The University of Iowa will pay nearly $18 million it owes a contractor for its Stead Family Children's Hospital project, according to The Gazette.
The university reached the settlement with contractor Modern Piping after the Iowa Court of Appeals ruled against the university in a long-running dispute with the contractor April 3.
The $18 million is part of a $21.5 million arbitration award. University of Iowa also settled a dispute with another contractor, Merit Construction, for its work on the 14-story Children's Hospital.
Later this month, the university plans to seek permission from the Board of Regents to increase its construction budget for the children's hospital to more than $392 million to accommodate the payments. The project was originally budgeted at $270.8 million and set to open in 2015, though delays pushed that date into 2017.
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