John Holland sues WA government for $300m

Construction company John Holland said it was seeking more than $300 million in compensation from the state government, following a two-year dispute in relation to the Perth Children's Hospital contract.

Both John Holland and the government had previously claimed they were each owed money by the other party over the $1.2 billion project, with the construction works awarded to John Holland in late 2012.

In an announcement today, John Holland said the state government had made late design and construction changes to the contract, resulting in delays and hundreds of millions of dollars of extra work for the company.

John Holland claimed a far superior hospital was built compared to the facility planned and budgeted for.

The state government had reportedly made two separate offers of $12 million and $20 million to John Holland in 2018 to settle the issue, which it rejected, claiming it was owed more than $300 million in outstanding payments.

A spokesperson from the company said it had not yet been compensated for the delays and had exhausted all avenues to reach a fair settlement.

“John Holland has at all times complied with the conditions of the contract, which prevented the company from speaking to the media or other third parties and presenting our side of the story to the people of Western Australia,” the spokesperson said.

“That decision also recognises John Holland’s ongoing wish to resolve the matter in good faith and to avoid entering into potentially costly litigation.”

Perth Children's Hospital opened in May 2018, about three years later than expected, following a series of issues including water contamination and asbestos.