The University of Iowa was awarded $49.4 million by an arbitration panel in a lawsuit against two construction contractors that installed defective windows on the UI’s Stead Family Children’s Hospital. 

The decision comes after the University of Iowa spent $52.5 million on replacing the defective windows since 2021, when the defective windows were discovered. 

The UI’s Stead Family Children’s Hospital features natural light and large windows in every patient room. Construction finished on the children’s hospital in 2017, and in 2022 UI reported finding cracks and blemishes on windows installed just 5 years prior. 

The UI filed suit against contractors Knutson Construction and Cupples Construction in 2022, alleging that they did not fulfill their contracts and that the windows were defective. 

Since then, the UI has spent millions replacing windows, placing film over defective windows to prevent glass shards from falling on pedestrians below, and is expected to replace all of the windows on the children’s hospital by the end of 2026. 

“We are pleased with the arbitration panel’s decision and thankful this case has been resolved,” Denise Jamieson, UI vice president for medical affairs and the dean of the Carver College of Medicine, said in a statement Tuesday. “We remain committed to providing patients and their loved ones with a safe place to receive outstanding care.”

Having spent $52.5 million on replacing the windows, the $49.4 million judgement leaves the UI on the hook for $3.1 million of the cost of replacing the windows.

In a statement Tuesday, Iowa-City based Knutson Construction said the company has worked to resolve the company’s limited role in the matter prior to arbitration proceedings.

The ruling, according to the statement, found Knutson was no financially responsible for any of the damages. The company said they were only responsible for roughly 3% of the total construction of the children’s hospital.

“We are glad this has come to a resolution for the hospital and we’re grateful that the University has continued to trust Knutson to lead important projects for the community,” a statement from Knutson Construction statement, released Tuesday, read.