Faulty insulation problem at new Saskatchewan Hospital in North Battleford

Construction crews at the new Saskatchewan Hospital in North Battleford are tearing down exterior bricks and cladding to remove and replace faulty insulation in the walls.

SaskBuilds director of strategy and engagement Lisa Danyluk said the contractor building the hospital has found a manufacturing issue with "shrinkage."

• Construction begins on new Saskatchewan Hospital North Battleford

"The exterior cladding and the brickwork and masonry had already gone up," said Danyluk.

"The issue didn't present itself until after all of that was done."

She said it was not a safety issue or a fire risk.

The new mental health facility is a public-private partnership project to replace the ageing mental health facility in North Battleford.

Access Prairies Partnership holds the $407-million contract to build the 284-bed hospital, which will include 96 secure beds to be used by incarcerated patients.

Danyluk could not provide a figure for the cost of replacing the insulation but said it would be absorbed by the private contractor.

CBC News has reached out to Graham Construction, one of six companies in the APP.

Danyluk said the contract requires the hospital to be completed by June 2018.

"Any delay on a project like this would involve significant financial penalties to the private sector partners and that's really an incentive for those private sector partners to adhere to the terms of the contract," she said.

Danyluk added that interior construction was continuing because the contractors were removing the insulation from the outside.