1.2 Significant Investment in Infrastructure for Primary Care

The GP Super Clinics Program provided significant investment in primary care infrastructure, and thus required and mostly delivered robust financial, contract and risk management processes, some of which have evolved over the life of the program.

The Program was established in the time of the Global Financial Crisis when many capital investments in construction failed. The completion rates for the GP Super Clinics compare favourably to construction industry experience given the financial conditions. Of the two non-completed clinics out of 37 sites, one is due for completion following further negotiations about funding. The second clinic will not progress, due to the inability of the funding recipients to raise funds above and beyond the grant from the Australian Government.

There were delays in completion of the GP Super Clinics, due to the complexities and associated regulatory requirements which occur in any construction projects. Many of the delays were associated with inaccuracies in estimation of timeframes by funding recipients for construction management.

Value for Money

Value for money was assessed using a methodology commonly applied in the construction industry based on ($) cost/m² and accounting for a range of factors associated with location and construction type. The value for money assessment determined that six of the GP Super Clinics were outside the criteria for value for money. If the extra-ordinary circumstances of three of the GP Super Clinics had been factored into the value for money assessments, it is likely that they would also have otherwise met the value for money criteria. The factors that contributed to the higher cost per square metre for the remaining three sites were not identifiable through the value for money assessment methodology and the advice obtained from the sites. It may well be that further assessment might identify similar extenuating circumstances but this would require further examination.