Omaha Public Power District v. Darin & Armstrong, Inc.

288 N.W.2d 467, 205 Neb. 484, 1980 Neb. LEXIS 739
CourtNebraska Supreme Court
DecidedFebruary 12, 1980
Docket42532
StatusPublished
Cited by15 cases

This text of 288 N.W.2d 467 (Omaha Public Power District v. Darin & Armstrong, Inc.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Omaha Public Power District v. Darin & Armstrong, Inc., 288 N.W.2d 467, 205 Neb. 484, 1980 Neb. LEXIS 739 (Neb. 1980).

Opinion

McCown, J.

This action arose out of a dispute which occurred during the performance of a construction contract. The contract covered piling, concrete foundation, and steel erection work involved in the construction of a coal-fired electric power plant located near Nebraska City, Nebraska. The proceeding began as an equity action filed by the owner, Omaha Public Power District (district), against the contractor, Darin & Armstrong, Inc. (D & A), for an injunction requiring the contractor to proceed with the construction work after a work stoppage. After granting the injunction, the District Court retained jurisdiction to determine the amount of increased compensation due to the contractor because of a substitution of compacted clay fill for granular fill at the site of the construction project. The District Court entered judgment in favor of the contractor and against the owner in the sum of $1,563,307.75. The contractor has appealed and the owner has cross-appealed.

Prior to 1975, the Omaha Public Power District completed plans and preparations for the construction of a coal-fired electric power generating plant to be built on a site adjacent to the Missouri River in Otoe County, Nebraska. Total contracts for construction exceeded $90 million, and, in addition, contracts for equipment to be incorporated into the plant were in excess of $100 million.

The contract involved here, described as contract *487 1038, covered work which D & A divided into three separate portions. (1) Drive approximately 2,100 steel pipe piles through approximately 24 feet of fill material and into the soil beneath to a total depth of about 85 feet. The piles were in clusters and were^to be filled with concrete after they were driven. This part of the contract also included excavation and backfill work for other portions of the contract. (2) Furnish and pour concrete caps over and tie beams between the various clusters of piles, lay a large concrete circulating water pipe from the river to the plant, and pour a massive concrete thrust block and turbine pedestal. (3) Erect the structural steel for the plant on the pile caps.

The defendant, D & A, was the contractor for all the work under contract 1038, but subcontracted the pile driving and excavation and backfill work described as (1) above to C. J. Rogers Construction Company, and the steel erection work described as (3) above to Midwest Steel Erection, Inc.

Before work under the contract involved here was to begin, the general plans and specifications called for the excavation and removal of the top 24 feet of existing material from the immediate area of the building site and its replacement with a like volume of compacted new material. The advertisement for bids for this site preparation contract requested that bids quote a base price for using cohesive clay material to be taken from the bluffs to the west of the construction site as the fill material, and an alternate price for using granular or sand material dredged from the Missouri River as the fill. Although either type of fill would have provided a suitable foundation, the engineer for the district and the soils engineer preferred and recommended the granular material. Due to the inability of the district to obtain the necessary dredging permits by the required date, the site preparation contract let by the district provided for the use of the cohesive clay fill *488 rather than the granular fill. That contract was awarded to Eby Construction Company on March 27, 1975, and on April 20, 1975, Eby began work on an around-the-clock schedule, and completed the work on August 15, 1975.

The plans and specifications for the contract involved here were issued on May 6, 1975. Although drafted to cover work on either cohesive or granular fill, the plans and specifications contained no information as to the type of fill that was actually being used by Eby. However, several portions of the test boring log data available to prospective bidders, and prepared by the district’s soils consultant, indicated compacted granular fill. The district has conceded that the contractor could have reasonably believed that the top 24 feet of the area in which the pilings were to be driven, and on which the contract work was to be done, would be compacted granular fill rather than compacted cohesive fill.

The engineer’s estimate of the cost for contract 1038 was $12,019,000. There were four bidders. D & A was the low bidder with a bid of $8,969,000. The next low bid was more than $1.5 million higher, and the high bid was more than $3 million above the D & A bid. D & A was based in Detroit, Michigan, had not previously bid in the Omaha building trades area, and had not previously had a power plant contract.

Because of the low amount of the bid, the engineering supervisor for the district gave a copy of the engineer’s detailed price breakdown to the bid estimator for D & A, and requested him to compare it with their bid to be sure something had not been left out. On July 17, 1975, contract 1038 was awarded to D & A by the district.

Contract specifications for the pile driving were silent on the subject of predrilling. On July 25, 1975, the engineer for the district advised that predrilling for piling would be allowed to a maximum depth of *489 24 feet, but that the diameter of the holes should be restricted to 10 inches. The piles were 12% inches in diameter, although the bottom closure plate of the piles was 1 sy2 inches.

Rogers commenced the pile driving on August 22, 1975. Initial attempts to drive piling without predrilling were unsuccessful and driving piling in 10-inch holes was very difficult, and the clay became “like concrete” when wet. In mid-September 1975, the engineer authorized an increase in diameter of the predrilled holes from 10 incl\es to 13 inches for 1,800 of the 2,100 piles involved. By late October 1975, Rogers had driven some 900 piles.

The pile driving specifications required that each pile support a design load of 150 tons, and specified 50 blows to the inch under a 30,000 foot-pound hammer as a final driving resistance. There was a reference to a safety factor of 2.5 in some of the provisions dealing with vibratory pile drivers, which were not used on the project. Contract 1038 contains pile load test procedures and requires the contractor to furnish the necessary equipment for testing, keep all records of load and movement of test piles, and bear the cost of pile testing.

In early September 1975, Rogers employed a consulting engineer about the problems that were being encountered in connection with pile driving on contract 1038. The consultant, in a report transmitted to all parties by Rogers, recommended predrilling of the piling holes to any reasonable depth beyond 24 feet, filling the pilings with concrete when partially driven, and completing driving thereafter. His opinion was that under the contract design, many of the piles would not carry the load required under the specifications, and that the final driving resistance specified was well beyond industrial custom and could not be defended.

Rogers and D & A conducted piling compression tests on three test piles, each of which they asserted *490

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

Related

Iliescu v. Reg'l Transp. Comm'n
2022 NV 72 (Nevada Supreme Court, 2022)
Iliescu v. Reg'l Transp. Comm'n
Court of Appeals of Nevada, 2022
Union Ins. Co. v. Land and Sky, Inc.
568 N.W.2d 908 (Nebraska Supreme Court, 1997)
Thompson v. Valley Corp.
528 N.W.2d 352 (Nebraska Court of Appeals, 1995)
Steineke v. Share Health Plan of Nebraska, Inc.
518 N.W.2d 904 (Nebraska Supreme Court, 1994)
Lange Industries, Inc. v. Hallam Grain Co.
507 N.W.2d 465 (Nebraska Supreme Court, 1993)
Municipality of Anchorage v. Frank Coluccio Construction Co.
826 P.2d 316 (Alaska Supreme Court, 1992)
Nebraska Public Power District v. Austin Power, Inc.
773 F.2d 960 (Eighth Circuit, 1985)
Holt County Cooperative Ass'n v. Corkle's, Inc.
336 N.W.2d 312 (Nebraska Supreme Court, 1983)
Meisinger Earth Moving, Inc. v. State
324 N.W.2d 387 (Nebraska Supreme Court, 1982)

Cite This Page — Counsel Stack

Bluebook (online)
288 N.W.2d 467, 205 Neb. 484, 1980 Neb. LEXIS 739, Counsel Stack Legal Research, https://law.counselstack.com/opinion/omaha-public-power-district-v-darin-armstrong-inc-neb-1980.