AA & EB JONES COMPANY v. Boucher

530 P.2d 974
CourtColorado Court of Appeals
DecidedOctober 30, 1974
Docket72-396
StatusPublished
Cited by2 cases

This text of 530 P.2d 974 (AA & EB JONES COMPANY v. Boucher) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AA & EB JONES COMPANY v. Boucher, 530 P.2d 974 (Colo. Ct. App. 1974).

Opinion

530 P.2d 974 (1974)

A. A. & E. B. JONES COMPANY, a Colorado corporation, Plaintiff-Appellant,
v.
A. Rowland BOUCHER and Mary Kathleen Boucher, Defendants-Appellees, Security National Bank, a corporation, et al., Defendants.

No. 72-396.

Colorado Court of Appeals, Div. II.

October 30, 1974.
Rehearing Denied November 19, 1974.
Certiorari Denied February 3, 1975.

*976 James J. Johnston, Denver, for plaintiff-appellant.

Banta, Banta & Eitel, Tom L. Eitel, Englewood, for defendants-appellees.

Rothgerber, Appel & Powers, Robert S. Slosky, Nathaniel E. Butler, Denver, for amici curiae American Gen. Contractors of America, Inc. and American Gen. Contractors of Colorado, Inc.

Not Selected for Official Publication.

RULAND, Judge.

In this dispute between plaintiff, A. A. & E. B. Jones Company, (contractor) and defendants A. Roland Boucher and Mary Kathleen Boucher (Bouchers) relative to *977 construction of a personal residence for Bouchers, contractor appeals from a judgment awarding damages to Bouchers. We affirm. Because the case involves a standard form of contract used frequently by contractors, the Associated General Contractors of America, Inc., and the Associated General Contractors of Colorado, Inc., were permitted to file amicus curiae briefs.

The following facts are not disputed. Late in 1968, Bouchers engaged Henry Lacy to design a residence for them to be located on their property in Cherry Hills Village, Colorado. Subsequent to his employment, Lacy and then Bouchers conferred with representatives of contractor relative to construction of the residence. These discussions culminated in a written contract dated March 14, 1969. That contract consisted of the pre-printed American Institute of Architects standard form of agreement between owner and contractor where the basis of payment is "cost of the work plus a fee" and the American Institute of Architects General Conditions for Construction. Various provisions were drafted by the parties and included in the contract, including a provision wherein contractor agreed to construct the residence for a guaranteed maximum cost to Bouchers of $250,000, according to site plan drawings, foundation plans, and other preliminary drawings attached to the contract, and plans and specifications to be supplied thereafter by Lacy. Also included were additional provisions stating that the guaranteed price was subject to increase or decrease for revisions to the residence represented by change orders executed by the parties, as follows:

17.3 "It is understood that additional working drawing sheets, specifications, and supplementary conditions are being prepared by the Architect and upon completion will become a part of this Contract by written addendum approved by the parties. The Contractor shall cooperate with the Architect and Owner in the preparation of the final plans and specifications and shall notify the Owner and Architect if the Contractor believes that the cost of the work and materials required by the plans and specifications will exceed the maximum cost to the Owner under Article 6.2."
17.4 "Upon receipt of final and complete plans and specifications, Contractor will solicit bids from persons and organizations necessary to complete the project and shall deliver such bids to the Architect. The Architect will then determine, with the advice of the Contractor, and subject to the approval of the Owner, which bids will be accepted. Upon acceptance of the bids necessary to complete the project, the Contractor will prepare a detailed estimate of the cost of the project incorporating its own jobsite operations with such subcontract and material costs. Nothing herein shall be construed to limit Owner's rights under Article 6 of the General Conditions [which establishes the Guaranteed Maximum Cost]. The Contractor will not be obligated to approve the final and complete plans and specifications until the bids necessary to complete the project have been accepted by the Architect and approved by the Owner."

Following execution of the contract, contractor began construction and Lacy, with the assistance of Edwin Jones, Jr., (Jones), an officer for contractor, and Lacy's employee, Sergio Ruiz, continued to work on additional and revised drawings for the residence. On October 2, 1969, contractor and Bouchers executed change order no. 1 to the contract. This document purported to clarify the written contract as to what items would be covered in the residence and allowances were made for additional items to be included. The effect of the document was to increase the guaranteed price for construction of the residence from $250,000 to $341,871. Contractor was paid monthly based upon statements submitted and approved either by Bouchers or Lacy.

*978 Henry Lacy died in mid-December 1969. Contractor continued work on the residence until January of 1970, when it terminated work on the basis that additional information and agreements relative to construction were required. The parties attended a meeting on January 28, 1970, at which Jones presented an estimate of the cost required to finish the residence. At this meeting Stuart Ohlson was appointed as architect by Bouchers. Pursuant to this meeting Jones prepared a letter on March 9, 1970 (referred to herein as the March 9 letter), relative to completion of the residence which was ultimately signed and approved by Bouchers. As relevant here, the March 9 letter stated as follows:

"This letter will serve to define contract revisions for the construction of the A. R. Boucher Residence . . .. A certain amount of confusion has resulted from the death of Henry F. Lacy, Jr. in regard to the completion of subject residence. Some items concerning finish work have not been specified or described on drawings. It was anticipated that this work would be dealt with on a cost plus basis added to the initial contract sum through the issuance of appropriate change orders.
"On January 28, 1970, a completed cost estimate was provided by A. A. and E. B. Jones Company. This estimate totaled $662,258 plus General Contractor's additional fee for $18,000, resulting in a total sum of $680,258. In an effort to reduce this total sum the following deductions shall be made with the intention that with completed working drawings the finished cost of each item may be reduced and a new agreement entered into for the completion of these items.. . . [15 separate items are described in the letter at this point.]
"It is understood the General Contractor is authorized to proceed with the work as related to the present contract and to continue the work as evidence in Change Order #2 (Architect to process same as soon as possible), with the understanding that items outlined above, deleted at the present time, shall, upon the completion of working drawings and specifications increase the contract by those amounts required to complete those items.

"Figuratively, the amounts involved are recapped as follows:

Present contract amount          $341,871.00
Change Order No. 2                192,200.00
                                 ___________
Revised contract amount           534,071.00
Original estimate on items deducted,
including GC fee, pending
reevaluation                      146,187.00
                                 ___________
Cost estimate as of January 28,
1970                             $680,258.00

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Colorado Division of Insurance v. Auto-Owner's Insurance Co.
219 P.3d 371 (Colorado Court of Appeals, 2009)
TRW, INC. v. Fox Development Corp.
604 N.E.2d 626 (Indiana Court of Appeals, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
530 P.2d 974, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aa-eb-jones-company-v-boucher-coloctapp-1974.