A fixed price of $683 million has been negotiated for the proposed Christchurch Multi-Use Arena, Te Kaha, the Christchurch City Council has announced.
It was announced last month that the budget for the 30,000-seat stadium had risen by $150 million from $533 million to $683 million.
Due to the volatility in the commodities market, the main contractor for the project, BESIX Watpac, was unable to offer a fully fixed price at the time.
However, Barry Bragg, chairman of Te Kaha’s project delivery, said that after they “worked through the risks” with the Australian construction and civil engineering firm, they submitted a revised submission with a fixed price tag.
The price tag of $683 million remains unchanged.
Bragg said securing this contract meant there was a “very, very low” chance taxpayers would have to cough up more money in the future, if councilors decide to spend another $150 million now.
According to the final contract, BESIX Watpac would be responsible for all project risks.
Christchurch city councilors will decide on Thursday whether to spend another $150 million and continue with the project, pausing to reevaluate it or scrapping it altogether.
They will consider the results of the public consultation, which found that 77% of the nearly 30,000 people who submitted want the council to go ahead.
Bragg said that if the council decides to go ahead with the project, and they approve the council’s recommendations, the council will issue a letter of acceptance as principal of the project on Friday, July 15, the last day before the BESIX Watpac proposal expires. contract.
The ground improvement works are continuing on the central city site. The delivery date for the Te Kaha Multi-Use Arena is April 2026.
– By Geoff Sloan
Public Interest Journalism funded by NZ On Air