Published by OLIVER LEWIS 11:58, Nov 28 2018. Read the original article here
Christchurch’s new outpatients building was delivered for $64.2m, $7.8m less than its overall budget.
The new Christchurch outpatients building has been built with millions of dollars, or a tenth of its budget, to spare.
The bright orange building, on the corner of Tuam St and Oxford Tce, opened to the public late last month.
Delivery of the project was the responsibility of the Ministry of Health, with oversight provided by the Hospital Redevelopment Partnership Group (HRPG).
Canterbury District Health Board (CDHB) members have criticised the model, but while the building was subject to some delays, it came in $7.8 million less than its overall $72m budget.
A ministry spokeswoman said the building, which will house 27 services, was less complex than other health projects.
“There were minimal variations to the design during the construction period.”
The outpatients experience contrasts starkly with the acute services building, a massive project across the road at the Christchurch Hospital campus which, after two top-ups, is about $40m over its original $445m budget.
The spokeswoman said the $7.8m underspend belonged in the overall health capital budget, and would be allocated according to priority as agreed by the Ministers of Health and Finance.
There has been suggestion it could be funnelled into the acute services project.
There has not yet been a request for additional funding beyond the current $483m budget, the spokeswoman said, however Stuff revealed in September further increases were possible.
Minutes for an August meeting of the HRPG noted the underspend would be absorbed back into the health projects appropriation.
“However once the cost implications of the ASB (acute services building) are known a request can be made via Ministers to direct this underspend to the ASB budget,” the minutes said.
It suggested the funds could be fed back into the overall programme of works.
CDHB member Andy Dickerson said the money would be well spent on the acute services building, or to resolve ongoing parking and access issues at Christchurch Hospital and the outpatients building.
Additional funding also seems necessary, Stuff understands, for new facilities on the Hillmorton Hospital campus for mental health services currently stranded at Princess Margaret Hospital.
An initial business case identified a spend of up to $57m, however proposed changes to the size of the facilities – if they are accepted – mean additional funding will be required.
CDHB members are hopeful an announcement on the project will be made before the end of the year.
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