Big government infrastructure projects aren’t the only ones feeling the burn of rising cost overruns.
The Vancouver Art Gallery revealed Thursday that the cost estimate to build its new downtown building has surged by 50 per cent, from $400 million to $600 million.
The skyrocketing costs, which the gallery said are being felt by builders across Canada, could also result in a delayed or scaled-down project.
“The Gallery will be taking necessary steps for the next phase of the project that are pragmatic, creative and will ensure prudent financial management,” the non-profit said in a media release.
“This will include a revised capital project timeline in order to address rising costs through changes to the building design, while simultaneously looking for opportunities to create a multi-faceted cultural hub for the Province of British Columbia and Canada.”
So far, donors have contributed about $350 million towards the expanded replacement home for the gallery.
Construction at the new site, at the intersection of West Georgia and Cambie streets, had already begun but the gallery said it will slow down amid “ongoing design work” and renewed fundraising efforts.
The original timeline had sought to have the new facility completed by 2027.