Fact Sheet - Construction Methodology Cost-Benefit Analysis

29 August 2014 


The RHH Redevelopment Rescue Taskforce has been commissioned to provide independent advice and recommendations to the Minister for Health on how best to continue to redevelop the RHH.

A great deal of good work has been done on the Redevelopment project. However, there are a number of issues related to the construction methodology and patient safety; and financial and project management that must be resolved before the construction of K Block can begin.

Construction Methodology

Two construction methodologies are being considered for K Block. The initial methodology (called the two stage methodology) and the updated methodology (called the one stage methodology) that was announced in November 2013.

The two stage methodology requires building over the top of an occupied hospital (B Block). This includes demolishing B Fan, building a gantry over B Block, constructing the first section of K Block (K1), demolishing B Block and then building K2.

The one stage methodology decants and demolishes the entire B Block before construction; K1 and K2 are built concurrently.

Decanting hospital services

Hospital services will need to be decanted under either construction methodology.

The two stage methodology requires multiple decants while parts of B Block are demolished and the gantry and K1 are built.

The one stage methodology requires the decanting of more beds and services and the earlier proposal included decanting off campus.

Previously, all options for decanting were not fully explored.

Construction Methodology Cost Benefit Analysis

It is the view of the Taskforce that a further comprehensive risk assessment of the construction methodologies should be undertaken. This is the Cost Benefit Analysis.

There are three stages to this part of the Taskforce investigation.

  1. 1. Development of base case decanting plans for both methodologies.
    Base case decanting proposals are the starting place for rigorous analysis to ensure the project is achievable and to identify the best approach to proceeding.
    This has been completed by the THO-South.
  2. A independent cost benefit analysis is conducted to consider construction, clinical, delivery, programming and financial risk.
    Taskforce has engaged KPMG and this work has commenced.
  3. The Taskforce considers the findings of the cost benefit analysis and makes recommendations to the Minister; providing their final report to Government by the end of November 2014.