Stadium cost plan and budget
Cost planning for the Perth Stadium, its surrounding Stadium Park, plus associated transport infrastructure was undertaken in 2012, and resulted in an approved Asset Investment budget totaling $1.277 billion in the 2013/14 State Budget.
Part 1: Project Definition Plans (2012)
The first Project Definition Plan (PDP) considered the project capital budget required to design and construct Perth Stadium, plus the essential infrastructure in the surrounding Stadium Park, based on a Master Plan and a Functional Brief developed in 2012.
The PDP describes the proposed Functional Brief for the Perth Stadium and its surrounding Stadium Park, which was based on the Major Stadia Taskforce report published in 2007. That initial brief for a 60,000 seat multi-purpose stadium (with capacity for future expansion to 70,000) was updated in 2012 through extensive stakeholder consultation undertaken with the help of an experienced sports architect firm (Populous), as well as benchmarking against other major stadia (particularly the Docklands (Etihad) stadium in Melbourne).
The first PDP also involved extensive master planning during 2012, which resulted in a transport strategy that focused on maximising public transport. Hence a significant difference from the proposal in the Major Stadia Taskforce report was the removal of the underground car park (below the stadium), on the basis that these funds would provide better value if they were invested in public transport infrastructure.
The starting point for the 2012 PDP costing analysis was the estimated capital costs for development of the Perth Stadium, as outlined in the Major Stadia Taskforce report (which assumed construction would start in 2008 and would be completed by March 2013). The total cost in the Major Stadia Report was $1.147 billion, comprising the Stadium at $685 million, $339 million for parking and transport infrastructure, escalation at $101 million for construction starting in Sept 2008, and $22 million related to pre-opening expenses and some other capital costs. The approach taken in the 2012 PDP was to initially prepare an estimate in June 2011 dollars for the updated Functional Brief. This allowed comparison of the current cost plan to the $700 million indicative budget (in June 2011 dollars) announced by Government when the Burswood site was selected in June 2011. The costs were then escalated to allow for a construction start in 2014 and completion by the end of 2017. That escalated amount was the basis for the approved Budget.
The 2012 PDP cost estimate also used a range of benchmarks from other recently constructed Australian stadia, including Docklands (Etihad) Stadium, the MCG Northern Stand, AAMI Stadium (Melbourne) and the Adelaide Oval redevelopment. This work was undertaken by the State’s Cost Planner WT Partnerships. Cost escalation was based on the Australian Institute of Quantity Surveyors (WA) Construction Cost Index Forecast (CCIF) dated April 2012.
The Asset Investment Budget for the Department of Sport and Recreation (DSR) outlined in the first PDP and approved by Government in September 2012 totals $918.4 million. It comprises:
- Stadium – $820.7 million ($690.0 million at June 2011 plus $130.9 million escalation)
- Stadium Park (Sports Precinct) – $81.7 million ($70.2 million at June 2011 plus $11.5 million escalation)
- DSR and Department of Treasury (Treasury) Project Management – $16.0 million.
Read the Perth Stadium Project Definition Plan.
The first PDP provided a basis for the decision to commence the delivery phase of the project. It included a Master Plan for a sports and entertainment precinct surrounding the Stadium, which included a transport solution, staging and an implementation strategy. Approval of this Master Plan enabled the Public Transport Authority (PTA) to finalise its PDP, which focused on the public transport and pedestrian access facilities for the project.
This second PDP was approved by Government in December 2012, and was based on rail and bus capacity for 50,000 patrons (or around 83% of a 60,000 crowd) to leave by public transport within an hour of an event.
The Asset Investment Budget for the PTA outlined in the Transport PDP totals $358.6 million. This approved budget comprises:
- Stadium Rail and Bus Station, the Swan River Pedestrian Bridge and associated bus stands, and some road and bridge works – $339.2 million ($298.0 million at July 2012 plus $41.2 million escalation)
- PTA Project Management – $19.4 million.
Read the Transport Project Definition Plan.