Edinburgh’s first new concert hall for a century, which was granted planning approval in 2021, is set to be built by Balfour Beatty, after preconstruction contractor Sir Robert McAlpine was removed earlier this year, delaying the opening until 2029.

The charity leading the project, the International Music and Performing Arts Charitable Trust Scotland (Impact), announced today (October 24) that the construction contract is now valued at £162 million.

The project’s cost had already risen repeatedly, from an initial 2019 estimate of £45 million to £75 million in 2021 – when the plans were scaled back – and £114 million towards the end of 2023.

To keep the job running, the Scottish Government has granted an additional £20 million in funding, which has been matched by philanthropist Carol Colburn Grigor, a former concert pianist.

The centre is part of the Edinburgh and South East Scotland City Region Deal, through which the Scottish and UK governments have already committed £10 million each, alongside £5 million from the City of Edinburgh Council. Impact has raised another £100 million from private donors.

Chipperfield won an international competition to land the scheme in 2017, selected ahead of Adjaye Associates, Allies and Morrison, Richard Murphy Architects, Canadian practice KPMB Architects and Swiss firm Barozzi Veiga.

Chipperfield is working with executive architect Reiach and Hall.

City of Edinburgh Council approved the design in November 2021, after amendments that reduced its height by 7m following a legal challenge from Nuveen Real Estate, which was behind the neighbouring 80,000m² St James shopping centre scheme.

First minister John Swinney said today: ‘The Scottish Government is proud to support the Dunard Centre in recognition of its potential to significantly boost Edinburgh’s cultural offering and provide a new home to the Scottish Chamber Orchestra.’

Dunard Centre chief executive Jo Buckley greeted the signing of the construction contract as a ‘huge milestone’. She thanked the private supporters for their philanthropic support – a record level for a Scotland.

She said: ‘Today’s announcement would not have been possible without the extraordinary additional pledge from Scottish Government, and the match funding it has unlocked, in recognition of the long-lasting impact this project will have on the people of Scotland.

‘As a living, breathing community centre with a concert hall at its heart, the benefits of this landmark investment will be felt daily by countless individuals and communities for generations to come.’

The centre said economic assessments show that the venue will generate £266.9 million in gross value added over its construction and first 20 years of operation.

The project, in a tightly constrained city centre site, will create a 1,000-seat auditorium, café, bar and multifunctional spaces for events alongside a complex in-situ concrete double basement for performer changing and storage areas as well as back-of-house facilities.

Internal finishes will include bespoke solid oak panelling to the hall to enhance the acoustics.

Impact said the project would significantly increase access to the arts as well as opening up new public pathways in Edinburgh’s New Town.

Work is due to begin on site within weeks and construction is set for completion in 2029.