The timeframe for the extension has been pushed back and the cost raised as the university feels the crunch of global supply issues and inflation.
Contractor Naylor Love is currently undertaking in-ground works at the Gladstone Rd, Dunedin, site.
With demand for residential accommodation expected to rise, the build was originally planned to be finished by February in order to accommodate students in the new academic year.
Campus development director Tanya Syddall said the completion date was now expected to be in July next year.
"The new dormitory building will see its bedrooms occupied by students for the first time at the start of the 2024 academic year," she said.
"However, the new facilities being created by the construction of the link building, which include a whanau room, gym and tutorial spaces, will be available to the existing 2023 students as soon as construction is complete."
When approved by the university last November, the build was set to cost $18.4 million, but that had now increased to $22.4 million although there were "no substantial design changes".
The budget hike was due to increased construction costs and the extended construction timeframe.
The extended timeframe was caused by factors including prolonged consenting and resource pressure, she said.
"The Covid-19 pandemic and other external factors have created significant impacts around the world for supply chain, resourcing and cost escalation of goods and services."
"This is impacting New Zealand two-fold due to our size, location and at a time where New Zealand’s construction pipeline is at a record high."
That was causing challenges for everyone, including the university, she said.
