Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 185]

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1987]

UNIVERSITY OF ILLINOIS

175

Contract for Completion of Housing and Commons, Chicago

(15) On January 16, 1986, the University entered into a contract with Klein Construction Co. of Westmont as the prime contractor for the construction of the housing and commons at the Chicago campus. Klein provided a surety bond, issued by U.S.F.&G., in the amount of $18,562,691, which included the cost of construction assigned to subcontractors. The original completion date was July 31, 1987. On August 20, 1986, Klein filed for bankruptcy under Chapter XI of the Bankruptcy Code, and on November 12, the Bankruptcy Court ruled that the contract between Klein and the University be deemed rejected. As of that date, the University has made progress payments to Klein of $2,236,248. At that time there existed numerous claims between Klein and the University regarding payment for extra work, extension of the completion date, the nonpayment of subcontractors by Klein and damages the University would incur if the project were not completed by the beginning of the 1987-88 academic year. On November 13, the University made a demand upon U.S.F.&G. for its bond. In response, U.S.F.&G. tendered the Mellon Stuart Company as the new contractor to assume Klein's obligation for completion of the contract for an amount equal to the unpaid balance on the contract ($11,424,058). For purposes of Mellon Stuart's performance only, the new contract completion dates are August 22, 1987, for the Court Yard Building, and November 8, 1987, for the balance of the project. All outstanding issues involving the claims between Klein and the University have been reserved by both sides and are being resolved apart from the construction project. Because of the need for immediate action, a tri-party agreement between U.S.F.&G., Mellon Stuart Company and the University was executed following consultation by telephone with the trustees and an informal authorization to proceed — subject to further action by the board on January 15, 1987. I now request that the board confirm and approve the authorization. O n m o t i o n of M r . Forsyth, the authorization w a s approved a n d c o n firmed by t h e f o l l o w i n g v o t e : Aye, Mrs. Calder, M r . Forsyth, Mrs. Gravenhorst, M r . H o w a r d , M r . L o g a n , Mrs. Shepherd, M i s s Smith, M r . Wolff; n o , n o n e ; absent, M r . H a h n , Governor T h o m p s o n . ( T h e student advisory v o t e w a s : Aye, M r . Filip, M r . Starkeson; no, none.)

Contracts, Beckman Institute, Phase II, Urbana

(16) The president of the University, with the concurrence of the appropriate administrative officers, recommends award of the following contracts for structural steel and metal decking, elevators, fireproofing, and concrete work for the Beckman Institute at the Urbana campus. The award in each case is to the lowest base bidder. Division IIA — Structural Steel and Metal Decking Zalk Josephs Fabricators Inc., Stoughton, Wisconsin Division IIB — Elevators Montgomery Elevator Company, Danville Division IIC — Spray-on Fireproofing Allied Construction Services Inc., Peoria Base Bid $3 086 000 348 680 433 465

Division IID — Concrete Work Mid-States General and Mechanical Contracting Corp., D e c a t u r . . . . 1 143 975 Total $5 012 120