Cost overruns prompt new construction rules at ND universities

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BISMARCK, N.D. (AP) - North Dakota's university system now has a new set of rules for campus construction projects.

The state Board of Higher Education approved the rules Friday. They're meant to prevent a repeat of cost overruns when new homes were built for the presidents of North Dakota State University and the University of North Dakota.

The rules say the colleges have to manage almost all building projects on their own campuses, even when they're financed by private donations.

NDSU's private foundation managed the construction of the Fargo president's house, and costs got out of control.

The policy changes are more specific about building project costs. They say architect fees, landscaping, furnishings and other costs have to be included.

When the new presidents' homes at NDSU and UND were planned, they were expected to cost no more than $900,000. There were questions later about whether furnishings, landscaping and other costs were included.

The NDSU house ended up costing more than $2 million, and the UND home cost almost $1.3 million.

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