Stadiums: How to reduce cost overruns – part 6

Conclusion: Typical construction costs and measures to reduce cost overruns
As stadiums are increasingly becoming more integrated within the centre of cities, there is a need for them to become multi-purpose. It is vital for clients seeking strategic advice, or aiming to develop a solution which optimises value- addition and accommodates the requirements of the stakeholders, the involvement of a specialised design team, which can realise long-term benefits. While it is vital from the outset for the design team to listen to the earlier discussed key holders, it is important the facility be informed by projects budgetary parameters too. The professional team in these circumstances will deliver a design that is closely focused on the client’s necessities and which also takes full account of the cost and value drivers affecting the project. Following stated can create additional revenue generating opportunities and serve as a robust platform for sustainable business growth:

a. Venue sustainability and long-term use
While designing a stadium, the long-term objectives are firstly to ensure that the facility is used as intensively as possible, and secondly to optimise the use of facilities for either community or commercial use.

b. All year operation
As already discussed in earlier posts, it is beneficial to have diversified revenue streams by providing additional facilities to increase event days.


c. Cost breakdown
Rates in the model may need to be adjusted to account for specification, site conditions, procurement route and design programme.

d. Sport stadium development and evaluation
While it is the quality of the team and the management that counts on the pitch, the extra revenue that ticket sales and other uses can generate can make a huge difference to the stadium’s ability to invest in its playing resources. Ground sponsorship, opportunities for revenue diversification, and the development of links between clubs and community are additional drivers behind projects. Local authorities too have now become more actively involved in sponsoring relocation and redevelopment of grounds as part of wider regeneration projects.

e. Capacity for expansion
It is more economic to design to the full capacity of the intended long-term use, so provision for expansion should only be considered if growth is anticipated within a defined schedule.

Although the financial success of the stadium development relies largely upon the fan base which can guarantee stable cash flow, a robust business plan is the key to a new development and design programme. With the evolution of modern architectural design, stakeholders are now able to achieve a venue of higher comfort by integrating innovative solutions, and allowing for multi-use functionality. Incorporating mixed-uses by adding residential, retail, and community spaces allows the facility to be fully integrated into the urban context of the city. By developing a strategy to analyse how the surrounding communities and businesses would be affected, a design should be a factor for enhancing the city. VMS expertise lies in delivering a prudent “value for money” iconic building beyond one’s means.

Case Studies:
Addition of facilities to increase event days and extend the range of use of a stadium is a significant cost and value driver. The benefit is in diversified revenue streams which need to be balanced against commercial risk together with increased costs in the following areas:

  • MPCA, Gwalior
  • Eden Garden, Kolkata
  • Special mention: SMC stadium, Surat
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