Repository: UIHistories Project: Board of Trustees Minutes - 1954 [PAGE 1309]

EXTRACTED TEXT FROM PAGE:

1306

BOARD OF TRUSTEES

[April 21

due it under its contract with Warren is considerably more than the latter concedes. As the proposal was originally submitted to this Board and subsequently to Warren's subcontractors, the acceptance of the proposal by all of the subcontractors and the reaching of agreements as to the amounts due them between all of the subcontractors and Warren constituted conditions to the proposal becoming effective. It is evident that the proposal will probably fail if the University insists upon these conditions. It would be advantageous from the standpoint of the University to carry out the proposal with respect to those subcontractors of Warren who have accepted it and have reached an agreement with Warren as to the amounts due them. Therefore, the Director of the Physical Plant, the Comptroller, and the Legal Counsel recommend that authority be granted to accept assignments to the University of the contracts between Warren and such of its subcontractors who have reached an agreement with it relative to the balances due them under their contracts with it, and that those balances be paid by the University out of funds remaining unpaid to Warren under the latter's contract with the University in return for credits to the University from Warren upon that contract in the amounts thus paid; provided, however, that the consent of Warren and the sureties upon its performance bond be secured before the proposal becomes effective and is carried out, and provided, further, that full and complete releases and waivers of all claims and liens against both the University and Warren are given by the subcontractors to whom such payments are made. I concur. O n motion of M r s . W a t k i n s , authority was granted as requested.

SUIT OF C O N T I N E N T A L B U I L D E R S , I N C . VS. T H E BOARD OF TRUSTEES O F T H E UNIVERSITY O F ILLINOIS

(3) On March 29, 1949, the Executive Committee of the Board of Trustees authorized award of a contract to Continental Builders, Inc., Joliet, for the general work on the construction of thirty one-family residences under the supervision of the Small Homes Council. On April 21, 1949, the Board of Trustees, having been informed that this contractor probably could not supply a satisfactory bond within thirty days from the opening of bids, voted to authorize the Director of the Physical Plant to reject all other bids for general work and to advertise for new bids if the lowest bidder failed to supply a satisfactory bond within the time limit. Subsequently, the bids were rejected and on May 21, 1949, the Executive Committee awarded the contract for the general work to the Kuhne-Simmons Company, Champaign, the lowest bidder in the new bidding. The University, of course, retained the Continental Builders' bid deposit of $10,792.95. Continental Builders, Inc., have now instituted a suit in the Superior Court of Cook County against the University alleging that it is entitled to a refund of the bid deposit, reimbursement for expenses it incurred in submitting its bid and in erecting temporary improvements on the site of the project preparatory to performing the contract, and compensation for loss of profits it would have received under the contract. A judgment of $70,000 and the cost of this suit are asked. The Legal Counsel will require the assistance of special counsel to defend this suit, especially if the case is tried in the Superior Court of Cook County. I, therefore, recommend that he be authorized to engage such special counsel as he finds necessary. O n motion of M r s . W a t k i n s , authority was given as requested.

VOCATIONAL A G R I C U L T U R E

(4) The President of the University reported that the Teachers College Board has recommended to the State Board of Vocational Education that the Illinois State Normal University be approved, in addition to the University of Illinois, as an institution for training teachers in Smith-Hughes vocational agriculture for Illinois high schools. He distributed copies of a letter which he had sent to the Chairman and other members of the Board of Vocational Education, a copy of which has been filed with the Secretary of the Board for record.