Binghamton Construction Co. v. United States

107 F. Supp. 712, 123 Ct. Cl. 804, 1952 U.S. Ct. Cl. LEXIS 80
CourtUnited States Court of Claims
DecidedOctober 7, 1952
DocketNo. 48525
StatusPublished
Cited by5 cases

This text of 107 F. Supp. 712 (Binghamton Construction Co. 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
Binghamton Construction Co. v. United States, 107 F. Supp. 712, 123 Ct. Cl. 804, 1952 U.S. Ct. Cl. LEXIS 80 (cc 1952).

Opinion

Whitaker, Judge,

delivered the opinion of the court:

Plaintiff brings this suit to recover under its contract with the War Department Corps of Engineers for the construction of a flood wall along the Chemung River in Elmira, New York. Plaintiff presents three claims as follows:

Claim for reimbursement of wage rates paid to carpenters,
laborers, and concrete puddlers_$15,697.38
Claim regarding measurement of' sheeting and shoring— 14,785.55
Claim for finishing of concrete_ 6,934.26
Total_ 37,317.19

Plaintiff’s first claim is that it was misled by defendant as to the wages it would be required to pay in carrying out the [834]*834contract. Briefly stated, the facts anent this controversy are these:

On March 29, 1941, plaintiff received from the Bingham-ton, New York, District office of the Corps of Engineers an invitation to bid upon the construction of Section 1 of the Elmira Flood Protection Project. .Plaintiff submitted a bid which defendant accepted on May 14, 1941. Formal notice to proceed was issued on June 5,1941.

The Standard Government Form of Invitation to Bid contained the following provision:

Investigation of Conditions. — Bidders are expected to visit the locality of the work and to make their own estimates of the facilities needed, the difficulties attending the execution of the proposed contract, including local conditions, availability of labor, uncertainties of weather, and other contingencies. * * * Failure to acquaint himself with all available information concerning these conditions will not relieve the successful bidder of responsibility for estimating the difficulties and costs of successfully performing the complete work. (Italics supplied.)

However, the contract specifications attached to the Invitation for Bids contained the following provision:

1-31. Wage and Labor Provisions, (a) The Secretary of Labor has determined the minimum wage rates applicable in the locality for the labor classifications anticipated to be used on the work. In accordance with Article 17 of the contract, employees at the site shall be paid not less than these wages as listed below:
Designation Wage rate — hourly
Carpenters, Journeymen-$1.00
# # * * *
Laborers, unskilled_ 0.50
Laborers, Concrete Puddlers-1- 0.50
*****

This minimum determination had been made by the Secretary of Labor on January 31, 1941, at the request of the Corps of Engineers preparatory to including it in the Invitation for Bids for this contract. Such a determination was required by the Davis-Bacon Act of August 30,1935,49 Stat. 1011,40IJ. S. C. §§ 276a, 276a-l.

[835]*835However, at "the time defendant issued the invitation for bids on March 29, 1941, and included therein the foregoing specifications relative to wage rates, the Secretary of Labor had since issued a new determination of the prevailing wage rates for Elmira. This was furnished to the Public Buildings Administration on March 4, 1941. In this it was said that the prevailing wage rates were as follows:

Classification Sourly rate
Carpenters, Journeymen_ $1.125
Laborers, unskilled_:_ 0.55'

This was not communicated to the Corps of Engineers, but the District Engineer was informed by the labor union as early as October 22, 1940, that a $.125 per hour increase for carpenters would take effect on January 1,1941. Despite this knowledge, the District Engineer before inviting bids on March 29, 1941, did not attempt to ascertain whether or not the Secretary of Labor had made a redetermination of the prevailing wage rates since his determination of J anuary 31, 1941, Had he done so he would have learned of the ■determination of March 4, 1941.

Prior to the submission of its bid, plaintiff did not attempt to make an independent investigation of the prevailing wage scale for the classes of labor to be utilized on this contract, but it computed its bid iii reliance upon the schedule of minimum wage rates contained in the specifications furnished.

When work on the project was started on June 3, 1941, plaintiff was unable to obtain workmen for the rates specified, but had to pay the prevailing union rate of $.625 per hour for unskilled laborers, including concrete puddlers, and :$1.125 per hour for carpenters. The rate for carpenters was put into effect on J anuary 1, 1941. Prior to the Invitation for Bids the rates for common laborers had increased from $.50 to $.55, and on April 1, 1941, they had risen to $.625.

Plaintiff promptly notified the District Engineer, the contracting officer, that the minimum wage rates set forth in the •contract specifications were less than the currently prevailing rates, but plaintiff was informed by the District Engineer on June 27,1941, that the minimum wage rates had been determined in accordance with the applicable law and regulations, and, consequently, that he could not grant any relief. [836]*836Plaintiff appealed this decision to the Chief of Engineers on July 10,1941. This appeal was denied by the Chief of Engineers on August 5,1941, principally on the ground that he lacked authority in law “to question the correctness of any determination made by the Secretary of Labor pursuant to the provisions of the above cited act [49 Stat. 1011].”

Following the completion of this project in December 1942, plaintiff on February 20, 1943, requested the Chief of Engineers to reconsider his action in dismissing its appeal of July 10,1941. On April 13,1943, the Chief of Engineers declined to change his earlier decision stating (1) that the contract made no representation as to the actual wage scales which would be in effect, and (2) that the increased costs did not arise from plaintiff’s contract obligations but from economic conditions which were ordinary contingencies contemplated under the terms of the contract.

The specifications furnished to plaintiff in connection with the invitation to bid specified the minimum wages to be paid in accordance with the determination of the Secretary of Labor. This determination was made by him pursuant to the requirements of the Davis-Bacon Act, sufra, which required him to determine the minimum wages to be paid “based upon * * * the wages * * * determined * * * to be prevailing” in the locality. His determination, therefore, so far as plaintiff’s rights are concerned, amounted to a determination of the prevailing wage. When made, his determination was correct, but before bids were invited, wages had gone up and he had made a new determination. Thus, when the Corps of Engineers represented that the Secretary of Labor had determined the prevailing wage rates to be $.50 and $1, this was a misrepresentation, although an unintentional one. Nevertheless, it was one upon which plaintiff was entitled to rely.

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Bluebook (online)
107 F. Supp. 712, 123 Ct. Cl. 804, 1952 U.S. Ct. Cl. LEXIS 80, Counsel Stack Legal Research, https://law.counselstack.com/opinion/binghamton-construction-co-v-united-states-cc-1952.