The University of Iowa has been awarded $49.4 million in damages by an arbitration panel in a case against several contractors over a defective window system at UI Health Care Stead Family Children’s Hospital.
The university brought the claim in 2022 after persistent issues with the hospital’s original windows, which were found to be faulty shortly after construction of the $392.7 million facility was completed in 2017.
“We are pleased with the arbitration panel’s decision and thankful this case has been resolved,” said Dr. Denise Jamieson, UI vice president for medical affairs and the Tyrone D. Artz Dean of the Carver College of Medicine. “We remain committed to providing patients and their loved ones with a safe place to receive outstanding care.”
Two years after the building’s completion, several windows began exhibiting cracks and bubbling, leading UIHC to install protective film and clips on several of the windows to prevent further issues from arising, while also closing the Children’s Hospital playground “out of an abundance of caution,” university officials said.
The university sued contractors Cupples Construction and Minneapolis-based Knutson Construction – which closed its Iowa City location in 2024 – claiming the companies installed defective windows and failed to accept responsibility.
In February, the Iowa Board of Regents approved the university’s revised $52.5 million budget – up 16% from the original $45 million – to cover the cost of replacing eight nine-story columns of exterior hospital windows known as “slot” windows, following concerns raised since the original project scope and budget were approved in February 2023.
Consultants hired by the University of Iowa to investigate the hospital’s slot windows identified additional performance concerns and recommended a full replacement, prompting the revised budget. The findings came as the hospital continues to replace patient windows on levels 3 through 11, as well as the connector bridge to the John Pappajohn Pavilion.
“Since the completion (of the hospital in 2017), window issues have resulted in a near total window replacement effort. These issues include the development of delamination and cracking that present potential safety hazards,” February board documents stated. “During continued active monitoring, additional concerns regarding the performance of the slot windows have been identified that warrant replacement of all these windows to maintain both safety and building envelope integrity.”
University officials say the remaining faulty windows will be replaced by the end of 2026.
