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The Adelaide Hospital is the 3rd most expensive building in the history of the world. Thank you CFMEU

The third most expensive building ever built in the history of the world is the Royal Adelaide Hospital.

The seventh most expensive is the Gold Coast University Hospital.

Emporis is a global provider of building information. It collects data on buildings of high public and economic value, and sets standards for this information.   It's generally accepted as an authority in the field, with a database containing details of 495,398 buildings in 196 countries.

The Royal Adelaide Hospital is 41 metres high.   It has 650 beds.   It's not even close to the top 10 hospitals in the world (starting around 2000 beds with Jackson Memorial in Miami - up to around 3,000 bed hospitals in China, India and Europe).

Here are some of the world's most expensive buildings:

# Building City Floors Height Year Cost
1   One World Trade Center New York City 104 541 m 2014 $3,900,000,000
2   Palace of the Parliament Bucharest 12 84 m 1988 $3,000,000,000
3   Royal Adelaide Hospital Adelaide 11 41 m 2016 $2,100,000,000
4   Goldman Sachs Headquarters New York City 44 228 m 2010 $2,100,000,000
5   The Palazzo Las Vegas 53 196 m 2007 $1,900,000,000
6   The Shard London 73 306 m 2013 $1,900,000,000
7   Taipei 101 Taipei 101 509 m 2004 $1,760,000,000
8   Burj Khalifa Dubai 163 828 m 2010


Here is the 3rd most costly, the 11 floor, 41M high Royal Adelaide Hospital.

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At $2 billion it cost 33% more to build than the 163 storey, 828 M high Burj Khalifa in Dubai.

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How can that be?

Much of the explanation is here.

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The project is being "delivered" by a cast of thousands in a snazzy sounding (read expensive) entity called the SA Health Partnership - (what do governments do nowadays)?

SA Health Partnership (SAHP)
SAHP is the project consortium responsible for the financing, design, construction, commissioning and facility management of the new Royal Adelaide Hospital.

The Design and Construction is being provided by Hansen Yuncken and Leighton Contractors in a joint venture (HYLC); facilities management provided by Spotless and the Information Communication Technology (ICT) support and maintenance by Hewlett Packard Enterprise.

The financing has been provided by 6 equity investors including Morrisons, InfraRed Capital Partners Limited, Aberdeen Asset Management Limited, John Laing Investments Limited, Hastings Funds Management and Leighton Contractors. 
Debt is provided by a number of domestic and international banks. The hospital is due for completion in 2016 and handed back to the State in 2046.

What is a PPP?

New RAH Public Private Partnership
The new Royal Adelaide Hospital is being delivered as a Public Private Partnership (PPP) under the State Partnership SA process.

SA Health Partnership is working with the Government of South Australia, delivering a world class new Royal Adelaide Hospital. This Partnership will see the public sector (SA Health) continue to operate the hospital and provide all core clinical services, staffing, teaching, training and research, while the private sector will finance, design, construct and maintain the new hospital facility under a 35 year contract.

SA Health Partnership, comprising six significant equity investors in the project, is responsible for delivering the project for the State. SA Health Partnership has contracted Hansen Yuncken and Leighton Contractors to design and deliver the project, under a joint venture HYLC agreement.


The key players include our old mates at Leighton Holdings Ltd.  It's not Leighton's money, so why would it care about the crazy days off, inclement weather, lockdowns, consultative committees for all manner of things and money for the boys set out in this enterprise agreement.

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The point to this story is that here we have a rolled gold current day example of the outrageous costs of building in Australia.

Turnbull and his team should be all over this.

Here's an example of the CFMEU's approach to not getting on with the job.

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You might recall the disdain shown towards the Fair Work inspectors by the big men of the CFMEU in Adelaide, courtesy of the Trade Union Royal Commission.

And yet where is the Turnbull Government in leading the nation on countering the menace of the CFMEU?

Reader Bill Thompson caught up with the Prime Minister in Melbourne on Friday and offered him the chance to tell us why he thinks the ABCC should be reinstated.

Here's Prime Minister Turnbull's best shot.


Welcome to the ideas.   Boom.