Regulations Fuel Construction Delays

According to the State Construction Office, all construction activity on public property is governed by statutes designed to protect public interest and tax money.

The passage of a $3.1 billion bond package last November allotted money to each of the 16 UNC-system schools for building repairs and renovations.

Many schools, including UNC-Chapel Hill, are also undergoing major renovations that are not part of the bond package but are aimed at helping the system absorb a projected influx of students.

Construction performed on such a large scale can be problematic because it is often difficult to coordinate the different phases of construction.

The State Construction Office is also involved in the oversight of all projects of more than $500,000, which includes most campus construction projects.

N.C. law states that any state building project must have separate bids from individual contractors, helping to assure fair bidding practices among small and large construction companies.

Although bond projects have been exempted from this law, delays in non-bond construction have been seen across the system.

Notably, the UNC-Chapel Hill Student Union has been under construction since June 2000, and the first phase has passed several anticipated finish dates.

Speros Fleggas, State Construction Office Director, said it is hard to pinpoint an exact reason for construction delays. "Over the years we've looked at this very question," he said. "We've looked at a lot of data and when you get into it, it's difficult to put your finger on any one regulation, any facet of the work, that delays work."

As a possible explanation, Kevin MacNaughton, UNC-system finance and property officer, said construction companies are entitled to extra time if there is some kind of change during the project.

But Fleggas said the key to successfully completing large-scale construction projects on time is to pay attention to details. "I think administering the project simply means more work, it means you have to look after more projects," he said. "It becomes a little more problematic when you are expending large sums of money. You have to be organized in your approach and focused to try and stay on track and keep the project moving."

The State Building Commission exempted the UNC-system bond projects from the state regulation that requires organizations accept multiple bids for each facet of a projects, allowing more efficient coordination for construction projects.

Fleggas said approximately 40 of the bond projects are being conducted using a construction manager at-risk process, allowing the system to hire one general manager to oversee all other facets of construction, rather than have separate contracts with many firms.

MacNaughton said using a construction manager helps anticipate costs. "We're real pleased with the success of these bids. Some of the private ones have dropped off so we're getting some good prices."

Jeff Davies, UNC-system vice president for finance, emphasized that more than 20 bond projects have been started since the bond package passed last November. "We have 60 percent of the projects in some phase of activity," he said. "I think the activity in implementing the bond project is fantastic."

The State & National Editor can be reached at stntdesk@unc.edu.