Ambrose-Augusterfer Corporation v. The United States

394 F.2d 536, 184 Ct. Cl. 18, 1968 U.S. Ct. Cl. LEXIS 111
CourtUnited States Court of Claims
DecidedMay 10, 1968
Docket377-63
StatusPublished
Cited by17 cases

This text of 394 F.2d 536 (Ambrose-Augusterfer Corporation v. The United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ambrose-Augusterfer Corporation v. The United States, 394 F.2d 536, 184 Ct. Cl. 18, 1968 U.S. Ct. Cl. LEXIS 111 (cc 1968).

Opinion

SKELTON, Judge.

The plaintiff, on behalf of its subcontractor, seeks an equitable price adjustment under a contract with the General Services Administration (GSA) for the installation of a central air-conditioning system and, alternatively, damages for breach of that contract. 1 More specifically, on March 23, 1960, the defendant through the GSA awarded plaintiff a fixed-price contract in the amount of $2,389,000. The contractual scope of work included “the furnishing of all labor and materials and performing all work required for the alterations, additions, repairs, and miscellaneous changes in construction of architectural, structural, mechanical and electrical work for the installation of a new air conditioning system at the United States Post Office (Main) at 30th & Market Streets, Philadelphia 4, Pennsylvania; all as shown on * * specified contract drawings “and as may be directed.” (Section 2-1).

Thereafter, the plaintiff awarded a subcontract to Willard Electric Construction Company for the performance of all electrical work covered by the prime contract. The issue presented to th General Services Administration Board of Contract Appeals (GSABCA) after denial of the claim by the contracting officer, was whether plaintiff was entitled to additional compensation for work performed under protest by its subcontractor in connection with the removal, rehanging, and recircuiting of 2,398 lighting fixtures at the direction of the contracting officer. The problem was accentuated by the fact that the disputed fixtures were physically attached to existing ductwork in the building, which ductwork the plaintiff was obligated to remove. This demolition work constituted 90 percent of the total contract work. Naturally, we will explore the crucial facts and contentions of the parties in detail, but first we will summarize the factual and legal conclusions of the Board. 2

The Board concluded, after analysis of the contract provisions and consideration of the competing interpretations, that the disputed work was a normal and expected procedure in the course of completion of such a job and required by the contract. It also found that plaintiff, “paying due heed to all requirements of its total commitment, reasonably should have known under the prevailing circumstances that the disputed fixtures were affixed to the ducts and provided with essential wire connections, or at the least could have ascertained such information had logical and prudent inquiry timely been made prior to bidding.” Accordingly, the appeal was denied.

At the outset, we note that the factual findings of the Board are binding here, as they have not been upset by a showing of inadequate evidentiary support or any comparable infirmity. We also have determined that in all *539 material respects, its legal conclusions are correct.

The plaintiff asserts two claims in connection with the lighting fixtures in dispute. The first claim consists of the cost of removing the fixtures and replacing them with new hangers after removel of the ducts to which they were originally attached. The second claim is for the cost of relocating the wiring after the removal of the ductwork in which the wiring had originally been encased.

As formulated by the parties, the dispute before the Board (as in this court) focused on the meaning and relationship of numerous contract provisions.

Indeed this case is a- prime example to illustrate the principle that in the construction of a contract, “[t]o its words we at first resort, but not to one or a few of them but to all of them as associated, and as well to the conditions to which they were addressed and intended to provide for.” Merrill-Ruckgaber Co. v. United States, 241 U.S. 387, 392, 36 S.Ct. 662, 664, 60 L.Ed. 1058 (1916).

The material facts, however, must first be related.

The post office building in which the work was to be performed contained five floors in addition to a penthouse and sub basement. Each floor measured four and one-half acres in area and approximately 20,000 lighting fixtures were located throughout the building and situated twenty feet above the floor.

It is undisputed that the contract drawings showed the existence of the ductwork, but gave no information whatsoever with respect to the existence of the disputed fixtures. Additionally, the contract drawings provided specifically for the removal, rehanging and recircuit-ing of 308 lighting fixtures which were located in certain designated areas known as air handling rooms. No work thereon is in issue here, and it is pertinent to note that comprising the 308 fixtures were 144 new fixtures which were to be furnished and installed and 164 existing fixtures which were to be removed and relocated.

Prior to bidding, the subcontractor’s estimator testified that he had thoroughly reviewed the detailed specification requirements and had correlated them with the work indicated on all the contract drawings. The estimated cost of the electrical work was not determined until after the estimator had visited the site. On such visit, he confirmed the view of the scope of the work gained from the prior study of the contract documents,'and verified the actual count of 308 fixtures as shown on the drawings.

After the subcontract was executed, the subcontractor’s project engineer visited the site to evaluate the project in terms of the labor force necessary to do the required work. He reevaluated the earlier estimate and concurred in its conclusion, including specifically that only the 308 fixtures were a contract responsibility. It is also to be noted that prior to bidding, the plaintiff’s vice president had also made an inspection of the work site.

At, or shortly after commencement of the demolition work, a dispute arose when the construction engineer directed the subcontractor to remove and replace a then undetermined amount of lighting fixtures in excess of the 308 fixtures specifically portrayed on the contract drawings. The subcontractor notified the plaintiff and requested a contracting officer’s decision. The subcontractor claimed that removal and replacement of lighting fixtures in any quantity in excess of the 308 fixtures noted on the contract prints was not within the intent of the contract documents.

As mentioned earlier, the subcontract- or complied with the verbal order given by the construction engineer, 3 but proceeded under protest. Sometime later, the construction engineer recommended payment of the plaintiff’s requested change order covering the additional *540 electrical work on the basis that the work was not covered in the contract drawings or specifications.

Pursuant to a review by GSA representatives, the architect-engineer was advised by the Acting Chief, Design and Construction Division, that the work was required by the contract.

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394 F.2d 536, 184 Ct. Cl. 18, 1968 U.S. Ct. Cl. LEXIS 111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ambrose-augusterfer-corporation-v-the-united-states-cc-1968.