POSTED AT 12:44 AM ON Oct. 29, 2009 | PRINT | Email | SHARE | COMMENTS (0)

IU is in the middle of a building boom because of the competitive pricing of recent construction projects, despite the lingering effects of the economic recession.
And many of the projects are on time and under budget.

For many of the University’s projects bid in the last six months, the completion costs averaged about 24 percent below the original estimates, said Assistant Vice President and University Architect Bob Meadows.

The number of construction companies bidding on University projects is higher than it’s ever been, with 10 to 15 firms typically interested in each project, said Tom Morrison, vice president for Capital Projects and Facilities.

“On some projects, competition among those firms drives down the price,” Morrison said.

At the recent Board of Trustees meeting, Morrison told the Facilities Committee that some of these projects came in 10 to 40 percent under the estimated budget.

Bids come in once a week for various projects, ranging from roof replacements and repair of utilities to larger-scale projects.

The renovation of the IU Cinema is one such project. Morrison estimated that certain
parts of the project could be completed up to 10 percent below the estimated budget, depending on which components came in below budget. The current estimated cost for this project is $15 million.

Another example of a current project that is competitively priced due to the economic situation is the Ashton Housing building, Meadows said, for which the University budgeted $80 million, but the contractors estimate the project will be built for only $70 million.

Many other construction projects have come in under budget over the last six months because of the economic situation, Meadows said.

An asbestos abatement project in McNutt Quad South came in about 42 percent under budget, with the University saving more than $410,000 in construction costs.

Recent masonry repairs to the Wells Library came in $174,000, or 68 percent under budget. And at IU-Purdue University Indianapolis, various repairs to the Glick Eye Institute came in up to 17 percent under budget.

Morrison said the completion of these construction projects is part of the normal operating business of a university.

“For a university that has as many buildings as we have, there are things that have to be replaced,” he said.  

Morrison pointed out that because of competitive pricing, now is an ideal time for construction projects to be carried out on IU’s campuses.

“It’s a win-win situation,” Morrison said. “The University gets the benefit of lower pricing, and firms get the benefit of jobs in a tough economy.”