Fru-Con Construction Corp. v. United States

43 Cont. Cas. Fed. 77,449, 43 Fed. Cl. 306, 1999 U.S. Claims LEXIS 58, 1999 WL 185067
CourtUnited States Court of Federal Claims
DecidedMarch 31, 1999
DocketNo. 97-43C
StatusPublished
Cited by8 cases

This text of 43 Cont. Cas. Fed. 77,449 (Fru-Con Construction Corp. 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
Fru-Con Construction Corp. v. United States, 43 Cont. Cas. Fed. 77,449, 43 Fed. Cl. 306, 1999 U.S. Claims LEXIS 58, 1999 WL 185067 (uscfc 1999).

Opinion

OPINION

MILLER, Judge.

The questions presented in this case, before the court after trial, are whether plaintiff encountered a differing site condition in repairing the walls of a lock and dam project and whether plaintiff is entitled to an equitable adjustment for unusually severe weather through which plaintiff was forced to accelerate in the face of significantly diminished productivity. The theme permeating this litigation is the consequences of failing to alert the Government of a condition for which a contractor does not intend to accept responsibility and of failing to keep contemporaneous records.

FACTS

On September 2, 1993, the Department of the Army, Rock Island District, Corps of Engineers (the “Corps”) awarded Contract No. DACW25-93-C-0112 to Fru-Con Construction Corporation (“plaintiff’) at a bid price of $12,364,526.10. This fixed-price contract contemplated the rehabilitation of three lock and dam sites along the Illinois Waterway. The required work included, inter alia, the removal of existing mitre gates, the installation of new mitre gates, and the installation of eight new floating mooring bitts (“FMBs”). FMBs are barrel-shaped metal structures that rest within guides embedded in the concrete lock walls. The FMBs float in the lock chamber and assist in stabilizing passing tows when the level of water within the lock chamber rises and falls. Specifically, the contract provided for the removal of concrete from the lock chamber walls to permit the installation of four FMBs at the Brandon Road lock and dam site, three at the Marseilles lock and dam site, and one at the Dresden Island lock and dam site. The contract mandated that the mitre gate and FMB installations be completed within a 60-day lock closure period commencing on July 11, 1995, and ending on September 8, 1995.1 The Corps closed the locks to navigation during this 60-day period to permit plaintiff to dewater the locks and work within the lock chambers. As a result of the lock closure, an 82-mile portion of the Illinois Waterway was removed from active service. Recognizing the need to reopen the locks on time in order to permit barges to pass prior to the winter freeze, the contract provided that liquidated damages in the amount of $20,695.00 could be assessed for each day the lock remained closed after September 8,1995.

Although not involved in the performance of the Illinois Waterway project, Mr. Richard L. Allen was, the Chief Estimator who prepared plaintiffs bid. Mr. Allen was employed by plaintiff for approximately ten years. During his tenure with plaintiff, Mr. Allen was also the Operations Manager for a project on the Oliver lock and dam site.2 Mr. Allen testified that his responsibilities included selecting the projects on which to bid, attending pre-bid meetings, examining the job sites, and organizing all estimating efforts. He attended the pre-bid meeting at the lock sites for the Illinois Waterway project. Mr. Allen testified that the Corps pro[310]*310vided a brief description of the work to the contractors after which he examined the Marseilles lock site before moving on to the other two sites. The Corps gave the contractors a general description of the work and permitted physical inspection of the lock site. The meetings lasted for approximately 45 minutes to one hour at each site. During his inspection, Mr. Allen “was looking for ... any conflicts, overhead power lines for crane usage, conditions of the lock walls obviously, the impediments to operating equipment around the locks and generally access to the work that was to be accomplished.” Mr. Allen photographed the lock and surrounding area on this visit to the lock sites. These photographs revealed construction joints, or lift joints,3 in the concrete monoliths, which Mr. Allen did not believe would have a significant impact upon the concrete removal by the proposed drilling method or the later utilized blasting method.4 Mr. Allen observed nothing unusual and anticipated high quality concrete. Although taking issue with the reasonableness of Mr. Allen’s inspection, defendant does not dispute that such an inspection occurred.

Mr. Allen’s site inspection was, required by the contract’s site investigation clause through which plaintiff acknowledged “that it has taken steps reasonably necessary to ascertain the nature and location of the work” with regard to “the character, quality, and quantity of surface and subsurface materials or obstacles to be encountered .... ” Contract clause 1.70, entitled SITE INVESTIGATION AND CONDITIONS AFFECTING THE WORK, provided:

(a) The Contractor acknowledges that it has taken steps reasonably necessary to ascertain the nature and location of the work, and that it has investigated and satisfied itself as to the general and local conditions which can affect the work or its cost, including but not limited to (1) conditions bearing upon transportation, disposal, handling, and storage of materials; (2) the availability of labor, water, electric power, and roads; (3) uncertainties of weather, river stages, tides, or similar physical conditions at the site; (4) the conformation and conditions of the ground; and (5) the character of equipment and facilities needed preliminary to and during work performance. The contractor also acknowledges that it has satisfied itself as to the character, quality, and quantity of surface and subsurface materials or obstacles to be encountered insofar as this information is reasonably ascertainable from an inspection of the site, including all exploratory work done by the Government, as well as from the drawings and specifications made a part of this contract. Any failure of the Contractor to take the actions described and acknowledged in this paragraph will not relieve the Contractor from responsibility for estimating properly the difficulty and cost of successfully performing the work, or for proceeding to successfully perform the work without additional expense to the Government.
(b) The Government assumes no responsibility for any conclusions or interpretations made by the Contractor based on the information made available by the Government. Nor does the Government assume responsibility for any understanding reached or representation made concerning conditions which can affect the work by any of its officers or agents before the execution of this contract, unless that understanding or representation is expressly stated in this contract.

In addition to the site inspection, Mr. Allen relied upon the bid documents in formulating plaintiffs bid.

The Corps issued a Notice To Proceed by letter dated September 21, 1993. The Corps authorized plaintiff to begin certain work pri- [311]*311or to the lock closure, i.e., sawcutting and line drilling. Once the lock closure occurred, plaintiff would begin the removal of the mitre gates and later concrete from the lock chamber.

Installation of the new FMBs required that plaintiff remove concrete from the lock chamber wall, thereby creating recesses between 39 and 52 feet in height. The contract permitted a choice in methods for the selective removal of concrete from the lock wall face. One method was mechanical, i.e., the use of drilling followed by hydraulic splitters to break apart the concrete. Alternatively, the contract allowed for concrete removal by blasting as provided for in contract section C-02075, H 3.2: “Removal of the existing concrete may be done by blasting, as indicated on the drawings.

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Cite This Page — Counsel Stack

Bluebook (online)
43 Cont. Cas. Fed. 77,449, 43 Fed. Cl. 306, 1999 U.S. Claims LEXIS 58, 1999 WL 185067, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fru-con-construction-corp-v-united-states-uscfc-1999.