Greaves v. City of Villisca

266 N.W. 805, 221 Iowa 776
CourtSupreme Court of Iowa
DecidedMay 5, 1936
DocketNo. 43394.
StatusPublished
Cited by2 cases

This text of 266 N.W. 805 (Greaves v. City of Villisca) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greaves v. City of Villisca, 266 N.W. 805, 221 Iowa 776 (iowa 1936).

Opinion

Kintzinger, J.

The city of Villisca, after complying with the preliminary statutory requirements leading up to the letting of a contract for a municipal light and power plant in the city of Villisca, entered into a contract with the Fairbanks-Morse Construction Company for the construction of such a plant during the month of September, 1935.

■ Appellant contends that the contract entered into did not comply with the terms of the specifications, and therefore resulted in a failure of competitive bidding. If the contract entered into did not call for the construction of the plant in substantial compliance with the town specifications, there was no competitive bidding. Iowa Electric Light & Power Co. v. Incorporated Town of Grand Junction, 216 Iowa 1301, 250 N. W. 136.

The lower court found that the contract complied with the plans and specifications, and dismissed plaintiff’s bill. Plaintiff appeals.

The specifications provided, among other things, that:

“The contractor shall furnish and install two heavy duty Diesel engines each of approximately 375 Brake Horsepower capacity, * * * connected to one 250 K. W. a. c. generator and direct connected exciter. * * * The bidder shall bid on his standard size equal to or exceeding that specified. * * *
“The engine should be capable of developing the required Brake Horsepower continuously * * ®.
“The engine shall be of such design and construction as will insure ease and reliability of operation, * * * and continuous operation without frequent shutdowns for adjustment. ’ ’

The specifications also provided that:

“The engine covered by these specifications are to be used in central station service, and no bids will be considered on any types or makes of engines unless they have been in similar service a sitfficient length of time to prove the design correct and ca/paible of giving satisfactory service in central station operation

*778 Under the contract, the Fairbanks-Morse Company agreed to furnish two model No. 32-E Diesel engines having 375 horsepower capacity each in accordance with the city specifications. The various models of the Diesel engines were known as No. 32 with a letter of the alphabet after it. The earliest model was known as No. 32-A, brought out in 1923. This had a 50 horsepower per cylinder. Later changes were made increasing the horsepower capacity to 60 or 70, as new models were put out. Model 32-D was brought out in September, 1930, and given a rating of 70 horsepower per cylinder, or 350 horsepower per engine; there being five cylinders .in each engine. The latest model was known as No. 32-E, which was brought out in 1935. When first brought out, this model was given a rating of 70 horsepower per cylinder, or 350 horsepower per engine.

The capacity rating of this engine was changed by the Fairbanks-Morse Company in July or August, 1935, but prior to that time it had been sold and installed as a 350 horsepower engine. The record shows that the horsepower of each new model was given a higher rating than the previous model. The' record, however, shows that after a new model came out, “the rating on the old model was retained until the neiu model had-been proved in the field.”

Appellee contends that because the new Model 32-E had been given a rating of 375 horsepower per engine after it had been in use as a 350 horsepower engine for a few months, it fully met the requirements of the specifications requiring a 375 horsepower engine.

Appellant contends, however, that the record fails to show that model 32-E had been in use in central service stations for a sufficient length of time to prove the engine capable of operating continuously as a 375 horsepower engine.

It is the general rule of law that where there is a substantial difference between the material contracted for and that described in the plans and specifications, there is no competitive bidding. Fauble v. Davis, 48 Iowa 462; Connor v. Trapp, 127 Iowa 742, 104 N. W. 333; Pascoe v. Barium, 247 Mich. 343, 225 N. W. 506, 65 A. L. R. 833, and an exhaustive note on the subject on page 835.

It is now the well-settled law in this state that where the contract let does not substantially comply with the plans and specifications, there is no competitive bidding and the contract *779 is invalid. Urbany v. City of Carroll, 176 Iowa 217, 157 N. W. 852; Iowa Electric Light & Power Co.v. Grand Junction, 216 Iowa 1301, 250 N. W. 136; Iowa-Nebraska Light &. Power Co. v. Villisca, 220 Iowa 238, 261 N. W. 423; Brutsche v. Coon Rapids, 220 Iowa 1295, 264 N. W. 696.

In Urbany v. Carroll, 176 Iowa 217, loc. cit. 222, 157 N. W. 852, 854, we said:

“The authorities agree that there must be a substantial compliance with the proposal to warrant the consideration of the bid, else bidding would not be on equal terms, and the advantages of competition lost. Unless the bid respmds to the proposal in all material respects, it is not a bid at all, but a new proposition.”

In Brutsche v. Town of Coon Rapids, 220 Iowa 1295, loc. cit. 1299, 264 N. W. 696, 698, 699, we said, speaking through Justice Albert:

“It seems passing strange that when a town advertises for bids on certain plans and detailed specifications then on file with the town clérk, bidders do not respond to the call, but disregard the plans and specifications on file and furnish plans and specifications of their own on which they base their bids.”

In order to determine whether or not the contract let in this ease met with the plans and specifications in the respects hereinabove set out, a review of the evidence will be necessary.

I. Appellant claims that although the appellee in his proposals may have bid upon two 375 horsepower engines, it is undisputed in the record that the engines bid upon consisted of two No. 32-E engines, and that these engines were rated in the Fairbanks-Morse catalogue as 350 horsepower engines. It is also shown by the record that at or about the very time the Yillisca letting was being made, the Fairbanks-Morse Company, appellee herein, was installing the identical engine No. 32-E in the towns of Madison, Nebraska, Deshler, Nebraska, and Rockford, Iowa, at a rating of 350 horsepower per engine, or 70 horsepower per cylinder. It is also shown by the record that up until the time of the letting of the Yillisca contract, the No. 32-E Diesel engine was listed in its own catalogues as a 350 horsepower engine.

While these facts are conceded in the record, appellee con *780 tends that a new horsepower rating had been given the No. 32-E Diesel engine by the manufacturers under which it now contends that the same engine is a 375 horsepower engine. Without reviewing all the evidence in detail, it is sufficient to say that the evidence casts some doubt upon the capacity of the engine referred to in appellee’s bid as being a 375 horsepower engine.

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