty Ltd has provided details of payments under selected subcontracts it has executed when requested by the State.
Large numbers of contract variations are commonplace on highly complex, major projects such as the Perth Children's Hospital, particularly where design is an iterative process involving extensive and ongoing consultation with key stakeholders such as clinical user groups.
By way of example, for the Fiona Stanley Hospital project, there were in excess of 350 variations to the MC Contract. This contract achieved Practical Completion on time in December 2013 and the project was delivered within budget.
(i) The total cumulative value of the 122 variations approved to 30 September 2015 is $38,518,701. Summary details of the variations are provided in the attached table, including the value of each variation. [Please see tabled paper no...]
(b) John Holland Pty Ltd has advised that as at 30 September 2015, it was engaged in five contractual disputes with its subcontractors.
(i) The details of these disputes will not be disclosed as each of the matters is subject to ongoing, confidential dispute resolution processes involving the contracting parties to the relevant subcontracts and disclosure has the potential to adversely impact on those dispute resolution processes.
(c) John Holland Pty Limited has complied with its obligations under the Perth Children's Hospital MC Contract to provide details of its subcontractors to the State, either under its specified reporting obligations or where otherwise requested by the State. Specifically:
(i) John Holland Pty Ltd has provided details of the value of subcontracts it has executed where the award value exceeds $100,000;
(ii) John Holland Pty Ltd has provided the value of subcontract variations it has approved;
(iii) John Holland Pty Ltd has advised the number of contractual disputes under subcontracts it has executed and has provided further details of selected disputes when requested by the State;
(iv) The State has not requested that John Holland Pty Ltd provide details of all instructions it has issued to its subcontractors to undertake work; and
(v) John Holland Pty Ltd has provided details of payments under selected subcontracts it has executed when requested by the State.
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