Stiers Bros. Construction Co. v. United States

109 Ct. Cl. 353, 1947 U.S. Ct. Cl. LEXIS 54, 1947 WL 5099
CourtUnited States Court of Claims
DecidedOctober 6, 1947
DocketNo. 45774
StatusPublished
Cited by1 cases

This text of 109 Ct. Cl. 353 (Stiers Bros. 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
Stiers Bros. Construction Co. v. United States, 109 Ct. Cl. 353, 1947 U.S. Ct. Cl. LEXIS 54, 1947 WL 5099 (cc 1947).

Opinion

Madden, Judge,

delivered the opinion of the court:

The plaintiff on June 27, 1938, made a contract with the Government to build some 15 miles of levee along the Illinois Biver and one of its tributaries. The price was 8y2 cents per cubic yard for the quantity of levee embankment satisfactorily placed. The work was completed on September 6, 1940, final payment was made by the Government, which the plaintiff accepted without any protest or the reservation of any claim. In this suit the plaintiff claims damages because of (1) the Government’s alleged failure to furnish skilled and semiskilled labor from relief rolls, (2) the Government’s alleged misrepresentation of the condition of certain borrow pits, as to the height to which they were filled and the nature of the materials in them, and (3) the Government’s assessment of liquidated damages for late completion of the work, which late completion the plaintiff says should have been excused under the terms of the contract.

We discuss first the question of relief labor. The invitation for bids and the contract gave the plaintiff notice that a part of the money for the project was to come from emergency relief funds and the balance from a regular appropriation for river improvements; that in order to use üp the amount allotted from emergency relief funds, the contractor would be obliged to use enough man-months of relief labor to account for the allotment on the basis of a specified number of dollars for each such man-month. Before making the plaintiff’s bid, the plaintiff’s president had, upon inquiry, been told by the Works Progress Administration that there was plenty of common labor on the relief rolls, but no skilled or semiskilled labor. After the contract was signed, the plaintiff submitted a proposed schedule for the use of labor which did not call for enough common labor to use up the [385]*385emergency relief allotment, and the Government disapproved the schedule. The plaintiff claims that the effect of the Government’s insistence was that it had to do many things with hand labor that it could have done more economically with machines operated by shilled labor, and was thereby damaged. We have, however, found that the plaintiff at the beginning of the work greatly underestimated all its labor costs, that, in fact, in performing the job it spent $76,202.60 for labor though it had originally estimated only $32,567, and that it spent some two-thirds of its labor costs for skilled labor, though it had estimated that skilled labor would account for only one-half of its labor costs. It is obvious, then, that the requirement of the contract that a certain amount of the labor be secured from the relief rolls which meant, as the plaintiff knew, that that amount would have to be unskilled labor, did not cause the plaintiff to use unskilled labor nn-economically in order to comply with the contract. The plaintiff obtained from sources other than the relief rolls, more than three times as much skilled and semiskilled labor as it had intended to use, and still used the amount of common labor necessary to absorb the relief portion of the appropriation. With regard to the plaintiff’s contention that it used an excessive amount of common labor in clearing the site, early in the work, when perhaps it did not know that its total labor costs would be so large, we think that the plaintiff’s claim that it would have used machines to clear the site is an afterthought. It did not have the machines, they may not have been available for purchase or rent, at that time it had never used them, and their use was not customary in the industry.

We pass to the plaintiff’s claim of misrepresentation of the contents of the borrow pits. In the construction of levees in the same area in former years, depressions had been left in the land between the levee and the river by the removal of soil to build the levees. When the contract here in question was made, another contractor under a wholly separate contract was engaged in dredging the river bottom and was placing the dredged spoil in these depressions, as a convenient place to get rid of it. When the plaintiff’s agent [386]*386inspected the site with a view to bidding, some of the depressions were full, some partly full, and some still empty. The plaintiff claims that it supposed that the dredging was a part of the same project as the building of the levees, that all the depressions would be filled with dredged spoil, and that the substance of the spoil would be clean sand so that, when removed from the depression and placed in the levee, it would drain out readily and make a firm levee. These assumptions seem to us unwarranted. We would suppose that an experienced contractor would know that the amount of material dredged from the bottom of a river would be the amount, and only the amount, necessary to produce the specified depth of channel, and that whether that amount would fill or overfill or not fill a depression on the bank, would be quite accidental. As to what kind of material the-dredge would in the future bring up from the bottom of the river, there was no representation. The Government furnished to bidders certain drawings showing cross sections of the proposed new levee at various stations. At stations, where dredging had not yet been done but was to be done, there was a line indicating the probable top of the spoil in the old borrow pits after the dredging would have been done. None of these drawings represents a location within the area now involved in this litigation, or within some 800 feet of the end of such an area. We think, therefore, that there was no misrepresentation of .the level t'o which the old borrow pits would be filled. As to misrepresentation as to the nature-of the substance in the old borrow pits, seven test pits had’ been dug by the Government and the material dug up had' been truthfully recorded. It showed that the spoil consisted mostly of sand, but in two of the pits there were strata of' mixed silt, clay, sand, and shell. If what came from the dredge into the old borrow pits after the contract was made-did not correspond with what was in some of the test pits,, that is no evidence of misrepresentation by the Government..

It should be observed that, upon the plaintiff’s complaint, that it was put to extra expense because some of the old borrow pits had water and silt in them which made the terraim difficult to work over and the material difficult to place in the> new levee, the Government treated the situation as one in[387]*387volving changed or unforeseen conditions entitling the plaintiff to an equitable adjustment under Article 4 of the contract. Two change orders were issued and the plaintiff was given additional compensation. In the correspondence preceding these change orders the contracting officer had in his letter of August 11, 1939, referred to in finding 19, requested the plaintiff to advise him in writing whenever work was commenced on any location where it was claimed that “changed conditions” existed. The plaintiff did so notify the contracting officer with regard to several specified sections, that officer investigated the claims, and the change orders mentioned above were made. The contract work was completed on September 6, 1940, and was accepted by the Government. On September 19, 1940, the plaintiff wrote the contracting officer accepting Change Order No. 2 but requesting that further change orders be issued giving additional compensation for expense incurred at a number of other named stations.

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Bluebook (online)
109 Ct. Cl. 353, 1947 U.S. Ct. Cl. LEXIS 54, 1947 WL 5099, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stiers-bros-construction-co-v-united-states-cc-1947.