Redevelopment Construction Guaranteed

The Royal Hobart Hospital's new ten-storey inpatient precinct is guaranteed with today's announcement that the $389 million Guaranteed Construction Sum (GCS) has been approved.

The approved GCS provides certainty to the final stage of the Royal Redevelopment – the construction of the new inpatient precinct known as K-Block which will be delivered by the end of 2018. 

K-Block will provide a better facility for maternity and mental health patients and deliver a helipad for critical aeromedical emergencies.

Continued treatment of decompression sickness, injury from radiation treatment and conditions like diabetic wounds is now also assured with an allocation of $12 million to replace Tasmania's hyperbaric chamber during the construction of K-Block. 

The $389 million K-Block is the single largest public construction project in the state and will create 300 direct jobs on the site and many more indirect jobs.

The Managing Contractor, John Holland Fairbrother Joint Venture, will publicly advertise trade packages, including via the Industry Capability Network.

The GCS represents value for money for Tasmanians – it is within the $392 million cost estimate agreed by the Rescue Taskforce. 

The $689 million RHH Redevelopment will inject over $1.6 billion into the Tasmanian economy over the life of the project.

The Managing Contractor is responsible for the finalisation of the design and documentation and sub-contracting and managing the trade packages.

The Tasmanian Government is responsible for a range of other project requirements including delivering the furniture and equipment and information communication technology necessary for the safe and efficient operation of this contemporary health facility.

A tender for the lease of a temporary hyperbaric chamber for use during construction of K-Block and the purchase of two monoplace chambers that will be installed K-Block will also be advertised shortly.

The GCS is the maximum price payable to the Managing Contractor to perform the agreed scope of work as per the requirements of the Managing Contractor's Contract. 

The Joint Venture has been a major contributor to local infrastructure over many years including the recently completed Medical Sciences precinct and Institute for Marine and Antarctic Studies.

The RHH Redevelopment is jointly funded by the Australian and Tasmanian Governments.

Find more information here - About K Block Fast Facts and Guaranteed Construction Sum Fact Sheet.

16 Dec 2015