$150m cost blowout as Christchurch stadium delayed again

The cost of Christchurch's planned 30,000-seat covered stadium has jumped to at least $673 million - up to $150 million more than was initially budgeted.

The latest cost blowout was revealed on Wednesday by Christchurch City Council chief executive Dawn Baxendale and Te Kaha Project Delivery Ltd chairman Barry Bragg.

The opening date for the planned multi-use arena, which is to be built on the site bordered by Hereford, Barbadoes, Tuam and Madras Sts, has also been pushed out to April 2026.

• Christchurch stadium delayed again

Earlier this month it was reported that the project had been delayed a further six months until the end of 2025.

"We have advised the mayor and councillors that we have received the final design and construct submission from our lead contractor, BESIX Watpac, and we now project the price of the arena at $673 million," Bragg said.

"Also, at this stage BESIX Watpac are unwilling to provide a fixed price for some materials because of the volatility in the commodity market, so unfortunately that means there is still a risk of further cost escalations, which we have estimated at $10 million.

“This means that the increase could push the total cost of the project to $683 million. We have asked BESIX Watpac to bring the costs down and to provide a fixed price to eliminate any risk to the Council of further escalation. We have expectations that they will do this over the next week.

Bragg said Te Kaha is "very concerned" the construction market has driven the project so far over budget.

"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," he said.

"However, we did not expect the cost to escalate to this level."

Baxendale said the significant increase was "very worrying".

If Te Kaha cannot bring the project more in line with the budget, the council will need to increase the budget and take on the risks of further cost escalations, scale back the project or halt it entirely, 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 said.

She said council could opt to complete the detailed design and then reprice the project at a later date, when the costs may have come down.

"We will need to consult with the community about the additional funding and will continue to work closely with our Crown partners," Baxendale said.

A report recommending the city council starts consultation with the public will be presented to councillors at their June 9 meeting.

If approved, the consultation process would start on June 10.