Construction has formally started on the New Mandurah Hospital, a $950.6 million public facility rising on vacant land beside the existing Peel Health Campus in Mandurah, Western Australia. The Cook Labor Government confirmed the milestone on 4 August 2026 with the award of the main works contract to a joint venture of Built Pty Limited and Sacyr Construction Australia Pty Limited, the pairing named preferred alliance partner earlier in the year. Delivery runs through an integrated alliance branded the WA Health Alliance, which binds the Government of Western Australia, Built and Sacyr into a single commercial structure, with Aurecon leading engineering and Architectus leading architectural design and health planning. Forward works are already visible on site, covering utility services, enabling earthworks and extra staff parking, and the award of the main works contract clears the way for vertical construction to begin. The building will rise six storeys and add more than 110 beds to the WA Health system. Clinical scope covers an enlarged emergency department with 39 treatment bays, a dedicated Mental Health Emergency Centre for people in acute crisis, chemotherapy and renal services, perioperative suites, a birthing and women’s ward, palliative care, a high dependency unit, a new theatre complex and expanded outpatient capacity. Every service currently running at the ageing campus will shift across once the new building opens. Money flows from the state’s $1.5 billion Building Hospitals Fund, itself a slice of a $5.5 billion health infrastructure pipeline. Completion is scheduled for 2029.

What the Mandurah Hospital Cost Signals for Australia’s Regional Health Building Cycle

That price tag puts Mandurah in rare company. Western Australia’s own benchmark, the $471.5 million Bunbury Health Campus redevelopment, was described by the state as the largest regional hospital build in its history, and the $1.8 billion New Women and Babies Hospital in Perth sits at the top of the current pipeline. Across the country the pattern repeats. New South Wales is spending $2 billion at Bankstown and more than $780 million at Shellharbour, both greenfield replacements of constrained older campuses rather than staged refurbishments. Mandurah follows that same logic. Building next door rather than around live wards was chosen precisely to compress the programme and spare clinical services from years of disruption. The contrast with smaller regional work is stark. Tasmania’s $2.75 million West Coast District Hospital upgrade, jointly funded by the Tasmanian and Australian governments, delivered three additional emergency beds, a negative pressure room, an aged care bed with private ensuite and a telehealth pilot for remote communities. Both projects answer the same demographic pressure at wildly different scales. Mandurah’s case is sharpened by ownership history. Peel Health Campus returned to public control in August 2024 after eleven years under Ramsay Health Care, and the state has framed the new hospital as the corrective to a facility that outgrew its catchment. Health Infrastructure Minister John Carey has publicly credited alliance contracting with streamlining procurement and shortening delivery times, a model now common on large Australian health builds.

New Mandurah Hospital Timeline, Completion Date and What Comes Next

Site establishment and the handover from forward works to main construction dominate the next few months, with structure, facade and services fitout to follow ahead of the 2029 completion date. The existing campus keeps operating throughout, which removes the decanting risk that slows most hospital refurbishments. Cost remains the live question. The government originally committed $152 million to redeveloping Peel Health Campus, ABC News later reported internal documents pointing to roughly $558 million, and the figure confirmed at the start of construction is $950.6 million, a trajectory the opposition has scrutinised closely. Workforce is the second open item, since more than 110 beds, a 39 bay emergency department and a Mental Health Emergency Centre all need staffing in a state competing hard for clinical labour. The future of the vacated buildings is unresolved, though the state has flagged possible conversion to aged care accommodation or other health uses once construction finishes, according to the New Mandurah Hospital project page. On completion the payoff is measurable, with Peel residents gaining cancer, maternity, renal and acute mental health care locally instead of travelling to Perth.

Project Fact Sheet

• Project Name: New Mandurah Hospital
• Location: Adjacent to Peel Health Campus, Mandurah, Western Australia
• Project Value: $950.6 million, per the Western Australian Government statement of 4 August 2026
• Client and Owner: Government of Western Australia
• Main Contractor: Built Pty Limited and Sacyr Construction Australia Pty Limited joint venture
• Delivery Model: Integrated alliance, trading as the WA Health Alliance
• Key Components: Six storey hospital, emergency department with 39 treatment bays, Mental Health Emergency Centre, chemotherapy and renal services, perioperative suites, birthing and women’s ward, palliative care unit, high dependency unit, expanded outpatients
• New Capacity: More than 110 additional beds for the WA Health system
• Funding Source: $1.5 billion Building Hospitals Fund, within a $5.5 billion state health infrastructure programme
• Construction Start: August 2026, following forward works
• Expected Completion: 2029
• Strategic Impact: Replaces all services at the existing campus and reduces travel to Perth for cancer, maternity, renal and acute mental health care

Project Team

• Client and Owner: Government of Western Australia
• Delivery Agency: Office of Major Infrastructure Delivery
• Main Contractor: Built Pty Limited and Sacyr Construction Australia Pty Limited, in joint venture
• Alliance Structure: WA Health Alliance, comprising the Government of Western Australia, Built and Sacyr
• Engineering: Aurecon
• Architecture and Health Planning: Architectus
• Operator: South Metropolitan Health Service, which assumed management of Peel Health Campus in August 2024
• Portfolio Oversight: Health Infrastructure Minister John Carey and Health Minister Meredith Hammat

Frequently Asked Questions

How much does the New Mandurah Hospital cost? The New Mandurah Hospital is a $950.6 million project, funded through the Western Australian Government’s $1.5 billion Building Hospitals Fund. The figure was confirmed when construction commenced in August 2026.

Who is building the New Mandurah Hospital? A joint venture of Built Pty Limited and Sacyr Construction Australia Pty Limited holds the main works contract, working inside an integrated alliance with the state government. Aurecon leads engineering and Architectus leads architectural design and health planning.

When will the New Mandurah Hospital be completed? Completion is scheduled for 2029, with main construction following forward works that covered site utilities, earthworks and staff parking.

What services will the New Mandurah Hospital provide? The hospital will deliver an emergency department with 39 treatment bays, a Mental Health Emergency Centre, chemotherapy, renal, perioperative, birthing and women’s services, palliative care and expanded outpatient capacity. All services at the existing Peel Health Campus will transfer into the new building.

Where is the New Mandurah Hospital being built? It is being built on vacant land immediately next to the existing Peel Health Campus in Mandurah, roughly 70 kilometres south of Perth in Western Australia’s Peel region.