Repository: UIHistories Project: Board of Trustees Minutes - 1952 [PAGE 520]

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UNIVERSITY OF ILLINOIS

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the architects. In the event either party is dissatisfied with the architects' decision, they may demand arbitration. Arbitration procedure is precedent to any right of action, legal or equitable. Decisions by the arbitrators are binding as to facts but not as t o law. 13. T h e contract contains the usual provisions with reference to compliance with laws, cooperation with other contractors, rejections of defective work, assignment of contract, access to the site, etc. 14. The instructions to bidders and the contractor's proposal were included and made part of the contract. B. Financial and Contractual Facts 1. The guaranteed maximum contract with approved contract change orders, including 5192,388 for the original fixed fee adjusted for approved contract change orders, is #2,011,611. (The original contract was $2,000,000.) 2. The unpaid balance under the contract is 3254,633. Under the provisions of this contract, payments to the Warner Construction Company are made on the receipt of evidence of payments, plus waivers of lien. The Warner Construction Company has not requested payment since January 28,1950, for any of its own expenditures or payments to subcontractors. 3. The fixed fee of the contractor will be materially invaded by construction costs exceeding the original estimates. 4. Contractor declared in default. In a letter dated June 28, 1948, addressed to the Board of Trustees, the Warner Construction Company demanded that the time fixed under the terms of its contract be extended for a period equivalent to the time lost by reason of 14 claimed causes for delay and for not less than six months. The Board of Trustees on July 21, 1948: a. Denied the alleged charges for delay. b. Denied the request for extension. c. Declared the Warner Construction Company in default under the terms of its contract. The Warner Construction Company and the bonding companies were notified of the above action on July 24, 1948. 5. Unpaid University invoices. Unpaid University invoices to the Warner Construction Company for services performed at the request of the Warner Construction Company total ?7,ooi. 6. Unsettled contract change orders. Additional work has been completed but not authorized by contract change orders because of controversy on price. 7. Settled claim on contract change order. A change concerning grading, sidewalks, and driveways on which the contractor requested #19,086 was settled by negotiation in the amount of #12,870 and approved as recommended by t h e special committee (Mr. Williamson and Mr. Stoddard) on July 28, 1949. 8. Status of expenditures from state appropriations. State appropriated funds have been completely expended. Balance of payments due under the contract will be made from borrowed funds. 9. Unpaid obligations of the Warner Construction Company. The University has received letters and telephone calls from subcontractors who have completed their work, but who have indicated they have not been paid by the Warner Construction Company. The University, however, has not received from the Warner Construction Company requests for reimbursement for final payments to such subcontractors. 10. Amount withheld under the contract. In the course of payments to the contractor, the University Auditor and the architects' representatives have found it necessary to delete from the contractor's requests for payment, #70,342. Of this amount approximately #48,000 is reimbursable when submitted in accordance with the terms of the contract and consists of: a. Subcontract work performed by the Warner Construction Company's own forces without approval of t h e architects. b . Subcontract work billed where, due to actions of the contractor, approved subcontracts were not available to t h e auditor. c. Equipment used without approval of rental or use agreements by the architects.