Repository: UIHistories Project: Board of Trustees Minutes - 1958 [PAGE 276]

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1957]

UNIVERSITY OF ILLINOIS

273

Director of the Physical Plant suggested to Mr. Brumit that Mr. Brumit explore every possibility of securing financing or working out an arrangement that would be satisfactory to the Surety so that the work could be kept in progress and that if he could not work out some method of keeping the work in progress the University would appreciate being informed of this as soon as possible. On February 8, 1957, written notice was received from Edward M. Brumit, an individual doing business as the B. and E. Plumbing and Heating, Champaign, Illinois, that he was financially unable to continue performance on the contract of June 27, 1956, between the Board of Trustees of the University of Illinois and himself for Division I I I plumbing and heating work on the Band Building, University of Illinois, Urbana, Illinois, and whereby he voluntarily declared himself in default upon said contract and gave notice that as of February 11, 1957, he was ceasing performance of said contract. Based upon the certificate of the Architect that sufficient cause existed for so doing and pursuant to the provisions of the contract, formal notice was given by the Comptroller and the Secretary of the Board of Trustees to Mr. Edward M. Brumit, February 12, 1957, of termination of his employment as Contractor and declaring him in default under the contract. The Comptroller has given notice to the Surety, the Aetna Casualty and Surety Company, of Mr. Brumit's default pursuant to the provisions of the bond which provides: "In event Principal is in default under the contract as defined therein, Surety will ( a ) within fifteen (15) days of determination of such default, take over and assume completion of said contract and become entitled to the payment of the balance of the contract price, or (b) pay the Owner in cash the reasonable cost of completion, less the balance of the contract price including retained percentage. T h e cost of completion shall be fixed by taking bids from at least three responsible contractors, one chosen by the Owner, one by the Architect and one by the Surety. T h e Surety will make such payment within fifteen" (15) days after the cost of completion shall have been so determined." The Surety has informed the University that it has made arrangements with George S. Walker Plumbing and Heating, Inc., a Delaware corporation authorized to do business in the state of Illinois, for completion of the contract. Under this arrangement, George S. Walker Plumbing and Heating, Inc., will enter into a contract with the University to complete the unfinished work under the original contract for the remaining contract funds now held by the University, and for which the University will make periodic payments to George S. Walker Plumbing and Heating, Inc., as the contract funds are earned, on the basis of monthly progress estimates; and on the basis of the original contract price of B. and E. Plumbing and Heating. T h e Surety agrees to protect the University against all adverse claims by all parties whatsoever to such contract payments so made by the University to George S. Walker Plumbing and Heating, Inc. T h e Director of the Physical Plant and the Comptroller recommend that the actions taken as outlined above be approved and ratified and that authorization be given to the Comptroller and the Secretary of the Board of Trustees to execute a contract on behalf of the Board of Trustees of the University of Illinois with George S. Walker Plumbing and Heating, Inc., providing for completion of the work in consideration of the sum of $114,107.77, the unpaid balance of the original contract price and approved change orders to date. I concur.

On motion of Mr. Bissell, the actions taken by University officials, as reported above, were ratified, and the Comptroller and Secretary of the Board were authorized to execute a contract with George S. Walker Plumbing and Heating, Inc., as recommended. These actions were taken by the following vote: Aye, Mr. Bissell, Mr. Herrick, Mrs. Holt, Mr. Johnston, Mr. Livingston, Mr. Megran, Mr. Swain, Mrs. Watkins, Mr. Williamson; no, none; absent, Mr. Nickell, Mr. Stratton.