Repository: UIHistories Project: Board of Trustees Minutes - 1952 [PAGE 521]

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BOARD OF TRUSTEES

[March 13

d. Invoices not receipted or in proper form. e. Wages and subsistence pay not previously approved by the architects. f. Pro rata share of the second superintendent's salary when division is submitted to and is approved by the architects. g. Miscellaneous items. h. Deduction—unsettled credit for tree removal. 11. Approximately $22,000 is considered to be an improper charge under the contract and consists of the following: a. Mr. Luedeking's salary disapproved as being a main office expense included in the contractor's fee. b. Overcharges on equipment rentals and repairs and maintenance included in the rental charge. c. Wages and subsistence pay not approved. d. Miscellaneous improper charges. 12. Status of construction work. a. All work under the general contract has been completed and approved for acceptance as of May 15, 1950. b. The architects have established the date of substantial completion of the building construction as of September io, 1949. The student rooms were occupied September 14, 1949. C. Actions of the University of Illinois 1. On November 22, 1946, prior to the request for bids, the proposed cost-plus fixed fee contract with guaranteed maximum and provision for dividing savings was approved by the Board of Trustees. 2. Bids were received on December 6, 1946. 3. A letter was received from Mr. T. L. Warner, following a conversation with Mr. E. L. Stouffer, offering to "modify the condition as to division of savings from a 50/50 division between the contractor and the University to 25 per cent for the contractor and 75 per cent for the University of Illinois." 4. On December 28, 1946, the Board of Trustees awarded the contract to the Warner Construction Company on the basis of its low bid (#180,000 for site clearance and foundation work plus $ 1,820,000 for completion of the building; subject to the availability of legislative appropriation). 5. On December 28,1946, a letter of intent, as requested by Mr. Warner, was submitted by the Comptroller on behalf of the University. 6. In spite of repeated urgings on the part of the University, much time was required to settle the details of the written contract to the satisfaction of all parties. 7. The University's Legal Counsel (Mr. Britton) regarded the inclusion of the clause giving the University the right to allow or disallow the payment of premium wage rates as entirely proper and pointed out that the Warner Construction Company in signing the contract had agreed to all its clauses. • 8. For obvious reasons, the University was anxious to see the work move forward. A failure to have it completed approximately on time would have upset the housing plans of the University and would have seriously inconvenienced over 500 young women. 9. Contrary to statements made in Springfield on February 14 by representatives of the Warner Construction Company, the percentage division of savings in the contract was made at the request of Mr. Warner and prior to the acceptance of the Warner bid by the Board of Trustees. Hence, the loss of savings resulting from delays in performance by the Warner Construction Company was three times as much for the University as for the Company. D. Actions of the Warner Construction Company Some of the actions of the Company have been indicated above. I am now referring principally to operations of the Company which, in the judgment of our supervisors and architects, contributed to inefficiency. 1. Subcontract work was performed on the site without the approval of the architect and without knowledge of the terms on the part of the University Auditor. 2. There was delay in the execution of subcontract agreements. 3. There was delay in preparing a workable progress schedule. 4. The contractor continued to pay incentive wages to local bricklayers after the practice was disapproved by the architects. (See contract.) Subcontractors at times had large sums overdue from the Warner Construction Company—and perhaps this is still true.