Sabine Const. Co., Inc. v. Cameron Sewerage Dist. No. 1

298 So. 2d 319, 1974 La. App. LEXIS 4383
CourtLouisiana Court of Appeal
DecidedJuly 26, 1974
Docket4588
StatusPublished
Cited by9 cases

This text of 298 So. 2d 319 (Sabine Const. Co., Inc. v. Cameron Sewerage Dist. No. 1) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sabine Const. Co., Inc. v. Cameron Sewerage Dist. No. 1, 298 So. 2d 319, 1974 La. App. LEXIS 4383 (La. Ct. App. 1974).

Opinion

298 So.2d 319 (1974)

SABINE CONSTRUCTION COMPANY, INC., Plaintiff-Appellant,
v.
CAMERON SEWERAGE DISTRICT NO. 1, Defendant-Appellee.

No. 4588.

Court of Appeal of Louisiana, Third Circuit.

July 26, 1974.
Rehearing Denied August 21, 1974.

*320 Brame, Bergstedt & Brame by John E. Bergstedt, Lake Charles, for plaintiff-appellant.

Jones & Jones by J. B. Jones, Jr., Cameron, for defendant-appellee.

Before HOOD, CULPEPPER and MILLER, JJ.

HOOD, Judge.

Sabine Construction Company, Inc., instituted this suit against Cameron Parish Sewerage District No. 1 to recover the balance alleged to be due on a contract for the construction of a sanitary sewerage system in the town of Cameron, Louisiana. The trial judge rendered judgment for defendant, and plaintiff appealed.

The issue presented involves the interpretation of a "change order" agreed upon and signed by both parties after the original contract had been executed.

In early 1969, the District advertised for bids for the construction of a sanitary sewer system in and for the town of Cameron, Louisiana, including sewer lines, pump stations, an oxidation pond and other work. Two bids were received, the lower bid having been submitted by Sabine for $1,018,291.55. The District had obtained two grants and a loan from Federal agencies for this project, but after considering all funds which were available it determined that it could spend a maximum of about $802,000.00 for the construction of this sewer system. Before action was taken on the bids, therefore, Sabine and the District entered into negotiations seeking to modify the project so that the cost of it would be reduced to an amount within the funds available to the District.

*321 Following these negotiations the parties agreed upon several changes in the contract which reduced the cost of the project to $802,177.10. Sabine and the District thereupon signed a contract, dated June 26, based on the original bid of $1,018,291.55. On the next day, June 27, 1969, they signed a document entitled "Change Order No. 1," which modified the original contract in several respects, reducing the amount to be paid by the District to $802,177.10.

In September, 1969, Sabine began constructing the sewer system in accordance with the contract, as revised by Change Order No. 1. The work was substantially completed in August, 1970, and the contract was formally accepted by the District on October 27, 1970. The District made payments to Sabine from time to time during the construction of the sewer system, and on January 21, 1971, the District paid to Sabine what defendant considered to be the entire remaining balance owed by the District on the contract. Some additional change orders, authorized by the contract, had been issued by the project engineer during the construction, and these changes, according to the District, further reduced the cost of the job. The total sum ultimately paid to Sabine for that work was $794,609.63.

Defendant contends that it has paid the full amount due by it under the contract, as amended by Change Order No. 1. Sabine contends that the additional sum of $73,597.84 is due, and in this suit it demands judgment for that amount.

In the original contract entered into by Sabine and the District, providing for a payment of $1,018,291.55, Sabine agreed to construct the sewer system in accordance with the plans and specifications prepared by Hacket & Bailey, Architects-Civil Engineers. These plans and specifications set out many items required in the construction of a sewer system, several of which involved the installation of sewer lines of various sizes and at different depths. Under the bid proposal and contract, payment for installing the sewer line was based on a "unit price" per linear foot of line installed at different depths. Item 2 of the bid and contract, for example, specified that 22,410 feet of eight inch sanitary sewer was to be installed at depths of four to six feet, and plaintiff agreed to lay that pipe for a "unit price" of $7.50 per linear foot, amounting to $168,075.00 for that item. The total contract price was computed by adding the totals of all of the items in the bid and contract.

Under the original plans, the sewer lines which ran along public rights-of-way were to be installed either in the road side ditches or on the "back slopes" of those ditches. Before the contract was signed, and while the parties were negotiating to reduce the cost, Joseph V. Tantillo, President of Sabine, wrote a letter to the District, dated April 14, 1969, in which he submitted five proposals which he felt would reduce the cost of the project. One of his proposals was:

"4. Move pipe locations from ditch line to roadway shoulders and street surfaces for all parish roads and streets except Davis Street. Asphalts surfaces to be replaced by parish at a later date. Pipe to be installed at a savings of.35/L.F. of line. Approximately 56665 L.F. of 8", 12" and 15" at a deduction of.35 per L.F. of line .......$19,832.75."

Both parties felt that they would benefit by this proposed change. The District would save $19,832.75. And, if the location of the sewer lines were changed from the backslopes of the ditches to the road bed, Sabine would be able to get its equipment to the trenches much easier, it would avoid the expenses of removing and replacing culverts and driveways, it would be relieved of some shrubbery problems, and it would avoid encountering power lines and most utilities. Under this proposal, Sabine also would be relieved of the expenses of *322 repairing the streets damaged by the laying of the sewer lines. The Police Jury of Cameron Parish agreed to make those street repairs, and after the project was completed, the Police Jury actually spent $101,926.50 repairing and overlaying the streets which were involved.

The District Engineer, George V. Bailey, a member of the firm of Hackett & Bailey, wrote to the District on April 14, 1969, formally recommending that several amendments be made in the original contract in order to reduce the cost. One of the recommendations made in that letter was:

"Move pipe locations from ditch line to roadway shoulders and street for all parish roads and streets except Davis Street. Asphalt surface to be replaced by parish at later date. Pipe to be installed at a savings of .35/L.F. of line $19,832.75 Savings.... (Accept and apply savings to cost of 6")."

Following that recommendation, "Change Order No. 1" was signed by both parties on June 27, 1969. It provided several changes in the original contract, including the following:

"All lines along Parish Roads Right-of-ways may be installed on surface of the Roadway as near to the Roadway shoulder as possible. All precautions necessary shall be taken to avoid roadway caving due to open trenches."

The original contract provides that the District would pay to Sabine 90 percent of the value of the work performed during each calendar month, as determined by the District Engineer. Section V of the specifications contains the following additional provisions relating to the payment for furnishing and installing sewer lines:

"Payment for furnishing and installing sewer lines shall be based on the actual number of linear feet installed, measured horizontally from center of manhole to center of manhole."

* * * * * *

"Depth

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Bluebook (online)
298 So. 2d 319, 1974 La. App. LEXIS 4383, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sabine-const-co-inc-v-cameron-sewerage-dist-no-1-lactapp-1974.