Ebert construction: Delayed hospital unit among company's projects

A delayed $57 million acute mental health unit at Middlemore Hospital is among the major projects contracted to troubled Ebert Construction Ltd.

The new Tiaho Mai centre was designed to cater for up to 76 patients in four low-dependency and two high-dependency units.

Originally budgeted at $53.6m after a tender process, the first stage was originally due to be completed in time for patients to move in last December.

Counties Manukau District Health Board last week confirmed that deadline had been pushed back to September this year, citing "challenges in the Auckland construction market". The Herald was waiting for a response to a request for further information about those challenges.

The health board said last week the cost had risen to $56.9m and Ebert Construction was the construction company.

"We are confident that stage one will be completed by mid-September. Stage two is scheduled for completion in April, 2019, and this has not changed."

It's not clear how Ebert's move into receivership will affect the Tiaho Mai project.

A statement from the health board this morning said: "Counties Manukau Health has this morning been advised that Ebert Construction Ltd, the main contractors for the development of the new Tiaho Mai mental health facilities, has been put into receivership.

"We are currently gathering information and considering our options. Our priority focus is getting stage one of the development completed. We will not be making any further comment until we are able to fully consider our options."

The Herald has also requested comment from receivers PwC.

It emerged in June the existing Tiaho Mai unit had had problems with leaks. Documents released by the health board after being requested by media under the Official Information Act showed former health minister Tony Ryall was told in 2012 Middlemore had more than one leaky building, including the mental health unit.

The health board said last week delays to the construction of the new Tiaho Mai had not adversely impacted patients.

"Patients continue to receive the same level of care as they always have in the Tiaho Mai facility."

Three senior PwC staff were appointed receivers to Ebert last night after a request by the construction company's board of directors to its bank.

A statement from PwC this morning said Ebert's newly appointed senior management team had been working to improve a number of poorly performing projects in the Auckland region which have adversely affected the company's financial position.

The board was last week advised of likely substantial increases in the expected costs to complete those poorly performing projects. Alongside those poorly performing contracts, the company's portfolio of projects included several well-performing contracts.

The directors decided the company could no longer continue trading given the impact of the actual and anticipated losses.

It is not yet clear how PwC views the performance of the Middlemore contract.

The design of the new unit is based on a courtyard model which has been used in new mental health facilities in Australia.