Repository: UIHistories Project: Board of Trustees Minutes - 1940 [PAGE 497]

EXTRACTED TEXT FROM PAGE:

494

BOARD OF TRUSTEES

[July 21

as shown except item 7, the cinder catcher, for which he recommended that the awarding of the contract be postponed. On motion of Mrs. Plumb, these contracts (except item 7) were awarded as recommended.

CONTRACT FOR SERVICES OF SARGENT AND LUNDY, INC. (12) By authority of the Board of Trustees (Minutes, November 29, 1938, page 149) the firm of Sargent and Lundy, Inc., has been retained as engineers in connection with the construction of the new power and heating plant and distribution system. A formal contract, however, has not been executed for their services. This firm is proceeding with the plans and specifications on the remainder of the equipment, building, and distribution system for which contracts have not yet been awarded. The Director of the Physical Plant Department, therefore, recommends that the University enter into a contract with Sargent and Lundy for these services, on the following terms and conditions. The estimated cost of these services is approximately $94,800 and is included in the budget (State appropriation) for this project. 1. Power Plant Building and Equipment.—Acceptance of proposal No. 2 submitted under date of May 11, 1938, a copy of which is hereby given to the Secretary of the Board for record. Compensation for services (except services of Field Engineer) shall consist of a single charge which shall be equal to six per cent of the cost of the work to completion. 2. Distribution System.—Acceptance of Proposal No. 1 submitted under date of May 11, 1938, a copy of which is hereby given to the Secretary of the Board for record. Compensation for services shall consist of "current expense charges" and a "percentage of cost charge." At the request of Sargent and Lundy the Physical Plant Department is rendering certain services on this work on which an agreement has been reached as of June 7 on the division of responsibility. A copy of this agreement is also hereby given to the Secretary of the Board for record. T h e Director of the Physical Plant Department recommends the acceptance o£ one proposal (or method) for determining the fee for services on the power plant and equipment, and another proposal for determining the fee for services on the distribution system, for reasons which he has summarized as follows: " 1 . The fixed percentage fee if applied to the total estimated cost of the distribution system is the phase of the work on which Sargent and Lundy would probably realize the greatest profit. T h e proposed scheme should reduce the cost to the University. "2. Because of their relatively small experience in the construction of distribution system facilities as compared with power plant construction, we realized that considerable work on the part of this Department would be necessary. We, therefore, asked how they wished to reimburse the University for the work which would be necessary from this Department. They immediately recognized that this Department had considerable information which would be necessary to be transmitted to them before the plans and specifications could be completed and, therefore, they suggested the memorandum which was submitted to you for the division of responsibility on the distribution system. This memorandum, if followed, will place the responsibility for the engineering design of the distribution system and the preparation of specifications in Sargent and Lundy but will leave to the Physical Plant Department the responsibility of preparing the drawings. It is our opinion that if this is followed it will result in a lower cost to the University than if the entire project was handled on a percentage fee basis."

On motion of Mr. Jensen, the officers of the Board were authorized to execute a contract with Sargent and Lundy as recommended.