Contracting & Material Co. v. City of Chicago

349 N.E.2d 389, 64 Ill. 2d 21, 1976 Ill. LEXIS 346
CourtIllinois Supreme Court
DecidedMay 28, 1976
Docket46931
StatusPublished
Cited by1 cases

This text of 349 N.E.2d 389 (Contracting & Material Co. v. City of Chicago) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Contracting & Material Co. v. City of Chicago, 349 N.E.2d 389, 64 Ill. 2d 21, 1976 Ill. LEXIS 346 (Ill. 1976).

Opinions

MR. JUSTICE UNDERWOOD

delivered the opinion of the court:

Plaintiff, Contracting and Material Company, filed an action in the circuit court of Cook County against defendant, the City of Chicago, for monies allegedly owed by defendant pursuant to a written road construction contract awarded to plaintiff in July, 1965. Count I of plaintiff’s complaint sought recovery for overtime and related expenses in the amount of $185,830.64 allegedly incurred as a consequence of accelerated work when defendant refused to grant plaintiff’s requests for extensions of time to complete the project within the time limit specified by the contract. Count II, which sought other relief, was dismissed when that claim was settled during trial. After a bench trial, judgment was entered for defendant on count I, but on appeal, the appellate court reversed and remanded with directions to enter judgment in favor of plaintiff and to grant plaintiff a new trial limited to the issue of costs of acceleration. (20 Ill. App. 3d 684.) We granted defendant’s petition for leave to appeal.

The principal controversy in this case involves the interpretation of various provisions of the construction contract pertaining to the circumstances under which the contractor is entitled to extensions of time to complete the job. The underlying facts bearing on this issue are not in dispute. In May, 1965, the City of Chicago advertised for bids for the construction of the South Lakeshore Drive - Southwest Interchange at 23rd Street in Chicago', generally known as the McCormick Place Interchange. The contract was awarded to plaintiff, who had submitted the low bid of $7,115,220.56. Plaintiff commenced work on the project on July 15, 1965. Although the pertinent contract provisions will be set forth in detail later in this opinion, it suffices to note here that plaintiff was required by the contract to work two 8-hour shifts per day, 5 days per week, and to complete the project within 450 calendar days, which in this case was October 8, 1966. Except for 4 days at most, plaintiff worked single shifts only throughout the entire construction period and therefore was not in compliance with the double-shift requirement. Work proceeded without interruption until December 3, 1965, when defendant issued an order suspending all work on Ramp N-W until further notice as a consequence of objections raised by residents of the area concerning the design of the interchange. On January 3, 1966, defendant rescinded the suspension order, and construction of the ramp resumed after, a delay of 46 days. In April, 1966, work was terminated again for a period of 58 days due to a labor strike. It is conceded that plaintiff was in no manner responsible for either of the two work stoppages which totaled 104 days.

Plaintiff made four written requests to defendant for extensions of time to complete the project due to the suspension order and the labor strike. By letter dated June 21, 1966, defendant advised plaintiff that it could not agree to the requests, since the contract provided that extensions would not be granted if the contractor failed to comply with the double-shift requirements. In a subsequent letter to the plaintiff dated August 22, 1966, defendant repeated its decision in this respect and stated: “It is essential, therefore, that you exert whatever efforts are required to meet the established completion date of October 8, 1966.” Plaintiff thereafter began to work overtime to meet that deadline. Although the project was not completed until July 24, 1967, defendant did not seek to invoke the contract sanctions against plaintiff for failure to meet the specified completion date.

Plaintiff then commenced this action to recover the amount it claimed was owed by defendant for overtime and related expenses which it expended in its accelerated work effort between August and November, 1966, in an attempt to complete the project within the prescribed 450-day period. Plaintiff’s theory was that these expenses would not have been incurred but for defendant’s refusal to allow the time extensions to which it was entitled under the contract.

The pertinent contract documents consist of four volumes. The first is entitled “State of Illinois, Department of Public Works and Buildings, Division of Highways, Standard Specifications for Road and Bridge Construction.” This document was adopted in 1958 and was supplemented by an additional volume of “Supplemental Specifications” in March, 1964. For ease of reference these two volumes will be referred to as the Illinois Standard .Specifications. The other two volumes were compiled by defendant and contain detail specifications and special provisions applicable to the project in question. These documents will be referred to as the City of Chicago provisions.

The provisions relied upon by plaintiff are articles 8.8 and 8.5A of the Illinois Standard Specifications, which read in pertinent part as follows:

“8.8 Suspension of Work. The Engineer shall have authority to suspend the work wholly or in part, for such period of time as he may deem necessary, due to conditions unfavorable for the satisfactory prosecution of the work, or to conditions which in his opinion warrant such action; or for such time as is necessary by reason of failure on the part of the Contractor to carry out orders given, or to perform any or all provisions of the contract. No additional compensation will be paid the Contractor because of any costs caused by such suspension, except when the suspension is ordered for reasons not resulting from any act or omission on the part of the Contractor, and not related to weather conditions. ***”
“8.5A Completion Date. When a completion date is stipulated, the Contractor shall, unless otherwise stated, complete all work included in the contract prior to that date ***.
The Contractor shall complete all work on or before the stipulated completion date, or on or before a later date determined as specified herein; otherwise, the Department shall proceed to collect liquidated damages described hereinafter.
When a delay occurs due to unforeseen causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God, acts of the public enemy, governmental acts, fires, floods, epidemics, strikes (except those caused by improper acts or omissions of the Contractor), extraordinary delays in delivery of materials caused by strikes, lockouts, wrecks, freight embargoes, governmental acts, of acts of God, the time of completion shall be extended in whatever amount is determined by the Department to be equitable. ***”

The terms “Department” and “Engineer” are generally defined in articles 1.9(c) and 1.11(c) of the Illinois Standard Specifications to include a municipal authority and its engineer when a municipality awards the contract as in the present case.

Defendant places principal reliance on sections 2 and 120 of the City of Chicago provisions, which provide in pertinent part:

“Tíme and Progress.
Sec. 2.

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Related

Contracting & Material Co. v. City of Chicago
349 N.E.2d 389 (Illinois Supreme Court, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
349 N.E.2d 389, 64 Ill. 2d 21, 1976 Ill. LEXIS 346, Counsel Stack Legal Research, https://law.counselstack.com/opinion/contracting-material-co-v-city-of-chicago-ill-1976.