Central Excavators, Inc. v. United States

116 Ct. Cl. 744, 1950 U.S. Ct. Cl. LEXIS 115, 1950 WL 4992
CourtUnited States Court of Claims
DecidedJune 5, 1950
DocketNo. 47959
StatusPublished

This text of 116 Ct. Cl. 744 (Central Excavators, Inc. 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
Central Excavators, Inc. v. United States, 116 Ct. Cl. 744, 1950 U.S. Ct. Cl. LEXIS 115, 1950 WL 4992 (cc 1950).

Opinion

Littleton, Judge,

delivered the opinion of the court:

On December 1, 1942, the defendant, acting through the Federal Public Housing Authority, hereinafter sometimes referred to as FPHA, issued an invitation for bids accompanied by specifications and drawings, for the work required or necessary for the temporary construction of facilities, demolition, excavating and grading, site improvements, and utilities for a large War Housing Project in Washtenaw County, Michigan. The contract for this work was awarded to the plaintiff, and the contract as agreed upon by the parties was entered into on December 31, 1942. The contract was for a lump-sum consideration of $2,149,993.18, which was arrived at by the parties as a result of negotiation on the basis of unit prices for the various items and quantities of work to be performed. The work called for by the contract, including that covered by various change orders issued under the provisions of Article 3 of the contract, was substantially completed by June 15, 1944, within the period fixed by the contract, as extended by certain change orders for additional work.

[770]*770In this proceeding the plaintiff seeks to recover the sum of $68,180.93 made up of the following items:

(1) Costs of additional premiums on performance bond_$4,500. S3
(2) Cost of increased wages paid to laborers — “crock layers” and “bottom men” — laying sewer pipe_ 8,216. 80
(3) Cost of increased wages paid, to “mason tenders working on manholes”_ 817,91
(4) Cost of increased wages paid to “transit-mix truck drivers”_ 1,336.40
(5) 15% for overhead and profit on change orders based on Exhibit A unit prices__S3,260.49
68,130.93

1. The facts with reference to the first item of plaintiff’s claim for additional premiums for performance bond are set forth in findings 7 to 11, inclusive.

The bid form provided that if performance and payment bonds should be required the successful bidder would be required to furnish such bonds “but the cost thereof will not be included in his bid, but will be paid for by the Government.” Paragraph 8 of the instructions to bidders stated that “If the amount of the contract is in excess of $1,000,000 but not in excess of $5,000,000, the amounts of the Performance and Payment Bonds shall each be equal to forty percent (40%) of the contract price * *

Plaintiff furnished the performance and payment bonds as required by Article 24 of the contract, based upon the contract price of $2,149,993.18.

Shortly thereafter the defendant, upon being advised of the amount of the premiums for said bonds, paid the same to plaintiff, in January 1943, in the total amount of $21,499.93 under Change Order No. 1. No other or further performance or payment bond was required by defendant under the contract. The premiums paid by defendant, as above-mentioned, were the total premiums established by plaintiff’s bondsman for the performance and payment bonds required by defendant and furnished by plaintiff. Article 3 of the contract under which the bonds were furnished provided that “The contracting officer may at any time, by a written order, and without notice to the sureties, make changes in the drawings [771]*771and/or specifications of this contract and within the general scope thereof.” Plaintiff made no claim for additional bond premiums in any of its proposals with respect to changes made by defendant under the contract during the period of performance thereof. There is no evidence that there was any provision in either of the bonds required by defendant, and. furnished by plaintiff, that additional premiums would be due in the event change orders were issued increasing the original lump-sum contract price. Neither is there any proof that defendant expressly or impliedly agreed to pay any sum for.bond premium in excess of the premiums which it has already paid on the bonds furnished by plaintiff at the time the contract was executed.

On September 23,1944, some three months after the work had been substantially completed, plaintiff submitted a claim for $4,500.33 to the contracting officer and asked reimbursement of this amount as additional bond premiums due as a ¡result of change order increases in the original contract price. This claim was denied by the contracting officer October 2, 1944, and no appeal was taken from this decision to the head of the department within the time required by Article 15 of the contract.

Upon final payment under the contract, plaintiff executed its final certificate and release to the Government on November 2, 1944, as required by Article 16 (a), and this item of claim for additional bond premiums was not included among the items excepted or reserved by plaintiff from the operation of this release of claims.

On the facts and under the terms of the contract, we think it is clear that plaintiff is not entitled to recover on this item. The plaintiff did not except this item of claim for further prosecution under the release of claims required by the Government and executed by plaintiff under Article 16 (d) of the contract. Moreover, it is admitted that the Government reimbursed the plaintiff for the total premiums due on the bonds given, and no additional security was required by the Government under Article ,20 of the contract or on account of the increased work or costs under change orders. The Govermnent agreed to pay only the bond premiums due on the amount of the bonds required, and the total amount, of such [772]*772premiums has been paid. Plaintiff is not entitled to recover on this item of its claim.

2. The next three items of plaintiff’s claim are substantially the same, and are for alleged increased wages paid (1) to laborers known as “crock layers” and “bottom men” engaged on the work of laying sewer pipes; (2) to “mason tenders working on manholes”; and (3) to “transit-mix truck drivers.”

The facts pertinent to these items of the claim are set forth in findings 12 to 31, and the provisions of Article 17 of the contract and of the Special Conditions of the specifications upon which the plaintiff relies, are set forth in findings 3 and 4. On the facts as shown by the record and under the terms of the contract and specifications, we are of the opinion that the plaintiff is not entitled to recover on any of these items.

Under the terms of Article 17 (a) of the contract and under the terms of the “General Conditions” and the “Special Conditions” of the specifications, the Secretary of Labor established certain classifications for skilled and unskilled labor and specified the minimum wage rates which the contractor would be required to pay for labor used in the performance of the work and falling within the labor classifications so indicated. The contractor was required by the contract to pay not less than the hourly wage rate set opposite the trade or occupation shown, “regardless of any contractual relationship which may be alleged to exist between the contractor or subcontractor and such laborers and mechanics,” and paragraph 39 (d) of the General Conditions of the specifications stated that “The Specified wage rates are minimum rates only, and the Government will not consider any claims for additional compensation made by the Contractor because of payment by the Contractor of any wage rate in excess of the applicable rate contained herein.

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

Related

United States v. Beuttas
324 U.S. 768 (Supreme Court, 1945)

Cite This Page — Counsel Stack

Bluebook (online)
116 Ct. Cl. 744, 1950 U.S. Ct. Cl. LEXIS 115, 1950 WL 4992, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-excavators-inc-v-united-states-cc-1950.