The company tasked with delivering Christchurch's new arena has told the city council they may need up to $150 million more to complete the project, leading the council to consider the stadium's future.
This increase brings the projected price of the arena up to $673 million, and that may still rise a further $10 million as one of the lead contractors has not provided a fixed price for certain materials, Te Kaha Project Delivery Limited chair Barry Bragg said.
"We are very concerned that the overheated construction market has driven this project so far over budget," Bragg said.
The opening date of the arena has also been pushed back to April 2026. (Source: 1News)
"We have been open about the fact there was a high risk that the cost of building the arena could escalate beyond the $533 million budgeted, given the impacts of the pandemic and the war in Ukraine on the global commodity market and supply chains.
"However, we did not expect the cost to escalate to this level."
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The latest setback is "very worrying", Christchurch City Council chief executive Dawn Baxendale said.
"The Council is going to have to make some very difficult choices because it is clear that building the city a multi-use arena will be far more expensive than ever envisaged."
Baxendale warned that if the project could not be brought more in line with its budget, the council will need to consider scaling back the project or even halting it.
"We will need to consult with the community about the additional funding and will continue to work closely with our Crown partners."
The council will meet on June 9 to approve public consultation on the stadium's future.
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