S.T.G. Construction Co. v. United States

157 Ct. Cl. 409, 1962 U.S. Ct. Cl. LEXIS 106, 1962 WL 9272
CourtUnited States Court of Claims
DecidedMay 9, 1962
DocketNo. 514-58
StatusPublished
Cited by31 cases

This text of 157 Ct. Cl. 409 (S.T.G. Construction 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
S.T.G. Construction Co. v. United States, 157 Ct. Cl. 409, 1962 U.S. Ct. Cl. LEXIS 106, 1962 WL 9272 (cc 1962).

Opinion

Whitaker, Judge,

delivered the opinion of the court:

Plaintiff brought this suit on behalf of its subcontractor, the R & R Contracting Company, for damages alleged to have been sustained by reason of the subcontractor’s having encountered unknown physical conditions at the site of the work.

The United States Coast Guard issued invitations for bids on the construction of a wharf and for dredging at Montauk Lifeboat Station, located on the northern tip of Star Island in Lake Montauk Harbor, which is a few miles from Mon-tauk Point, the easternmost extremity of Long Island, New York. On June 11, 1957, plaintiff, as lowest responsible bidder, was awarded the contract for a consideration of $38,450, which amount was increased to $46,340 by subsequent change orders 1 and 3, neither of which is involved here.

The specifications required the construction of a wood pier, 234 feet long by 7 feet wide, supported by 54 wooden piles to be driven to a depth of 25 feet minimum penetration. The specifications further provided for dredging to a depth of minus 10 feet below mean low water in an area specified in an attached Coast Guard drawing, which reflected approximate elevation and sounding data but did not refer to subsoil conditions. Neither the contract nor the specifications referred to the nature of the subsoil conditions, but paragraph 1-03 of the specifications provided:

Bidders shall visit the site to familiarize themselves with the actual conditions. Failure to do so shall in no way relieve the successful bidder of his responsibility to perform the specified work.

Paragraph 2-03 of the specifications, relating to dredging requirements, also provided:

[412]*412Removal of Debris amé Obstructions: All debris and obstructions, either natural or artificial, in way of the proposed work or in the channel to be dredged shall be removed to the depth indicated.

And paragraph 2 of the Instructions to Bidders provided :

Conditions at Site of Work. Bidders should visit the site to ascertain pertinent local conditions readily determined by inspection and inquiry, such as the location, accessibility and general character of the site, labor conditions, the character and extent of existing work within or adjacent thereto, and any other work being-performed thereon.

Pursuant to these instructions and prior to the submission of its bid, Mr. Oscar Grand, plaintiff’s vice president, and Mr. Lucches Bivara, a partner of the subcontractor, visited the site on two different occasions. Their visual inspection of the area above the low-water mark showed the surface was composed predominantly of sand and gravel. They observed a few large boulders and some accumulation of smaller rocks and cobblestones. They talked with an officer in charge of the Coast Guard Station, who had no personal knowledge or records as to the subsurface conditions in the area to be dredged, but who drew their attention to a spoil area in the rear of the station which he understood was composed of material from a previous dredging operation in Lake Mon-tauk. The record is silent as to the exact origin of this material. It consisted of sand and gravel with a small amount of clay. Mr. Grand and Mr. Bivara dug two test holes to a depth of only about 214 feet, although required to dredge to a depth of 10 feet, one in the spoil area and one at the edge of the beach in front of the Station. They found sand mixed with some gravel and clay. An inquiry by Mr. Grand of some local fishermen produced no significant information.

On his second visit, Mr. Bivara probed the area to be dredged at three or four different places with a steel rod whereby he was able to penetrate to a depth of about 3 feet. The results of these probings indicated to him that the bottom was composed of sand and gravel to that depth. Mr. Bivara also visited a dredging operation on the western shore of Lake Montauk, some 1500 feet west of the Star [413]*413Island site. No dredging was actually going on at.tbat time, but his inspection of some previously dredged material revealed it to be sand. A local resident had installed some pilings about 2000 feet south of the area on the lake shore, and he informed Mr. Eivara that the material he encountered was soft and sandy.

Following this inspection, plaintiff submitted its bid. Shortly after being awarded the Coast Guard contract, plaintiff entered into a subcontract with the E & E Contracting Company, whereby plaintiff agreed to furnish the necessary lumber and timber, electrical appurtenances, and hardware, and E & E agreed to perform the dredging and pier construction in conformity with the'requirements of plaintiff’s contract with the Coast Guard, for a consideration of $16,700. Plaintiff asserts that its bid was based upon the subcontractor’s expectation that the subsurface conditions hi the area to be dredged would consist primarily of sand and gravel.

The subcontractor began dredging with an 8-inch hydraulic dredge, which is ordinarily effective only in dredging sand and gravel. Experience proved, however, that only the initial 3 to 4 feet of subsurface was composed of sand and gravel. Beneath that layer was hard clay, rock and stones of various sizes. The equipment, being inadequate for the removal of hard clay, rock and stones, was subject to frequent breakdowns and, ultimately, additional equipment was used to complete the job.

On September 17,1957, plaintiff made a written complaint concerning the subsurface condition, explaining that this subsurface condition was materially affecting the dredging operation and causing considerable additional costs for which it proposed to be reimbursed under the Changed Conditions clause of the contract. This provision reads as follows:

_ The Contractor shall promptly, and before such conditions are disturbed, notify the Contracting Officer in writing of: (1) subsurface or latent physical conditions at the site differing materially from those indicated in this contract, or (2) unknown physical conditions at the site, of an unusual nature, differing materially from those ordinarily encountered and generally recognized as inhering in work of the character provided for in this-[414]*414contract. The Contracting Officer shall promptly investigate the conditions, and if he finds that such conditions do so materially differ and cause an increase or. decrease in the cost of, or the time required for, performance of this contract, an equitable adjustment shall be made and the contract modified in writing accordingly. Any claim of the Contractor for adjustment hereunder shall not be allowed unless he has given notice as above required; provided that the Contracting Officer may, if he determines the facts so justify, consider and adjust any such claim asserted before the date of final settlement of the contract. If the parties fail to agree upon the adjustment to be made, the dispute shall be determined as provided in Clause 6 hereof.

On January 14,1958, the contracting officer issued a decision rejecting plaintiff’s claim for an equitable adjustment. Plaintiff appealed this decision to the Coast Guard Board of Appeals. On May 2, 1958, the Acting Secretary of the Treasury issued his Findings of Fact and Determination, by which he affirmed the decision of the contracting officer and denied plaintiff’s claim “for want of proof.” On November 22, 1958, plaintiff filed this suit.

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Cite This Page — Counsel Stack

Bluebook (online)
157 Ct. Cl. 409, 1962 U.S. Ct. Cl. LEXIS 106, 1962 WL 9272, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stg-construction-co-v-united-states-cc-1962.