W. E. Callahan Construction Co. v. United States

91 Ct. Cl. 538, 1940 U.S. Ct. Cl. LEXIS 38, 1940 WL 4060
CourtUnited States Court of Claims
DecidedJune 7, 1940
DocketNo. 43175
StatusPublished
Cited by52 cases

This text of 91 Ct. Cl. 538 (W. E. Callahan 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
W. E. Callahan Construction Co. v. United States, 91 Ct. Cl. 538, 1940 U.S. Ct. Cl. LEXIS 38, 1940 WL 4060 (cc 1940).

Opinion

Littueton, Judge,

delivered the opinion of the court:

Under the 36 separate and distinct claims asserted, plaintiffs ask judgment in the total amount of $452,627.52. The material and essential facts established by the record are set forth in the findings separately with respect to every claim asserted under a title showing the nature and character of each claim made. The work called for under the contract in suit was extensive in character and amount, difficult of construction and performance, and involved the preparation of the site and foundations for the construction of a large concrete dam and appurtenant structure across the Chagres River, Canal Zone, Isthmus of Panama, and various earth and concrete dams on each side of the river. The work was of such character and was required to be performed and completed under such circumstances that it was necessary for plaintiffs to make a great outlay in money for construction, erection, and adaptation of plant and facilities to render them adequate and sufficient to perform the work as specified and definitely called for by the contract and the detailed specifications within 1,350 calendar days after receipt of notice to proceed. The entire work was completed and accepted within the agreed time. This was a unit price contract. The total contract price in accordance with plaintiffs’ bids on the various units of work called for by the plans, drawings, and detailed specifications was based strictly on 95 separate and distinct units of work and estimated quantities specified in the contract and upon the 166 separate, distinct, and specific numbered paragraphs of the specifications which meticulously described the work required and how it should be done; all of these were prepared by the defendant and were required to be accepted and carried out by plaintiffs. The nature and character of each unit of work required to be performed was designated and specified by the defendant in the 95 original schedules under art. 1 of the proposed contract which was submitted to plaintiffs and upon which they made their bid. The dam was designed and the contract and detailed specifications were prepared by the defendant through the engineers of the [610]*610United. States Reclamation Service. The specifications discussed generally and separately, and meticulously directed in great detail how each of the units of work called for was required to be performed and the basis of payment for each item of work, if and when performed strictly in accordance with such detailed and specific directions and instructions of the specifications. These specifications were a part of the contract between the parties. The contract and specifications authorized and provided for changes in the plans and specifications and called for an equitable adjustment in the specified unit prices if such changes caused an increase in the amount due under the contract. Reasonable changes in design or location which did not increase the costs of doing the specified units of work, but which might increase the amount of work to be done at the unit prices, were also authorized without payment in excess of the unit price for such work. Extra work orders for additional work not called for were provided.

At this point it should be stated that practically all the decisions and recommendations of the contracting officer and the head of the department in regard to practically all the claims in suit were based upon constructions which they placed upon certain articles of the contract and the specifications, rather than upon their findings upon disputed questions of fact. Plaintiffs in practically every instance duly and timely protested and appealed with respect to the claims here involved, which arose from (1) directions and instructions of the engineers and inspectors immediately in charge of the work; (2) rulings and orders of the construction engineer and written changes made and ordered by the contracting officer. The protests and claims were made to the construction engineer, to the engineer of maintenance, who was the duly authorized representative of the contracting officer and who acted as the contracting officer in the matter of protest; and, to the Governor of Panama, Canal Zone, who, in addition to being the official contracting officer, was the head of the department concerned. A few of plaintiffs’ protests were not made within 10 days, but the contracting officer did not reject any of them on that ground but considered and decided them on the merits. By so doing he waived the [611]*61110-day provision. Thompson et al. v. United States, ante, p. 166. The contracting officer was expressly authorized to extend the time.

It should also be here stated, before discussing separately the various claims presented, that the construction engineer, the engineer of maintenance who, under proper authority, acted as the contracting officer, and the head of the department in each instance so far as the claims here made are concerned, and as is clearly established by the evidence, resolved all doubts strictly in favor of the Government and against plaintiffs in their rulings and decisions when interpreting various articles of the contract and • specifications in connection with plaintiffs’ protests and claims. In these protests and appeals plaintiffs claimed that under the instructions and orders given by the construction engineer and the contracting officer and under changes made and ordered in writing they were entitled, under the contract and specifications, to be paid for the extra expenses incurred by reason of being required to perform certain specified units of work in a manner different from and more expensive than that contemplated and specified in the contract and specifications. It is so well established as not to require citation of authority that in circumstances such as presented by this case, such manner and method of interpretation'and construction of the contract and specifications by‘the defendant were erroneous and unauthorized. Where an instrument, especially one of;such character as is involved in this suit, is drafted and prepared entirely by one party thereto, and is specific in its detailed requirements, subsequent doubts as to the meaningt and applicability of (the language and provisions thereof to definite facts, conditions, situations, and circumstances should not be interpreted and construed in favor of the party who drafted and ¡prepared it, but, on the contrary, in such cases the provisions of such instrument should, in case of doubt and in such circumstances, be interpreted; more favorably to the other party who did not and could not, in the circumstances, have anything to say as to the language and provisions of the instrument as prepared. The reason for this rule is that since the contract, the detailed drawings, and the specifications were not the result [612]*612of negotiations between the parties before execution it is only reasonable to presume that the party who prepared and wrote the ; contract, drawings, and specifications intended to express or clearly indicate his requirements in the language used rather than leaving them to be determined by resolving doubts and inferences in his favor.

Before discussing and deciding the several claims presented, reference will here be made to certain general provisions of the contract and specifications which relate directly or in some degree to a number of the claims involved. These, for the most part, are the general provisions which are found in practically all Government contracts and specifications.

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Bluebook (online)
91 Ct. Cl. 538, 1940 U.S. Ct. Cl. LEXIS 38, 1940 WL 4060, Counsel Stack Legal Research, https://law.counselstack.com/opinion/w-e-callahan-construction-co-v-united-states-cc-1940.