Return to Tender: $344m Sydney Art Gallery Redevelopment Delayed

The New South Wales government has re-opened the tender process for the redevelopment of the $344 million Sydney Art Gallery of NSW.

It’s understood Lendlease was the last remaining bidder for the art gallery’s major expansion, but concerns emerged over the initial tender application and whether the project could meet budget.

It’s the second project dispute within weeks between construction giant Lendlease and the New South Wales government, after the state dumped Lendlease from the Allianz stadium rebuild late last month, citing its inability to meet the projected $729 million budget to rebuild the stadium.

But a spokesperson for Infrastructure NSW said Lendlease had “not walked away” from the Sydney Art Gallery project, and that the gallery’s expansion would be “within the budget set by government”.

“A competitive tender process has been underway over recent months,” the spokesperson said.

“We have received four bids from the market which are now being evaluated.

“We expect a contract to be awarded in the near future and construction to be underway in 2019.”

It's understood Lendlease has since resubmitted its bid for the Sydney Modern project at the Art Gallery of NSW.

In August 2018, an expressions of interest campaign was issued for the project with Lendlease, Probuild and Built Obayashi Joint Venture shortlisted.

Construction of the art gallery was pegged to commence early this year with completion scheduled in time for the gallery’s 150th anniversary in 2021.

The project, designed by architects SANAA, received planning approval for its $344 million redevelopment to double its exhibition space in November last year.