Sydney Football Stadium renovation cost blows out by $100m

A new deal signed by the Berejiklian Government has revealed the cost of the controversial demolition and rebuild of the Sydney Football Stadium has blown out by almost $100 million making the ill-fated sports area a real money pit.

• Current SFS design leaves familiar empty feeling
• Lendlease’s contract to build Sydney Football Stadium cancelled

The cost of the controversial demolition and rebuild of the Sydney Football Stadium has blown out by ­almost $100 million, a new deal signed by the government has revealed.

The Berejiklian government has signed a $735 million agreement with construction giant John Holland to deliver the world- class Moore Park stadium in time for the 2022 NRL Grand Final.

The new deal takes the total project cost to $828 million, almost $100 million over the $729 million budget promised.

The revised total cost includes the demolition bill of about $39 million and other “contingency costs”.

Construction work being carried out to rebuild the Sydney Football Stadium in Moore Park. Picture: Jonathan Ng

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The new contract comes almost five months after the government cancelled its construction deal with Lendlease, saying the ­builder could not deliver the stadium desired on time and on budget.

Premier Gladys Berejik­lian said the new deal with John Holland was better value and the decision to ­re-tender was the right one.

“By going back to the market, we have delivered on our promise to achieve better value for the people of NSW,” the Premier said.

The Premier has conceded the cost has blown out. Picture: AAP/Mick Tsikas

“We have also ensured that the new stadium will be the highest quality, strengthening our ability to attract the very best sporting events.”

The venues permant tenants are likely to include NRL premiers the Sydney Roosters, Super Rugby’s NSW Waratahs and A-League champions Sydney FC, although fan groups have expressed their concern that a key part of the original design won’t be included because of the budget blowout.

Ms Berijiklian conceded the cost had increased.

“While the estimated total cost for this build is higher than what we originally anticipated, it is much better value than what we would have achieved had we not gone back to the ­market,” she said.

“It is important to deliver the world-class stadium we promised to attract the best events to our state.”

Government sources said it abandoned the deal with Lendlease because it had lost confidence that all design specifications would be met or that the stadium would be ready for the 2022 Grand Final.

They said the new deal, to be announced today, ­ensured the stadium they wanted would be delivered on time.

Gladys celebrates the SFS blowout. Cartoon: Warren Brown

The government has ­already spent $360 million on Bankwest ­Stadium at Parramatta and has promised an $810 million refurbishment of ANZ stadium. The government has also spent upwards of $10 million to secure the grand finals stayed in Sydney while the new stadiums were built.

The stadium commitment was a key election issue, with Labor running its campaign almost exclusively on an anti-stadium agenda. Labor also warned of cost blowouts.

The timeline showing milestones along the stadium's demolition and rebuild journey so far.

When the Lendlease contract was abandoned in July, then sports minister John Sidoti gave a guarantee the government would be able to deliver the project on time and on budget.

“The time frames have not changed, the costings have not changed,” Mr Sidoti said.

“It will be delivered on time and on budget.”

Acting sports minister Geoff Lee will now work with the NRL to schedule matches for the second half of 2022 at the new stadium.