Grainger Hall addition delayed to contain costs

Plans for an addition to Grainger Hall, which will house graduate programs in the University of Wisconsin–Madison School of Business, are being redesigned as a cost-saving move after bids for the project came in over budget.

“In a time of tight resources, we felt that a redesign would deliver more value, even though it will delay the building’s opening,” says Alan Fish, associate vice chancellor for facilities.

The lowest bids came in at $47.3 million, $6.8 million higher than the project’s budget.

School of Business Dean Michael M. Knetter says the redesign means that construction that was scheduled to begin this fall is now expected to begin next spring, with occupancy planned for fall 2008 – a year later than planned.

“We believe that $40.5 million spent wisely will provide us with an outstanding facility,” Knetter says. “By starting over, rather than making piecemeal reductions, we can ensure the most important features remain, while not overextending our financial resources.”

Knetter says he found it unacceptable to compromise the School of Business’ graduate program or its goals of attracting top-tier faculty and students to pay for the additional costs.

Other factors that weighed in the higher project costs were continually rising material costs – especially for steel and concrete – and the exceptionally tight site.

Demolition of the former bank and office building at 905 University Ave., the site of the new addition, is expected to begin on schedule in August.

The addition is possible thanks to a $20 million gift, one of the largest in the history of the university, from The Grainger Foundation in Lake Forest, Ill. In addition to that gift, the project will be financed by other gift funds and state general fund supported borrowing.