Frazier-Davis Construction Co. v. United States

97 Ct. Cl. 1, 1942 U.S. Ct. Cl. LEXIS 86, 1942 WL 4392
CourtUnited States Court of Claims
DecidedMay 4, 1942
DocketNo. 43502
StatusPublished

This text of 97 Ct. Cl. 1 (Frazier-Davis 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
Frazier-Davis Construction Co. v. United States, 97 Ct. Cl. 1, 1942 U.S. Ct. Cl. LEXIS 86, 1942 WL 4392 (cc 1942).

Opinion

Whitaker, Judge,

delivered the opinion of the court:

Plaintiff seeks to recover additional costs incurred by it due to subsurface conditions which it alleges were materially different from those shown on the drawings or •indicated in the specifications. It also seeks ten percent profit on these additional costs. The amount thereof, in excess of the amount already paid, it alleges is $58,138.36. It also seeks to recover $12,3T5.00 for liquidated damages deducted for delay in completing the work, alleged to have been caused by these unforeseen conditions.

The contract was for the construction of a lock and dam. It provided for the payment of 15 cents per cubic yard for all common excavation. The borings made by the United States Engineer’s office indicated that the bed of the river where the lock and dam was to be constructed consisted of loam, loam and clay, sand, sand and clay, and some rock, all of which, except the rock, were classed as common excavation. Plaintiff moved to the site of the work a suction dredge which could have done the common excavation satisfactorily had the materials in the bed of the river been those indicated; but it turned.out that this dredge would not remove the materials actually in the.bed of the river. Plaintiff undertook to make the necessary adjustment of its machinery to do the work, but was unsuccessful, and finally sublet this part of the work to the Bolz Dredging Company, which had had long experience in river dredging. This company moved to the site a 15-inch electric hydraulic [52]*52dredge, but this dredge also was unable to do the necessary excavation. A cutter head was put on it in an effort to make it do the work, and later changes were made in this cutter head, but all without success. Finally, a dragline was resorted to.

On May 1, 1933 (the work had begun on February 12) the contractor wrote the contracting officer that unforeseen subsurface conditions had been encountered and it notified him of its intention to present a claim for additional compensation. The contracting officer directed the plaintiff to make borings in the riverbed to determine the nature of the materials in the bed of the river. When these bor-ings were made it was discovered that the bed of the river consisted of yellow clay mixed with blue gumbo of a tough texture. It also consisted of some hardpan of a sand composition.

Upon discovering this, the contracting officer requested the plaintiff to submit to him its conception of what an equitable .adjustment would be on account of these changed conditions. Accordingly, the plaintiff submitted schedules showing a “total loss” of $23,281.91 on account of the changed conditions. Upon consideration thereof, the contracting officer issued “Change Order No. 2, dated June 7, 1933” increasing the amount to be allowed for common excavation from 15 cents a cubic yard to 37y2 cents a cubic yard, and allowed 45 days additional time for the completion of the project. This change order concluded as follows:

This change order, being in excess of $500.00 in amount, does not become effective until approved by the Chief of Engineers.
Therefore, if the foregoing modification of said contract is satisfactory, please note your acceptance thereof in the space provided below.

It was accepted by the plaintiff in these words:

The foregoing modification of said contract is hereby accepted.

In returning it to the contracting officer the plaintiff wrote him as follows:

We are returning to you herewith Change Order No. 2 which has been accepted by us.
[53]*53We wish to, indeed, thank you for the equitable manner in which you have handled this proposition.

The change order was forwarded to the Chief of Engineers, who rejected it because it took into consideration increased costs prior to May 1, 1933, the date upon which the plaintiff had called the changed conditions to the attention of the contracting officer. The contracting officer was, accordingly, directed to revise the change order so as to take into consideration only costs incurred and to be incurred after May 1, 1933. In compliance therewith the contracting officer issued “Change Order No. 2, dated July 15, 1933” reducing the amount to be paid for excavation of “compact clayey materials” from 37% cents to 85 cents, and reducing the extension of time for completion of the work from 45 to 40 days. This amended change order was accepted by plaintiff on July 18, 1933, in the following words:

I am returning to you herewith change Order No. 2 which has been altered in accordance with your letter of July 15th and which has been accepted by us.

However, the Chief of Engineers, on the recommendation of the Division Engineer at St. Louis, rejected this change order, and reduced the price to be paid for this excavation to 23 cents per cubic yard. Thereupon, the contracting officer prepared a new Change Order No. 2, dated August 30, 1933, providing for 23 cents per cubic yard, and extending the time for completion 40 days. This change order was rejected by the plaintiff, who advised the contracting officer of its intention to appeal therefrom to the Secretary of War. In its appeal plaintiff not only appealed from the change order dated August 30, 1933, but stated that it had discovered that it had been very unfair to itself in accepting the original change order of June 7, 1933, providing for 37% cents per cubic yard, and asked that “this -whole matter be reviewed and another Change Order be awarded us in the light of the new information now available.”

Upon consideration thereof the Chief of Engineers and the Secretary of War decided that the price agreed upon in the change order of July 15, 1933, of 35 cents per cubic [54]*54yard, was equitable, and it was, accordingly, approved and sent to the contracting officer for delivery to plaintiff, which was done on November 1,1938.

At that time plaintiff did not indicate, whether it accepted or rejected this change order, but sometime between November 14 and November 16, 1933, plaintiff executed without protest a voucher sent to it by the defendant for $15,588.40 for 77,942 cubic yards excavated between May 1, 1933 and October 31, 1933, calculated at the rate of 35 cents per cubic yard, in accordance with the approved change order dated July 15, 1933. Subsequently, the plaintiff accepted without protest and cashed a check for this amount. Later, in November, December, January, February, March, April, May and June, it executed vouchers based on 35 cents a cubic yard for excavation, and payments were made accordingly, and were accepted by the plaintiff without protest. In a letter to the contracting officer dated December 23, 1933 the plaintiff admitted that it had agreed to the change order dated July 15, 1933 after it had been approved by the Chief of Engineers and the Secretary of War.

This change order constituted a modification of the contract, and as so modified it has been fully performed by the defendant, with the possible exception now to be considered. Seeds & Derham v. United States, 92 C. Cls. 97, 312 U. S. 697.

During the unwateriiig of the cofferdam for the lock 18,650 cubic yards of the. bank of the excavation caved in and had to be removed by the plaintiff.

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

Related

Seeds v. United States
312 U.S. 697 (Supreme Court, 1941)
Seeds v. United States
92 Ct. Cl. 97 (Court of Claims, 1940)

Cite This Page — Counsel Stack

Bluebook (online)
97 Ct. Cl. 1, 1942 U.S. Ct. Cl. LEXIS 86, 1942 WL 4392, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frazier-davis-construction-co-v-united-states-cc-1942.