The cost of the new Vancouver Art Gallery project, which has begun construction, has spiked from $400 million to $600 million in the past two years. Unforeseen market cost escalation is impacting many projects. The art gallery says construction costs across the country spiked by up to 60 per cent between 2020 and 2024.

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.

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.

The current design by Swiss architectural firm Herzog & de Meuron features a nine-level tower spanning 350,000 square feet. The rest of the building will be crafted from wood and glass, and will house classrooms, artist studios, an Indigenous community space, a theatre, a number of restaurants and some retail, among its exhibition spaces.

Ledcor is the general on the project and the original completion date for the project was set for 2028.