Depot Construction Corp. v. State

41 Misc. 2d 764, 246 N.Y.S.2d 527, 1964 N.Y. Misc. LEXIS 2125
CourtNew York Court of Claims
DecidedFebruary 5, 1964
DocketClaim No. 39602
StatusPublished
Cited by1 cases

This text of 41 Misc. 2d 764 (Depot Construction Corp. v. State) is published on Counsel Stack Legal Research, covering New York Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Depot Construction Corp. v. State, 41 Misc. 2d 764, 246 N.Y.S.2d 527, 1964 N.Y. Misc. LEXIS 2125 (N.Y. Super. Ct. 1964).

Opinion

Alexander Del Giorno, J.

On or about March 6, 1958, the State, by the Department of Mental Hygiene, entered into a contract with the claimant corporation for the construction of [765]*765“ Continued Treatment and Disturbed Patients’ Building, Building No. 105, Manhattan State Hospital, Ward’s Island, New York, pursuant to the State Architect’s Standard Construction Specifications of November 1, 1955, and in accordance with Specification No. 8585-C, etc.” The work was to commence promptly and was to be completed on or before September 1, 1960, for the agreed sum of $6,359,000.

The work was performed and the job completed and officially accepted by the State on August 25, 1961. The final estimate was prepared by the State, upon which a check for the balance indicated therein to be due to the claimant was sent to the claimant, which the claimant rejected, claiming that it was not representative of all that was still due to it. As a result thereof, the present claim was filed.

Thereafter, this court was moved for an order severing from the said claim that portion thereof relating to the moneys concededly due to the claimant for the balance of the amount certified as earned under the contract and, by order entered September 28, 1961, said motion was granted, awarding to the claimant the sum of $322,577.46, which represented moneys concededly due to the claimant for the balance of the amount certified as earned in the final estimate and, at the same time, reserving the question of interest thereupon to be determined at the present trial of the remainder of the claim.

The present claim may be divided under three captions:

Stairway “A”
Screeds
Bock Excavation

The court finds that with regard to its claim for furnishing a reinforced concrete floor and a steel beam under the stairway in the basement of the building the claimant is entitled to only $56 it paid for No. 5 rods instead of No. 3 rods.

It seems to the court that the claimant has chosen to read only Drawing 57/135, when each and every sheet of the plans should have been considered. Sheet 57/127 indicates clearly that a concrete slab and a steel beam were required at the bottom of Stairway “ A ”. This requirement is clearly set out, except that it did not specify any reinforcing rods. The court allows a 15% over-all profit on the $56, making a total award of $64.40.

We shall now consider the issue as to whether screeds were required by the contract. The court finds in favor of the claimant. The court finds that the pertinent portion of article 2011 of the State Architect’s Standard Construction Specifications which the State inserted in amendment to section 20 in the [766]*766contract itself, states: “ Provide screeds at top of sub-base where rubber base is installed against plaster or masonry.” The court interprets the above to require the use of screeds where the base would be flat or flush from the floor up, even if a flat base element other than rubber were used. In this contract, however, the base required was a terrazzo splayed base, better known as hospital type base. This type base is installed as a continuation of the terrazzo floor itself, upwards against the wall, and it is made concave at the juncture of the floor and the wall. The court does not believe that it is subject to the conditions article 2011 above mentioned. However, whether or not it might be affected by the provisions of article 2011, such assumption would seem to be negated by claimant’s Exhibit No. 12, which is a letter dated December 22, 1959, written by the State Architect to the claimant herein, in reply to objections raised by the claimant to an order requiring the installation of screeds. The letter concedes that ‘ ‘ the lathing subcontractor is correct and the specification inadvertently neglected to specify a screed under this section at the top of this hospital type base. ’ ’ The letter then attempted to justify the demand of the State for the installation of screeds without additional charge to the State.

From all the testimony and evidence, the court finds that said demand by the State was at variance with the specifications and the plans for the erection of the building, and interprets the admission of the Architect as being not so much an inadvertent neglect to specify “ screed ” but, rather, a cover to demand additional work from the claimant without payment therefor.

The court finds that the claimant is entitled to the sum of $6,930 for the screeds, which includes the cost to claimant plus profit and overhead.

The last cause of action involves the dispute which arose concerning the rock excavation. With regard to this claim, the court finds it necessary to set out the paragraph entitled ‘ ‘ SubSurface Data ” contained in the contract: “ Test holes have been drilled on the site, at locations shown on the Plot Plan drawing. The test hole data shown on the plans are not guaranteed by the State in any respect, nor represented by it as being worthy of reliance. They are made available to the Bidders, who shall make their own independent determination as to what value to assign to them. The State makes them available as information in its possession without intent or attempt to induce the Bidders to rely thereon.”

The court finds that the above paragraph is confusing, illogical, contradictory and even deceptive. It seems to have been [767]*767drawn with the thought in mind of permitting easy escape on the part of the State from its own prime responsibility to present to the prospective bidders as complete and efficient information concerning the substrata of the situs as modern techniques and machinery make possible.

The court finds that the State was haphazard in the manner in which it took the borings.

The court finds it difficult to accept the rationale adopted by the State whereby, on one hand, it describes its borings as unworthy of reliance and, on the other hand, it makes its analysis thereof the very foundation for the claimant’s bid.

An abbreviated analysis of this confusing process may prove of value in our quest to understand what to the court seems to be a contradictory exposition of the State’s policy in its dealings with bidders. In the first instance, the State makes the borings. It then represents such borings to be unworthy of reliance. From these same “ unworthy of reliance” borings the State prepares its estimate of the amount of rock excavation and pier and trench excavation to be expected on the job site. The contractor then is required to base its bid upon such estimate. The bid firms the contract with the State. There is neither time nor opportunity to permit, nor a moral right on the part of the State to demand, independent borings by the contractor prior to the acceptance of its bid. By the very nature of its own methods of public bidding, the State makes its borings the sine qua non of the bid, while at the same time, the State proclaims, without blushing, that its borings are unworthy of reliance and are submitted merely as information in its possession.

What are we to deduce from this self-serving, contradictory shield raised by the State in its public contracts? Should we agree with the State, we would have to determine that the proposed bidder would have to make his own borings in preparation for his bid.

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Related

Depot Construction Corp. v. State
23 A.D.2d 707 (Appellate Division of the Supreme Court of New York, 1965)

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Bluebook (online)
41 Misc. 2d 764, 246 N.Y.S.2d 527, 1964 N.Y. Misc. LEXIS 2125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/depot-construction-corp-v-state-nyclaimsct-1964.