E. & F. Construction Co. v. United States

89 F. Supp. 541, 116 Ct. Cl. 512, 1950 U.S. Ct. Cl. LEXIS 98
CourtUnited States Court of Claims
DecidedApril 3, 1950
DocketNo. 47700
StatusPublished
Cited by2 cases

This text of 89 F. Supp. 541 (E. & F. Construction Co. 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
E. & F. Construction Co. v. United States, 89 F. Supp. 541, 116 Ct. Cl. 512, 1950 U.S. Ct. Cl. LEXIS 98 (cc 1950).

Opinion

Jones, Chief Judge,

delivered the opinion of the court:

This plaintiff sues for overtime pay which it paid for labor in carrying out a construction contract during the war period.

Plaintiff, under date of October 23, 1942, contracted, through the Federal Public Housing Authority (FPHA) as the agency of the Goverment, to build two war housing projects for the defendant. There were to be 498 dwelling units constructed in Bridgeport, Connecticut.

It was a lump-sum contract, all labor and materials to be furnished by plaintiff for a consideration of $1,752,000. Work was to begin October 27, 1942.

Plaintiff’s bid was based on a regular 40-hour workweek. It made no allowance for overtime, except for the excava[543]*543tion and pouring of foundations. It included a total of $4,500 as the extra time on the two projects for this purpose. The contract did not require plaintiff to work a 48-hour week but stipulated that any work performed between 5:00 p. m. on Friday and 1: 00 a. m. on Monday, or on legal holidays, should be paid for at the rate of time and one-half, and any such work found necessary should be performed without extra expense to the Government.

The time within which the work was to be completed was specified, the several periods for completion of the different parts of the work being set out in finding 3.

While plaintiff did some overtime work each month from the beginning, this was confined largely to excavation and pouring of foundations until the latter part of February or early March 1943.

The War Manpower Commission had been established on April 18, 1942. In early 1943 there was a critical labor shortage in the Bridgeport area and it was designated as such an area on February 1, 1943.

On February 9,1943, the President issued Executive Order 9301 establishing a minimum 48Jhour workweek for all plants, factories or other places of work for the duration of the war. It placed the administration of the Order under the War Manpower Commission and gave it broad authority.

The Commission on February 22,1943, designated certain areas, including the Bridgeport area, as subject to such Executive Order.

Shortly after Executive Order 9301 was issued a conference was held between Mr. Kenworth, the Housing Authority’s representative in charge of the construction work involved, and plaintiff’s president, Mr. Epifano, at which the latter was told that the Executive Order, stipulating a minimum 48-hour week, applied to the instant projects and that plaintiff should make preparations to comply. Plaintiff stated that a change order should be issued directing the 48-hour week and that plaintiff should be compensated for the extra cost. Mr. Kenworth advised that such a change order would have to come through the regional office at Boston. Later plaintiff again asked for such a change order [544]*544and was told that the regional office had taken the matter up with the main office in Washington which had ruled that since the Executive Order was nation-wide in scope, whatever decision was made would apply to all projects in the United States which had been contracted for before the order went into effect.

About March 2,1943, plaintiff and its subcontractors began adjusting gradually to a 48-hour week.

By letter dated March 22, 1943, the project manager advised plaintiff he had received a directive stating that because Executive Order 9301 and the directives and regulations issued thereunder had the force of law, it would not be necessary, as an interim expedient, to write into contracts a requirement that contractors should comply, since they were deemed to have knowledge of the law; and that as to existing contracts no change order should be issued to contractors who were complying with the directive.

This was the first written notice plaintiff had received directing it to comply with the terms of Executive Order 9301 and the regulations issued thereunder.

Following receipt of this letter plaintiff instructed its workmen to work 49 hours per week, and similar instructions were given to subcontractors.

About mid-April plaintiff’s president became worried because they were working overtime and he had received no change order. He took the matter up with the Director of the Bridgeport Housing Authority, H. C. Poole, who advised that it would be referred to the Boston office and that as soon as the general decision came from the main office in Washington the issue would be determined. This was followed by a letter from plaintiff to Poole, stating that by the time the contract was completed the overtime labor cost would be about $49,560, and asking that this be called to the attention of the proper authorities.

By telegram dated February 12, 1943, David L. Krooth, Acting Commissioner of the Federal Public Housing Authority, had advised all regional directors that until further notice “do not authorize any increase in contract price of lump-sum construction contracts which have already been [545]*545let, based on the ground that the above Executive Order [9301] increases the contractor’s costs.”

On March 15,1943, David L. Krooth, as General Counsel of the Federal Public Housing Authority, had instructed regional directors as follows:

As to all existing contracts, no change order providing for additional compensation shall be issued to contractors who have changed the workweek to comply with the aforementioned Executive Order and regulations.

On April 17, 1943, the Federal Housing Authority approved, effective May 1, 1943, instructions to the effect that while the additional costs were in the nature of unanticipated expenses which the lump-sum contractor was required to absorb, nevertheless it was felt that the hardship imposed on some contractors might have the effect of impeding the war housing program; that therefore FPHA would consider claims submitted for the actual net additional expense. Several conditions were set out as a requirement for such consideration. These are set out in finding 22. The regional director was to make detailed findings and recommendations. These recommendations were to be subject to the approval of the FPHA Commissioner.

On June 11, 1943, S. K. Wiley, the regional director at Boston, wrote plaintiff that he had been informed that FPHA would consider its claim subject to certain conditions and subject also to a recommendation by the Regional Office. He asked the plaintiff for data on which to base any recommendation he might make.

During the course of the work change orders 9 and 14 were issued in reference to subflooring and the contract was increased on that account $24,000. These change orders occasioned some delay, the extent of which cannot be determined from the record.

Plaintiff also experienced material delay on account of the change in the type of some boilers on project 1-4.

There was likewise some delay in obtaining needed critical materials, including steam pipe and kitchen cabinets.

There were also numerous other change orders.

[546]*546There were delays due to adverse weather conditions, as well as in connection with change order G-23, dated May 10, 1943, and for which latter change order an increase of $1,597.90 was allowed to cover the cost of the work.

The change orders were accepted by plaintiff.

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Related

Beuttas v. United States
122 Ct. Cl. 295 (Court of Claims, 1952)
John A. Johnson Contracting Corp. v. United States
98 F. Supp. 154 (Court of Claims, 1951)

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Bluebook (online)
89 F. Supp. 541, 116 Ct. Cl. 512, 1950 U.S. Ct. Cl. LEXIS 98, Counsel Stack Legal Research, https://law.counselstack.com/opinion/e-f-construction-co-v-united-states-cc-1950.