Bucko Construction Co. v. Indiana Department of Transportation

850 N.E.2d 1008, 2006 Ind. App. LEXIS 1390, 2006 WL 2035322
CourtIndiana Court of Appeals
DecidedJuly 21, 2006
Docket45A03-0507-CV-325
StatusPublished
Cited by2 cases

This text of 850 N.E.2d 1008 (Bucko Construction Co. v. Indiana Department of Transportation) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Bucko Construction Co. v. Indiana Department of Transportation, 850 N.E.2d 1008, 2006 Ind. App. LEXIS 1390, 2006 WL 2035322 (Ind. Ct. App. 2006).

Opinion

OPINION

FRIEDLANDER, Judge.

In November 1996, the Indiana Department of Transportation (INDOT) reviewed Bucko Construction Company, Inc.'s (Bucko) performance as a contractor with the State and, based on Bucko's deficient performance on Contract R-20974 (the *1010 Contract), reduced Buceko's prequalification rating for highway construction projects by thirty percent. Bucko administratively appealed the reduction and, after its administrative remedies proved unsuceessful, sought judicial review in December 1998. While the judicial review action was pending, Bucko filed a complaint against INDOT for alleged violations of the Contract. Thereafter, Bucko supplemented the record in the Lake Superior Court judicial review action by submitting the judgment from the Marion Superior Court contract case. In affirming INDOT's decision to reduce Bueko's prequalification rating, the Lake Superior Court refused to consider the judgment of the Marion Superior Court. On appeal, Bucko claims the Marion Superior Court judgment was controlling and should have been considered in the judicial review action. 1

We affirm.

Bucko is an Indiana corporation engaged in the business of heavy highway contracting and bituminous asphalt paving. In February 1994, Bucko entered into the Contract with INDOT for interstate rehabilitation and bridge reconstruction on a portion of 1-65 in Jasper and White Counties. The contract was to be completed in two phases. Phase I involved the outside (or driving) lanes of the interstate, while Phase II involved the inside (or passing) lanes. The Contract specified that the phases would be completed on July 31 and November 1, 1994, respectively. The final completion date was to be November 15, 1994.

On Phase I of the project, Bucko was given a time extension to August 13, but did not complete the phase until September 16. Similarly, on Phase II, INDOT extended the completion date to November 18, but the phase was not complete until November 22, 1994. Although substantially complete at the end of Phase II, the overall project was not finally complete and accepted until September 24, 1996.

John Shaw was the project engineer employed by INDOT and assigned to oversee the project. Throughout work on the project, which began in April, Shaw encountered numerous problems with Bucko's performance. These included delays, an unusually high number of failed materials tests, frequent equipment failures, plant shutdowns, and the use of materials from unapproved sources. In addition to monitoring Bucko's progress, Shaw was also responsible for evaluating Bucko's work throughout the course of the project. As part of his evaluation, Shaw had the responsibility for preparing CR-2 reports, which are submitted to INDOT's prequali-fication committee for consideration of contractors' qualifications and performance capacity ratings. In general, a CR-2 report is prepared only at the completion of a project. Interim CR-2 reports may be prepared, however, to address problems *1011 during construction. Shaw prepared two interim CR-2 reports during the project.

The first interim CR-2 report, issued July 12, 1994, was precipitated by a particular incident when Bucko used sand from an unapproved source, requiring a plant shutdown. Shaw was especially concerned because Bucko had recently done this on another contract with the State. On the CR-2 report, Shaw gave Bucko "unsatisfactory" or "2" ratings for "workmanship and voluntary conformance with specs and standards" and "attitude toward the Engineer and Department regulations." 2 In addition to the incident with the sand, Shaw noted that there had already been seven failed material tests. He also gave Bucko an unsatisfactory rating for the condition of its construction equipment, which had broken down on numerous occasions and disrupted production. Finally, Shaw rated Bucko low on rate of progress, noting that Phase I was 12% behind schedule and opining that it would be "very difficult to complete phase on time." Id. at 344.

Just prior to the interim CR-2 report, the area engineer, Samuel Huckleberry, sent a letter to Bucko expressing INDOT's concern with delays on the project. After indicating that the project was 138% behind schedule, Huckleberry requested that Bucko "furnish a revised progress schedule" and indicated, "prompt submission of the revised chart is essential." Id. at 356. Bucko never furnished a revised schedule.

By August 25, 1994, Shaw had serious concerns with the completion of Phase I by Labor Day and of the overall project by the end of the season. He communicated these concerns to Bucko in a letter.

In particular, [Shaw] projected that, based on Bucko's 650 ton per day average for laying material, the project would not be completed in time. [Shaw] considered this rate of production to be low and that it was caused by equipment failures and plant shut downs. [Shaw)] also noted in this letter that the project was 55% compete even though the projected time for the project was nearly 70% complete. Finally, he noted his concerns that the delays would cause with respect to paving, concrete, pavement markings, and seeding during the colder months of November and December. [Shaw] did not receive a response to this letter, nor did INDOT ever receive a revised schedule as to how Bucko planned to complete the project on time.

Appellant's Appendix at 64. As set forth above, Phase I was completed September 16, 1994, more than one month after the revised completion date.

Shortly thereafter, on September 21, Shaw issued another interim CR-2 report. This time, Bueko received even lower ratings in several areas. The ALJ's findings 3 place particular emphasis on this report and provide as follows:

*1012 14. On September 21, 1994, shortly after the completion of Phase I, [Shaw] completed a second interim CR-2 report. He noted the foregoing problems. With respect to "Rate of Progress," he gave them an "unsatisfactory" or "2" rating, noting particularly the delay in completing Phase I and expressing his concern about completing the project overall by the end of the construction season. In a note to the report, Dan Carpenter [ (the district construction engineer) ] reiterated these concerns that "[tJhere is every reason to believe that this project will not be finished this season as required." [/Appel-lee's Appendix at 342.]
15. With respect to "workmanship and voluntary conformance with specs and standards," and "attitude toward the Engineer and Department regulations," [Shaw) gave Bucko "wholly inadequate" or "1" ratings ... which are a step lower than his July 12 ratings for those areas. The ratings were based on two factors: (1) being observed blending #9 aggregate from Vulcan at Monon to the stockpile of # Is from Vulcan at Francesville," [sic] and (2) the existence of 10 failed material reports, including the failure and removal of 460 tons of 5C base.
16. Regarding failed materials, there were a total of 10 failed material reports for bituminous mixtures during Phase I....

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850 N.E.2d 1008, 2006 Ind. App. LEXIS 1390, 2006 WL 2035322, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bucko-construction-co-v-indiana-department-of-transportation-indctapp-2006.