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Built and Sacyr start construction on the $950.6 million New Mandurah Hospital

Built and Sacyr have started work on the six-storey New Mandurah Hospital beside Peel Health Campus, adding more than 110 beds, with practical completion due in late 2028.

By Construction Australia, Editorial team · · 3 min read

The Mandurah estuary looking south from the Mandurah Bridge, with waterfront homes and a grassy foreshore
Image: Orderinchaos via Wikimedia Commons (CC BY-SA 4.0)

Construction is under way on the New Mandurah Hospital, the Western Australian Government's $950.6 million replacement for the Peel Health Campus. The main works contract has been awarded to Built and Sacyr Construction Australia, which are delivering the project as a joint venture, and the State Government announced the start of construction on 4 August 2026.

The new hospital is going up on vacant land next to the existing campus in Greenfields, Mandurah. It will take over every service the current hospital provides, add more than 110 beds to the WA Health system, and bring new and expanded emergency, mental health and cancer care to one of the state's fastest-growing regions. Practical completion is planned for late 2028, with Built and Sacyr expecting the hospital to open in early 2029.

Project at a glance

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Project itemDetail
ProjectNew Mandurah Hospital
Location110 Lakes Road, Greenfields, Mandurah, next to Peel Health Campus
Total budget$950.6 million
Delivery partnerWestern Australian Health Alliance (WAHA): the WA Government with the Built and Sacyr joint venture
Delivery modelAlliance, following an early contractor involvement phase
Project managerOffice of Major Infrastructure Delivery (OMID), for the Department of Health and South Metropolitan Health Service
BuildingSix storeys: five clinical levels and a plant level, plus a central energy plant
Additional bedsMore than 110 added to the WA Health system
FundingState Government's Building Hospitals Fund, now $2 billion after a $500 million boost in the 2026–27 State Budget
Practical completionLate 2028
Expected openingEarly 2029

What's being built

The November 2025 announcement set out the layout. The ground floor holds an expanded 39-bay emergency department, a new imaging department and a Mental Health Emergency Centre with its own public entry. Level one brings a new complex of operating theatres, a cancer treatment area and expanded outpatient services. The hospital will also include a dedicated palliative care unit and new inpatient wards, including a High Dependency Unit.

Across the building, the services list covers chemotherapy and renal care, birthing and women's health facilities, perioperative services and mental health inpatient beds. The design targets a 5-Star Green Star rating and draws on the Noongar meaning of Mandjoogoordap, "meeting place of the heart", according to OMID's project fact sheet.

Who is building it

The Built and Sacyr joint venture was named preferred alliance partner in January 2026. Since then the team has worked through an early contractor involvement (ECI) phase, where the builder joins the client during design to plan, investigate the site and prepare early works before the main contract is signed. In an alliance, the State and its contractors share the work of managing a complex project as one team rather than at arm's length.

The project is the first major job in Western Australia for the Built and Sacyr joint venture. Built, which says it is 100 per cent Australian owned, points to its Western Australian health work at St John of God Midland Private Hospital and Orthonova Orthopaedic Hospital at Murdoch. Sacyr, a Spanish infrastructure group in Australia since 2008, brings a global portfolio of more than 70 hospital projects. Both companies say the build will create opportunities for local subcontractors, suppliers and businesses across Western Australia.

Work on site

Forward works began in late 2025, including site services, earthworks, access roads, car parks and new Western Power intake substations. With the main contract signed, an interim site office went in from 10 August, and piling started on 18 August, with two rigs on site and work scheduled to run to late October.

The current Peel Health Campus stays fully open throughout construction, with work areas kept separate from patient and clinical spaces. South Metropolitan Health Service says Peel's staff will keep their jobs and move across when the new hospital opens. The State has said the existing buildings could be turned into other health services in future, such as aged care accommodation, and OMID says options for the site are being considered.

What's next

Piling lays the foundations for the six-storey structure, and the building will start to rise above ground from there. The interim site office is due to be replaced by a permanent one in early 2027. Practical completion is targeted for late 2028, and the new hospital is expected to open to patients in early 2029.

The Peel region already has one finished piece of the redevelopment: the Peel Community Mental Health Service and Kara Maar Specialist Community Eating Disorder Service in Greenfields reached practical completion in February 2026. The New Mandurah Hospital is the bigger step, giving Mandurah and Peel a modern hospital with more beds and more care closer to home.

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