Official: Bond Projects 'Right on Schedule'

Jeff Davies, UNC-system vice president of finance, said the bond initiative has been executed in a timely manner thus far.

"This is our life," he said. "And it is a program that is right on schedule, if not ahead."

In November 2000, North Carolinians approved the Higher Education Bond, which will provide funding for 316 construction projects -- totalling $2.5 billion -- in the UNC system over a six-year period.

Rob Nelson, UNC-system associate vice president of finance, said 28 projects are under construction and that about 50 percent are in the design phase.

"We're off to a great start," he said.

The projects that are already under way range from renovations of Murphey Hall at UNC-Chapel Hill to a new science and technology building at East Carolina University.

But because bond funding is not spent until work is completed, only about 17 percent of all bond funds have been divvied out so far.

"We will pay bills as the work is done," Davies said.

At UNC-CH, Bruce Runberg, associate vice chancellor for planning and construction, said $500 million will fund 46 projects.

Runberg said bond-funded projects at UNC-CH are being undertaken in conjunction with construction being funded by $500 million in non-state appropriated funds.

Runberg said the University is undertaking twice the number of construction projects as it has in the past decade.

He said discussions with Chapel Hill officials about the Development Plan and rezoning have been a major factor in determining the speed with which the University can execute projects. Runberg said Chapel Hill's stringent development process has slowed progress but that UNC-CH is still on track.

"For the UNC system, we are a little ahead of the average," he said.

Kevin MacNaughton, UNC-system associate vice president of finance and University property officer, said many construction bids have been lower than expected because the lagging economy has increased the eagerness for work within the contracting community.

"Every one of the bids for the 28 projects (currently under construction) has come in under budget," he said.

Runberg said all the finalized bids for UNC-CH have been well within the amount budgeted.

He attributed the lower construction costs to the bidding climate, which has been competitive.

"I hope that will continue and believe it will for some time," Runberg said.

"I want to get these bids on the street as soon as possible to take advantage of that climate."

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