Expanded Metal Fire-Proofing Co. v. Noel Construction Co.
Expanded Metal Fire-Proofing Co. v. Noel Construction Co.
Opinion of the Court
The circuit court, in entering its judgment, deducted from the judgment of the common pleas seven items for extras, which amounted, with interest thereon, to the sum of $20,376.36, and affirmed the balance of the judgment,- amounting to $21,506.10. It found that the common pleas court erred in its construction of Clause 6 of the contract between the Noel Company and the Expanded Company, and in charging the jury “that for the making of -the changes provided for in said sixth clause of the
“The party of the second part further agrees that in the event of any changes being made by the architect or owner in the plans and specifications, affecting any of the work or materials herein agreed to be done, furnished and set in place, such changes shall be assented to and executed by the party of the second part, upon condition that party of the first part shall pay for same at the fair market price, if said changes add to the cost of the work, and if such changes decrease the cost of the work, a proportionate allowance shall be made to the party of the first part, without in any way invalidating, changing or avoiding this contract, and if such changes cause delay to the party of the second part, additional time to be extended by party of the first in which to perform the work.”
The preamble of the contract recites that the Noel Company had entered into a contract with the Cash Register Company for the construction of the building referred to, and provided “the said contract, together with the plans, drawings and specifications therein referred to, are made part hereof to the same extent as if herein fully written.”
In the third clause of the Cash Register contract with the Noel Company, it is provided as follows:
*433 “No alterations shall be made in said specifications or drawing's nor shall there be any deviation in the doing of the work or furnishing the material covered by this contract from the manner, character or quality designated and required by said drawings and specifications, unless such alterations or deviations be authorized or required upon the written order of said engineer of works, the extra amount to be paid by said owner or the credit to be allowed by said contractor on account of said alterations or deviations being stated therein. But should the owner and contractor not be able to agree as to such amount to be paid or allowed, the work shall go on under the order provided for, and the determination of said amount shall be referred for arbitration as provided for in paragraph fourteen (14) of this contract.”
The contention, substantially, of the Expanded Company is that, inasmuch as the sixth clause of its contract with the Noel Company does not specifically require that the changes provided for in said cause shall be ordered in writing, no such written order was necessary. That the provision in the preamble, that the Cash Register contract, with its plans, drawings and specifications, are made part of the Expanded Metal Company contract • cannot control in the matter of the extras, because the specific provision in the Expanded Company contract for extras is inconsistent with the provision in the Cash Register contract with reference thereto. That in such case, the actual contract between the parties must prevail.
It is clear that the purpose of Clause 6 of the sub-contract was to require the sub-contractor to “assent to and execute” the changes ordered by the owner, and to provide a plan by which the sub-contractor should be paid for the making of such changes. The principal contract provided for the fixing of the amount to be paid by the owner to the principal contractor for extras, and, in as much as the sub-contractor was not a party to such arrangement, it would not be fair to compel him to be bound by the price so fixed. Therefore, in justice to him, the provision was added that he should be paid the fair market price and should'not be subjected to claims for delay, if the changes caused delay. It must be noted that the Expanded Metal Company, in its contract, bound itself to “assent to and execute” any changes which the owner might make, but with knowledge that any such changes could be made by the owner only on a written order to the principal contractor, in which the amount to be
We think the “change being made by the owner,” referred to in Clause 6, and which the sub-contractor bound itself to assent to, is only such a change as the owner was entitled to make under its contract with the principal contractor, and which was made in writing in accordance therewith, the terms of which the sub-contractor had embodied in its own contract. Otherwise, the owner could order extras without reference to their value and without reference to the requirements of his contract with the principal contractor, and the sub-contractor could execute them and hold the principal contractor to payment for them without the former having been, in any way, a party to the arrangement. Clause 6 of the sub-contract is not inconsistent with Clause 3 of the principal contract, when the two are considered in view of the object each was to subserve.
A consideration of all of the provisions of the contract leads us to conclude that the parties intended that the owner could not order changes to which either the principal contractor or the subcontractor was bound to assent, or for which the sub-contractor would have a valid claim, unless the order was in writing, or unless this requirement was waived by the parties in some manner by which they were bound.
The circuit court found that the error of the common pleas, in construing the contract, affected
(3) For changes in corner columns, the sum of.................$ 327.60
(4) For extra steel in parapet walls in main building, the sum of.. 130.45
(5) For change in parapet walls of wings .................... 99.90
(6) For extra concrete parapet walls of wings................... 40.50
(7) For wrought iron pipes through the floor slabs.............. 980.00
(8) For tearing nine columns, first floor, and changing forms in connection with curtain walls. 4,000.00
(10) For extra rods in beams and extra size of beams......... 12,340.00
The verdict of the jury was not a general one on the issues between the parties in favor of the Expanded Metal Company, but it named specific items, among which were those above stated, and found the total amount due.
It is contended, substantially, by the Expanded Metal Company, that the conduct of all parties concerned as the work progressed was such as to amount to a waiver in law of the requirements that the orders for alterations and extras should be made in writing, if the court should find that written orders were required.
As to Item No. 7, “for wrought iron pipes through floor slabs, $980.00,” the Expanded Com
Item 8 of the verdict, “for tearing out nine columns, first floor, and changing forms in con-, nection with curtain walls, $4,000.00," was also the subject of controversy between the parties.' The Expanded Company claimed that, after the work had progressed for some time, the Cash Register Company made and delivered a written order to the Noel Construction Company,^ as follows:
*438 “Noel Construction Company.
