university of illinois - UIHistories Project

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 III 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. The 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. The 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. The 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. The 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.