Lendlease has pulled out of a contract to build the new Allianz Stadium for $730 million, leaving the project in a lurch.

Lendlease is said to have abandoned the project due to doubts that it could deliver within budget.

This is the result of unusual circumstances; Lendlease signed the contract to deliver the stadium before the final design was complete, and allegedly certain aspects of the contract were falsified to make it seem as if the government had found a low-cost solution for the stadium, according to Sydney Morning Herald.

Sports minister John Sidoti has assured that the project will still be delivered on time and within budget, but this is dependent on the government finding another contractor to deliver the build.

Only four companies responded to the original tender: Lendlease, Multiplex, Besix Australia and CPB Contractors. At this point, it looks as if the favourite is Multiplex, considering Lendlease and Multiplex were shortlisted for the original contract.

Experts are skeptical that the project will be delivered on budget, with some fearing that the stadium rebuild will be reminiscent of Sydney’s light rail construction, which was fraught with controversy, delays and budget blowouts. There are also concerns that Homebush’s ANZ Stadium – also slated for a rebuild – will be neglected in the face of Allianz’s growing costs.

Pictured: An artist's rendition of the new stadium, designed by Cox Architecture. Image credit: scgt.nsw.gov.au