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Construction Insight – Melbourne Royal Children’s Hospital Expansion Project

Among the various construction projects within Melbourne the new wing or expansion of the Royal Children’s Hospital that is set to commence this year is among the very few projects that supports the upgrade initiative of Melbourne’s overall medical infrastructure. The project which has been segregated into two stages will be able to cater for the medical care for children not just in Melbourne, but throughout Victoria with 8 floors equipped with the latest technologies, state-of-the-art facilities and highly qualified doctors.

According to sources the total investment into this project was slightly more than $49.4 million to upgrade the hospital, an initiative by the Victorian Government that will new 30 bed wards and better Emergency Department (ED) facilities that will have not just more space, but enhanced treatment structure. From a general perspective this project benefits not just children, but also other components of the economy, namely the construction industry which was badly affected by the pandemic in 2020 and 2021.

This project along with other projects such as the 555, Collins Street Project and the Metro Tunnel project will breathe new life into Melbourne’s construction industry which was starved off revenue generation during the pandemic. According to Kane Constructions who was appointed as the builder the upgrade of the hospital and other construction projects within Melbourne that were initiated in 2022 continues to boost the construction industry.

More people have employment especially those who are skilled such as excavator or crane operators. Even construction equipment rental companies are benefiting from these projects in Melbourne as more cranes and excavators are taken for hire and construction material suppliers are finally able to move stockpiles of supplies that were stagnant since 2020.

Major projects undertaken by the Victorian government has been a boon to the construction industry in Melbourne both directly and indirectly as such projects have a positive impact on the construction industry. These projects offer employment to those associated with the construction sector both directly and indirectly.

The entire construction value chain of Melbourne has been stimulated due to these projects that require construction material, equipment, heavy machines and labour. The heavy machine rental companies that provide excavators for hire among other machines in the Melbourne area are becoming alive once again and so do material suppliers and the skilled workers required for such projects.   

If the Victorian Government continues in this path, it seems like everything will be back to normal within the next few years for the much-neglected industry. The construction industry is a critical component of the Victorian economy and as such keeping it alive is a strategic economic growth option.

For example, the 555 Collins Street construction project has attracted investments from abroad and will accommodate more than 7000 highly skilled workers who most will hail from Melbourne. Similarly, the expansion of the hospital will require new staff to manage once it is completed. It is a win-win situation for everybody including the children who will benefit the most.

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