At page 981 Determining contractor obligation based on contract interpretation12 citing casesexplaining that labels “performance” or “design” do not independently create, limit or relieve contractor’s obligations, but, rather, that contract should be viewed in its entirety
- Meridian Eng'g Co. v. United States, 122 Fed. Cl. 381 (Fed. Cl. 2015).publishedZinger, 807 F.2d at 981 (internal citations omitted); see also Blake Constr., 987 F.2d at 746 ("It is the obligations imposed by the specification which determine the extent to which it is 'performance' or ‘design,’ not the other way aroun…
- C.H. Guernsey & Co. v. United States, 65 Fed. Cl. 582 (Fed. Cl. 2005).published(holding that the labels “design” or “performance” “do not independently create, limit, or remove a contractor’s obligations.)
- Turner Constr. Co., Inc. v. United States, 367 F.3d 1319 (Fed. Cir. 2004).published (a reasonable contractor is expected to recognize patent ambiguities and to inquire about the work to be performed)
- Fru-Con Constr. Corp. v. United States, 42 Fed. Cl. 94 (Fed. Cl. 1998).published(explaining that labels “performance” or “design” do not independently create, limit or relieve contractor’s obligations, but, rather, that contract should be viewed in its entirety)
- Hre, Inc. v. United States, 142 F.3d 1274 (Fed. Cir. 1998).publishedCo. v. United States, 807 F.2d 979, 981 (Fed.Cir.1986), we conclude that if the parties intended to exempt condenser piping from the requirement in section 3.3A that low-temperature piping was to be insulated, the contract would have expli…
- Dillingham Constr., N.A. v. United States, 33 Fed. Cl. 495 (Fed. Cl. 1995).publishedCo. v. United States, 807 F.2d 979, 981 (Fed.Cir.1986)).
- Mega Constr. Co. v. United States, 29 Fed. Cl. 396 (Fed. Cl. 1993).publishedCo. v. United States, 807 F.2d 979, 981 (Fed.Cir.1986)).
- Blake Constr. Co., Inc. v. The United States, 987 F.2d 743 (Fed. Cir. 1993).publishedCo. v. United States, 807 F.2d 979, 981 (Fed.Cir.1986) (citations omitted).
- Gaston & Assocs., Inc. v. United States, 27 Fed. Cl. 243 (Fed. Cl. 1992).publishedCo. v. United States, 807 F.2d 979, 981 (Fed.Cir.1986).
- California Sand & Gravel, Inc. v. United States, 22 Cl. Ct. 19 (Ct. Cl. 1990).publishedCo. v. United States, 807 F.2d 979, 981 (Fed.Cir.1986).
Show 2 more citing cases
- Parker's Mech. Contractors, Inc. v. The United States, 862 F.2d 320 (Fed. Cir. 1988).unpublishedCo. v. United States, 807 F.2d 979, 981 (Fed.Cir.1986) (citations omitted).
- Darwin Constr. Co., Inc. v. United States, 811 F.2d 593 (Fed. Cir. 1987).publishedZinger Construction Co. v. United States, 807 F.2d 979, 981 (Fed.
At page 982 stating that contract must be viewed in entirety, regardless of “design” or “performance” label1 citing case
- Fireman's Fund Ins. v. United States, 92 Fed. Cl. 598 (Fed. Cl. 2010).published(stating that contract must be viewed in entirety, regardless of “design” or “performance” label)
v.
the UNITED STATES, Appellee
This appeal is from a decision of the Armed Services Board of Contract Appeals (“board”), Docket No. 26331, affirming the denial of appellant’s request for an equitable adjustment. We affirm.