“Stop pouring concrete columns separate from curtain walls. . Change forms so that curtain walls will be poured same time as columns.
“National Cash Register Company,
“By F. E. Chester.”
This order was endorsed on the back, “To the Expanded Metal Fire-Proofing Company,” signed, “Noel Construction Company, per Gobel.”
In connection with this order, the Expanded Company offered in evidence a drawing made by the engineer of the Cash Register Company, indicating the process to be followed pursuant to the order above referred to. The Noel Company claimed, as to this order and drawing, that it was made for the purpose of requiring the Expanded Company to comply with the original plans, not for the purpose of making a change therein, and that it is not such a written order as contemplated by the contract.
Considerable testimony, touching this contention, was offered by the parties, and the jury found in favor of the Expanded Company, specifically allowing this item, as above stated. On the question as to whether it was such an order as comes within the provisions of Clause 3 of the principal contract, it is insisted that it does not comply with the provisions therein that the extra amount to be paid for said change shall be stated in the order. But it must be noted that Clause 3 contains another provision; namely, that the failure of the owner and contractor to agree as to the amount to be paid for alterations shall not operate
Another element included in the verdict of the jury, which was deducted from the amount of the judgment by the circuit court, was No. 10, “for extra rods in beams and extra sizes of beams, $12,340.00.” This is the largest and most important element involved in the controversy. It is shown by the testimony of the witness Pitkin that extensive changes in the plans were made by the Cash Register Company, which required a large amount of extra rods' and beams in the construction of the building; the amount of excess steel being 288,711 pounds; that detailed drawings and plans of these changes were made, to be used by the Expanded Company, as its instructions in the carrying out of such alterations. These detailed plans were approved by Mr. Waldron, the engineer of the Cash Register Company, in charge of the work. All of the changes, detailed drawings and plans were made and used and complied
No formal order, written in words, was given ' for these extras, but we think that the detailed drawings referred to, which show the additional rods and reinforcements, with the written approval thereon of the engineers in charge, taken in connection with the conduct of all parties concerned with reference to them, were the equivalent of a written instruction and amounted to a waiver, of a more formal order. In fact, we think it might reasonably be said to be a writing which was in
As to Items 3, 4, 5 and 6, which the jury specifically found in favor of the sub-contractor, the changes therein referred to appeared to have been made without any writing or other specification or. definite requirement therefor. We think the circuit court correctly deducted the amounts of these items from the judgment rendered by the common pleas court.
The Noel Construction Company has filed a cross-petition in error, contending that the circuit court erred in affirming any part of the judgment of the court of common pleas, and especially in affirming the judgment of the latter court in favor of plaintiff on the ninth finding in the verdict of the jury in the sum of $2,388.00, for extra labor on sand and gravel. The extra labor referred to in this item was not such an extra as was involved
Another assignment of error made by the Noel Company relates to its claim for liquidated damages for $8,000.00, which it allowed the Cash Register Company for delays which were caused by the Expanded Metal Company. All of the allegations of the Noel Company, in connection with this matter, were denied by the Expanded Metal Company. It asserts that the deláys were caused by the alterations ordered by the owner; that it never had notice of any arrangement to compromise the claim of the Cash Register Company; that it was not a party thereto; that the amount fixed was purely arbitrary, and was not binding on it.
Considering the issues made and the testimony offered by the parties concerning them, we think that the charge of the court was correct.
On a full consideration of the whole case, we conclude that the judgment of the circuit court should be modified in this respect, that it should have reduced the amount of the judgment of the
The judgment of the circuit court will be modified, as indicated.
Judgment modified.
Reference
- Full Case Name
- The Expanded Metal Fire-Proofing Company v. Noel Construction Company
- Status
- Published
- Syllabus
- Principal contract made, part of sub-contract — As to inconsistent provisions in two contracts — Those in sub-contract prevail— Question of waiver of provisions of contract — Effect of additional plans and drawings — Consent of all parties equivalent to written waiver, when — Liquidated damages provided in both contracts — Will not conclude sub-contractor, when — Charge to jury as to same — Law of contracts. 1. Where a principal contract is adopted and made part of a subcontract, all of the provisions of the former are binding on the parties to the latter, so far as they are consistent therewith. As to inconsistent provisions in the two contracts, those of the subcontract will control. 2. Where the principal contract for a building has been made part of a sub-contract in relation thereto, a provision in the former that no alterations shall be made except on the written order of the owner or his agent, the extra amount to be paid being stated therein, is binding on the sub-contractor unless otherwise provided in the sub-contract. 3. Such requirement will be held to have been waived by the parties when alterations have been made with knowledge and participation of all concerned, the evidence of which is clear and convincing, no fraud being shown. 4. Where plans and drawings are made part of a contract which contains such a provision as to alterations, and additional plans and drawings are afterwards prepared (which require extra work and material) with the written approval of the owner thereon, signed by his authorized agent, and which work and material is done and furnished by a sub-contractor with the knowledge of all concerned, the additional plans and drawings so approved, will be held to be the equivalent of a written order, and a waiver of a more formal one. 5. Where liquidated damages are provided for, in both a principal contract and a sub-contract, on account of delays, a settlement b3r the owner and principal contractor of a claim by the former for such damages, to which settlement the sub-contractor was not a party, will not conclude the latter, and in a suit by the principal contractor to recover the amount of such settlement from the sub-contractor, it is not error for the court to charge the jury that the claimant must show that the sub-contractor caused the delay, and that the amount allowed the owner in the settlement could have been recovered at law.