Wallace Process Piping Co. v. Martin-Marietta Corp.

251 F. Supp. 411, 1965 U.S. Dist. LEXIS 7791
CourtDistrict Court, E.D. Virginia
DecidedOctober 4, 1965
DocketCiv. A. 3623
StatusPublished
Cited by3 cases

This text of 251 F. Supp. 411 (Wallace Process Piping Co. v. Martin-Marietta Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wallace Process Piping Co. v. Martin-Marietta Corp., 251 F. Supp. 411, 1965 U.S. Dist. LEXIS 7791 (E.D. Va. 1965).

Opinion

BUTZNER, District Judge.

The plaintiff, Wallace Process Piping Company, Inc., seeks $168,939.48 damages for breach of contract. Wallace bases its claim upon acceleration and impact costs which it contends it incurred in performing its contract with the defendant, Martin-Marietta Corporation. The case was submitted to the Court without the intervention of a jury. The issue of damages was severed and deferred until after the question of liability was determined.

Martin entered into a contract with the United States for the performance of work in connection with the Titan missile program at Cape Kennedy, Florida. In April 1958, Martin requested bids from subcontractors for installation of the mechanical and piping systems for Complex 16, which consisted of the area from which a missile is launched, together with the supporting structures and services. Upon this contract Martin sought a fixed-price contract rather than a cost-plus contract in order to obtain improved productivity by the workers.

Wallace submitted a low bid in the amount of $198,249. It was awarded the contract on May 5, 1958, with a completion date of September 12, 1958. At the time Wallace submitted its bid, it was already working as a subcontractor at the Cape and was aware of working conditions there.

The pertinent portions of the general provisions of the contract are:

“4. CHANGES
“(a) MARTIN, through the Manager, Subcontracting, as MARTIN’S authorized representative, may at any time, by written order, and without notice to the sureties, make changes in the drawings or specifications of this contract within the general scope thereof. If such changes cause an increase or decrease in the amount due under this contract, or in the time required for *413 its performance, an equitable adjustment shall be made by mutual agreement and the contract shall be modified in writing accordingly. Any claim for adjustment under this clause must be asserted within ten days from the date the change is ordered, provided, however, that MARTIN, if it determines that the facts justify such action, may receive and consider, and adjust any such claim asserted at any time prior to the date of final settlement of the contract. Nothing provided in this clause shall excuse the CONTRACTOR from proceeding with the prosecution of the work so changed.
“(b) MARTIN may order the CONTRACTOR to suspend all or any part of the work for the period of time as may be determined by him to be necessary or desirable for the convenience of the Government. Unless such suspension unreasonably delays the progress of the work and causes additional expense or loss to the CONTRACTOR, no increase in contract price will be allowed. In the case of suspension of all or any part of the work for an unreasonable length of time, causing additional expense or loss, not due to the fault or negligence of the CONTRACTOR, MARTIN shall make an equitable adjustment in the contract price, delivery schedule or both and shall modify the contract accordingly.
“5(d) Upon completion and final acceptance of all work required hereunder, the amount due the CONTRACTOR under this contract will be paid upon the presentation of a properly executed and duly certified voucher therefor, after the CONTRACTOR shall have furnished MARTIN with a release, if required, of all claims against MARTIN arising under and by virtue of this contract, other than claims, if any, as may be specifically excepted by the CONTRACTOR from the operation of the release in stated amounts to be set forth therein. If the CONTRACTOR’S claim to amounts payable under the contract has been assigned, a release may be required of the assignee at the option of MARTIN.
“40. PROGESS CHARTS AND REQUIREMENTS FOR OVERTIME WORK
“(a) The CONTRACTOR shall within ten (10) days after date of commencement of work, prepare and submit for approval a practicable schedule, showing the order in which the CONTRACTOR proposes to carry on the work, the date on which he will start the several salient features (including procurement of materials, plant and equipment) and the contemplated dates for completing the same. The schedule shall be in the form of a progress chart of suitable scale to indicate the percentage of work scheduled for completion at any time. The CONTRACTOR shall enter on the chart the actual progress at the end of each week and shall immediately deliver to MARTIN three copies thereof.
“(b) The CONTRACTOR shall furnish sufficient forces, construction plant and equipment, and shall work such hours, including night shifts and overtime operations, as may be necessary to insure the performance of the work in accordance with the approved progress schedule. If, in the judgment of MARTIN, the CONTRACTOR falls behind the progress schedule, the CONTRACTOR shall take such steps as may be necessary to improve his progress, and MARTIN may require him to increase the number of shifts, and/or the amount of construction plant. This shall be at no additional cost to Martin.”

During the time that this contract was performed, the United States was on a crash program to develop its missile bases. Technology of missiles and bases was advancing rapidly and concurrently with the construction of the base. Much of the work resembled a research and de *414 velopment project. This necessitated many changes in the contract. At times the changes were ordered before plans and specifications were completed. During the performance of the contract, Martin issued fifty-five change orders, which increased the price from $198,249 to $615,317.19. Three days after the contract was let, all plans and specifications were replaced. The last change order was issued April 10, 1959.

Upon receipt of a change order, Wallace submitted a proposal to Martin for the cost of the work or the credit which should be allowed. Martin then considered the proposal and either accepted it or called for further negotiation. If necessary, representatives of Martin and Wallace met at the site of the work. Wallace later would submit one or more revised proposals until the parties agreed upon the amount which should be paid or credited for the work. Agreement was often reached after the work required by the change was completed. This sum was then incorporated into a contract amendment. Each amendment consisted of a number of change orders. A summary of the original contract and the amendments follows:

Amendment Number Change Orders Execution Date Completion Date Total Fixed Price

Original contract May 5, 1958 Sept. 12,1958 $198,249.00

1 1, 2, 4, 6, 7, 9,10 Aug. 19, 1958 Sept. 12,1958 $271,740.91

2 3, 5,11-19 Feb. 11,1959 Feb. 2, 1959 $403,070.93

3 20-33, 35-39, 43 Apr. 29, 1959 May 3, 1959 $465,995.25

4 8, 40-42, 45-52 May 15,1959 May 13,1959 $482,961.57

5 34,44, 53-55 May 27,1959 May 13,1959 $615,317.19

Each change order was transmitted by a form letter which stated that the change was not expected to affect the completion date, but Wallace was to indicate whether it believed the time schedule should be changed. Wallace on August 27, 1958 requested an extension of sixty days in the completion date which was granted.

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251 F. Supp. 411, 1965 U.S. Dist. LEXIS 7791, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wallace-process-piping-co-v-martin-marietta-corp-vaed-1965.