Builder picked for new WA maternity hospital project enters voluntary administration
The new maternity hospital is due to be built on land previously taken up by a car park at Murdoch. (ABC News: James Carmody)
In short:
Builder Roberts Co was chosen last year to help construct WA's new maternity hospital, but the company has gone into voluntary administration.
Work on the $1.8 billion Women and Babies Hospital was due to begin later this year alongside Fiona Stanley Hospital in Murdoch, with the facility due to open its doors by 2029.
What's next?
WA Health Infrastructure Minister John Carey says the government has confidence in the remaining joint venture partner Webuild to deliver the hospital project, and says there is no change to its timeline..
One of the joint venture partners chosen to build Perth's new maternity hospital has entered voluntary administration after months of uncertainty, but the Western Australian government is adamant the project remains on track.
Builder Roberts Co was chosen last December alongside European construction giant Webuild as joint venture partners for the hospital, designed as a replacement for the ageing King Edward Memorial Hospital (KEMH).
The new $1.8 billion Women and Babies Hospital, to be co-located with Fiona Stanley Hospital (FSH) in Murdoch, is scheduled to open its doors by 2029.
But the parent entity of Roberts Co, RCAH Group, was recently wound down, with its New South Wales arm sold to a Middle East developer.
The Victorian arm of the business entered administration in March, while the WA branch followed suit last week.
Global management firm FTI Consulting has been appointed to examine the financial position of Roberts Co and RCAH Group.
Unclear if new builder needed
Construction of the hospital had been due to begin later this year, and it is unclear if the loss of Roberts Co will force the government to find a new builder to partner Webuild, which has a 70 per cent stake in the project.
Health Infrastructure Minister John Carey said negotiations with Webuild were continuing, but did not specify if a new junior partner would join the project.
John Carey says the hospital remains on track to open by 2029, despite the loss of Roberts Co. (ABC News: Keane Bourke)
"Like all major projects from time to time you do experience these hurdles," he told ABC Radio Perth.
"We do have confidence in Webuild, given their history as one of the biggest contractors in the world. There is no question about their ability to deliver this project."
Mr Carey said details of discussions would remain secret, but there was no change to the project's timeline.
"We said 2029. We are committed to that and confident of the 2029 timeframe,"he said.
'Raises questions': opposition
Shadow WA Health Minister Libby Mettam said the short timeline between December's joint venture announcement and the departure of Roberts Co defied explanation.
"This partner was brought on because of hospital infrastructure building experience and it raises questions," she said.
"[Mr Carey] is not up front about when he knew about the troubles of Roberts Co, and it is just not believable that they will be able to start construction this year."
Libby Mettam has her doubts about the timeline of the maternity hospital project. (ABC News: Bridget McArthur)
Opposition Leader Basil Zempilas described it as a "chronic failure" of the Cook government.
"It is time for the Cook Labor Government, and the Premier in particular, to stop spinning, and being straight with the people of Western Australia."
In a statement, FTI Consulting confirmed Roberts Co had also sold its WA business interests, and administrators would examine those transactions before reporting to creditors.
"We are aware there is interest from stakeholders of the business to propose a deed of company arrangement (DOCA) with the view of providing a better return to creditors in a timely manner, which will be considered in due course," the statement said.
Hospital site criticised
The state government announced the hospital project in April 2023, saying the facility would be built at FSH.
That raised concerns among clinicians about travel distances between the new campus and Perth Children's Hospital (PCH), with KEMH's former head of anaesthesia Tim Pavy claiming lives would be at risk.
The then-WA health minister Amber-Jade Sanderson downplayed those fears, saying the hospital would include improved neo-natal facilities.
The Liberals entered the state election also criticising the plan and claiming babies would die as a result, saying they would build the hospital on a car park site at the Queen Elizabeth II Medical Centre in Nedlands.
The Australian Medical Association WA said it wanted maternity, paediatric and adult medical services to be "tri-located" at one site.
Roberts Co is also the builder behind luxury Scarborough apartment complex The Dunes Beachfront.
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