Mid-States General & Mechanical Contracting Corp. v. Town of Goodland

811 N.E.2d 425, 2004 Ind. App. LEXIS 1271, 2004 WL 1489855
CourtIndiana Court of Appeals
DecidedJuly 6, 2004
Docket86A03-0312-CV-500
StatusPublished
Cited by31 cases

This text of 811 N.E.2d 425 (Mid-States General & Mechanical Contracting Corp. v. Town of Goodland) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mid-States General & Mechanical Contracting Corp. v. Town of Goodland, 811 N.E.2d 425, 2004 Ind. App. LEXIS 1271, 2004 WL 1489855 (Ind. Ct. App. 2004).

Opinion

OPINION

SHARPNACK, Judge.

Mid-States General & Mechanical Contracting Corporation ("Mid-States") appeals the trial court's grant of summary judgment to the Town of Goodland ("Town"). Mid-States raises three issues, which we consolidate and restate as:

I. Whether Mid-States is entitled to rescind its bid and bid bond because of its misinterpretation of the bid documents; and
II. Whether the contract is void because the Town Council failed to meet certain procedural requirements in awarding the contract.

We affirm.

The relevant facts designated by the parties follow. In late 2001, the Goodland Town Council ("Town Council") began the process of requesting bids for the renovation of an elementary school building into a town hall, community center, and daycare. The Town Council discovered that the first group of bids were over budget and decided to modify the bidding process by requiring bidders to break down their bid into one lump sum for the majority of the work and four smaller optional alternate projects that could be completed if funding was available. On January 16, 2002, the Town Council published an Invitation to Bid, which informed bidders that copies of the plans and specifications for the project were available at the offices of KJG Architecture, Inc. ("KJG"). The Invitation to Bid also informed the bidders that there were two divisions to the contract: (1) Division A, which consisted of the renovation for the daycare center and community center; and (2) Division B, which consisted of the renovation for the town hall. The Invitation to Bid also required proposals to be accompanied by a bid bond of not less than five percent of the total amount of the proposal.

The Bid Notice provided that "[blids shall be on a stipulated sum basis; segregated bids will not be accepted." Appellant's Appendix at 174. The bid documents for the project included "Addendum # 1; Document 00410-Bid Form," which contained the following form that the bidders were required to complete:

1.3 The undersigned will complete the Work in accordance with the Contract
Documents for the following prices: STIPULATED-SUM BID PRICE . ($ )
(Use words) (Figures)
ALTERNATES
Add Alternate No. 1 (Demolition and renovation of the locker room area in the Community Center in seope of work B)
Add ($ __)
Add Alternate No. 2 (Add 5-foot sidewalk in seope of work B)
Add ($ ___)
Add Alternate No. 3 (Demolition and renovation of the restroom to meet ADA requirements in the Goodland Town hall in scope of work A)
Add ($ )
Add Alternate No. 4 (Add radiant heaters to three daycare classrooms as shown on plans and any wiring required for installation in scope of work B)
Add ($ )
ALLOWANCES
Allowance # 1 (Contingency allowance) ota
Allowance # 2 (Carpet allowance) om
Allowance # 3 (Clean and abate mold) om
Allowance # 4 (Utility company charges) ote
Allowance # 5 (Hardware allowance) ote
Allowance # 6 (Painting of the gymnasium) tro
1.4 For bookkeeping purposes the STIPULATED-SUM BID PRICE is *429 hereby broken down into the following component parts, with the sum of all parts equal to the STIPULATED-SUM BID PRICE:
Scope A: Town Hall Remodel Work $_____-_
Scope B: Community Center and Daycare Remodel Work $_
Roofing Work $_____
Remaining Work

Id. at 58.

Mid-States submitted a bid with a Stipulated-Sum Bid Price of $822,000.00 along with a bid bond issued by St. Paul Fire and Marine Insurance Company ("St. Paul"). On February 4, 2002, the Town Council opened the eight sealed bids that were submitted, including the bid submitted by Mid-States. Mid-States had the lowest bid, and the second lowest bid was submitted by Cooley Construction in the amount of $866,119.00. On March 1, 2002, James Butler, the Town Council President, notified Mid-States that it had been awarded the contract. The Town Council also decided to fund Alternate No. 3, which included renovation of the restrooms to comply with the ADA. After a preconstruction meeting, Mid-States sent a letter to KJG providing it with the total contract price as follows:

Stipulated bid- $822,000.00
Alternate # 3- $ 16,495.00
Allowance # 1- $ 50,000.00
Allowance # 2- $ 7,225.00
Allowance # 83- $ 20,000.00
Allowance # 4- $ 5,000.00
Allowance # 5- $ 9,800.00
Allowance # 6- $2,500.00
Contract Value $933,020.00

Id. at 78. KJG then advised Mid-States that the allowances should have been included in the Stipulated-Sum Bid Price. Mid-States offered to perform the contract for $933,020.00 or perform the contract for its bid price of $822,000 plus the cost of Alternate No. 3 and treat the allowances as change orders. On March 15, 2002, the Town Council awarded the contract to the second lowest bidder, Cooley Construction, for an additional cost of $44,119.00 above the Stipulated-Sum Bid Price submitted by Mid-States.

The Town then filed a complaint against Mid-States and St. Paul, alleging breach of contract and forfeiture of bond. The Town filed a motion for summary judgment, which the trial court granted as follows: }

The Court finds that much of the material presented by the parties would require the Court to make factual determinations and would thus not authorize the entry of summary judgment because many of those facts are in dispute. However, after full consideration of the cireumstances, the Court finds that the issues before the Court may be determined within the four corners of the documents in question without the necessity of evidence to elaborate and explain.
The Court finds that the parties did, in fact, enter into a Contract and while [Mid-States and St. Paul] dispute that issue, it does not appear to this Court that there is any real dispute as to the existence of the contract. The Court also finds that any issue concerning statute of [flrauds is not applicable to this case. The Court finds that [Mid-States] submitted a bid with a bond from St. Paul{,] which secured the bid{,] and said bid was accepted. After acceptance of the bid, [Mid-States] breached the contract, thus resulting in the forfeiture of the bond. The damages to the [Town] are ascertainable in that the next to highest bid was accepted and there is no dispute concerning that issue.

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811 N.E.2d 425, 2004 Ind. App. LEXIS 1271, 2004 WL 1489855, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mid-states-general-mechanical-contracting-corp-v-town-of-goodland-indctapp-2004.