Focus: New construction

University of Iowa ordered to pay $21.5 million+ to hospital contractor

September 4, 2018

A judge recently ruled against the University of Iowa, affirming a $21.5 million award to a contract over work on the new Stead Family Children’s Hospital, according to an article on The Gazette website.

The judge tacked hundreds of thousands in interest onto the award, which the university has refused to pay in full since an arbitration panel issued it in February. 

The university’s dispute with Modern Piping Inc. pulls back the curtain on what construction executives characterized as a “messy” and chaotic children’s hospital project, plagued by rampant design changes, miscommunication, budget overruns and missed deadlines, the article said.

Modern Piping isn’t the only one in litigation over its treatment on the Board of Regents’ biggest-ever project. Merit Construction also is also fighting with the university over four bid packages it says are worth $64.1 million.

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