Fraser Construction Company v. United States

384 F.3d 1354, 2004 U.S. App. LEXIS 20338, 2004 WL 2152310
CourtCourt of Appeals for the Federal Circuit
DecidedSeptember 27, 2004
Docket03-5155
StatusPublished
Cited by23 cases

This text of 384 F.3d 1354 (Fraser Construction Company 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
Fraser Construction Company v. United States, 384 F.3d 1354, 2004 U.S. App. LEXIS 20338, 2004 WL 2152310 (Fed. Cir. 2004).

Opinion

BRYSON, Circuit Judge.

In this government contract case, the contractor seeks damages based on a claim of constructive acceleration. Following a trial, the Court of Federal Claims ruled that the contractor had failed to prove that the government constructively accelerated its performance. Fraser Const. Co. v. United States, 57 Fed. Cl. 56 (2003). Because the trial court’s decision is based on factual findings that have not been shown to be clearly erroneous, we affirm.

I

In 1993, the Army Corps of Engineers was engaged in a flood control project on the South Fork Zumbro River in Rochester, Minnesota. In connection with the project, the Corps contracted with Fraser Construction Company to excavate material from the bottom of Silver Lake, a shallow reservoir located along the river. The price of the contract was $744,585. The project was scheduled to begin on May 17, 1993, and to be completed by September 1 of that year. Before the project began, the water level in the lake was to be lowered by approximately eight feet to facilitate excavation of the lake bottom. At that water elevation most of the lake would normally be dry, except for a small stream running through the lakebed.

Fraser intended to divert the stream into a trench along the edge of the dry lakebed and to construct an earthen dike to confine the water to the trench. The dike was originally designed to withstand a water flow rate of 800 cubic feet per second (“cfs”). That rate of water flow'was substantially higher than the average flow rate for Silver Lake, although the flow rate varied considerably and would occasionally reach much higher levels. The evidence at trial showed that a water flow in excess of the flow the dike was designed to handle could destroy the dike and flood the lakebed. According to statistics from the U.S. Geological Survey, a water flow of more than 800 cfs could be expected to occur, on average, approximately 2.4 times per year during the months of June, July, and August.

In comments accompanying the acceptance of Fraser’s construction progress schedule, in which Fraser described its plan for conducting the work, the Corps pointed out that the diversion system Fraser had selected “will be susceptible to damage by flow amounts which are anticipated to occur during the May to August time frame. Delays due to such flows are not justification for weather-related extension of the contract completion date.”

The Corps’ concerns turned out to be well founded. Because of wet weather in the region, Silver Lake began to experience high water flows shortly after the project started. On May 31, 1993, before Fraser’s diversion dike was completed, the flow rate reached 1,320 cfs, which damaged the dike and flooded the work site. Fraser spent much of the next two weeks repairing the dike, work that Fraser asserts was made more difficult than anticipated because high water flows continued through that period, rather than receding as Fraser had expected. After the dike was repaired, excavation work resumed, but between June 17 and June 25 the project was again flooded, with the peak flow rate reaching 4,820 cfs. The mean daily flow rate for that time period was twice as high as was considered normal. Recurrent high water flows continued during July and into August.

*1357 The contract between Fraser and the Corps specified that severe weather would be a ground for a time extension. On June 17, 1993, Steve Nelson, Fraser’s project manager, made a request to Sheldon Edd, the government’s contracting officer, for a time extension based on weather conditions and high water flows. Mr. Edd dealt with (and for the most part informally granted) weather-related extensions immediately; however, Mr. Edd stated that he would deal at a later date with time-extension requests based solely on high water flow conditions.

On June 24, 1993, Fraser’s president, Rick Penz, submitted Fraser’s first written request for an adjustment in time and money based on the high water flows. In the letter, Mr. Penz stated that the excavation site became flooded as a result of high water flows on May 31, June 8, and June 18. He stated that it was Fraser’s position that the flow rates on the first two occasions “were within what has to be considered the usual nature inherent to this site and we do not request an equitable adjustment for the extra work involved as a result of those flows.” With respect to the June 18 event, however, he said that Fraser considered the flow rate on that occasion to be high enough to justify an adjustment in time and dollar amount for the contract. In the June 24 letter, Mr. Penz characterized the high flow problem as a differing site condition.

