Foundation International, Inc. v. E.T. Ige Construction, Inc.

78 P.3d 23, 102 Haw. 487, 2003 Haw. LEXIS 508
CourtHawaii Supreme Court
DecidedOctober 23, 2003
DocketNo. 21479
StatusPublished
Cited by30 cases

This text of 78 P.3d 23 (Foundation International, Inc. v. E.T. Ige Construction, Inc.) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Foundation International, Inc. v. E.T. Ige Construction, Inc., 78 P.3d 23, 102 Haw. 487, 2003 Haw. LEXIS 508 (haw 2003).

Opinion

Opinion of the Court by

ACOBA, J.

We affirm the summary judgment in favor of Third-Party Defendant/Counterclaimant-Appellee State of Hawaii, Department of Transportation, Highways Division (the State), the owner of the subject construction project; Defendant/Crossclaim Plaintiff & Defendant-Appellee/Appellant, and Third-Party Plaintiff/Counterclaim Defendanb-Ap-pellant/Appellee E.T. Ige Construction, Inc. (Ige), the general contractor on the project; and Defendant/Crossclaim Plaintiff & Defendant-Appellee Harold T. Miyamoto & Associates, Inc. (Miyamoto), an engineering firm; as against Plaintiff-Appellant/Appellee Foundation International, Inc. (Foundation), an excavation subcontractor, inasmuch as: (1) the subject contract provided that (a) a four foot basalt1 embedment for bridge supports was a minimum depth requirement and (b) the State engineer would determine the final drilling depth into basalt; (2) under such terms, no additional payment under an equitable adjustment or substantial change clause in the contract to Foundation was necessary for drilling in excess of four feet into basalt; (3) Foundation failed to demonstrate any material change to site conditions from that indicated in the contract so as to raise a genuine issue of material fact; and (4) an ex paite conversation between the Circuit Court of the Second Circuit (the court)2 and counsel for the State regarding the order herein involved an administration or “housekeeping” matter not requiring the court to recuse or disqualify itself. Accordingly, we affirm the October 1, 1996 order granting summary judgment in favor of the State and Ige and denying Foundation’s motion for summary judgment, the October 21, 1996 order granting summary judgment in favor of Miyamoto, and the court’s March 9, 1998 final judgment.

I.

A.

The facts of this case, as found by the cour’t and relevant to our decision, are rela[491]*491tively undisputed. This ease arises out of a payment dispute over public works project No. BR-RS-0360(8), the Hoolawa Bridge Replacement and Approaches (the project). The project involved the construction of a new concrete bridge across Hoolawa Stream on the island of Maui. One aspect of the project involved the construction of seventy-one “cast-in-place piles, also known as ‘drilled shafts[.]’ ” Under the terms of the disputed contract, a drilled shaft is a

[thirty]-inch diameter hole excavated from a set elevation (the “bottom footing elevation”) into the subterranean hard basalt layer. A cage-like structure of steel reinforcing bars matching the shape of the shaft is inserted into the hole, and then concrete is poured. The result is a reinforced concrete pile or shaft, extending from within the basalt layer up to the bottom-footing elevation, upon which the bridge abutments are constructed.

(Emphasis added.) The bottom of a drilled shaft is called the “bottom tip elevation.” The top of the shaft is the “bottom footing elevation.” The term “pile tip elevation” refers to the depth of the drilled shaft. On page S-3 of the project plans, the bottom footing elevation is listed at 474.5 feet and the “approximate drilled shaft tip elev[ation]” is listed at 459 feet. The difference between these two figures results in a drilled shaft length of 15.5 feet. The project plans required thirty-five drilled shafts at abutment3 number one, on the Kahului side of the stream, and thirty-six drilled shafts at abutment number two, on the H;ana side. On appeal, only the shafts at abutment number one are involved.

The bridge design plans and specifications were prepared by Miyamoto. Miyamoto hired the firm Ernest K. Hirata and Associates, Inc. (Hirata) to assist with “geotechnical engineering services” related specifically to the construction of the drilled shafts.

General contractors submitted them bids for the project on an official proposal form (proposal) pursuant to a public bidding process. A schedule attached to the proposal contained bid lines for the dialled shaft work. The first item, number 510.1000, labeled “Cast-in-place piles in drilled holes[,]” referred to the cost of constructing the reinforced concrete piles in the excavated shafts. The second item, number 510.2000, was labeled thirty “Diameter predrilled holes for cast-in-place concrete piles[,]” and was the bid line for the cost of excavating the drilled shafts. In reference to these too items, it is undisputed that “[t]he schedule estimated 963 linear feet for each of these bid items”4 and “[bidders were required to submit a price per linear foot for work required under each of these bid items.”

With respect to pricing these items, “the price bid per linear foot is called a ‘unit price.’ ” Under the bid, “[t]he unit price bid on [both of] these too items were multiplied by the estimated 963 linear feet to establish a proposed cost for the estimated amount of drilled shaft work required for the [p]ro-ject[.]” This “enabled the State to compare the bids and determine the lowest bidder.” (Emphasis added.) Thus review of the bids was accomplished by comparing the proposed cost per linear foot submitted by each bidder for each item.

Before submitting its bid for the whole project, the general contractor, Ige, received an unsolicited proposal from Foundation: to do the drilled shaft work. In this proposal, Foundation described abutment one drilled shaft work as being “35 piles of 15 foot length [,] ” (emphasis added), and abutment two drilled shaft work as being “36 piles of 12 foot length.” Foundation quoted a lump sum amount of $361,125 for both excavation and concrete work for “approximately” 963 linear feet for both abutments. Any additional shaft excavation necessary was proposed at a price of $175 per linear foot.

[492]*492Based on Foundation’s proposal, Ige submitted a proposal to the State with a unit price of $194 per linear foot on bid line item number 510.2000.5 Ige never intended to conduct drill shaft work itself, but always intended to subcontract that portion of the work if it was the successful bidder. Thus, Ige relied upon the prices quoted by Foundation.

II.

On August 6, 1992, the State and Ige entered into a contract for the project. This contract expressly incorporated the “notice to bidders, the instructions to bidders, the proposal and plans for [the project,]” as well as all amendments, deletions and additions attached to the contract.6 On sheet S-l of the project plans, incorporated into the contract, was the statement that “[djrilled shafts for abutments and wing walls shall be embedded at least 4 feet into basalt[.]” On sheet S-25, which is entitled “Drilled Shaft Details[,]” is an illustration depicting a sloping basalt layer to the bottom of the pile with “ ‘4'-0’ min.[7] embedment into basalt” indicated. Also, the caption to this illustration read, in relevant part, as follows:

6. Pile tip elevations shown on the longitudinal section (sht.S-3) are estimated elevations. The actual pile tip elevations will be determined by the Engineer.
7. Drilled shafts shall extend a minimum of four feet into basalt.

(Emphasis added.) The public bid document contained a similar section, which stated that

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Bluebook (online)
78 P.3d 23, 102 Haw. 487, 2003 Haw. LEXIS 508, Counsel Stack Legal Research, https://law.counselstack.com/opinion/foundation-international-inc-v-et-ige-construction-inc-haw-2003.