Cost concerns no obstacle to hospital extension finish date

A four-storey extension at Gold Coast University Hospital is on track to be completed later this year despite mounting cost concerns.

The $72m subacute building has hit the “topping out” milestone, with construction now 50 per cent complete, and the project expected to reach practical completion by July.

Queensland Health Minister Shannon Fentiman said once completed, the building would provide 70 additional beds for patients needing longterm specialised care.

“This is an exciting milestone for the Gold Coast community,” Ms Fentiman said.

“We know more and more people are choosing to call the Gold Coast home and that demand for healthcare services is increasing. (It will) take pressure off our busy hospitals and emergency departments.”

However, according to the most recent Queensland Health traffic light report, “latent conditions, design development and the need to provision for a temporary carpark” have forced the project to draw significantly on contingency funds, sparking cost concerns.

The remaining contingency equates to 3.9 per cent of the cost to complete the project.

A Queensland Health spokesman said: “While the project is currently tracking as ‘amber’, it’s important to note significant process has been made, and the project is currently on track.”

“The status of the Gold Coast University Hospital subacute expansion varies to reflect the level of active risk requiring support from governance committees across both construction and non-construction elements of the project.”

It comes after Queensland Health big build traffic light reports, obtained by the opposition through right to information laws, revealed that other major Gold Coast health projects had previously been hit by delays and significant budget blowouts.

The cost of the Gold Coast University Hospital secure mental health rehabilitation unit has increased from $105.5m to $122.7m after the head contractor tender price significantly overshot the original cost estimate and changes to the design were made.

A lengthy tender process, longer-than-expected contractor schedule, and ongoing wet weather also saw the project shifted to amber status in October 2022. It has since been green lit and is on track to be completed by November.