The WA Government has reportedly offered a multi-million settlement to the builder of the Perth Children’s Hospital.

Both the former Barnett government and the current McGowan Government had stated publicly they intended to pursue the Chinese-owned John Holland for millions of dollars in costs incurred during the three-year delay in construction of the hospital.

However, on Monday 6PR Morning show host Gareth Parker reported that before Christmas the State Government made an offer to settle the matter by instead paying John Holland $20 million.

Parker said John Holland had rejected the offer and were prepared to pursue the matter to court seeking hundreds of millions of dollars.

PCH was plagued by problems during construction, including lead contamination of its water supply that led to the Government replacing hundreds of brass fittings.

In September 2017 acting State Solicitor Nick Egan told a parliamentary inquiry into the project that, under the terms of the contract, John Holland had to pay $180,000 a day for each day beyond a certain date without practical completion being achieved, up to a cap of $42.5 million.

The hospital opened in May 2018 after a three-year delay cost that WA taxpayers more than $180 million.