Three respected Tasmanian businesses will be part of the state's biggest construction project after they were awarded sub-contracts for the $689 million Royal Hobart Hospital (RHH) Redevelopment.

Hazell Bros Group Pty Ltd, Howrah Plumbing Pty Ltd and Macquarie Builders Pty Ltd have been awarded $7.1 million in tenders.

This will help stimulate the local economy, secure jobs and encourage more in the sector.

Hazell Bros have won the $4.6 million main B-Block demolition works package.

Hazell Bros managing director Geoffrey Hazell said they would have a crew of between 10 to 12 workers on the hospital site for the duration of the contract.

“Over recent years, Hazell Bros has been involved in numerous packages of work at the Royal Hobart Hospital and we have now been contracted to undertake the demolition component of the major redevelopment works,’’ Mr Hazell said.

“As a Tasmanian company we are pleased to have been awarded these works and look forward to working closely with all parties to deliver this component and get works moving on site.’’

Howrah Plumbing will complete the $1.9 million in-ground hydraulic and civil service works.

This will include alterations and the diversion of existing in-ground sewerage and stormwater drains.

"This will mean about seven people directly employed and the flow-on effect is more confidence in our outlook over the next three to five years," Mr Derrick Clack, CEO Howrah Plumbing said.

"Because of that confidence we recently made the decision to increase the number of apprentices we have in the business so it's had also had a flow-on effect with trades."

Macquarie Builders will complete the $0.6 million building works for the installation of the temporary hyperbaric chamber.

“We have formed a good working relationship with the managing contractor with previous significant works packages and appreciate the sub-contract for hyperbaric building works,” Macquarie Builders owner/director Frank Sikkema said.

“It’s great to see that local people are being employed on this important project.”

Tenders have also been awarded to two interstate companies because the capacity or expertise does not currently exist in the state at the present time.

Fink Engineering has been engaged to supply a temporary hyperbaric chamber while K-Block is constructed and to fabricate, install and commission the permanent hyperbaric chamber at a total value of $5.4 million.

National supplier, Titan Cranes and Rigging Pty Ltd, will provide, operate and maintain two tower cranes for the duration of the K-Block construction at a cost of $6.4 million.

The redevelopment's managing contractor, John Holland Fairbrother Joint Venture, tendered the works using the Government's Buy Local Policy.

14 Sep 2016