Blackpool have announced that they will have their new East Stand in place for the start of the Premier League season.
Work will began to dismantle the existing temporary stand immediately and be replaced by another which will hold more than 5000 spectators.
Chairman Karl Oyston told BBC Radio Lancashire that a permanent new stand would not have been viable.
"We couldn't have it ready in time," he said. "We'd have limited capacity to 11,500 which was nowhere near demand."
Oyston explained that the club had considered all options possible before making the decision which will take the capacity of Bloomfield Road to more than 17,000.
"We've sold over 11,500 in season tickets already," he added, "and demand is probably heading towards 13,500.
"We've gone through every possible scenario but the over-riding feeling was we wanted the largest capacity possible that we could for the start of the new season.
"It's a modular type of stand that can remain in place as part of a large development or be removed.”
"The contractor took a liquidated damages clause which means that if it's not ready then he is paying a financial penalty to the football club for every match that it is not ready," added Oyston. "The target date for completion is prior to 21 August."