Edge Construction Co. v. United States

95 Fed. Cl. 407, 2010 U.S. Claims LEXIS 848, 2010 WL 4386736
CourtUnited States Court of Federal Claims
DecidedOctober 29, 2010
DocketNo. 06-635C
StatusPublished
Cited by6 cases

This text of 95 Fed. Cl. 407 (Edge Construction Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edge Construction Co. v. United States, 95 Fed. Cl. 407, 2010 U.S. Claims LEXIS 848, 2010 WL 4386736 (uscfc 2010).

Opinion

OPINION AND ORDER

DAMICH, Judge.

This government construction contract ease is before the court on the Government’s motion for summary judgment pursuant to Rule 56 of the Rules of the United States Court of Federal Claims (“RCFC”). Edge Construction Company (“Edge” or “the Plaintiff’) alleges that the Government breached its contract by denying Edge’s claims for additional costs and extensions of time and improperly terminated the contract for default. The Government contends that the Contracting Officer properly denied Edge’s claims and was justified in terminating the contract for default.

Edge seeks recovery on eight counts for the Government’s breach of contract for refusing to issue change orders and denying its claims for: (1) relocation of a well (Count I); (2) additional catch basin and six-inch storm pipe (Count II); (3) additional catch basins and ten-inch storm pipe (Count III); (4) pipe insulation (Count IV); (5) borrow pit (Count V); (6) unseasonable weather/acceleration (Count VI); (7) lost productivity due to unseasonable weather (Count VII); and (8) lost productivity resulting from rain, freezing conditions, and mud (Count VIII).

With regard to the Government’s termination for default, Edge sets forth two additional counts: (1) conversion of termination for default into termination for convenience (Count IX); and (2) wrongful termination damages including amounts expended by Edge’s surety (Count X).

The Government’s motion is granted in part and denied in part. The Court denies summary judgment on Counts I, II, and IV because Edge established genuine issues of material fact as to the costs for the additional work. The Court grants summary judgment for the Government on Counts III and V because the alleged additional work was within the scope of the contract.

With regard to Edge’s claims for equitable adjustments for lost productivity due to “unseasonable weather,” summary judgment is granted on these counts (Counts VII and VIII) because as a matter of law Edge is not entitled to equitable adjustments for lost productivity attributable to unusually severe weather conditions. Summary judgment is denied on Count VI (project acceleration) because a genuine issue of material fact remains regarding the existence of “unseasonable weather,” and the Government does not show that it is entitled to judgment as a matter of law.

Finally, the Court denies summary judgment on the Government’s termination for default (Counts IX and X) because of a genuine issue as to the contract completion date, which is an essential fact in considering termination for default.

I. BACKGROUND

On September 1, 2004, the Department of Veterans Affairs, National Cemetery Administration (“the Government”), awarded Contract No. V786C-108 8A (“the Contract”) to Edge, for the construction of the Great Lakes National Cemetery in Michigan in the [412]*412amount of $8,691,000.00. Pl.’s Second Am. Compl. ¶¶ 4-5; Def.’s Mot. Summ. J. (“Def.’s Mot.”) 3. The Contract contained clauses from Federal Acquisition Regulations (“FAR”) for “Disputes” (FAR 52.233-1), “Default” (FAR 52.249-10), and “Changes” (FAR 52.243-4). Def.’s Mot. 3.

On September 20, 2004, Edge contracted with Ferguson Enterprise, Inc. (“FEI”) as a subcontractor to perform work, including, but not limited to, “earthwork, utilities, site clearing, asphalt and striping.” Pl.’s Resp. in Opp’n Def.’s Mot. Summ. J. (“Pl.’s Resp.”) 1; Erdman Aff. Ex. A.

In accordance with the Notice to Proceed (NTP) issued on September 21, 2004, the Government required Edge to complete the Early Turnover Area (“ETA”) within 230 calendar days of the NTP (by May 16, 2005), and the overall contract within 620 days of the NTP (by June 14, 2006). Def.’s Mot. 3; PL’s Resp. 1.

Between January 20, 2005 and March 16, 2005, the parties held five project meetings. Def.’s Mot, 3-5. In January and February, the Government requested schedules of project activities and values and expressed concerns regarding the level of manpower and equipment on site. Id. at 3-4. On February 16, 2005, Edge cited poor weather conditions impacting its ability to perform many activities. Id. at 4. In response to the Government’s request that Edge explain why it could not meet the contract ETA completion date, Edge explained, by letter dated March 11, 2005, that “November and December had been one of the worse winters in the past 20 years in [the] area.” Def.’s Mot. 5; Def.’s App. 42. Edge explained that the rain, freezing conditions, and mud affected site conditions and the ability of its subcontractors to operate the equipment under those conditions. Def.’s App. 42-43. Edge projected that it would complete the ETA by July 16, 2005, two months after the contractual timeframe. Id. at 43. Edge communicated the same at the project meeting held on March 16, 2005. Def.’s Mot. 5.

The Government expressed its concerns that Edge would not complete the ETA by August 16, 2005, and that it believed that Edge contributed to its delay beyond simply incurring extreme weather conditions. Id. 6. Nonetheless, on April 19, 2005, the Government “granted Edge an additional 63 days to complete the ETA” to compensate for “weather-related delays that Edge experienced from September 21, 2004 until May 1, 2005. The additional days were given at no cost to the Government.” Id. at 7; Def.’s App. 59-61. The revised completion date for the ETA was set at July 18,2005. Def.’s Mot. 7; Def.’s App. 59-61. The Government, via a change order of April 19, 2005, also indicated that the overall project completion date remained unchanged at June 14, 2006. Def.’s App. 59-61.

On June 30, 2005, Edge submitted a request to the Contracting Officer to issue a change order for additional costs of $623,795.00 related to the extension of time for weather-related delays. Def.’s App. 81-84; see also Def.’s Mot. 8 (noting that the “request for extension of time costs” was uncertified).

During the course of the project, in addition to weather-related conditions, Edge incurred additional work related to changes in the project plan directed by the Government for (1) the relocation of a well and (2) an additional catch basin and six-inch pipe. Pl.’s Resp. 1. The Government issued change orders and granted equity adjustments to Edge based on estimates of the Government’s architect/engineer. Def.’s Mot. 14, 17; Def.’s App 236-38; 162-63. Edge also requested, although the Government refused to issue, additional change orders for these two items because the amounts the Government granted were less than the amounts Edge claimed it was entitled to for the work. See Def.’s Mot. 14, 17. In addition, Edge requested that the Contracting Officer issue change orders for (1) two additional catch basins and a ten-inch pipe; (2) the insulation of a pipe; and (3) borrow pit operations. Pl.’s Second Am. Compl. ¶¶ 20, 25, 30. The Government denied Edge’s request to issue these three change orders. Id. at ¶¶ 21, 26, 31.

Between May 13, 2005 and July 18, 2005, the Government issued over ten Deficient Omission Letters (DOLs). Def.’s Mot. 7-9. [413]*413According to the Government, the deficiencies included “cracks and gouges in the crypts, lack of concrete footers, installation of foundation walls below the required elevation, improper bedding, unacceptable repair work for footer walls, incorrect curbing, among other things.” Def.’s Reply to Pl.’s Opp’n to Def.’s Mot. for Summ J. (“Def.’s Reply”) 17.

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Cite This Page — Counsel Stack

Bluebook (online)
95 Fed. Cl. 407, 2010 U.S. Claims LEXIS 848, 2010 WL 4386736, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edge-construction-co-v-united-states-uscfc-2010.