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AAP
AAP
National
Michael Ramsey

Court fight over Perth hospital drags on

A trial over issues with the construction of Perth Children's Hospital won't start until next year. (AAP)

A multimillion dollar legal fight between construction giant John Holland and the West Australian government is headed for a lengthy trial next year.

The two parties have been before the courts for more than two years in a dispute over issues with the construction of Perth Children's Hospital.

The $1.2 billion hospital opened about three years late in 2018 after problems including asbestos in ceiling panels and lead in drinking water.

John Holland launched legal action the following year, saying the state government had failed to provide fair compensation after the construction process was "marred by extensive and late state design and construction changes".

The Chinese-owned company is seeking more than $180 million in taxpayer-funded damages, while the state has launched an $18 million counterclaim.

At the heart of the dispute in the WA Supreme Court is what caused the delays to the project and who was responsible for them under the terms of the contract.

The court has heard John Holland's claim includes additional payments to subcontractors which it says were a consequence of state-caused delays.

Justice Jennifer Hill on Thursday revealed the matter was expected to be listed for a trial lasting up to four months in the first half of 2023.

The state sought documents relating to claims made by various subcontractors against John Holland in relation to the hospital.

John Holland argued the documents were not relevant to the proceedings, likening the request to a fishing expedition.

The company's lawyer said identifying and reviewing documents relating to claims made by various subcontractors could take between 281 and 449 days and cost up to $750,000.

Justice Hill said the state had since amended its request, significantly narrowing the number of documents that needed to be produced.

She ordered John Holland to produce the material but ordered that the date range be limited to a more reasonable time period.

Premier Mark McGowan, whose Labor government came into power in 2017, has pledged to protect taxpayers' interests.

"We'll fight this claim," Mr McGowan said in 2019 when the lawsuit was filed.

"These are historic issues caused by the incompetence of the last Liberal-National government. But we'll fight this matter in the interests of West Australian taxpayers."

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