New Vancouver Art Gallery project cost jumps by 50% to $600M

Project to build new Vancouver Art Gallery hit by 50% cost increase to $600 million

March 2024 construction of the new Vancouver Art Gallery. (Kenneth Chan/Daily Hive | Herzog & de Meuron/Perkins&Will)

Over much of the past summer, there has been relatively little construction activity at the site of the future new Vancouver Art Gallery (VAG), which first began major construction work in March 2024 with the demolition of the underground structure of the site’s surface vehicle parking lot.

And now there is a reason why construction has seemingly stalled.

In a bulletin this afternoon, the Vancouver Art Gallery announced that the cost of building the project has now increased by a further 50% from $400 million — which was still the official cost figure at the time of the September 2023 groundbreaking ceremony with dignitaries — to $600 million.

It is stated that the cost went up to this figure over the last two years; the figure, now clearly outdated, was established just before the inflationary trend.

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Due to the financial challenges of this increased budget, the VAG is now going back to the drawing board in an apparent attempt to conduct a new wave of value engineering work on the design to reduce its costs.

Furthermore, the new building will not be completed or opened by 2028. This likely means the VAG will remain at its current location within the heritage courthouse building next to Robson Square for at least a little longer.

“As a result, the Gallery will be taking necessary steps for the next phase of the project that are pragmatic, creative and will ensure prudent financial management. 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,” reads the bulletin.

“While ongoing design work means decreased construction activity at the site, the Gallery will continue to work on the project and raise funds for the completion, fit-out and ongoing operations of the new building.”

vancouver art gallery construction march 13 2024

Construction work on the site of the future new Vancouver Art Gallery on March 13, 2024. (Kenneth Chan/Daily Hive)

vancouver art gallery new building 2023 design

2023 artistic rendering of the revised design of the new Vancouver Art Gallery. (Vancouver Art Gallery)

Construction has now reached completion on the first stage of the site preparation work at the lot located at the northeast corner of the intersection of West Georgia Street and Cambie Street, next to the Queen Elizabeth Theatre.

So far, the VAG has raised over $350 million towards its previous $400 million budget, which includes a $50 million endowment for the building’s operating and maintenance costs upon opening.

Over the years, the VAG received $100 million from art philanthropist and developer Michael Audain, $100 million from the provincial government, $40 million from the Chan Family Foundation, and $30 million from the federal government. The City of Vancouver provided a 99-year nominal lease for the VAG’s use of the City-owned site.

In recognition of the Chan family’s early major donation towards the project, the new building will be formally named the “Vancouver Art Gallery at the Chan Centre for the Visual Arts.”

“The Gallery and its Association Board of Trustees remain committed to building a dynamic cultural hub to serve the diverse needs of the community and future generations. As planning continues for this next phase, further updates will be provided as new information becomes available,” continues the bulletin.

Construction costs for materials, labour, and equipment have drastically increased over the last two years, which is also seen in a growing number of public sector projects building new SkyTrain extensions, hospitals, schools, and community and recreational centres. Some private sector projects, including new residential buildings, have also been put on pause due to the uncertain cost and economic climate.

2021 design of the new Vancouver Art Gallery. (Herzog & de Meuron/Perkins + Will)

This would not be the project’s first redesign.

The design concept by internationally renowned Swiss architectural firm Herzog & de Meuron was first revealed in 2015.

The 2015-created design later saw some relatively minor revisions and was unveiled in 2021, when Audain’s historic donation was announced.

Based on the latest design concept, the new VAG’s total building floor area would be about 300,000 sq ft, including 80,000 sq ft of dedicated exhibition and gallery space. In contrast, the existing VAG inside the heritage courthouse building is just under 170,000 sq ft, with about 40,000 sq ft of exhibition and gallery space.

The expanded exhibition space would enable the VAG to show more of its permanent collection, including works by Emily Carr and Indigenous artists.

It is not immediately clear whether the forthcoming design changes will result in a simplified architectural design and/or a smaller building floor area — detrimentally reducing the scope of programming and offerings — to better control the project’s costs.

Planning for a revitalized facility for the VAG first began over two decades ago, and the selection of the City-owned site for the new building was finalized just over a decade ago.

2021 design of the new Vancouver Art Gallery. (Herzog & de Meuron/Perkins&Will)

Revised 2021 design of the new building for the Vancouver Art Gallery at Larwill Park. (Vancouver Art Gallery)

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