An internal report from Te Whatu Ora Health NZ (HNZ) says that "insecurity" about the project’s progression and repetitive resets could lead to staff loss and also impact staff wellbeing.
The risk, summarised as "workforce project fatigue", is one of four high risks listed in the report, released to the ODT under the Official Information Act.
The delayed inpatient building — the hospital’s main expense — ground to a halt last year when an alternate idea of refurbishing the ward block was reconsidered then rejected.
Health Minister Simeon Brown then visited Dunedin saying the hospital would be built to budget and workers back on site by middle of this year, but news is still awaited about contracting of the build.
The report, dated last October, also listed high construction costs as a risk, but the fourth high risk was redacted, along with three other redacted risks labelled "extreme".
It said the report was in response to an identified ministerial need for better information provision.
People working on the hospital project include HNZ staff and HNZ contractors, including staff employed at Australian construction giant CPB.
CPB holds an early contract to plan the project and is slated to do the build with New Zealand subcontractors, but had an expectation this would be confirmed in 2023.
The HNZ report said there was "real concern by the subcontractors that this project would will not progress. Accordingly, we are increasingly being asked to provide assurance".
For the past eight years, there has been constant chopping and changing of people responsible for governing the project on external boards and for managing it within HNZ.
The project’s most recent programme director, Tony Lloyd — who had experience in building hospitals and headed up the project for two years — left the role last November for no clear reason, and HNZ has not announced a replacement.
The previous incumbent, Mike Barns, also held the position for two years, and said he did not know why he was let go either.
Several different sources have expressed concern to the ODT about lack of continuity of HNZ staffing, with one source indicating it could lead to further drains on New Zealand’s capacity to lead hospital builds.
One said: "What irritates me is that this is another skill set that is going to leave New Zealand and contribute to someone else’s economy."
New people are known to have started on the project recently, including people shifted from other projects within HNZ and employment of contractors.
The HNZ report outlining risks said that risk of staff leaving was being mitigated through teams collaborating and building "positive relationships".
HNZ’s Head of Infrastructure Delivery Blake Lepper said he remained the senior responsible officer for the project supported by a "capable team from within our investment and infrastructure group".
He said there were two project directors, one for the inpatient building and one for the outpatient building, but did not name them and said he was "unable to comment any further on individual roles".
Asked to respond to the high risk of staff leaving, he said:
"We have worked hard to deliver clear and timely information to staff on the progress of the project to date and next steps, and we thank staff for their continued hard work."
