A leftover feud was reheated last week between University of Iowa Stead Family Children's Hospital in Iowa City, Iowa, and the contractor Modern Piping, according to a report from The Gazette. Modern Piping alleges the university negotiated a settlement in "bad faith" by trying to reopen closed terms and refusing to accept language it previously proposed.
At issue is a disagreement over work and timing during construction of the new 14-floor children's hospital. In March, an arbitration panel awarded Modern Piping almost $21.5 million, $4.6 million of which was owed for work on University of Iowa's Hancher Auditorium, according to the report.
The university appealed the decision because it lumped together awards for two separate projects. It asked the court for extensions to negotiate with Modern Piping twice before asking again May 31 for more time, reigniting the disagreement. Modern Piping wants University of Iowa to pay the original $21.5 million award, or pay $18.5 million and allow for completion of follow-up work, according to the report.
The children's hospital project was nearly $90 million over budget. The university has halted new construction projects after the state cut nearly $21 million from its budget over the past two years, according to the report.
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