U of Iowa owes nearly $10M to children's hospital builder, arbitrator rules

An out-of-court arbitration has determined the University of Iowa owes a construction company $9.7 million for work on Iowa City-based Stead Family Children's Hospital, according to KCRG, a local ABC affiliate.

Merit Construction Co.  alleges construction costs doubled due to design changes and delays. The ruling must be upheld by a district court.

Another court ruling found the university owes $21 million to Modern Piping of Cedar Rapids for work done to Stead Family Children's Hospital and Hancher Auditorium. The university has appealed the Iowa Supreme Court ruling.

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