Repository: UIHistories Project: Board of Trustees Minutes - 1952 [PAGE 1278]

EXTRACTED TEXT FROM PAGE:

1952]

UNIVERSITY OF ILLINOIS

I375

ment of the value of this work. This means an allowance of $44,214.22 on the two contracts, which is $30,836.06 more than the original estimates by the University's architects of the cost of these services. 2. That the University omit the charges against the Warner Construction Company for services rendered by it to the Company for all items not specifically ordered in writing by the Contractor or his representatives. This represents a reduction of $3,145-74 in the total of original charges of $13,415.09, some of which were in the nature of damages. T h e net payment over the balances previously reported as due and payable on the basis of the original contracts, therefore, is $33.944-87 (sum of 1 and 2 ) . ($44,214.22 as per 1, less $10,269.35 net deduction in 2.) 3. That both parties waive completely their claims for damages. In the case of the W a r n e r Construction Company, this means a waiver of claims totaling $473440.30, and in the case of the University a waiver of $145,293.73. 4. That the University withhold from the amount to be paid the W a r n e r Construction Company under the settlement sufficient sums to cover the claims of its unpaid subcontractors until it has settled with, and furnished the University with proper releases or waivers from, them. The breakdown of this proposed settlement is as follows: Utilities Lincoln Avenue Distribution Residence Hall System Total Balances due on original contracts, President's report to Board (March 13, 1951) $254 633 42 $121 029 46 $375 662 88 Allowances recommended for additional work 14 592 60 29 621 62 44 214 22 Total £269 226 02 £150 651 08 £419 877 10 Charges for services rendered Contractor by University 7 001 63 3 267 72 ro 269 35 Net balance payable $262 224 39 $147 383 36 $409 607 75 Net increase over original contract balances $ 7 590 97 $ 26 353 90 ? 33 944 87 Claims for damages waived by Contractor $247 404 07 ?226 036 23 $473 440 30 Claims for damages waived by University $ 85 269 00 $ 60 024 73 $145 293 73 The committee considers this a satisfactory settlement and justified in view of the difficult factors involved and the expense of extended litigation. Funds for all payments are available in unexpended appropriations made for these projects and in other appropriations in the Physical Plant Department's budget. I recommend approval of this settlement as set forth above and that the Comptroller and the Secretary of the Board be authorized to execute a covering agreement and to give and accept releases under conditions approved by the University Legal Counsel and the Special Counsel.

On motion of Mr. Johnston, this settlement was approved and authority was given, as recommended, by the following vote: Aye, Mr. Fornof, Mr. Herrick, Mr. Hickman, Mr. Johnston, Mr. Livingston, Mr. Nickell, Mrs. Watkins; no, none; absent, Mr. Grange, Mrs. Holt, Mr. Megran, Mr. Stevenson. On motion of Mr. Johnston, the Board recorded its appreciation of the work done by University officials in negotiating this settlement.

HEADSHIP OF DEPARTMENT OF BIOLOGICAL CHEMISTRY IN T H E COLLEGE OF MEDICINE (16) Dr. Otto A. Bessey has resigned as Professor of Biological Chemistry and Head of the Department in the College of Medicine effective March 14, 1952, and has accepted a position on the faculty of the University of Texas School of Medicine.