The state government has revealed Royal Perth Hospital’s emergency department expansion will cost $807.3 million, giving a significant boost to appointed builder Lendlease Construction as works begin.
Featuring a new six-storey building 500 metres from the hospital’s current ED, the project is being funded through the state government’s $2 billion Building Hospitals Fund.
The price tag announced on Monday morning moves ASX-listed Lendlease up to rank four from rank nine on Business News’ list of the state’s largest construction companies.
Lendlease’s total combined value of current projects in Western Australia has reached $1.37 billion, according to the Data & Insights list.
It sits behind Webuild, Multiplex and Edge Construction.
Located on Wellington Street, the project includes a two-level emergency department, expanded ambulance bays, and additional clinical service areas to support operational requirements and emerging healthcare needs.
Lendlease said it was delivering the upgrades through a partnership with the state government, calling it the Perth Pulse Alliance.
"This approach brings together government and industry to collaboratively manage complex projects and support more efficient delivery," Lendlease said in a statement on Monday.
"Lendlease has extensive experience delivering major health infrastructure across Australia, with more than $12 billion in health and medical facilities completed over the past decade and more than $6 billion currently under construction nationally."
The existing ED will continue to operate while the new build progresses.
“Today’s sod-turn represents a critical step forward in delivering a modern, fit-for-purpose emergency department that will support Western Australians for decades to come," Premier Roger Cook said in a statement.
“This project is part of our record investment in hospitals, and it’s about ensuring our emergency departments can meet growing demand now and into the future."
Back in 2008, the Barnett government pledged $180 million to revamp the Royal Perth Hospital.
Since then, it's been a political football until the Cook Labor government finally made a decision to progress upgrades in 2025.
A master plan guiding a long-term redevelopment of the RPH precinct is underway and is expected to be out later this year.
The early works of the ED redevelopment were estimated to cost $42 million, after plans were approved in May.
Lendlease was named as the preferred contractor for the ED works in January.
Before the announcement, Lendlease’s biggest project was the $400 million B316 Future Sciences building at Curtin University.
It is also building a $160 million student accommodation tower for The University of Western Australia in Nedlands.
Lendlease is working for Defence on upgrades to landside facilities and infrastructure at Garden Island.
