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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