Fletcher Building has announced the New Zealand International Convention Centre will cost an extra $165 million.
The project is still on-track to be completed in late 2024.
Originally meant to open in 2019, the project was delayed after a devastating fire hit the building.
Once complete, the convention centre 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.
The increased costs are primarily due to higher levels of subcontractor resource required to deliver the final stage of the project, said a statement from the company.
In addition, a portion of the company’s claims against the project contract works insurance may not be recoverable.
On the Wellington International Airport Car Park, Fletcher Building also said it will require an extra $15 million based on the latest assessment of the cost of the remediation.
Fletcher Building chief executive officer Ross Taylor said: “The NZICC rebuild is a significantly complex and challenging project. It is disappointing we require further provisions on this project and the WIAL carpark.
“We remain on track to complete construction of all legacy projects by the end of calendar 2024, however cost and revenue risk will remain until we have done so. We will vigorously pursue our claims for recoveries on the legacy projects, which are likely to take until FY25-26 to settle.”
Despite the added costs, Fletcher Building said the NZICC car parks are now complete, the Hobson Hotel is due to be handed over to the client this month, and steel remediation throughout the NZICC is 98% complete.