Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 570]

EXTRACTED TEXT FROM PAGE:

1961]

UNIVERSITY OF ILLINOIS

567

yjce_president in charge of the Chicago Professional Colleges concur in these recommendations. I recommend approval. Chi motion of M r . Clement, these leases were authorized by the following vote: Aye, Mr. Clement, Mr. Dilliard, Mr. H u g h e s , Mr. Johnston, Mr. Pogue, M r . Swain, M r s , Watkins, M r . Wilkins, M r . Williamson; no, none; absent, Mr. Harewood, Mr. K e r n e r .

REFUND OF PORTION OF FAUCETT-UMPHREY CORPORATION BID DEPOSIT

(28) The Faucett-Umphrey Corporation, Bloomfield, Indiana, which last year was awarded a contract for residence halls furniture, failed to furnish the bond required The Board of Trustees rescinded the award of the contract to that Corporation, awarded the contract to the next lowest bidder, and authorized the retention by the University of Faucett-Umphrey's bid deposit of $7,500 as liquidated damages for failure to comply with the contract requirements. Subsequently, lite Board denied a request from Faucett-Umphrey Corporation that the Board reconsider its action relative to the retention of the bid deposit. Faucett-Umphrey Corporation employed attorneys to institute suit against the University to recover the amount of the bid deposit. As a result of negotiations, Faucett-Umphrey has agreed to limit its demand lor the return of the bid deposit to that portion which exceeds damages actually sustained by the University in consequence of Faucett-Umphrey's failure to furnish the bond and perform. Those damages consist in the difference, $6,046.64, between Faucett-Umphrey's bid and that of the next lowest bidder, and various items of expense, totaling approximately $450 incurred by the University in connection with attempting to aid Faucett-Umphrey in securing the required bond and in connection with the action laken when Faucett-Umphrey was unable to furnish it. Accordingly, the bid deposit of $7,500 exceeded by approximately the sum of $1,000 the damages and expenses which the University has sustained in consequence of FaucettUmphrey's inability to furnish the bond and to carry out the contract. At the time the Board of Trustees took the actions referred to, it was not possible to determine the full amount of the damages which would actually be sustained by the University since there was a possibility that the next lowest bidder might not be able, because of the delay in awarding the contract, to complete performance of the contract by the time the University would need the furniture and the University might thereby sustain additional damages. Fortunately, this did not develop, and $6,500 is sufficient to reimburse the University for all of the damages it actually sustained and expenses it incurred as a result of Faucett-Umphrey's failure to furnish bond. Faucett-Umphrey's attorneys have now notified the Legal Counsel that their client will accept $1,000 in full settlement of the claim for return of the bid deposit; settlement of the claim upon this basis is equitable and just for the reasons stated. Accordingly, the Director of Purchases, the Vice-President and Comptroller, and the Legal Counsel recommend that upon receipt by the University of a full and complete release from Faucett-Umphrey Corporation the sum of $1,000, constituting a portion of Faucett-Umphrey Corporation's bid deposit, be refunded. 1 concur.

On motion of Mr. Johnston, this recommendation was approved, and authority was given as requested,

CONTRACT FOR MINOR BUILDING ALTERATIONS AND REPAIRS

(29) The Director of the Physical Plant and the Vice-President and Comptroller recommend awards of the following cost-plus contracts for minor building alter' tlo ns and repairs and construction work for the period July 1, 1961, through -viarch 31, 1962. These contracts are for work which would not justify the cost °t preparing separate drawings and specifications and of separate bidding procedures l on eeach project. nThis is a practice which the University has followed h*r j - / j m ' ' r °* y e a r s - } essence, the several contractors bid on percentages to added to actual material, labor, and subcontract costs, depending in many cases