Ross Engineering Co. v. United States

127 F. Supp. 580, 130 Ct. Cl. 368, 1955 U.S. Ct. Cl. LEXIS 38
CourtUnited States Court of Claims
DecidedJanuary 11, 1955
DocketNo. 48680
StatusPublished
Cited by6 cases

This text of 127 F. Supp. 580 (Ross Engineering Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ross Engineering Co. v. United States, 127 F. Supp. 580, 130 Ct. Cl. 368, 1955 U.S. Ct. Cl. LEXIS 38 (cc 1955).

Opinion

Littleton, Judge,

delivered tbe opinion of the court:

Plaintiff sues to recover $63,185.97 representing extra labor costs incurred in the performance of a lump-sum construction contract entered into with defendant through the Federal Public Housing Authority on June 23, 1944, for the construction of war housing facilities in Baltimore, Maryland. The increased costs resulted from payment by plaintiff to several crafts working on the project of higher wage rates than the rates contained in the contract specifications.

The Invitation for Bids called the bidder’s attention to the fact that the wage rates specified in the contract documents were the maximum as well as the minimum wage rates which might be paid on the project. Paragraph 6 of the specifications contained a schedule of wage rates for the various laborers and mechanics to be employed on the project as determined by the Secretary of Labor to be prevailing for that area, in accordance with the provisions of the Davis-Bacon Act.1 Subsection (d) of paragraph 6 provided that such rates were, by virtue of Executive Order 9250, the maximum as well as the minimum rates; that such rates were subject, however, to adjustment in accordance with the provisions of the Wage Stabilization Agreement of May 22, 1942 (to which the contracting agency was a party), Administrative Order No. 101 of the Secretary of Labor, and Supplement 1 thereto, and in accordance with all the rules and regulations of the National War Labor Board, particularly General Order 13A. The subsection also provided that while requests for wage adjustment might be made by either the union or the contractor, any increase granted as a result of such requests would not give rise to any claim on the part of the contractor for extra compensation from the Government, the contractor being required to pay whatever rate [371]*371was permitted by law where the payment of such rate was necessary to complete the job expeditiously.

Bids were advertised for in April 1944, and were opened on June 6,1944; whereupon it was found that plaintiff was the low bidder. Between June 6 and 23, representatives of defendant and plaintiff negotiated concerning various items in plaintiff’s bid and on June 23, 1944, the contract was awarded to plaintiff at a total price of $3,088,339.

Paragraph 3 of the Instructions to Bidders provided that each bidder should visit the site of the project and fully acquaint himself with conditions relating to construction and labor; that failure to do so would not relieve the bidder from any obligation with respect to his bid or to the contract, and that the submission of a bid would be taken by the Government as prima facie evidence that the bidder had complied with this section.

Work on the project commenced in July 1944. Shortly thereafter, plaintiff discovered that on and after August 1, 1944, it would have to pay carpenters 6*4 cents per hour more than the wage rate specified in the contract specifications, and that on and after October 1, 1944, it would have to pay lathers and plasterers 22% cents per hour more than the contract specifications called for.

All three wage increases were the result of decisions of the Wage Adjustment Board for the Building and Construction Industry, U. S. Department of Labor. In the cases involving the plasterers and lathers, the requests for wage adjustment were made jointly by the Baltimore local craft unions and the Employing Plasterers Association of Baltimore. The applications to the Wage Adjustment Board for wage adjustments requested increases for plasterers and lathers from the rate of $1.50 per hour to $1.75 per hour, which latter rate was the rate contained in recent collective bargaining agreements entered into by the parties mentioned above. Both applications requested that the increase authorized by the Board be made effective October 1, 1944, in accordance with the terms of the bargaining agreements.

On May 25, 1944, the Wage Adjustment Board issued a decision authorizing an increase to $1.72% effective October 1,1944, for plasterers on all construction work in the Balti[372]*372more area. On August 16,1944, the Board issued a decision authorizing the same rate and under the same conditions for lathers.

The application for an increased rate for carpenters was apparently made by the carpenters’ union alone, and the record indicates that the Baltimore building contractors must have had serious objections to the granting of this increase since the United States Conciliation Service was, at least unofficially, called into the case in April 1944, by the Executive Secretary of the Wage Adjustment Board. Apparently conciliation efforts were successful, and the union and the Baltimore Chapter of the Associated General Contractors entered into a collective bargaining agreement on June 2, 1944, providing that the employers would pay the carpenters $1.43% per hour effective August 1, 1944. Accordingly, on June 21, 1944, the Wage Adjustment Board issued its decision authorizing an increase in the rate for carpenters on all construction in the Baltimore area from $1.37% to $1.43% per hour, effective August 1, 1944.

When plaintiff became informed with reference to the increased wage rate for carpenters authorized by the Board for all work in the Baltimore area, it supposed that its contract, which, as stated, set forth minimum and maximum wage rates, precluded it from paying the increased rate approved by the Wage Adjustment Board and it asked the contracting agency for instructions. Plaintiff also advised the contracting officer that if it did have to pay the increased rates, it desired to make claim on the Government for additional compensation on account of such increases.

On September 6,1944, defendant’s construction supervisor wrote to plaintiff advising that under the terms of paragraph 6 (d) (2) of the contract specifications, as amended, no claims for extra compensation could be based upon increased wages granted at the request of the contractor or the union. As to whether plaintiff could lawfully pay the increased rate, the letter contained the following statement:

* * * the interim of [sic] decision [of the Wage Adjustment Board] has the force of law and it is the contractor’s authority for posting the changed wage rate.

[373]*373Plaintiff concedes that it could not have obtained the skilled laborers necessary to carry on the job without paying the increased rates authorized by the Wage Adjustment Board for carpenters, plasterers, and lathers, and also for numerous other trades which later obtained wage increases from the Board. Plaintiff’s requests for reimbursement for such increases were all denied by the contracting agency.

Plaintiff contends that it is entitled to be reimbursed for the increased costs resulting from the wage increases authorized by the Wage Adjustment Board for several reasons. First, plaintiff urges that the letter of September 6, 1944, from defendant’s construction supervisor, amounted to a “directive order” from an authorized agent of defendant to plaintiff that the increases would have to be paid. Plaintiff concludes that it is accordingly entitled to recover the extra costs occasioned by its compliance with this directive order, on the authority of this court’s decisions in A. J. Paretta Contracting Co. v. United States, 109 C. Cls. 324, Sunswick Corp. v. United States, 109 C. Cls. 772, cert. den.

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Bluebook (online)
127 F. Supp. 580, 130 Ct. Cl. 368, 1955 U.S. Ct. Cl. LEXIS 38, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ross-engineering-co-v-united-states-cc-1955.