State government puts $20m on the table to settle Perth Children's Hospital dispute
The state government has offered the company responsible for building the Perth Children's Hospital $20 million to settle a dispute over who will pay for problems, delays and variations to the problem-plagued project.
Gareth Parker reported on 6PR Radio's Mornings program that Chinese-owned construction firm John Holland rejected the offer, which was made in December last year.
John Holland believes it could win between $120 million and $600 million if the matter goes to trial.
Treasurer Ben Wyatt accused the company of "selective media leaks to try and get the state to somehow compromise its position", but did not deny the government had made the offer.
He said he was "not simply going to be treated like a fool by an organisation that wants me to write a big cheque".
"There have been ongoing negotiations with John Holland as John Holland well know, including conversations around both John Holland's claim, in excess of $300 million against the state, and including the state's claim against John Holland," Mr Wyatt said.
"What we've got is a scenario where our claim against John Holland is different from their claim against the state.
"And so you have different disputes ongoing. They will continue to be negotiated, I hope, with John Holland and in the end a resolution achieved."
The state government had promised to pursue the company for costs incurred during the delivery of the project.
Parker reported John Holland was arguing there were 20,000 variations made by the state government to the project, which will be the focus of the ongoing legal dispute.
Practical completion of the $1.2 billion hospital was two years late after major construction issues, including asbestos in ceiling panels, non-compliant fire doors and contaminated drinking water.
Perth Children's Hospital opened almost three years after the original scheduled date.
Premier Mark McGowan's office released a written statement about the dispute.
"Discussions are ongoing with John Holland regarding a range of commercial matters, including John Holland's claim for damages, the state's claims to damages for late delivery of the hospital, issues related to water, and other matters," a government spokesman said.
"The state government will act in the interests of Western Australian taxpayers.
"It would not be appropriate for the state to make any other comment on these matters at this time."
John Holland has been contacted for comment.