Repository: UIHistories Project: Board of Trustees Minutes - 1956 [PAGE 1089]

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BOARD OF T R U S T E E S

[June 27

In view of these considerations, the Director of the Physical Plant, the Comptroller, and the Legal Counsel recommend that the following policy be established: When a bid has been withdrawn for justifiable reasons, the bid deposit, or a portion of it, may be refunded if requested by the bidder if it is established to the University's satisfaction that the amount of his bid was due wholly to an innocent and unintentional mistake, and the mistake is discovered and the University is notified of it in sufficient time to permit the bid to be withdrawn, and the contract avoided, before the University has sustained, or will sustain, any loss or damage of any consequence because of the withdrawal of the bid. The University shall retain out of the bid deposit the amount of the expense incurred by it in checking and investigating, following the request of the contractor to withdraw his bid, his claim that it was based upon such a mistake and in satisfying itself as to the truth of that claim, and that only the excess of the bid deposit over that expense shall be refunded. With reference to the case of Gallaher and Speck, Inc., this firm has now withdrawn its stop payment order on the certified check, and has left it to the University's judgment whether the bid deposit should be forfeited. Although some of the earlier Illinois court decisions have enforced similar provisions and denied relief to the bidder, some of their more recent decisions and the decided trend of the modern decisions in other jurisdictions render it likely that the Illinois courts would try to afford equitable relief to this bidder under the circumstances here presented. However, it is believed that the courts would recognize the University's rights to reimbursement for the expenses it has incurred in investigating Gallaher and Speck's claim of mistake in submitting its bid and allow the University to reimburse itself therefor out of the bid deposit. In view of the general philosophy adopted by the courts, the practice followed by other state agencies, and the proposed policy with respect to forfeiting and retaining bid deposits on future construction projects, it is recommended that the bid deposit of Gallaher and Speck, Inc., in the amount of $5,176 be refunded except for $1,000, which is the estimated expense incurred by the University and the architects in investigating and satisfying themselves as to this bidder's claim of mistake in the computation and submission of its bid. I concur in the recommendation with respect to the policy to be established and its application to the bid deposit of Gallaher and Speck, Inc. T h e Buildings and Grounds Committee of the Board has also considered this matter and joins in the recommendation.

On motion of Mr. Williamson, these recommendations were approved by the following vote: Aye, Mr. Bissell,„Mr. Herrick, Mrs. Holt, Mr. Johnston, Mr. Livingston, Mr. Megran, Mr. Williamson; no, none; absent, Mr. Nickell, Mr. Stratton, Mr. Swain, Mrs. Watkins.

SPECIAL APPROPRIATIONS FOR NONRECURRING EXPENDITURES (19) The Committee on Nonrecurring Appropriations recommends assignments of funds from the General Reserve Fund as follows: 1. Department of English, purchase of equipment $10 000 2. Department of Sociology and Anthropology, installation of airconditioning units in Room 137 Davenport H a l l . 6 400 3. Departments of Mechanical Engineering and Aeronautical Engineering, integration of air-flow facilities 8 000 4. College of Pharmacy, purchase of equipment 25 000 5. Department of Anatomy, purchase of equipment 3 272 6. Physical Plant Department, interior painting in McKinley Hospital 6 500 7. Admissions and Records, purchase of vault 2 320 8. Physical Plant Department, construction of an addition to the Service Building Annex 6 50° Total $67 992 I concur.

On motion of Mr. Johnston, these appropriations were made by the following vote: Aye, Mr. Bissell, Mr. Herrick, Mrs. Holt, Mr. John-