BACKGROUND
In 1980, Zinger Construction Company (“Zinger”) was awarded Contract No. DACA 31-80-C-0110 for the installation of electric duct heaters in a dehumidifier system at the Tobyhanna Army Depot in Pennsylvania. Under the contract, Zinger was required to move existing fan units and steam coils in the dehumidifier ducts approximately three feet forward and to install new electric heaters downstream from the relocated steam coils and fans. The purpose of the contract was to provide the option of electric heat during the summer months while retaining the option of steam heat (provided by the steam coils) during the winter.
After installing the electric heaters and relocating the existing fan units and steam coils, Zinger was directed by the contracting officer to reconnect the steam coils and fans to the electric control box. Zinger performed the work under protest, asserting that it was not required to reconnect the control wires. Because the existing wires would not reach the relocated equipment, a new junction box and connecting wires had to be installed. Zinger filed a claim for an equitable adjustment of $14,-891, but the contracting officer denied the claim.
On appeal to the board, Zinger argued that the contract was a “design contract,” not a “performance contract,” and that Zinger was entitled to rely exclusively on the drawings and detailed specifications. Because the disputed wiring was not depicted in the drawings or described in detail in the specifications, it was argued that reconnection of the control wires was not a part of the contract.
[*981] The board concluded that the contract required that the completed system be fully reconnected and operational. Alternatively, the board found that to the extent the disputed wiring was not depicted or described in detail, a reasonable contractor would have recognized its absence in the plans and would have been obligated to inquire about the extent of work to be performed. Because Zinger had not inquired and had failed to examine existing wiring during pre-bid inspection, the board concluded that Zinger had assumed the risk that its interpretation of the contract was incorrect.
Zinger argues that the board erred in concluding that the disputed work was required and also asserts that there was no patent ambiguity or omission in the drawings such that Zinger was obligated to inquire about the scope of work to be performed. It reasserts that the contract in question was a design contract and that the omission of detail in the drawings and specifications clearly indicated that reconnection of the control wiring was not required.
OPINION
Our review of board decisions is governed by section 10(b) of the Contract Disputes Act of 1978, 41 U.S.C. § 609(b) (1982). Questions of law resolved by the board are neither final nor binding on the court, but findings of fact made by the board are final and conclusive unless arbitrary, capricious or unsupported by substantial evidence. American Electronic Laboratories, Inc. v. United States, 774 F.2d 1110, 1112 (Fed.Cir.1985).
The board found that a reasonable contractor would have expected to reconnect the control wiring and concluded that the contract, read as a whole, required that the completed system be operational. We are satisfied that the board’s finding was neither arbitrary nor capricious and was based on substantial evidence; further, that its conclusion was reasonable. The record includes the testimony of the project engineer, who stated that the equipment had to be reconnected for the system to be fully operational. Moreover, paragraph 11.3.6 of the contract requires the contractor to install and electrically connect the duct heaters “in such a manner that ... existing automatic control is functionally and operationally assured____”
Zinger’s argument, that the subject contract is a “design contract,” entitling it to rely solely on the drawings and detailed specifications, is misguided. On occasion the labels “design specification” and “performance specification” have been used to connote the degree to which the government has prescribed certain details of performance on which the contractor could rely. See, J.L. Simmons Company v. United States, 188 Ct.Cl. 684, 689, 412 F.2d 1360, 1362 (1969); see also, Ordnance Research, Inc. v. United States, 221 Ct.Cl. 641, 670, 609 F.2d 462, 479 (1979) (performance is established where contractor followed the methods and utilized the materials prescribed in specifications). However, those labels do not independently create, limit, or remove a contractor’s obligations. Contracts are viewed in their entirety and given the meaning imputed to a “reasonably intelligent contractor” acquainted with the involved circumstances, J.B. Williams Company v. United States, 196 Ct.Cl. 491, 507, 450 F.2d 1379, 1388 (1971); Holgar Mfg. Corp. v. United States, 169 Ct.Cl. 384, 388, 351 F.2d 972, 975 (1965), regardless of whether labelled “design,” “performance,” or both.
Accordingly, the decision of the board is affirmed.
AFFIRMED.