Builder picked for new WA maternity hospital enters voluntary administration
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.
Global management firm FTI Consulting has been appointed to examine the financial position of builder Roberts Co and its parent entity, RCAH Group.
Roberts Co was chosen alongside European construction giant Webuild as joint venture partners for the hospital in December 2024, tasked with building a replacement for the ageing King Edward Memorial Hospital (KEMH).
The government wants the $1.8 billion Women and Babies Hospital to be co-located with Fiona Stanley Hospital (FSH) in Murdoch.
But 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.
Construction of the hospital had been due to begin later this year, but the loss of Roberts Co is likely to force the government into searching for a new builder to partner Webuild, which has a 70 per cent stake in the project.
Health Infrastructure Minister John Carey, who confirmed the departure of Roberts Co from the project, has indicated that process is already underway.
"The procurement process and engagement with Webuild continues to progress well and the Government will make some important announcements soon," Mr Carey said in a statement.
In a statement, FTI Consulting confirmed Roberts Co had also sold its WA business interests, and administrators would examine those transactions before it reports 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.
The state government announced the hospital project in April 2023, saying the facility would be built at FSH and would open its doors by 2029.
That raised concerns among clinicians about travel distances between the new campus and Perth Children's Hospital, 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 QEII 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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