City of Beaumont v. Excavators & Constructors, Inc.

870 S.W.2d 123, 1993 WL 581045
CourtCourt of Appeals of Texas
DecidedFebruary 10, 1994
Docket09-92-029 CV
StatusPublished
Cited by45 cases

This text of 870 S.W.2d 123 (City of Beaumont v. Excavators & Constructors, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Beaumont v. Excavators & Constructors, Inc., 870 S.W.2d 123, 1993 WL 581045 (Tex. Ct. App. 1994).

Opinions

OPINION

BROOKSHIRE, Justice.

In March of 1988, Excavators & Constructors, Inc., (Excavators) filed suit against The City of Beaumont (City), Southwestern Bell Telephone Company (Bell), Gulf States Utilities, Inc. (GSU), Fittz & Shipman, Inc. (Fittz), and Liberty T.V. Cable, Inc. (Cable), for inefficiency and delay damages allegedly suffered by Excavators in the performance of a contract it had entered into with the City. Excavators settled with several of the entities prior to trial. Trial was had before a jury, and the jury found in favor of Excavators as against the City and Bell. Judgment was entered in favor of Excavators and it ordered the City to pay Excavators’ damages and also ordered Bell to partially indemnify the City under Ordinance No. 85-50. From that judgment this appeal ensued.

The Basic Contract and its Provision for 220 Working Days and 240 Working Days for Final Completion

Excavators and City agreed to a written contract on April 8, 1986, for nearly one million dollars to be paid and awarded to Excavators; Excavators was to provide street widening and other improvements to Highland Avenue, a street in the City. The widening and the improvements were to be substantially completed within 220 working days and finally completed within 21*0 working days. On April 8, 1986, Bell was not a party to the contract — it never was a signatory to Excavators’ contract. Bell had no contractual relation with Excavators and the telephone company was not advised that the contract had been actually awarded and executed until Bell received a notice in April of a certain preconstruction meeting (the precon-struction meeting). Query: Were the 220 working days available and salutary to the City? Query: Could not the City look to the 220 days in scheduling the City’s work? From the wording of the contract we think the answer is yes to each query. Nothing in the basic contract authorizes Excavators to accelerate the work on the project.

The record reflects that Excavators completed its contract on the project within the allotted days. Excavators was assessed no penalty or other types of damages for untimely completion. The evidence clearly shows that Excavators made a 16.7 percent profit on the project, being about $168,000. Bell’s contentions are that Excavators finished the project within the contractually allotted time and made the profit that it intended to make. It was demonstrated that no loss or opportunity to bid or perform other work on any other contract existed. Excavators lost no other work.

Excavators’ Position and Contentions vis-a-vis Bell

Excavators brought a legal proceeding alleging that it was delayed in the performance of its excavation and improvement work by Bell’s delay in relocating its telephone poles. Excavators alleged it suffered damage as a result of the resequencing by Bell. Excavators claimed it suffered inefficiencies due to Bell’s delays in resequencing work. These inefficiencies were caused because Excavators contended it had to relocate and reassign its own equipment and its crews of working men. Excavators claimed damages for equipment rental charges and labor costs. These costs generally and very substantially occurred within six months from and after the preconstruction meeting.

The Thomason Enterprises Question

Excavators contended-for increased costs were associated with certain alleged ineffi[127]*127ciencies which were caused in this case by Excavators■ own workmen and own working crews that were performing work that Excavators had previously subcontracted out to Thomason Enterprises (Thomason work). Relevant to this matter Excavators claimed that because of the delays forced upon it in its contract work, it was necessary to have its own employees perform the Thomason work so that Excavators would not have to lay off its employees and thereby allegedly run a risk that their own employees would be hired by another contracting firm. Nevertheless, Excavators affirmatively claimed that its own crew did not perform this previously subcontracted work as efficiently as Thomason would have and that such inefficiencies damaged Excavators in the alleged amount of about $102,785. The Thomason work issue resulted from the sole decision of Excavators. Not only did Excavators increase its cost and its alleged damages, it failed to mitigate its costs and damages. Thus, Excavators damaged Excavators.

Evidence coming from a superintendent for Thomason showed that Excavators chose to perform the Thomason work simply because it was high profit work and that Excavators performed the work as efficiently as Thomason could have. Furthermore, this superintendent testified that Excavators often performed Thomason work when profitable to do so.

The City of Beaumont’s Point of Error No. 1 and Reply Point of Excavators

The City’s point number one contends that the trial court erred in overruling the City’s motion for judgment non obstante veredicto as the “no damage for delay” clause, contained in the basic construction contract between the City and Excavators, precluded recovery for delays or inefficiency damages.

Excavators Duty and Responsibility to Inspect the Work Site

The construction contract itself provided that the contractor would inspect the route of the construction during the bidding period and check that location for utilities and a possibility of any conflicts and problems as well as the addition of new utilities. Whenever any existing utilities presented obstructions to the work, then the contractor (Excavators) would notify the professional engineer on the job. When necessary to move any services, poles, guywires, pipelines or other obstructions, Excavators had the initial duty to make the necessary arrangements with the owners and operators of the utilities. We conclude the language of the contract and this duty put the contractor on notice that all of the changes involved would have to be made during the progress of the work— since Excavators insisted upon beginning the work immediately. Hence, Excavators should have known that there would be delays. And clearly, the construction contract provides that the owner (City) will not be liable for damage on account of delays due to changes made by the owner-operator of the utility involved which hindered progress of the work. Nor will the owner be liable for costs incurred by the contractor due to relocating utility service poles, services, and appurtenances.

The “No Damage for Delay” Clause

The term “owner” or “owner-operator” in the contract means the City, but the broad language used as to the owner-operator of utility poles would evidently refer to other utility owners and operators. Hence, certain issues are of paramount importance in this appeal. One, does the “no damage for delay” clause become implicated and viable under this record? Two, does the “no damage for delay” clause preclude Excavators (or rather recovery by Excavators) for loss of any inefficiency or delay damages? As usually construed, the so-called “no damage for delay” clause essentially denies the contractor the right to recover damages for delays of others in the performance of a construction contract. See, Maurice T. Brunner, Annotation, Validity and Construction of “No Damage” Clause with Respect to Delay in Building or Construction Contract, 74 A.L.R.3rd 187, 197-200 (1976).

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Bluebook (online)
870 S.W.2d 123, 1993 WL 581045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-beaumont-v-excavators-constructors-inc-texapp-1994.