The Corps replied to the June 24 letter four days later, asking Fraser to provide further information regarding the request, such as what Fraser had anticipated about the site, what was different about the site, and how Fraser was damaged. That same day, the Corps sent Fraser a letter demanding that the company improve its progress and threatening to terminate the contract due to delays in the project. A copy of that letter was sent to Fraser’s bonding company. The government contends that the letter was sent not only because the project was significantly behind schedule, but also because Fraser’s subcontractor had refused to haul away the soil excavated from the lakebed due to the subcontractor’s concern that the soil contained contaminated material.

On June 30, Fraser sent the Corps a revised completion schedule in which it took the position that, up to that point, 12 of the scheduled work days had been affected by weather and “the effects of extreme conditions.” Assuming a 12-day extension, Fraser contended it was still on schedule to complete the work within the contract period as extended. Fraser explained that it intended to use a drag line so as to continue excavating materials even while the lakebed was wet.

Mr. Edd and Mr. Nelson met on July 7 to negotiate extensions for weather-affected days. According to Mr. Nelson’s notes, Mr. Edd stated at that time that the Corps would not recognize extensions based on high water conditions in the Zumbro River, as the Corps considered it to be Fraser’s responsibility to ensure that the lake-bed did not become inundated. A week later, Mr. Nelson advised Mr. Edd that the excavation site had been flooded again, and Mr. Edd replied that Fraser should have anticipated the conditions and had to continue working.

On July 15, Leon Mucha, a Corps representative, responded by letter to Fraser’s June 24 request for a price adjustment in the contract. He denied the request on the ground that Fraser should have anticipated the risk that the dike would be destroyed based on the frequency of peak flows high enough to overtop the dike. *1358 Mr. Mucha’s letter referred to the Corps’ earlier statement that Fraser should anticipate failure of its dike in the event of significant rainfall, that restoration of the diversion system was Fraser’s responsibility, and that delays caused by river flows “would not be considered justification for extension of the contract completion date.” Nonetheless, the parties agreed on a modification to the contract for weather-affected days in which the completion date was extended by 15 calendar days.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

David Boland, Inc.
Armed Services Board of Contract Appeals, 2024
JAAAT Technical Services, LLC
Armed Services Board of Contract Appeals, 2022
Skanska USA Building, Inc.
Armed Services Board of Contract Appeals, 2021
John C. Grimberg Co., Inc.
Armed Services Board of Contract Appeals, 2018
Parsons Evergreene, LLC
Armed Services Board of Contract Appeals, 2018
IAP Worldwide Services, Inc.
Armed Services Board of Contract Appeals, 2017
Starr International Company v. United States
856 F.3d 953 (Federal Circuit, 2017)
Garco Construction, Inc. v. Secretary of the Army
856 F.3d 938 (Federal Circuit, 2017)
Zafer Taahhut Insaat Ve Ticaret A.S. v. United States
833 F.3d 1356 (Federal Circuit, 2016)
Zafer Taahhut Insaat Ve Ticaret, A.S. v. United States
120 Fed. Cl. 604 (Federal Claims, 2015)
M.E.S., Inc. v. McHugh
502 F. App'x 934 (Federal Circuit, 2013)
SNC-Lavalin America, Inc. v. Alliant Techsystems, Inc.
858 F. Supp. 2d 620 (W.D. Virginia, 2012)
Armour of America v. United States
96 Fed. Cl. 726 (Federal Claims, 2011)
Edge Construction Co. v. United States
95 Fed. Cl. 407 (Federal Claims, 2010)
United Constructors, LLC v. United States
95 Fed. Cl. 26 (Federal Claims, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
384 F.3d 1354, 2004 U.S. App. LEXIS 20338, 2004 WL 2152310, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fraser-construction-company-v-united-states-cafc-2004.