The state is adequately managing its involvement in the design and construction phase of the project. However, development of the contract administration manual needs to be progressed and project management documentation needs enhancement to provide greater assurance about effective management of the state's project risks.
Appropriate governance structures have been established for the project. The state's actual project costs are also expected to be within approved budget limits.
The construction schedule is on target and the independent reviewer appointed for the project has recently reported that the project remains on track for the 21 September 2011 technical completion milestone.
The impact of the downturn in global financial markets on the project is being actively monitored. All debt and equity funding for the project-approximately $1.38 billion- was contributed in December 2007 and remains in place, in authorised investments.
However, due to the impact of the recent global financial market downturn, a promised donation to RCH of $35 million from the original private equity sponsor is now much less certain.
The project agreement adequately defines the services to be delivered by the project company during the operating phase of the new hospital and includes a comprehensive performance monitoring and reporting regime.