Calfon Construction Inc. v. United States

35 Cont. Cas. Fed. 75,738, 18 Cl. Ct. 426, 1989 U.S. Claims LEXIS 210, 1989 WL 123231
United States Court of Claims·Decided October 18, 1989·No. No. 792-87C·Published·Cited by 30 cases

Opinion

OPINION

NETTESHEIM, Judge.

This contract case is before the court after trial. Each party has submitted a post-trial brief on the legal significance of plaintiff’s failure to supply written notice to the contracting officer of orders that it regarded to be constructive changes to the contract.

FACTS

The facts of this case were discussed in an earlier order denying defendant’s motion for summary judgment. See Calfon Constr. Inc. v. United States, 17 Cl.Ct. 171 (1989). The facts outlined on summary judgment are revisited below to the extent necessary.

On September 30, 1983, Calfon Construction Inc. (“plaintiff”) was awarded fixed-price contract No. N62474-83-C-2349 calling for concrete paving of the Hangar 300 aircraft apron located at the Naval Air Station in Fallon, Nevada (“Fallon”). The Invitation for Bids issued on August 19, 1983, contained the following Description of Work:

The work includes the furnishing of all labor, materials and equipment for demolition and removal, earthwork, storm drainage system, portland cement earthwork, storm drainage system, portland cement stabilized base course, asphalt concrete pavement, portland cement concrete pavement, cast-in-place concrete, joints, reinforcement and mooring eyes in concrete pavements, resealing in rigid pavements, pavement markings, concrete repairs, metal work, air start compressed air system, underground electrical work, airfield lighting, cathodic protection and incidental related work.

The contract price was $2,599,280.00. At trial plaintiff’s President Vincent S. DeBel-lis testified as to the scope and order of the contract work:

We had to remove the existing concrete in some areas and we had to remove the concrete underneath the existing aprons in configurations that would allow us to put in the air-start system [for starting naval aircraft] and the storm drain system, then backfill that, test the lines, backfill them, then go and put a one-inch bond breaker down, put some base course down in other areas that the concrete didn’t overlay the existing concrete, and put in a base course there, and then lay down the eight-inch overlay [of portland cement concrete].

The contract drawings reflected a grading plan, finished elevations, and the typical overlay for the Hangar 300 apron. Drawing C-4 contained the finished elevation and contour grades to be met by the contract. Drawing C-13 depicted a typical finished concrete section showing an eight-inch portland cement concrete (“PCC”) overlay.

Plaintiff proceeded to perform the contract in conformance with the contract specifications. A one-inch A.C. bond breaker was installed over the entire apron as called for by the plans and specifications. Subsequent to the installation of the A.C. bond breaker and prior to commencing work on the PCC overlay, rain ensued. Plaintiff discovered that puddling had developed on the one-inch A.C. bond breaker. Plaintiff viewed the puddling and poor drainage as unsatisfactory. If plaintiff poured the PCC overlay to conform to the A.C. bond breaker, the same pattern of puddling would occur on the finished surface.

The General Provisions of the contract included paragraph 62(a), the contractor’s “Warranty of Construction:”

In addition to any other warranties set out elsewhere in this contract, the Contractor warrants that work performed under this contract conforms to the contract requirements and is free of any defect of equipment, material or design furnished, or workmanship performed by the Contractor or any of his [428]*428subcontractors or suppliers at any tier. Such warranty shall continue for a period of one year from the date of final acceptance of the work, but with respect to any part of the work which the Government takes possession of prior to final acceptance, such warranty shall continue for a period of one year from the date the Government takes possession. Under this warranty, the Contractor shall remedy at his own expense any such failure to conform or any such defect____

(Emphasis added.) Paragraph 62(f) identifies the situation where the defect is not the fault of the contractor or subcontractor:

Notwithstanding any other provision of this clause, unless such a defect is caused by the negligence of the Contractor or his subcontractors or suppliers at any tier, the Contractor shall not be liable for the repair of any defects of material or design furnished by the Government, nor for the repair of any damage which results from any such defect in Government furnished material or design.

(Emphasis added.)

Drawing C-4 detailed the development of required drainage patterns across the entire apron. Drawing C-13 is what engineers refer to as a “bubble”; the contents of the bubble reference details found in other drawings. Drawing C-13 stated that the “typical” cross-section of concrete would be eight inches thick over the entire PCC overlay, as shown in Drawing C-4. Drawing C-4 displays a variation in contour elevations from 33.0 to 36.5 degrees. In order to create drainage lines, the elevations fluctuated from increases in elevation followed by decreases within the contour lines; however, the drawings did not afford much detail. The evidence supports an inference that both parties expected that an eight-inch overlay of PCC was required throughout.

Prior to commencing work on the concrete overlay, plaintiff’s quality control representative Murray E. Morin noticed a variety of related problems. Mr. Morin believed that if plaintiff installed a uniform eight-inch overlay across the entire apron, consistent with Drawing C-13, the cement apron would cover some of the electrical vaults that had been installed, would not adjoin properly with adjacent lanes and aprons (the “KDH taxiway” and the “Bru-toco apron”), and would not provide sufficient drainage. Plaintiff complained in July of 1985, and the Navy would later agree, that a discrepancy existed between contract Drawings C-4 and C-13. Laying down a straight eight-inch overlay would not work; alternative solutions were required.

On August 26, 1985, prior to plaintiff’s planned commencement date of mid-September and in response to Mr. Morin’s having alerted him to the problem with lack of correlation between the pavement elevations and the electrical vaults, Lt. Stephen J. Markey, Assistant Resident Officer in Charge of Construction (“ROICC”), estimated the increase in costs to the Navy if plaintiff were directed to follow the contours of Drawing C-4. Lt. Markey, who had been the contracting officer since March of that year, directed Navy surveyors from Fallon to gather data on apron elevations. From the survey data collected, Lt. Markey predicted that the overrun would be approximately $100,000.00. To verify his estimates, he requested that his superiors at the Western Division, Naval Facilities Engineering Command (“WEST-DIV”), immediately requisition a new survey of the apron to be conducted within ten days. In a letter dated August 26, 1985, Lt. Markey wrote:

2. The preliminary survey data from Public Works, NAS Fallon, and the Contractor indicates the elevations of the existing Hanger # 300 pavement do not correlate with the finished elevations on page C-4 of the subject contract plans.
3. The contractor currently plans to start paving in mid-September.

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Calfon Construction Inc. v. United States, 35 Cont. Cas. Fed. 75,738, 18 Cl. Ct. 426, 1989 U.S. Claims LEXIS 210, 1989 WL 123231 (cc 1989).

35 Cont. Cas. Fed. 75,738 (Calfon Construction Inc. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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