With some UW-Madison building projects millions over budget, state considers suing contractors

Kelly Meyerhofer, Milwaukee Journal Sentinel
·2 min read
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The exterior of the new instructional tower of the Chemistry Building, as seen from the Botany Garden across the street.
The exterior of the new instructional tower of the Chemistry Building, as seen from the Botany Garden across the street.

The board overseeing Wisconsin's public universities on Friday approved spending nearly $60 million to finish several University of Wisconsin-Madison building projects that are over budget.

In some cases, the increases approved by the UW Board of Regents were tied to rising inflation, labor shortages or supply chain disruptions — pandemic-related problems that weren't anticipated when estimates were crafted.

But for two projects, the state is considering suing contractors to recoup the additional costs.

One of the UW-Madison projects, the new chemistry tower, faced a number of "unforeseen conditions" that delayed opening by several months, according to meeting materials. Among the headaches were fire safety issues, a mechanical system failure and the collapse of a large exhaust duct.

Alex Roe, who leads the UW System capital planning office, said the $7.4 million needed to finish the tower will come from other taxpayer-funded projects that came in under bid.

The state Department of Administration, which managed construction of the tower, is working with the state Department of Justice to determine responsibility for the delays and whether to sue, Roe said.

Neither department returned a request for comment so it's unclear whether involved contractors or subcontractors have been barred from working on other UW projects.

In another project the state is evaluating for "cost recovery" options, a $128 million addition and renovation to the veterinary medicine building needs an extra $24 million.

About $14 million of the overrun stems from cost increases, supply chain issues and a mechanical system upgrade, Roe said.

The remaining $10 million increase is because of a new hire and will be covered with grant overhead money. The researcher studies a biological agent that has the potential to pose a severe threat to public health and safety, which requires upgrading an existing lab to accommodate her research.

"The pandemic highlighted the importance of high-quality, secure biological research laboratories at the university," Roe said. "It was unexpectedly discovered that the safety containment areas around the biosafety Level 3 labs needed to be upgraded to ensure pathogenic viruses are safely contained in the labs."

The lab upgrades come after questions from the state's congressional delegation about how UW-Madison handles biosafety incidents.

A third UW-Madison project, a new building for the College of Letters and Science, needs another $27.5 million. Inflation drove the higher price tag, which will now be $116 million. Grant overhead and other sources will be tapped to fund the increase, Roe said.

Contact Kelly Meyerhofer at kmeyerhofer@gannett.com. Follow her on Twitter at @KellyMeyerhofer.

This article originally appeared on Milwaukee Journal Sentinel: Wisconsin considers suing after UW building projects delayed, over budget