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April 09, 2008, 02:54 PM ET
University Building Contracts Questioned in Rhode Island
State officials in Rhode Island, who are raising questions about how builders are hired for state projects, are now focusing on the University of Rhode Island. According to The Providence Journal, a state senate committee is looking closely at an unfinished $45-million biotechnology and life science center as “an example of why the state’s alternative bidding practices may be expensive and unfair.”
Sealed bids are the preferred method of awarding construction contracts, but Rhode Island allows exceptions in some cases.
“With the state’s approval, URI officials relied on an alternative method for the biotechnology center, saying the complexity of the high-tech facility meant that exact costs and designs could not be determined at the outset,” the newspaper says. “That delivery method, known as a ‘construction manager at risk’ contract, allows the manager –– in this case Gilbane Building Co. –– to continue negotiating on plans and budget with the customer and the architect as construction moves forward, provided that it doesn’t exceed a guaranteed maximum price.” Those arrangements can offer more flexibility for the builders, the Journal says.
Robert A. Weygand, the university’s vice president for administration, said he was ambushed at the hearing and complained that the university was being treated unfairly. —Scott Carlson
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