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By Phillip CarterSummer Bruin Staff

Eleven million dollars in cost overruns in the building of the new Anderson Graduate School of Management landed Chancellor Charles Young in hot water at this month's University of California Board of Regents' meeting.

Several regents questioned Young's dealings with the construction company, saying that it may have been unwise to keep the site open for 246 days when construction was stopped for rain or earthquake delays.

Young responded to the criticism by explaining that "acts of God" caused the majority of the excess costs, while the rest was due to a variety of minor reasons.

"Delays in the construction schedule were primarily due to 100-year rains and the earthquake ­ that accounts for $6 million of the ($11 million) increase," Young said. "About $2 million was the result of additional requirements laid upon us by the fire marshal."

During the delays, UCLA campus architect Duke Oakley said the Anderson site was kept open, and personnel were paid to manage the site, even though construction was not being done.

"The construction-management firm we had working for us was rather clever and adroit in doing that (making sure the site stayed open)," Oakley said. The point of this, he added, was to make sure that the process wasn't delayed more by having to start and stop again each time rain came.

Regent Roy Brophy, citing his experience in construction projects, said he didn't approve of UCLA spending millions to be "clever and adroit," and added that the money could have been saved or spent in other ways.

"None of the $6 million (in overruns) goes to the building itself - this is all money going to losses that come from being adroit," Brophy said.

When questioned about the other $5 million in cost overruns, a noticeably flustered Young said that a large percentage of the costs were due to new requirements the fire marshal imposed on the project, including the need for sprinkler installation in Lot 5.

"We had enormous additional costs created by the fire marshal's changes," he said. "They demanded that changes be made from what they approved when the building started - those changes alone collectively cost $750,000."

Part of the problem, Oakley explained in tag-team fashion with Young, was that different inspection teams approved the Anderson School's plans, and the actual buildings after completion.

"The site-inspection team feels they have the final say."

After the item was approved, Oakley conceded that he might have changed his plans if he could forecast the weather better. "We had bad rain - if I'd known that ahead of time, I would've written a different contract."

Despite the attention paid to the costs' weather and seismic causes, Regent Ward Connerly pointed out that nearly $3 million of Young's request for more money came because certain donations had not been received yet, causing UCLA to take out loans to cover the differences.

Another regent, UC Davis law Professor Daniel Simmons, concurred, saying that asking the regents for help when donations stumbled was unacceptable.

"The item that's being approved here calls for another $8.5 million in borrowing to cover the shortfalls of fundraising - I see that as a very dangerous cycle to get engaged in."

In light of all the donation delays and "acts of God," Lt. Gov. Gray Davis suggested the regents' lawyer propose a new contract policy to the board so that they can account for these additional costs at the beginning of projects, rather than the end.

Davis' motion was approved unanimously.

In the end, the extra $11 million was grudgingly given to UCLA, with several regents remarking that it was difficult to say no to approving money that's already been spent. Oakley said that despite all the fuss, the new Anderson School was well worth the money.

"When you're all through, it cost $189 a square foot to build it - for the quality of that building, that's not expensive," he said.

Regents challenge Young on Anderson cost overruns

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