Dunedin Hospital Independent Review

Before signing a construction contract for the New Dunedin Hospital inpatient building, the Government wanted to ensure the project was set up for success and deliverable within budget. So, as well as the standard Health New Zealand due diligence processes, it asked the New Zealand Infrastructure Commission, Te Waihanga, to facilitate an independent review of the project.

The review was led by expert reviewer Robert Rust, former Chief Executive of Health Infrastructure New South Wales, and supported by expertise in quantity surveying and programming from firms Rawlinsons Limited and Rubix Limited respectively. The review makes recommendations around cost, project delivery, and governance.

Key recommendations include:
 
Costs

• The project (as currently scoped) is probably not achievable within the budget.
• The workforce/system transformation workstream should be urgently progressed. 
• Business cases and costings should be done for associated programme workstreams (pathology laboratory, carparking and demolition/refurbishment of existing facilities).

Delivery

• Consider achieving greater cost certainty before signing the Inpatient building’s construction contract.

Governance

• The composition and scope of the Project Steering Group should be refreshed, to ensure appropriate expertise in both construction and future operation of the hospital.
• There should be an independent Chair and an appropriate Senior Responsible Owner in Health New Zealand.

The cost of the review was $267,903.93 including GST.