Stafford v. United States

74 F. Supp. 155, 109 Ct. Cl. 479
United States Court of Claims·Decided November 3, 1947·No. 45082·Published·Cited by 11 cases

Opinion

JONES, Chief Justice.

This suit arises out of a contract to do> the landscape work, including the planting, of many thousand trees and shrubs, in connection with an extensive housing project in Cleveland, Ohio.

The several claims upon which plaintiff here seeks to recover include amounts to cover the increased cost of nursery stock and the increased cost of labor and field overhead alleged to have resulted from a delay of approximately 11 months in giving plaintiff notice to proceed with the performance of his contract, plus a proportion of his general office overhead during such period of delay. The gravamen of his complaint with respect to these items is that these added costs were not within the contemplation of his bid which was based upon his investigation of the cost of material and labor at the site of the work immediately prior to the submission of his bid in September 1936, nor within his reasonable expectation that the material and labor would be used in the winter-spring planting season of 1937 rather than the following season when he was directed to proceed.

The Instructions to Bidders accompanying the Invitation for Bids on the landscape work had cautioned plaintiff as a prospec *157 tive bidder that he should visit the site of the work and inform himself fully as to the conditions under which the work was to be done. The Special Conditions of the specifications had acquainted him with the fact that the superstructure contract for grading and general preparaion of the project site for work under the landscape contract had been awarded to the George A. Fuller Company, and that the time for completion of the landscape work would commence to run from October 29, 1936 “which is the contemplated date of completion of the superstructure contract, or from the actual date of completion of such contract if the same is completed later than October 29, 1936”. Giving heed to these cautionary provisions plaintiff, prior to bidding on the landscape work, visited the site where he conferred with the Government’s local project manager and project engineer and with representatives of the Fuller Company, regarding the current status of the superstructure work and the date when it would be sufficiently completed for the landscape work to begin.

Plaintiff made inquiries at the local offices of the Ohio State Employment Service and the Works Progress Administration and talked with local labor union officials regarding the labor situation in the area where his work would have to be done. He was advised that the Fuller Company’s work was behind schedule, and that the landscaping could not proceed before January 1, 1937, but that certain sections of the site would be ready for plaintiff’s work by that time. He was assured by the United States Employment Service through which he would be required to secure substantially all his labor, and by the Works Progress Administration from whose relief rolls most of such labor would have to be taken, under the requirements of section 8 of the General Conditions of the contract specifications, that there was plenty of labor available at the minimum rates of wages set forth in the specifications, namely, at 50 cents an hour for common labor and 65 cents an hour for plantsmen; that the Works Progress Administration was paying the same rate for common labor as that stated in the specifications, and that there were no labor unions in the Cleveland area controlling anything in plaintiff’s line of work. This latter was confirmed by the labor union officials with whom plaintiff talked. On the strength of this information he secured quotations on the nursery stock and topsoil which would be required for the landscape work, and submitted' his bid based upon his assumption that such materials would be required in the winter-spring planting season of 1937 and that his labor costs could be measured in terms of the minimum wage rates set forth in the specifications for the work.

The foregoing facts, together with the fact that the Government’s -invitation to bid for the landscape work was issued early in September 1936, afford slight ground for any presumption that plaintiff, in signing the contract with defendant on October 20, 1936, undertook to protect himself, by means of a higher price exacted for the work, against the possibility of having to secure the required labor and material under such conditions and such price structure as might obtain some eleven months later. Cf. Wells Bros. Co. of New York v. United States, 254 U.S. 83, 87, 41 S.Ct. 34, 65 L.Ed. 148.

It is a reasonable conclusion that the parties had in mind that the landscape work would be commenced shortly after the first of the year and the placing of the topsoil and the planting of the nursery stock accomplished during the spring season.

For reasons not disclosed by the evidence, the Fuller contract was not completed until September 10, 1937, and as a consequence notice to proceed with the landscape work was not given to plaintiff until September 11, 1937. It does appear that the Fuller Company was operating with union labor, whereas plaintiff contemplated performance of his contract with nonunion labor; and that, knowing the probable consequence of starting his work at the project site prior to completion of the Fuller work, plaintiff requested of defendant that his notice to proceed be withheld until the Fuller contract had been completed in its entirety. The significance of this request as it bears upon the question of delay in giving plaintiff notice to pro *158 ceed is somewhat lessened by the fact that the request was made on December 4,' 1936, when, as a result of further visits to the site and further talks with representatives of the Fuller Company and the defendant, plaintiff expected the Fuller Company’s work would be completed by the first of February 1937. Why this expectation was not fulfilled has not been shown. 1

Delay in Notice to Proceed — ■ Increased Costs

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Stafford v. United States, 74 F. Supp. 155, 109 Ct. Cl. 479 (cc 1947).

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