Repository: UIHistories Project: Board of Trustees Minutes - 1952 [PAGE 524]

EXTRACTED TEXT FROM PAGE:

1951]

UNIVERSITY OF ILLINOIS

621

Now clause 17 of the General Conditions—a part of the Contract—provides: "Before final payment is made, Contractor shall satisfy Purchaser, by affidavits or otherwise, that there are no outstanding liens against Purchaser's premises by reason of any work under t h e Contract." This has not been done. Clause 17 further provides: "Acceptance by Contractor of final payment on the contract price shall constitute a waiver of all claims against Purchaser." But the Contractor's request for payment (February 6, 1950) is conditioned by the following statement: " A c c o r d i n g l y , we a s k for p a y m e n t due us as per invoice enclosed, (5121,029.46) which payment, however, should be made and accepted by us without in any manner or degree whatsoever affecting, waiving or jeopardizing our claim which is pending for final determination." The Contractor, by letter to Sargent & Lundy of January 21, 1949, filed notice of claim for additional compensation in the amount of $226,036. As mentioned above, the factual support is lacking. At the same time there are unpaid invoices for services furnished by the University at the request of the Contractor in the amount of $5,321; for services furnished by the University to repair the City of Urbana sanitary sewer (damaged by the Contractor), 5709. In addition to the foregoing, there are potential counterclaims which may be asserted in the event of litigation. Judge Armstrong stated on December 1, 1949: "Since my letter of August 31st, I have received no communication from the contractor or his attorney relating to settlement of this contract. . . . Please also be advised t h a t there has been no futher discussion between t h e contractor, his attorney and your representative of any claims t h a t have been asserted on behalf of either the contractor or the University in connection with this contract." Again Judge Armstrong reported, on November 28, 1950 (to Mr. Stoddard and Mr. Williamson): "I made it very clear to Mr. Lawson that I would submit to you any proposition t h a t he wished me to but before he left, he made it very clear to me t h a t any tentative proposition that had been discussed was withdrawn from present consideration and t h a t I had no authority to submit even his discussed proposition to you." Since t h a t time Judge Armstrong has not received even tentative propositions from the Warner Construction Company. As indicated previously, he was not informed of the Company's appearance before the Budgetary Commission in Springfield. Accordingly, the way in which the Warner Construction Company may collect all its proper bills, as indicated for the Lincoln Avenue Residence Contract (Part I of this report), is simply to follow standard business procedures. If dissatisfied, it may seek a court settlement. The University welcomes full public attention to these transactions.

This report received for record.

B O N D I S S U E FINANCING C H I C A G O H O U S I N G P R O J E C T S AND R E M O D E L I N G O F S E C O N D UNIT O F DENTISTRY, M E D I C I N E , AND PHARMACY BUILDING (24) The Board of Trustees a t its meeting on February 15, 1951, authorized the acceptance of an offer from the Milwaukee Company, Chicago, and t h e F . S. Yantis & Co., Chicago, to purchase revenue bonds of t h e Board of Trustees of the University in the principal amount of not less t h a n 54,500,000 or more than 55,000,000. T h e proceeds of such purchase was to be used to construct and equip at t h e Chicago Professional Colleges a Student Residence Hall and a Faculty Apartment Building and to purchase equipment and carry out certain remodeling in the second unit of the Dentistry, Medicine, and Pharmacy Building at t h e Professional Colleges. Bids have been taken for the construction work and a construction budget prepared indicating that 54,600,000 is needed. All arrangements concerning the sale of t h e bonds have been worked out with t h e purchasing firms and there is now submitted a resolution authori n g the issuance of t h e bonds and setting forth t h e terms and conditions.