Control of the problem-plagued and long-delayed Perth Children's Hospital project was lost due to poor communication between "basically everyone involved", a parliamentary committee has concluded.
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The $1.2 billion hospital will replace the ageing Princess Margaret Hospital but will open two-and-a-half years late in May following major construction problems including asbestos in ceiling panels and lead in the drinking water.
In a report on Thursday, the Public Accounts Committee criticised responsibility for the project being divided between Treasury's Strategic Projects and the Department of Health, which made them ill-equipped to handle difficulties with the main contractor, John Holland.
The committee also found then-treasurer Mike Nahan had accepted overly optimistic completion forecasts and shared them publicly without challenging the veracity of the information.
But Dr Nahan said the Labor-dominated committee chose not to ask him or any of his colleagues about the forecasts.
"I had copious notes of every meeting ... that I could have read out to them and showed that we investigated and scrutinised this in great detail," he told reporters.
Adverse findings were also made against John Holland, which had poor relationships with workers and sub-contractors, and was reluctant to share information with the government.
The company also refused to agree to phosphate treatments to resolve the lead problem, which prompted the government to grant practical completion so it could take control of the site.
Committee member Simon Millman said the previous Liberal government picked the wrong main contractor because John Holland was not experienced with such large projects and prioritised the lowest possible tender price over value for money.
"The contract price was too low to cover the eventual problems," he said.
"They were a belligerent proponent who took advantage of the state's lack of contractual levers or the state's reluctance to use those levers."
He also said the Building Commissioner should have intervened more.
Former Liberal minister Dean Nalder, who is also on the committee, said it was concerning there were 236 variations to the scope of the project, some of them quite large.
"It begs the question, when you talk about delays on a project, as to whether enough work was done up-front by the Department of Health," he said.
John Holland is pursuing a $300 million compensation claim for extra costs, while Premier Mark McGowan said in November the contractor would likely be sued.
The company declined to comment.
Australian Associated Press
