John Holland has beaten two other construction groups to be nominated by the state government to design and build the new $1.2 billion children's hospital at the QEII Medical Centre.

The competing consortia were a joint venture comprising Leighton Contractors and Broad Construction Services, and Brookfield Multiplex Constructions .

John Holland has significant experience in the management and delivery of major infrastructure projects, Treasurer Christian Porter said, and as such was well placed to deliver the hospital.

It is also contracted to deliver the Albany Health Campus, the redevelopment and expansion of Joondalup Health Campus and the Hollywood Hospital.

The value of works to be delivered by John Holland on the project will total approximately $800 million, subject to progression to the second phase of the two stage Managing Contractor process.

General Manager of John Holland's western region, Adam Harry, said: "John Holland has assembled an industry leading team of architects, engineers, project managers and construction professionals with contemporary experience in the design of paediatric health facilities, combined with John Holland's local knowledge and expertise in the construction of major hospital projects."

"We are proud to have been entrusted to deliver the new children's hospital for the people of Western Australia, presenting a once in a lifetime opportunity to deliver a critical piece of social infrastructure for generations to come."

John Holland's health design team has also received industry recognition for its innovative design of Melbourne's new Royal Children's Hospital, Health Minister Kim Hames said.

"We are looking forward to working with John Holland on the design and construction of the State's new tertiary-level paediatric hospital," Dr Hames said.

"As part of the New Children's Hospital Project, a paediatric research and education facility will be integrated into the new hospital. This will house the Telethon Institute for Child Health Research (TICHR), and research programs from The University of WA, Curtin University and Princess Margaret Hospital.

"To assist the relocation of TICHR, the State Government has allocated $65 million towards the facility. The Federal Government will also be contributing $40 million directly to TICHR to assist with the establishment of the new facility.

"The centralisation of these services will facilitate the delivery of a collaborative and streamlined 'bench top to bedside' advanced-level health care service to the children and adolescents of WA."

The new children's hospital will replace the Princess Margaret Hospital for Children in Subiaco, and is scheduled to be completed in late 2015.