Edward R. Marden Corporation v. United States

803 F.2d 701, 33 Cont. Cas. Fed. 74,642, 1986 U.S. App. LEXIS 20371
CourtCourt of Appeals for the Federal Circuit
DecidedOctober 14, 1986
DocketAppeal 86-810
StatusPublished
Cited by93 cases

This text of 803 F.2d 701 (Edward R. Marden Corporation v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edward R. Marden Corporation v. United States, 803 F.2d 701, 33 Cont. Cas. Fed. 74,642, 1986 U.S. App. LEXIS 20371 (Fed. Cir. 1986).

Opinion

COWEN, Senior Circuit Judge.

This is an appeal pursuant to the Contract Disputes Act of 1978, 41 U.S.C. § 607(g)(1) (1982), by Edward R. Marden Corporation (Marden or contractor) from a decision of the Veterans Administration Board of Contract Appeals (Board). The Board denied Marden’s claim for an equitable adjustment in connection with a fixed-price construction contract for the modernization of the Veterans Administration Medical Center in West Roxbury, Massachusetts. Marden claims it is entitled to $42,136, plus interest, as an equitable adjustment due under the changes clause of the contract, for being required to furnish and install latex mastic deck floor covering, known as “composition flooring” in 18 of the building’s mechanical rooms.

Although we disagree with the basis on which the Board decided the case, we affirm its decision on other grounds.

Background

On November 4, 1981, the Veterans Administration (VA) awarded Marden a competitively bid, firm-fixed-price construction contract in the amount of $16,305,000, for modernization of Building # 1 of the Medical Center. The contract contained the usual provisions found in Government construction contracts, including a general provision entitled “Specifications and Drawings,” which is generally known as the precedence clause. In substance it provides that in case of a difference between the drawings and’ specifications, the specifications shall govern. The clause also stated that in case of discrepancy in the figures, in the drawings, or in the specifications, the matter should be promptly submitted to the contracting officer, who was obligated to make a prompt determination in writing.

The Medical Center building is a five-story structure with mechanical rooms located adjacent to the stairwells on each floor. The 18 mechanical rooms in issue house large components of the heating, ventilating, and air conditioning systems, such as piping, pumps, boilers, chillers, fans, and related ductwork.

Section 19B of the specifications, entitled “Latex Mastic Deck Covering,” described the technical requirements of a floor covering product as “latex mastic deck covering” (indicated as “composition flooring” on the contract drawings). Except for the reference to the drawings, section 19B did not indicate where the composition flooring was to be installed in the building.

Section 55 of the specifications, entitled “Color Design,” set forth the color and finish schedules for all of the rooms to be renovated in the building. The abbreviation list for the finish schedule designated the letter “C” for a concrete finish. The schedule of interior finishes indicated that finish number “4A” was to receive a concrete floor.

Section 55-8 listed each of the rooms individually, with columns to show what finish the room was to receive on its floor, ceiling, walls, and doors. For the 18 mechanical rooms in question, section 55-8 showed that they were to receive a “4A” finish with a “C,” or concrete, floor. There was no abbreviation for either latex mastic deck covering or composition flooring.

Each room depicted on the drawings contained the finish schedule “4A” indicating a concrete finish. The detail sections on the drawings showed that the 18 mechanical rooms were to have “composition flooring with a 6-inch base.” There were also a few rooms which were not listed in the finish schedule of the specifications, but which appear on the drawings as requiring composition flooring.

*703 Marden’s bid was prepared by its vice president, Kenneth R. Hoffman. He solicited bids from subcontractors for the composition flooring portion of the work.

Marden received a proposal from New England Decks and Floors (New England) for the latex mastic flooring covering on the project in an amount of about $44,000, and this was included in Marden’s prime contract bid. Before Marden’s bid was submitted, New England called Marden’s vice president and stated that it had not included composition flooring for room 5B110, a room which is not at issue in this case. Section 55-8 of the specifications contains the notation “4A” for room 5B110, as does drawing # 1-41. However, unlike the 18 rooms in question, there was no symbol on any of the drawings which indicated that the floor of this room was to be covered with composition flooring.

After receiving this information, Mr. Hoffman examined the drawings and specifications to determine whether the plans called for composition flooring in that room. As a result, Mr. Hoffman concluded that the subcontractor was correct in excluding room 5B110. Therefore, Marden used the amount of the subcontractor’s bid in its computation of the prime contract bid.

The project was a large, complex construction job. The composition flooring represented only $50,000, or approximately 0.3 percent of the total bid price of $16,-305,000.

Following the award of the prime contract, Marden entered into a subcontract with New England in the amount of $44,-000, whereby the subcontractor agreed to perform all latex mastic deck floor covering work as specified in Section 19B, but excluding work in room 5B110.

On November 30, 1981, 3 months after the contract award, Mr. Hoffman submitted a request for information regarding Section 55 and various contract drawings relating to the composition floor covering. The letter stated that the room finish schedules in Section 55 did not list any latex mastic floor covering, whereas such a covering was shown on various sectional views on the drawings. Marden also requested a listing of the rooms that were intended to receive composition flooring and asked to be informed of any other discrepancies in the finish schedule. Mr. Hoffman’s letter was prompted by the fact that Marden’s project superintendent had discovered the conflict between the specifications and drawings while doing work on the site.

Mr. Hoffman followed this request by a letter of December 2, 1981, to the contracting officer alleging that a conflict existed between the specifications and drawings, and stating that in case of a conflict, the “specifications usually take precedence.”

On December 14, 1981, the VA advised the contractor that latex mastic floor deck covering was required in all of the new mechanical rooms.

On December 17, 1981, Norman L. Schroeder, Senior Resident Engineer on the project, responded to the contractor’s December 2 request, by letter, stating that the specifications and drawings had been carefully reviewed and that there was no conflict between them. The letter further stated that section 55-8 did not indicate and was not intended to list “a finish or color request for mechanical room floors,” but instead, that composition flooring with the 6-ineh base as indicated in specific locations on the contract drawings was considered to be a composite part of the mechanical room floor and covered by Section 19B of the specifications.

After the contractor had taken issue with this response and had requested a decision by the contracting officer, Mr.

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803 F.2d 701, 33 Cont. Cas. Fed. 74,642, 1986 U.S. App. LEXIS 20371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edward-r-marden-corporation-v-united-states-cafc-1986.