K & S Associates, Inc. v. State

43 Ill. Ct. Cl. 117, 1991 Ill. Ct. Cl. LEXIS 62
CourtCourt of Claims of Illinois
DecidedMay 30, 1991
DocketNo. 84-CC-0588
StatusPublished
Cited by1 cases

This text of 43 Ill. Ct. Cl. 117 (K & S Associates, Inc. v. State) is published on Counsel Stack Legal Research, covering Court of Claims of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
K & S Associates, Inc. v. State, 43 Ill. Ct. Cl. 117, 1991 Ill. Ct. Cl. LEXIS 62 (Ill. Super. Ct. 1991).

Opinion

OPINION

Montana, C.J.

The Claimant, K & S Associates, Inc., brought this claim on January 4, 1984, seeking $476,110.50 in damages incurred due to delays and other problems Claimant encountered in the performance of a construction contract with the Respondent Capital Development Board (hereinafter referred to as the “CDB”). The case was tried over many months by the Commissioner assigned to the case. The cause was consolidated for trial purposes only with claims by Lippert Brick Contracting, Lowry Electric Company, and Guarantee Electrical Company.

Claimant makes the following claims against the State: a lapsed appropriation claim; a claim for reimbursement for money paid by Claimant to an excavator; a claim for excessive layouts; a claim resulting from lack of security at the site; a claim for consumables; a claim for additional labor resulting from roofing delay and water leaks in connection with the roof construction on the Academic Building and Learning Resource Center; a claim for metal siding for walkways; a claim for end-splash and support; a claim for expansion joint covers on the Academic Building and Learning Resource Center; a claim for additional lintels due to architectural error; a claim for aluminum thresholds; a claim based on the mop-up of the coal-tar buildups on the center section roof of the Skilled Training Center; a claim for sandblasting and painting of metal decking; a claim for security losses at the Skilled Training Center; a claim based on window water leaks caused by the CDB’s failure to properly administer the glazing contract; a claim for extra labor and material due to water penetration because of a lack of the center section roofing; and a delay claim.

The State countered in this lawsuit with a recoupment action against this Claimant. Each claim of the Claimant will be discussed separately and in light of the State’s recoupment claim.;

On August 1, 1978, the CDB entered into contracts with Claimant in which Claimant agreed to be the general contractor in the construction of the three buildings in the East St. Louis Community College project. The project consisted of the Skilled Training Center, the Academic Building, and the Learning Resources Center. Claimant also was awarded a separate contract for the roofing of the Skilled Training Center. The project was scheduled to begin on August 30th of 1978 and be completed in 730 calendar days and by August 30, 1980. Time was of the essence in the contract documents. The CDB gave Claimant bid documents and drawings upon which Claimant testified it relied in computing its bid and planning its work. With these documents and using the customary construction and bidding practices, Claimant’s bid was $1,182,000.00. Claimant attached a bid addendum to its bid which limited some of its duties. The bid addendum was accepted by the State although to do so was contrary to State policy.

In fact, the project was finally completed on December 16, 1982, with final acceptance on June 24, 1983. Claimant alleged that it was prevented from completing its work within the contractual 730 days due to delays not attributable to Claimant and that Claimant incurred actual costs of $450,603.50.

The Claimant, upon acceptance of its bid, was ready and willing to perform. The CDB, on August 30, 1978, told the Claimant to begin the project and authorized the Claimant to proceed. The initial problem to occur which caused the major delay was the inability of the CDB to obtain an excavator for the project. The excavation contract involved the clearing, grading and excavation necessary to complete the project. A prime contract was originally awarded to Eanes Excavation Company. Eanes was unable to obtain a performance bond as required. Rather than terminate the excavating contract with Eanes, the CDB requested Claimant to subcontract the excavating work to Eanes through Claimant. Although this was tried, it became obvious Eanes was incapable of performing the required excavation work. In March of 1979, the CDB indicated it would seek a new excavator.

On May 1, 1979, East St. Louis Equipment and Leasing submitted a bid for the excavation work. This excavator underestimated the work on its bid, requested more money, and was not paying its workers which resulted in the threat of a union shutdown. The CDB requested Claimant to pay this excavator more money to keep the project going. Other difficulties between the CDB and East St. Louis Equipment and Leasing led the new excavator to leave the job. The CDB had the obligation to obtain an excavator to begin the project. The project was to start on August 30, 1978. The CDB was unable to obtain a qualified excavator and the excavation was still incomplete over a year after the project began. The CDB’s utter failure to have the excavation start on time and continue was a major problem for over a year and was the major delay on the project. Because of the excavation problems, all of the project schedules were off from day one. This had a snowball effect as the delay caused the project to go through four winters rather than the scheduled two winters. Once the project was delayed by the excavation problem, all of the coordination and sequencing was out of sync and the architect/engineer (“A/E”) and the Claimant, the general contractor, were not able to get the project back in sync.

Other acts of the CDB caused substantial delays on this project. The normal CDB project has five prime contractors. The East St. Louis Community College project was broken down to have 36 prime contractors by CDB to obtain minority participation. CDB officials acknowledged that this number of contractors required increased coordination which the A/E and general contractor chosen by CDB were unable to perform. CDB did nothing to rectify the inept coordination even after it was apparent the A/E and general contractor were not up to the job.

Dennis Larson, the last of five project managers for the CDB, found the CDB at fault for delays at least in four major instances: (1) Breaking the projects down into multiple contracts. There were 36 total prime contractors. While the idea was to obtain minority participation, the idea backfired as one company, J. J. Altman & Company, was awarded many of the general-type work contracts. The coordination of so many contracts was very difficult; (2) The acceptance of K & S Associates bid attachments and subsequent award of general work contracts to K & S created many contractor responsibility disputes. Previous CDB legal decisions stated CDB did not accept qualified bids. However, CDB did accept this qualified bid; (3) The initial site excavation contract was mishandled. The CDB proceeded with issuing change orders to the general contractor which created payment and performance problems; (4) A delay was experienced over CDB’s decision concerning what roofing system would be acceptable in the flat section of the Skilled Training Center roof. The problem was noted in the A/E minutes of November 1979; however, a direction to the contractor was not given until March of 1980. This caused delay.

The A/E also caused delay. CDB officials considered the A/E construction documents prepared by the A/E as poor at best. Timely processing of paperwork was another cause of delay attributable to the A/E.

However, this Claimant was also accountable for substantial delays.

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Related

McCarthy Brothers Co. v. State
47 Ill. Ct. Cl. 15 (Court of Claims of Illinois, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
43 Ill. Ct. Cl. 117, 1991 Ill. Ct. Cl. LEXIS 62, Counsel Stack Legal Research, https://law.counselstack.com/opinion/k-s-associates-inc-v-state-ilclaimsct-1991.