Contractor Laing O’Rourke has signed a contract with Everton FC to complete the construction of the club’s £500m new stadium in a move which offers new certainty over costs. Tony McDonough reports
Everton FC has agreed a deal with main contractor Laing O’Rourke to complete the work on its £500m stadium at Bramley-Moore Dock in Liverpool Waters.
Laing O’Rourke started work on the arena in late summer 2021. The first stage of the work is being funded by Everton majority shareholder Farhad Moshiri, believed to amount to around £100m.
Delivery of the new stadium on the city’s waterfront is a 12-phase project which, overall, is expected to take 150 weeks. It is hoped the Blues will be able to kick off the 2024-25 season at the new ground and move out of Goodison Park.
This latest contract signed by both parties, will see Laing O’Rourke complete construction of the Club’s new 52,888 capacity waterfront stadium, while also providing Everton with greater certainty as to the cost of the remaining stages of the project.
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With inflation continuing to rise and the cost of raw materials such as steel, as well as cost and availability of labour, becoming more of an issue, this agreement could be critical in keeping the scheme on budget. It is particularly important as Everton battle relegation. Dropping out of the Premier League would have a significant impact on the club’s finances.
The deal follows on from the Pre-Contract Services Agreement (PCSA) signed by both parties in February 2021 and the Enabling Works Contract (EWC), which was focused on delivering the preparatory works at the north Liverpool site, including the in-filling of the dock that was completed in December.
Under the new agreement, Laing O’Rourke will deliver a programme of works which includes the completion of any outstanding enabling works, the full construction of the stadium and public realm, and remedial works to the Grade II-listed Hydraulic Tower, which will be brought back into public use.
Everton has yet to confirm a final funding package for the project. Added to Mr Moshiri’s contribution is a £15m grant from the Liverpool City Region Combined Authority and £30m from a naming rights option secured from Mr Moshiri’s business associate, Alisher Usmanov, before he was sanctioned over links with Russian president Vladimir Putin. This still leaves the club more than £350m to find.
Everton chief executive, Denise Barrett-Baxendale, said: “This is an important agreement at a crucial time for the club and the stadium project. Our agreement with Laing O’Rourke follows on from last year’s pre-contract services and enabling works agreements and brings clarity on the overall costs of our new stadium.
“We are now able to lock-in construction costs, while also benefiting from Laing O’ Rourke’s economies of scale in what is an ever-fluctuating marketplace. Mr Moshiri and the Board’s commitment to the project remains unwavering and we’ve been delighted by the progress so far.
“Our new agreement signifies that we have the utmost confidence in Laing O’Rourke, who are using the very best digital engineering expertise and industry-leading knowledge of modern construction methods to bring our stadium vision to life.”