The rebuild of Auckland’s plagued convention centre has suffered another blow.
Fletcher Building has confirmed it’ll cost an extra $150 million to rebuild the International Convention Centre. That’s higher than the insurance costs and takes the total cost of the project to at least $900m.
In October 2019, a fire broke out on the roof of the development, causing extensive damage.
Chief executive Ross Taylor says the cost of remediation will exceed insurance coverage on the project for three main reasons.
It’s far more complex than originally thought, due to the water damage and mould that occurred following the fire so more resources are needed to complete the rebuild works.
He also pointed to the rising costs of labour, trade and material.
“Insurances that were put in place on the project had not envisaged the combination of the rebuild complexity, earlier Covid delays, and cost escalations that have been experienced,” Taylor said in a statement to the NZX.
The convention centre is now expected to be completed in early 2025.
The convention centre, once complete, will feature 10 eateries, 2700 square metres of meeting space, 6674 square metres of hall space and connect 1000 hotel rooms via an air bridge over Hobson Street.
Taylor told reporters today they were currently trying to recruit more staff in the UK, Ireland and Philippines.
He wouldn't confirm exactly how much the construction had cost to date.