UI must pay additional award to contractor

Hunter
11/04/22

A contractor who worked on both the new Hancher Auditorium and the Stead Family Children’s Hospital has won additional damages against the University of Iowa.

The Gazette reports that a jury has ordered an additional $12.8 million be paid to Modern Piping, who originally sued the university over delayed payments in 2016. That suit eventually led to a judgement in favor of the contractor for $21.5 million, and was upheld by the Iowa Court of Appeals.

Last week, a jury found that the UI wrongfully blocked the American Arbitration Association from refereeing its disputes with Modern Piping on both the Hancher and hospital projects.

The Stead Family Children’s Hospital had an original price tag of $270.8 million. Due to delays, budget overruns and mismanagement of the project, expenses now have topped the $400 million mark. A suit between the hospital and the contractors who installed defective windows on several floors has been sent to arbitration.