You don’t hear a story like this every day: The contractors who built Levi’s Stadium in Santa Clara, CA, which opened last year, finished $80 million under budget, according to a new report from city officials.
The city’s finance director lauded Turner Construction Co. and Devcon Construction Inc., which partnered to build the San Francisco 49ers’ new arena, for good project management and competitively priced subcontractors. In addition, good weather prevented costly delays, and low interest rates contributed to the less-than-expected final tab of $930 million.
“All the credit in the world for the success of the Levi’s Stadium project goes to the workers and subcontractors who did quality work and did it right the first time," Jack Hill, a project executive with the football team, said in a statement.
The contractors had a substantial incentive for avoiding cost overruns due to delays in construction: Their contract stipulated that they would be penalized $6 million for each game the 49ers could not play in the stadium if it was not able to open in time for the 2014 football season. Worst-case scenario: With additional daily penalties, the construction firms could have lost money on the job once the penalties added up.