Blake Construction Co. v. United States

37 Cont. Cas. Fed. 76,224, 25 Cl. Ct. 177, 1992 U.S. Claims LEXIS 19, 1992 WL 11216
United States Court of Claims·Decided January 27, 1992·No. No. 556-85C·Published·Cited by 2 cases

Opinion

OPINION

SMITH, Chief Judge.

This case involves a claim arising out of a subcontract to a fixed-price contract between Blake Construction Company, Inc. (Blake) and the United States Department of the Navy, Naval Facility Engineering Command, for the construction of a hospital addition to the Naval Regional Medical Center in San Diego, California. The claim is brought under the contract’s disputes clause by the prime contractor on behalf of thé electrical subcontractor. The contract has been performed, the project has been completed, and plaintiff now seeks an equitable adjustment on its claim under the contract’s changes clause, following a denial by the contracting officer (CO). Since the trial, the government has filed a motion to dismiss, claiming that the plaintiff did not submit its claim to the CO, as 41 U.S.C. § 605(a) (1988) requires.

In light of the evidence presented at trial, and in consideration of the parties’ stipulations and post-trial submissions, the court finds that plaintiff is entitled to recover on its entire claim under the Contract [179] Disputes Act of 1978 (now codified at 41 U.S.C. §§ 601-611 (1988)). The court further denies the government’s motion to dismiss and plaintiff’s motion for sanctions relating to the government’s motion. Sanctions are not warranted in this case.

FACTS

On June 15, 1983, Blake Construction Company, Inc. (Blake), as prime contractor, entered into a $98.4 million contract with the Navy. In furtherance of its contract with the Navy, Blake entered into a subcontract on July 25, 1983 with Steiny and Company, Inc. (Steiny)1 to perform all electrical work on the addition for a total contract price of $10.2 million. Part of the electrical work involved the installation of an electrical feeder system, the subject of this litigation. An electrical feeder system is made up of the main power lines which distribute electrical energy to the hospital via a network of ever smaller lines that spread like tree branches through the hospital complex. In a large complex like this one there are also transformer units that reduce the high voltage lines coming into the hospital into various lower voltage ones for the ultimate hospital uses.

The design and contract drawings and the specifications for the hospital addition were prepared by a joint venture architect and engineering firm (A & E firm) hired by defendant. The joint venture consisted of Welton Becket & Associates, Hugh Gibbs & Donald Gibbs Architects, A.I.A., and Syska & Hennessy, Inc. The A & E firm produced thirteen books containing many hundreds of contract drawings and three volumes of contract specifications, all of which were provided to contractors interested in bidding on the construction project.

The project involved the construction of four buildings on a rectangular tract measuring approximately 1,200 feet by 200 feet. All floors of these buildings, including the ground floors, were to be built above grade. The four structures are:

(1) the central plant, which serves as the medical center’s heat and power station and contains heavy equipment and machinery to provide mechanical and utility services such as steam, heat, power, air and water;
(2) the warehouse, a one-story structure with fourteen foot high ceilings, where the medical center’s supplies are located;
(3) the auxiliary building, the largest of the four structures, which contains up to six levels of administrative offices, waiting rooms, examination rooms, doctor offices, operating rooms, a pharmacy, laboratories, a cafeteria, record storage, and kitchen and laundry facilities; and
(4) the nursing tower, a six-story building consisting of hospital rooms surrounding a core containing patient monitoring equipment.

Incorporated into the A & E firm’s design was a material and personnel corridor which runs most of the length of the ground floors of the four new buildings and connects the central plant at the southern end of the project to the nursing tower at the northern end as well as to the structures between. The corridor measures approximately 14 feet high by 18 feet wide, and is intended to facilitate the movement of people, supplies, and utilities within the hospital addition. Defendant represents that the corridor also is intended to house the electrical feeder system, a contention plaintiff disputes.

On or about December 13, 1983, Steiny excavated a trench eight feet deep near the path of the planned corridor, and began to install the electrical feeder in polyvinyl chloride (PVC) conduit in an underground concrete encased duct bank. When Navy personnel questioned Steiny about the trench and use of PVC conduit on December 13,1983, Steiny’s representative replied that it was installing the feeder system underground to avoid interference with other trades, as required by the contract. Because it believed the contract permitted this work, Steiny had not requested a change order or other authorization from the Navy. Two days later, the Navy gave written notice to Steiny that the Navy did [180] not consider an underground installation to be included in the contract, and directed that the duct bank be removed and the feeder system be installed within the confines of the corridor.

Blake gave timely notice to the Navy that it considered the Navy’s directive of December 15, 1983 to be a constructive change, and requested additional compensation. The Navy rejected this request. Steiny removed the underground duct bank under protest.

Thereafter, Steiny was directed by the Navy through Blake to install its conduit system precisely at the locations shown diagrammatically on the electrical drawings. On January 13, 1984, the mechanical subcontractor advised plaintiff that such an installation, however, required Steiny to install its conduits at the exact same location on the west side of the corridor where the amended mechanical drawings showed the installation of plumbing lines. This situation would prevail for 300 to 400 feet. Blake notified the Navy of this conflict, and was advised that it was the prime contractor’s responsibility to coordinate and resolve subcontractor problems of this nature. The Navy continued to insist that Steiny’s installations rest on the utility racks precisely as shown diagrammatically on the electrical drawings, and that the conduits at all times remain within the corridor.

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

Blake Construction Co. v. United States, 37 Cont. Cas. Fed. 76,224, 25 Cl. Ct. 177, 1992 U.S. Claims LEXIS 19, 1992 WL 11216 (cc 1992).

37 Cont. Cas. Fed. 76,224 (Blake Construction Co. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Blake Construction Co. v. United States
38 Cont. Cas. Fed. 76,537 (Federal Claims, 1993)
Blake Construction Company, Inc. v. The United States
987 F.2d 743 (Federal Circuit, 1993)