Carney, Inc. v. City of Trenton

562 A.2d 807, 235 N.J. Super. 372
CourtNew Jersey Superior Court Appellate Division
DecidedDecember 2, 1988
StatusPublished
Cited by10 cases

This text of 562 A.2d 807 (Carney, Inc. v. City of Trenton) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carney, Inc. v. City of Trenton, 562 A.2d 807, 235 N.J. Super. 372 (N.J. Ct. App. 1988).

Opinion

235 N.J. Super. 372 (1988)
562 A.2d 807

THOMAS P. CARNEY, INC., AND MICHELE GIGLIO, PLAINTIFF-APPELLANT,
v.
CITY OF TRENTON, A MUNICIPAL CORPORATION, TRENTON WATER WORKS, AND FITZPATRICK & ASSOCIATES, INC., DEFENDANT-RESPONDENT.

Superior Court of New Jersey, Appellate Division.

Argued October 12, 1988.
Decided December 2, 1988.

*373 Before Judges LONG and KEEFE.

David J. Kenny, argued cause for appellant (Hartsough, Kenny & Innes, attorneys, David J. Kenny on the brief).

George T. Dougherty, City Attorney, argued cause for respondents, City of Trenton and Trenton Water Works.

*374 Ann F. Kiernan, argued cause for respondent, Fitzpatrick & Associates, Inc. (Jamieson, Moore, Peskin & Spicer, attorneys; Ann F. Kiernan, of counsel and on the brief).

Bruce P. Ogden, argued cause for amicus curiae, Mechanical Contractors Association of New Jersey, Inc. (Lindabury, McCormick & Estabrook, attorneys; Edward J. Frisch, of counsel; Bruce P. Ogden, on the brief).

KEEFE, J.A.D., temporarily assigned.

Two issues concerning the Local Public Contracts Law, N.J.S.A. 40A:11-1, et seq. are raised on this appeal. They are: 1) whether § 16 of the Local Public Contracts Law prohibits naming multiple subcontractors for each branch of work identified in the bid proposal without contracting with each of them after the contract is awarded; and 2) whether a local contracting unit can waive a condition of the bid proposal which provides that the bid price in written terms prevails over the bid price expressed numerically.

This case involves a contract awarded for the construction of the Trenton Water Works Distribution Center (Project). The Project owner, City of Trenton (City), is a municipal corporation of the State of New Jersey. Thus, the advertising, bidding and contracting for the Project are governed by the Local Public Contracts Law, N.J.S.A. 40A:11-1, et seq.. The Project specifications contained a Notice for Bids which provided that,

Bid Proposals will be received as a lump-sum bid including general construction; structural steel and miscellaneous metal; plumbing and drainage; heating, ventilating and air conditioning; electrical and landscaping work.

The bidding, therefore, was to be done on a "single-prime" basis in which the successful low bidder would contract to perform the entire work with the aid of subcontractors in the specialty trades. The Instructions to Bidders directed that the bid "proposal shall be submitted on the Form of Proposal furnished by the Architect properly filled out and duly executed" by the bidder. The Form of Bid Proposal stated:

*375 The General Contractor [e.g. bidder] must list the name of each Prime Sub-Contractor for each Trade noted below whos[e] price was included i[n] his Single Overall Bid Proposal. The Substitutions of Prime-Subcontractor working on this Project will not be permitted.

On February 22, 1988, the City accepted bids for the project. Plaintiff, Thomas P. Carney, Inc. (Carney) submitted a base bid of $5,097,441.00. Defendant, Fitzpatrick & Associates, Inc., (Fitzpatrick) submitted a base bid in written terms of $4,000,995.00 and in numerical figures of $4,995,000.00. Fitzpatrick's bid, even at the higher number, was the low bid while Carney's was the second lowest bid. The bid proposal contained a table listing the separate trades for which subcontractors could be used. The form completed by Fitzpatrick appeared as follows:

SUB-CONTRACTOR
                              TRADE
Schlosser, Wolfer,            Structural Steel and Miscellaneous
Steel Crafters                Steel
J.A. Christman, E.F. Grant    Plumbing and Drainage
Air Con[,] E.F. Grant         Heating Ventilating and
                              Air-Conditioning [HVAC]
Elec. Constr[,] KDL Elec      Electrical

In each of the trade branches, Fitzpatrick named multiple subcontractors; three for the steel and two each for the remaining trades. In contrast, Carney's bid listed a single subcontractor for each of the four trades.

Following the subcontractor listing, the form of bid proposal then included five "Alternate Bids." These alternates required each bidder to bid a price for each of five items of additional or alternate work to be added to the base price bid if the City determined after the bidding to have any of the additional or alternate work done.

On April 7, 1988, the City accepted the base bid of Fitzpatrick at the figure of $4,995,000.00, together with alternates two, four and five, for a total bid of $5,350,000.00. The Carney bid *376 with the same alternates totaled $5,422,800.00, or $72,800.00 more.

Carney instituted this suit on April 11, 1988, challenging the award of the contract to Fitzpatrick. Subsequently, the complaint was amended to add Michele Giglio, a resident of the City, as an additional plaintiff. By consent order entered on April 13, 1988 to proceed in a summary manner, the City was enjoined from taking any "further action in connection with the execution of a contract with defendant Fitzpatrick and Associates, Inc. for the construction of Trenton Water Works Distribution Center." After argument on the adjourned return date, Judge Levy dismissed the complaint and denied Carney's motion for a stay pending appeal. Carney filed its notice of appeal and an emergent motion for a stay. That stay was denied by this court on May 16, 1988. By leave granted, the Mechanical Contractors Association of New Jersey appear amicus curiae. Due to the public nature of the issues involved, the appeal was accelerated.

In an affidavit filed with the trial court, John R. Fitzpatrick, president of Fitzpatrick and Associates, Inc., stated that in light of the alternates selected by the City, Fitzpatrick would use Steel Crafters, one of the three listed steel companies, "as [its] structural steel contractor, because that contractor submitted the lowest figures on the package selected by the City." As to the other trades, Fitzpatrick claimed that he listed two subcontractors each for the plumbing and HVAC work because one subcontractor (Grant), who would perform the bulk of the job, did not work on fuel tanks, and the other subcontractors (Christman and Air Con) would do the plumbing and HVAC needed for the fuel tanks. He said that the work concerning the electrical subcontract would be allocated between fuel tank work (Electric Construction) and the remainder (KDL Electric).

Carney submitted a certification by Dale H. Fera, the president of Steel Crafters. Fera certified that in quoting the steel *377 subcontract work to both Fitzpatrick and Carney, Steel Crafters quoted all of the steel work and did not quote any break-out prices "for various types of work or a portion of the ... work." Thomas Carney certified that in quoting the electrical work to Carney, KDL Electric did not exclude the fuel oil tanks, but rather quoted a price for all of the electrical work. The certifications of Fera and Carney were submitted to refute Fitzpatrick's claims that it computed its bid on the basis of base/alternate work break-out prices which were necessitated by reason of the base bid price plus alternates as proposed by the City.

Section 16 of the Local Public Contracts Law provides in relevant part:

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Bluebook (online)
562 A.2d 807, 235 N.J. Super. 372, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carney-inc-v-city-of-trenton-njsuperctappdiv-1988.