$3.2b South Australian hospital faces major cost blowout risk
South Australia's $3.2 billion hospital project faces mounting cost pressures as the contractor prepares final pricing.
South Australia's new Women's and Children's Hospital is heading toward a significant cost blowout. The $3.2 billion project, due for completion in 2031, is under "a lot of pressure", Health Minister Blair Boyer said.
Asked if the budget was achievable, he said plainly: "No I can't." Lendlease, the managing contractor, is set to provide a final price by the end of this year, or around the start of next year.
Once that arrives, the government must decide whether to increase the budget. The project shifted four years ago from a smaller site to a much larger footprint at Thebarton Police Barracks, raising cost and complexity.
History warns: the Royal Adelaide Hospital was budgeted at $1.7 billion in 2007 but cost $2.4 billion by opening in 2017, a year late. The auditor-general noted "some key project elements remain unresolved", raising the risk the current budget may not be sufficient.
- $3.2 billion
- Original budget
- 2031
- Scheduled completion
- 3.2 percent over last year
- Building cost increase in SA
- Lendlease
- Managing contractor
Why it mattersA significant budget blowout would strain South Australia's health spending and delay critical children's and maternity services.
AustraliaSouth Australians will face delays to a major maternity and children's hospital, with costs and timeline now uncertain.
✓ Claims checked against the source and corrected before publish. checked 1 h ago
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