Canterbury Museum’s building project has faced a massive cost blowout.

The Museum awarded the construction contract for its new base-isolated basement and five-level building to Leighs Construction, yet the projected total cost has surged by more than $40 million, bringing the estimated total to a staggering $247 million—up 20.5% from the initial 2022 estimate of $205 million.

Tenders submitted for the construction contract came in well above the Museum’s anticipated budget, contributing to the ballooning costs, the museum said in a statement.

Adding to the financial strain, an unexpected $3.8 million was needed to remove asbestos from the Robert McDougall Gallery, along with another $5 million due to unforeseen ground conditions, which slowed work beneath the gallery.

Council Chair of Finance and Performance, Councillor Sam MacDonald said ““It would be hard to ever imagine a situation where ratepayers would put in more money.

“The Board will need to rescope the project, it’s a standalone organisation under legislation.

Ratepayers already contribute a significant amount annually”

Museum Board Chair David Ayers said that despite strict cost-control measures, the inflationary environment of recent years has pushed up construction costs industry-wide.

“We’re really disappointed with the increase given our strict cost control to date. But we’re not alone in facing escalating construction costs. It wasn’t unexpected against the inflationary backdrop of recent years,” Ayers said.

To offset the higher costs, the Museum has implemented cost-saving measures, reducing the projected expenses by about $11 million.

However, the funding shortfall has still grown from $44.6 million to $86.6 million.

Despite the financial challenges, Ayers assured that the Museum has secured enough committed funding to complete the essential building structure, base-isolated basement, and other critical components.

Less essential elements, like certain building services and interior fit-outs, will be deferred to a later stage to make the project more manageable in the short term.

“We’re taking a careful, phased approach to ensure that we’re not committing to work we can’t afford,” Ayers explained. “This means we have time to raise the remaining funds while keeping the construction moving forward to preserve the buying power of the funds we already have. If we need to pause in three years, the building structure and base-isolated basement will be complete and ready for the final fit-out.”

Museum Director Anthony Wright echoed Ayers’ confidence, saying they’re actively working on a robust fundraising plan to meet the additional costs. “We’re still confident that we can raise the extra money needed to fit out the building and the exhibition spaces,” Wright said. “The new Museum will be a must-see attraction, with world-class facilities to care for the treasures in our collection of more than 2.3 million objects.”

In the meantime, the Museum’s three central city attractions—Ravenscar House Museum, Quake City, and the pop-up museum at 66 Gloucester Street—will remain open to visitors.

The redevelopment project has already completed its first two stages: the demolition of the 20th-century buildings and the above-ground strengthening of the Robert McDougall Gallery.

Currently, a joint venture with Leighs Construction is installing a 12-metre-deep outer wall for the base-isolated basement and reinforcing the ground floor of the McDougall Gallery.

That foundational work is set to finish by May 2025.