Archie and Allan Spiers, Inc. v. United States

296 F.2d 757, 155 Ct. Cl. 614, 1961 U.S. Ct. Cl. LEXIS 160
CourtUnited States Court of Claims
DecidedDecember 6, 1961
Docket219-58
StatusPublished
Cited by11 cases

This text of 296 F.2d 757 (Archie and Allan Spiers, Inc. v. 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
Archie and Allan Spiers, Inc. v. United States, 296 F.2d 757, 155 Ct. Cl. 614, 1961 U.S. Ct. Cl. LEXIS 160 (cc 1961).

Opinion

LARAMORE, Judge.

This action involves three separate claims by plaintiff resulting from a contract with the Navy to rehabilitate certain piers at the U. S. Naval Base (Naval Supply Center), Norfolk, Virginia.

Claim No. 1 is for damages for delays which occurred during an alleged 4-months’ period subsequent to completion of the contract work, which resulted from defendant’s alleged failure to accept the work promptly after it was completed.

Claim No. 2 is for damages caused by what plaintiff contends was an erroneous contract drawing on which plaintiff relied in bidding.

Claim No. 3 is for increased costs sustained in maintaining certain pipelines after they were completed by plaintiff and possession thereof taken by defendant.

Plaintiff’s claims were rejected by the contracting officer, and the Armed Services Board of Contract Appeals dismissed them for lack of jurisdiction. Suit in this court resulted and trial was had before a commissioner of this court. The commissioner has filed his report and numerous exceptions are taken by plaintiff to the commissioner’s findings.

Since the exceptions are many, we will not here undertake to discuss each one. Suffice to say that from an examination of the record we conclude that the commissioner’s findings are, with one exception, correct. The exception above noted has reference to commissioner’s finding 5. This finding lists the original contract price and the price as amended by change orders. The finding then recites payment for the contract work as amended and lists the contractor’s costs in the performance of the contract as amended. Finally, finding 5 sets forth the profit as being $43,073.03, or 8.99 percent of costs, and states that the contractor “ * * * thus realized a profit in excess of the 8% anticipated by it.”

We deem the profit made by plaintiff to be irrelevant to the issue of whether or not plaintiff sustained damages; consequently, plaintiff’s exception to finding 5 is sustained, and said finding is not adopted by the court.

The facts relating to plaintiff’s claims are as follows: On June 30, 1951, pursuant to an invitation for bids, plaintiff and defendant entered into a contract calling for the rehabilitation of designated pipelines on piers at the U. S. Naval Base (Naval Supply Center), Norfolk, Virginia. The contract price as increased by change orders was $522,-148.90.- The plaintiff’s bid was the only bid received by defendant under its invitation.

The plaintiff, a Virginia corporation, has its principal place of business in Newport News, Virginia, and for many years has been engaged as a plumbing and mechanical contractor.

The contract required that work be commenced on June 30,1951, and be completed by March 26, 1952. The contract contained a liquidated damages provision. By change orders issued pursuant to the termination of the contract, the contract completion date was extended by 538 cal *759 endar days, increasing the time for performance from the originally specified time of 270 days to 808 days, and the revised completion date was September 15, 1953. The work was completed in September of 1953 and no liquidated damages were charged. The contract work was accepted on January 12, 1954, retroactively to September 8, 1953.

The work required under the contract consisted of the removal and renewal of fuel oil and diesel oil piping on five piers, each approximately 1,350 feet long. Also required under the contract was the renewal of fresh water piping on two piers, and removal of gasoline piping on all piers. The contract also called for some earth work, concrete, steel and iron work, as well as insulation and weatherproofing on the pipelines. The piping was to be removed from and installed on the underside of the piers where it was suspended by hangers and supports.

Plaintiff was requested by telephone to bid on'the project in suit. It appears that one of the considerations with which the Navy contracting officer was faced at the time was the impending close of the fiscal year. In any event, on Friday, June 22, 1951, Mr. Allan Spiers went to the naval base and obtained the bid data. On June 28, 1951, plaintiff submitted its bid and was awarded the contract on June 30, 1951.

No examination of the site of the work was made on behalf of plaintiff before submission of its bid, although under the provisions of paragraph 1-21 and article 4(b) of the contract it was informed that inspection of the site was expected.

Paragraph 1-21 of the contract specifications provides:

“1 — 21. Examination of Premises. —Before submitting proposals, bidders are expected to inspect carefully the work in place and satisfy themselves as to the character and amount of work to be removed, renewed or replaced, and of new work. In this connection particular attention is invited to paragraph 1 of form no. 767d.”

Article 4(b) of the contract’provides':'

“Article 4. — Performance of the Work
“(b) Changed Conditions. — Information respecting the site of the work given in drawings or specifications has been obtained by Government representatives and is believed to be reasonably correct but the Government does not warrant either the completeness or accuracy of such information and it is the responsibility of the Contractor to verify all such information; Provided, That in case of subsurface, latent, or unknown conditions, this contract may be modified, when, in the manner, and to the extent hereinafter in this sub-paragraph provided: Should the Contractor encounter, or the Government discover, during the progress of the work, subsurface or latent conditions at the site materially differing from those shown on the drawings or indicated in the specifications, or unknown conditions of an unusual nature differing materially from those ordinarily encountered and generally recognized as being inherent in work of the character provided for in the drawings and specifications, the Contracting Officer shall be notified before the existing conditions are disturbed. The Contracting Officer shall thereupon promptly investigate the conditions, and if he finds that they do so materially differ, the contract shall be modified by the Contracting Officer to provide for any increase or decrease in cost and difference in time resulting from such conditions and an equitable adjustment in the pertinent contract terms shall be made in accordance with the provisions of paragraph (a) of Article 10 hereof. Such modification by the Contracting Officer shall be final, subject only to appeal under the provisions of Article 16.”

Much of the work was contracted for and performed by plaintiff during the Korean conflict, and plaintiff knew at the *760 time of bidding that there was a steel shortage. Plaintiff qualified its bid in this regard, as follows:

“* * Note. — Manufacturers state, materials will not be shipped, before sometime in the fourth quarter of this year, even with a D.O. rating. Contract Limits will have to be discussed later. * * * ”

Plaintiff’s letter of June 29, 1951, discussed the time extension that would be required to obtain materials.

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Bluebook (online)
296 F.2d 757, 155 Ct. Cl. 614, 1961 U.S. Ct. Cl. LEXIS 160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/archie-and-allan-spiers-inc-v-united-states-cc-1961.