R. W. Dunteman Co. v. State

49 Ill. Ct. Cl. 5, 1995 Ill. Ct. Cl. LEXIS 73
CourtCourt of Claims of Illinois
DecidedMarch 10, 1995
DocketNo. 84-CC-0611
StatusPublished

This text of 49 Ill. Ct. Cl. 5 (R. W. Dunteman Co. 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
R. W. Dunteman Co. v. State, 49 Ill. Ct. Cl. 5, 1995 Ill. Ct. Cl. LEXIS 73 (Ill. Super. Ct. 1995).

Opinion

OPINION

Mitchell, J.

Claimant, R. W. Dunteman Company, hereinafter referred to as “Dunteman” filed a breach of contract action against the State of Illinois, Department of Transportation, hereinafter referred to as “IDOT,” pursuant to section 8(b) of the Court of Claims Act. (705 ILCS 505/8(b).) Dunteman contends that IDOT breached its construction contract and Dunteman is seeking damages in the amount of $25,250 plus interest in accordance with the State Prompt Payment Act. 30 ILCS 540/1 et seq.

Facts

R. W. Dunteman Company is an earth moving and paving firm. On January 25, 1982, IDOT awarded Dunteman a construction contract to perform construction work at Du Page County Airport for the sum of $137,355. The contract described the work as follows:

"Construct, light and mark extension to the parallel taxiway to runway 10/28 and a single row auto parking area.”

The contract required that IDOT authorize all change orders in writing as per the correspondence from IDOT to Dunteman dated January 25, 1982, which states in pertinent part as follows:

“NO WORK SHALL COMMENCE UNTIL THE NOTICE TO PROCEED HAS BEEN ISSUED RY THE DIVISION OF AERONAUTICS. Any work started before this issuance may become ineligible for payment under this contract.”

On April 22, 1982, a preconstruction meeting was held. The memorandum of the. preconstruction conference indicates that among others present at the conference were: Larry Frank, the construction engineer from the Division of Aeronautics of IDOT; Steve Moulton, of Crawford, Murphy & Tilly, Inc. (“CMT”); the consulting engineers and agents for IDOT; Jeff Plapp, the resident engineer for CMT; and Allen Dunteman on behalf of Dunteman. The minutes of the preconstruction conference indicate “as per Mr. Frank, only the Division of Aeronautics can approve the contract changes.”

Mr. Dunteman testified that based on his experience, change orders are required to increase or decrease the scope of work specified in the contract. He further testified that it was Dunteman s practice to act on change orders as soon as they were approved by IDOT and received by Dunteman.

On April 26, 1982, construction work began. On April 30, 1982, Dunteman discovered an inferior subsoil problem. Jeff Plapp, resident engineer, directed Dunteman to excavate 2,500 cubic yards of ground. This work took two working days. A disking process was done to attempt to diy the soil due to excessive rain in May 1982. This process took three weeks to complete. By the end of May 1982 the subgrade was fairly well constructed.

In late May, it became apparent that the soil was unacceptable for asphalt. This condition was brought to the attention of Plapp who stopped the project and said he needed to contact Larry Frank, the construction engineer from IDOT. On June 9, 1982, CMT wrote a letter to Dunteman stating that the work could not proceed until Lariy Frank visited the job site. On June 11, 1982, Frank visited the job site and approved a method of repair which would change the terms of the contract.

Frank testified that on June 11, 1982, he orally advised Dunteman to proceed with the work without any signed change order documents.

On June 14, 1982, CMT wrote Dunteman a letter regarding the June 11, 1982 meeting. No change orders were executed at that time. The June 14, 1982 letter indicates that additional amounts of stone could be used to firm the subsoil. In the letter, CMT requested that Dunteman provide it with a price for the stone. The letter further noted items of work which had not been completed by the contractor.

On June 17, 1982, Dunteman wrote CMT a letter indicating the price of the stone. In addition, Dunteman stated, in pertinent part:

“If our 'agreed' unit price is acceptable to you and the Illinois Department of Transportation, please issue your written Change Authorization so that this work may proceed without delay.”

On June 18,1982, Moulton, the project engineer, responded to Claimants letter with a Change Order No. 1 for signature. The letter noted Duntemans concern over receiving written authorization to proceed with the work and also expressed disappointment at the lack of progress on the uncompleted items listed in CMTs letter of June 4,1982, which were unrelated to the subgrade problem.

On June 19, 1982, Dunteman submitted to IDOT Change Order No. 1 which took into account the additional cost of $6,157.60 for the crushed stone. On June 23, 1982, Dunteman submitted Change Order No. 2 to be signed by IDOT. This change order added 60 calendar days to the project. Executed copies of Change Order Nos. 1 and 2 were not received by Dunteman for approximately one month, until July 23 or July 24, 1982. The project was shut down from approximately May 1, 1982, when the subsoil problems were discovered, until July 23 or 24, 1982, when Dunteman received IDOT’s written change order. During this shutdown, Dunteman was charged 44 calendar days, which constitutes the $15,200 in liquidated damages charged Dunteman.

Lariy Frank, the construction engineer for IDOT, testified that no change orders were executed by IDOT between June 23, 1982, and July 15, 1982.

The fully executed change orders indicate that Roger Barcus, Chief of the division of aeronautic of IDOT, did not sign off on them until July 16, 1982. Upon receipt of the change orders, Dunteman completed the work expeditiously.

Claimant further alleges that while they.awaited IDOT’s execution of change orders, Claimant incurred mobilization costs for moving the equipment off the project while the project was shut down. Claimant contends that the mobilization costs incurred total $3,657.55.

IDOT made a charge for a 38 calendar day delay totaling $15,200 in liquidated damages. Claimant seeks recovery of the $15,200 charged. In addition, Claimant seeks payment in the amount of $6,360 for additional handling of materials and $3,657.55 for mobilization costs incurred in moving the equipment off the project during the construction delay. Claimant seeks total damages in the amount of $25,250.

I. Whether IDOT properly charged claimant for liquidated damages for delays in completing work

The issue before the Court is whether IDOT properly charged Claimant with $15,200 in liquidated damages for a 38 day delay in project completion where IDOT failed to execute change orders for the completion of the work.

In late May 1982, the project was shut down pursuant to the order of Jeff Plapp, resident engineer. On June 11, 1982, IDOTs construction engineer visited the job site and orally approved a method of repair which would change the terms of the contract. However, the change orders were not executed by IDOT until July 16, 1982.

Respondent contends that the verbal directions of the construction engineer on June 11, 1982, and the letters from IDOT to Claimant on June 11,14, and 18,1982 were sufficient directions to Claimant and that a written change order was not necessaiy for completion of the work.

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Cite This Page — Counsel Stack

Bluebook (online)
49 Ill. Ct. Cl. 5, 1995 Ill. Ct. Cl. LEXIS 73, Counsel Stack Legal Research, https://law.counselstack.com/opinion/r-w-dunteman-co-v-state-ilclaimsct-1995.