Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-06-03
STATE AWARDS
CONTRACT FOR
REFORMATORY
Work VIII Be Done
on Cost Plus
Basis.
NOW HAS S60O,0OO
Treasury Is Ready for
Construction of
First Unit.
NOW HAS S6OO,000

The firm OF Latham * Walters. con-
tractors Of this city. was awarded the
contract today for the building Of the
Indiana reformatory by the board of
trustees acting with Governor aIcCcay on
q cost plus basis The contract calls for
- per cent net profit above the actual
Il for the contractors On Iator and ma
TsrlaI and PA per cent on sub-contracts
Twenty bidders submitted proposals ac
cording to Governor MeCray. ranging
from per cent, that Of the successful
contracts, 70 II per cent above the actual
cost OF the building.
Latham & Walters IS an incorporated
firm and is composed OF Harrison La
than. Charles Walters. and William W.
Wiese. 1t built the Prest- Lite build
Ing near tie Speedway. the new Union
Station tram sheds, the steinh4Ft build
ing on North Meridian street. the old
overland factory and total OF sixty-fIye
kstructures since the firm was organized
in 1902
The first buildings on the construction
program are the power plant. that part
Of the cell block house partly formed bg
the wall. TWO Industrial buildings, and
the administration building. The State
has ahoue s600,0eo for construction Of
the first lnit
II conditions are satisfactory the con-
formatory. it was said. The state Will
retain powers Of close supervision Work
10 to begin Immediately, according to
Governor McCray,
Mr. Latham Of the firm of SUCCESS
ful bidders. said thar OF the total value
OF the contracts which the firm has had.
IS per cent was represented by cost plus
contracts
The system has been worked out on
a scientific tasis.' Mr.. Latham said.
For instance, the matter Of cost Is de-
termined by precisely what costs enter
into the contract. Our per cent profit
is, in reality, nothing more than serT-
ice fee
The contractors made a request that
lie percentage If profit not be made pub
il was said because Of It's being
50 low they might lose further business
Members OF the board Of trustees aui
thn superintendent Of tie reformatory
refused TO discuss with newspaper men
the terms Of the contract awarded. As
did the contractors Governor MeGFay
told newspaper men It was the business
Of the board TO make public Its trans
action, but gave the figures when
pressed.
In connection with the signing If the
contract Governor McCray Issued a
statement In which he gave an expIana-
tion OF the cost plus program and re-
lated circumstances connected with the
building Of the Eeformatory.
This plan Of construction" he said.
wilt be surrounded By the most careful
supervision by agents of the state o. the
highest integrity The board cf trustees
viii buy al material approve all cons
tracts, check all pay rolls through their
supervising ageHt and safeguard every
possible leak 10 the fullest extent.
There VIII be complete supervision and
auditing of accounts by The Sgate board
et accounts, with representative OF that
board continually on the work at the
site
The board of trustees has weighed this
question carefully and It's members unani-
mously feel the time and material per
cehtage plan is the proper way To pro-
"eed. In their investigation Il has derel
oped that most Of the large buildings and
inportant construction work throughout
the country are being handled upon ths
percentage plan and we feel we can safely
follow the precedent.
III. Therefore has been determined that
This plan be followed for tie following
reasons:
Il. In order 70 save i've months val
<es BILE time.
- To the end that NC build most eco
Namicaiiy.
''3. In order that We can coutrol tho
situation at nil times
~ To enable rs to earn the Colgate
& Co. S50.oeo bonus.
Again I wish to assure the public
every safeguard possible will surround
this entire proposition to tae end that
the State Of Indiana viii receive 100 per
cent value for every 4. IlHr expended, as
near as ii IS humanity possible 10 do so