Chas. T. Main, Inc. v. Massachusetts Turnpike Authority

196 N.E.2d 821, 347 Mass. 154, 1964 Mass. LEXIS 733
CourtMassachusetts Supreme Judicial Court
DecidedMarch 4, 1964
StatusPublished
Cited by17 cases

This text of 196 N.E.2d 821 (Chas. T. Main, Inc. v. Massachusetts Turnpike Authority) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chas. T. Main, Inc. v. Massachusetts Turnpike Authority, 196 N.E.2d 821, 347 Mass. 154, 1964 Mass. LEXIS 733 (Mass. 1964).

Opinion

Cutter, J.

This is an action at law 1 brought by an engineering corporation (Main) to recover fees for services rendered in designing and supervising construction of a part of the Massachusetts turnpike. The case was referred to an auditor. A judge of the Superior Court heard the case on the auditor’s report, a statement of counsel about what an engineer would testify concerning one item, and *156 certain minor documentary evidence. The judge found for Main on certain counts and made additional findings. The case is before us upon a consolidated outline bill of exceptions (see Buie 22 of the Buies for the Begulation of Practice before the Full Court [1952], added March 5,1963, 345 Mass. 795) in which the authority presents its exceptions to a number of rulings and to the judge’s findings. Main also presents exceptions to several rulings.

After the enactment of St. 1952, c. 354, the authority prepared to construct the turnpike. It employed one firm as general engineering consultant (the general consultant). It also engaged six engineering firms, among them Main, and assigned to each a specific section of road for study. Main thereupon made a ten-month study of a section of the proposed road. Main was paid for this study, which was incorporated in a consolidated report for the whole project forwarded to the authority by the general consultant. In this report and some of the accompanying material, it was estimated that, if funds should become available by June 15, 1954, the turnpike could he opened to traffic on November 15, 1956. Funds did become available prior to June 15, 1954. On June 12,1954, Main learned that it was to receive the engineering contract for section H of the turnpike, a portion of the section of which it had made a study.

On June 30,1954, Main executed a written contract under which it agreed as a section engineer to perform “complete and comprehensive engineering services” on section H. The work was to be divided into a “design phase” and a “construction phase.” In general, the design phase included making all plans and investigation preliminary to letting construction contracts. The construction phase included all aspects of supervision and inspection of construction. 2

*157 Main agreed (art. 4) to complete most design-phase work by December 31, 1954, and to “complete the balance of the design-phase services . . . and all construction-phase services in such manner and at such times as the progress of construction and other work requires, and so that no delays will be caused by” Main (emphasis supplied). Main was to receive a fee (art. 5) for its design-phase services “equal to 3.0% of the cost of construction” and (art. 6) “a fee for the construction-phase services equal to 3.5% of the sum of the cost of construction and [an] amount equal to 75% of the total of all payments . . . for the relocation of public-utility facilities” (emphasis supplied). Article 7 3 of the contract contained a provision for additional fees for certain extra work.

Article 8 provided for monthly partial payments to Main during both the design phase and the construction phase. Article 9 covered the matter of the final payment. 4

Article 20, governing delays and damages, is set out in part in the margin. 5 There is no mention in the contract or in the section engineer’s specifications mentioned below of any calendar date for the termination of Main’s services.

The contract (art. 2) required all work to be done in ae-

*158 cordance with the standard practices of the authority, with the “Standard Specifications of the Authority,” and with the “Specifications for Section Engineer’s Services” which were attached to the contract. Certain provisions of these specifications are summarized in the margin. 6 The standard specifications of the authority constituted a draft of basic construction contract for use in the construction phase and contained provisions (arts. 72 and 73) covering the extension of time for completion of construction and concerning failure of a construction contractor to complete work on time. Accordingly, Main had cause to recognize in advance that circumstances might arise in which the time for completion would be extended. Article 73 provided that liquidated damages would be waived “if the [p]reject in its entirety, or if any portion of the work for which a date of completion is stipulated, has been substantially completed within the prescribed time.” 7 Articles 72 and 73, however, laid substantial emphasis on promptness in the performance of construction contracts.

*159 On section H, the authority let construction contracts to five contractors. Substantial completion of the work of each of them was required on a specified date in 1956. The contracts were in fact completed at .much later dates. 8 Although both parties had anticipated “that the [tjurnpike would be opened to traffic on November 15, 1956 . . . the actual opening date was May 15, 1957.”

Main is admittedly owed for its services in both phases a balance of $177,134.75, the amount of the unpaid “retain-age” under art. 8 (fn. 4). The authority, however, disputes Main’s claim for interest upon the amount of the re-tainages (the retainage interest claim) from May 6, 1958, the date on which Main contends (and the trial judge and the auditor found) that it should have been paid.

Main contends that the authority owes it further sums for additional construction phase services, not as an “extra” (fn. 3) under the contract, but because the delays in the completion of the various construction contracts caused Main “to perform its supervising services . . . for a much greater period than it had contracted for, thereby entailing additional . . . expenses. . . . The . . . [authority] maintains that . . . [Main] has performed no services that it was not legally obligated to perform” under its contract.

A. The Claim fob Additional Compensation.

1. The auditor made the following principal findings concerning Main’s claim for additional compensation: (a) ‘‘ [A] t the time the contract was executed, both parties expected that the turnpike would he open for traffic on November 15, 1956.” They “expected that . . . [Main’s] engi *160 neering services would be completed . . . about that date; and . . . it was with . . . [that] date . . . in mind that the completion dates were fixed in the various construction contracts.” (b) When Main accepted the contract, “it contemplated that the construction contracts would be completed sufficiently in advance of November 15, 1956, so that its engineering services [then] would be concluded.” (c) Main (see art.

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Bluebook (online)
196 N.E.2d 821, 347 Mass. 154, 1964 Mass. LEXIS 733, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chas-t-main-inc-v-massachusetts-turnpike-authority-mass-1964.