Project

New Dunedin Hospital

PROJECT STATUS
Under Procurement
New Dunedin Hospital

Dunedin Hospital is a 411-bed tertiary hospital servicing the lower part of the South Island of New Zealand, operated by Southern District Health Board (Southern DHB). 

The New Dunedin Hospital will see construction of New Zealand’s largest ever hospital, comprising two main structures, the Acute Services Building and the Ambulatory Services Centre, with a link bridge joining the buildings. It includes 30 ICU beds and 20 theatres with space for additional theatres.

Key Dates

2020 Enabling works and Ambulatory Services Building begin
2022 Acute Services Building to begin construction
Nov 2023 The Day Surgery unit of the smaller building to be completed
2025 The Outpatient unit of the smaller building to be completed
2028 Acute Services Building to be operational

Funding contributions

NZ Government

Procurement

Procurement note: Major construction is set to be procured in two stages - for inpatient and outpatient service units. The NZ Ministry of Health released a Request for Proposal for Early Contractor Engagement (ECE) for the Acute Services (inpatient) building in November 2020.
Related contracts:
Building Services Engineering
Successful Tenderer - Beca

Building Survey
Successful Tenderer - WSP Opus

Demolition Work
Successful Tenderer - Scope Group

Design Manager and Project Manager
Successful Tenderer - Resource Coordination Partnership

Heritage Advisor
Successful Tenderer - Underground Overground Archaeology

Hydrology and Traffic Engineering
Successful Tenderer - Stantec

Independent Quality Assurance
Successful Tenderer - KPMG

Structural Engineering
Successful Tenderer - Holmes Consulting

Town Planning
Successful Tenderer - Boff Miskell

PROJECT HISTORY

2015 The NZ Ministry of Health appointed the Southern Partnership Group to lead the redevelopment of the hospital.
Jun 2017 The Southern Partnerships Group released the Indicative Business Case (IBC). With both options, the estimated cost of the project is between NZ$1.2 billion and NZ$1.4 billion.
Aug 2017 The NZ Government approved the IBC.
Oct 2017 The incoming Government announced that the project will not be delivered through a PPP, which the previous government had viewed as an option.
May 2018 The NZ Government announced that the new hospital would be built on the old Cadbury Chocolate Factory site and parts of surrounding blocks. The Government bought the required land in June 2018.
Aug 2018 The first phase of the detailed business case by Southern Partnerships was approved.
Dec 2018 The NZ Government announced a significant change to the construction approach. It will now be built in two stages, with the outpatient and day surgery building fast tracked to be finished more than three years earlier than anticipated and the larger inpatient building due to be finished five or six years after that.
Feb 2019 The Site Masterplan for the new hospital was made public and the NZ Ministry of Health announced that Underground Overground Archaeology will provide heritage advice for the buildings that are to be demolished.
May 2019 The 2019 NZ Budget set aside funding for the project in a contingency in anticipation of the project's business case being completed. The Budget allocated $10.6 million to FY2019-20 and notes that the remaining funding will be allocated over the 10-year life of the project.
Jun 2019 The NZ Ministry of Health announced a period of market engagement with interested suppliers and market participants in July to support development of the detailed business case and main works procurement for the project.
Jul 2019 Industry briefings were held on 9 and 12 July in Dunedin and Sydney respectively, providing information about the project, the NZ infrastructure pipeline and indicative timelines for the project. This was followed by a request for written feedback and one-on-one engagement meetings with selected participants.
Sep 2019 The concept design for the Ambulatory Services Centre was completed. At the time, the Ministry of Health was also continuing negotiations for site acquisitions for the remaining parcels of land required. A Market Sounding Summary was also released this month, giving details of the engagement process. It notes that, as a result of market engagement, the development of the Detailed Business Case will consider a range of procurement options to ensure industry is able to adequately collaborate with the Government and be involved early in the project.
Feb 2020 The demolition contract for Cadbury Chocolate Factory site was awarded to Ceres New Zealand LLC, with the demolition works to retain the Dairy Building and the design process to consider options for adaptive re-use.
May 2020 The NZ Ministry of Health announced a market re-engagement, through which high-level information on the redevelopment and procurement approach would be disclosed. The Ministry also noted that the two main buildings would be procured separately. Registrations for the market re-engagement closed on 2 June 2020.
Sep 2020 The New Zealand Government approved in principle the detailed business case, agreeing on a preferred design for the new Dunedin Hospital that includes two separate buildings. The detailed business case is expected to be approved by February 2021. Also in this month, the NZ Government announced an additional NZ$127 million (AU$117.5 million) to progress design, demolition, piling, project management and early contractor engagement.
Nov 2020 The New Zealand Government announced that the Southern Partnership Group will be replaced by a new Executive Steering Group to oversee the redevelopment. The NZ Ministry of Health released a Request for Proposal for early contractor engagement (ECE) for the Acute Services (inpatient) building. The ECE will see the selection of a preferred contractor and preferred sub-trade contractors who will provide input on design. The works will be split into three packages comprising: a) Substructure: piling up to base isolator fixing, b) Superstructure: base-building services, facade, roof, site works, landscaping and link bridges, and c) Clinical and non-clinical internal fitout and fitout of link bridges.
Dec 2020 The NZ Ministry of Health announced a new Executive Steering Group.
Apr 2021 The New Zealand Government have approved the project for consideration under the COVID-19 Recovery (Fast-track Consenting) Act. A decision on the hospital's approvals will now be made in late 2021.