Auditor-Gen warning over hospital and T2D cost blowouts
Rising construction costs are putting the state’s $3.2 billion new Women’s and Children’s Hospital budget at risk, a new report says. It also warns of Torrens to Darlington “overruns”.
The current budget for the new Women’s and Children’s Hospital in the Adelaide Park Lands “may not be sufficient,” the Auditor-General has warned in a new report on state finances.
Released this afternoon, the report details state government spending and interrogates future expenditure plans.
This includes the government’s $3.2 billion new Women’s and Children’s Hospital build.
The $15.4 billion Torrens to Darlington road project – currently at the centre of a political firestorm over alleged bikie connections – could also face cost overruns and delays, the Auditor-General Andrew Blaskett said.
Even a 10 per cent budget overrun for T2D would amount to a $1.5 billion cost increase.
You might like
In relation to the new hospital, the Auditor-General has warned that costs “remain uncertain”, saying it has been some time since the preferred location for the new build was first announced in 2022.
“Since then, construction costs have increased significantly,” the report reads, noting that SA construction costs have increased by 3.2 per cent in the 12 months to June 2026.
“Some key project elements remain unresolved, including the budget impacts of the final schematic design and the appointment of a major construction contractor.
Stay informed, daily
“Until these matters are finalised, the full cost of delivering the project remains uncertain, increasing the risk that the current budget may not be sufficient.”
Health Minister Blair Boyer said ,”The schematic design has only just reached 100 per cent, which will be used by the builder to determine the final price of the New Women’s and Children’s Hospital build.”
“This is an incredibly complex build and we know the project is under pressure, as are construction projects across the globe,” he said.
“However, we are determined to get the best price for South Australian taxpayers.
“As soon as we are able to provide the final cost we have always said we will make that public. We expect to be able to do that early next year.”
“In the meantime, early works continue at the site, including on the building of a multi-storey car park.”
The Auditor-General also warned that, if project costs exceed current estimates, “additional funding may be required”.
This would weigh on state coffers, as the hospital project is solely state-funded, unlike the major Torrens to Darlington project which has support of the Federal Government.
“Project scope or delivery time frames may also need to be revised,” the Auditor-General wrote.
“These major and complex infrastructure projects lead to increased risks for the SA Government’s capital program,” the Auditor-General report reads.
“For these megaprojects, even small percentage budget overruns could have a significant impact on the state’s overall financial position, including increased net lending deficits and net debt.”
Want to see more stories from InDaily SA in your Google search results?
- Click here to set InDaily SA as a preferred source.
- Tick the box next to "InDaily SA". That's it.
