Jonathan Clark & Sons Co. v. Pittsburgh
Jonathan Clark & Sons Co. v. Pittsburgh
Opinion of the Court
Opinion by
Jonathan Clark & Sons Company, a foreign corporation, entered into a contract with the city of Pittsburgh for the construction of a reservoir in Highland Park. The Mercantile Trust Company became surety for the contractor for the faithful performance of its contract. The work was abandoned by the contractor, and the surety, with the consent of the city, undertook to complete it. Hpon its completion this suit was brought to recover the balance alleged to be due. The chief contention of the city is as to the amount recovered for extra work, and the reason assigned for asking that it be disallowed is that it had not been awarded to the lowest responsible bidder, as required by the Acts of May 23, 1874, P. L. 230, and March 7, 1901, P. L. 20.
It is conceded by appellant that the Director of the Department of Public Works had authority to direct minor and incidental changes which became necessary in the construction of the reservoir. As he undoubtedly had such authority, did. he exceed it in ordering the extra work, to the payment of which the city, now objects? The three items were for strengthening a concrete layer by the insertion of ribs, for increasing the thickness of a cement finish, and for drainage for the protection of the embankment and slopes. These were required only after the engineer in charge of the construction of the reservoir had formally recommended each of them to the Director, and after that officer had satisfied himself that the recommendations were proper. But even then the contractor was not directed to do this extra -work until there was a definite understanding as to what it was to cost, in accordance with the terms of the contract providing for its payment. The items were clearly incidental to the general work. The appellant made no attempt to prove that they were not, but asked the court to instruct the jury that the appellee could not recover for such items of extra work as were not incidental. Prima facie, they were all incidental, and, without proof to rebut this, the jury ought not to have been allowed to find otherwise.
By one of the clauses in the contract it is provided : “ In
Another complaint of the appellant is that -the Director had no authority to pass upon the claim of the city for $100 per day for delay in completing the work. One of the provisions of the contract was that the city might retain from the contractor, as liquidated damages for the non-completion of the work within the time stipulated for its completion, the sum of $100 per day for each day’s delay. The arbitrator found that neither Jonathan Clark & Sons Company nor the Mercantile Trust Company had unduly delayed the construction of the reservoir, and that neither of the said parties should be charged the sum of $100 per day, nor any sum whatsoever, as liquidated damages for delay in completing the work. The delay may have been caused by the extra work required by the city; but, be this as it may, this claim was disputéd by the appellee, and its settlement came within the very broad powers conferred upon the Director, authorizing him to pass upon “ any question or dispute .... respecting any matter pertaining to” the contract. In Chandley Brothers & Co. v. Cambridge Springs Borough, 200 Pa. 230, cited by the appellant, the engineer
The assignments are all overruled and the judgment is affirmed.
Reference
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- Jonathan Clark & Sons Company v. Pittsburgh
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- Municipalities — Municipal contract — ■Extra work — Advertisements— Acts of May 23, 1874, P. L. 230, and March 7, 1901, P. L. 20 — Arbitration clause. A municipal contract for the construction of a reservoir in a city of the second class may lawfully provide that the contractor shall do such extra work as the director of public works shall require, and that the compensation for such work shall be its reasonable cost to the contractor, plus ten per cent, for profits, use of tools, etc. Such a provision does not violate the Acts of May 23, 1874, P. L. 230, and March 7,1901, P. L. 20, which require municipal contracts to be awarded to the lowest responsible bidder after advertisement for proposals. Items of extra work which are clearly incidental to the general work, which have been recommended by the engineer in charge, and the cost of which is ascertained beforehand by an understanding with the contractor, may be ordered by the director, and if the work is done by the contractor, he is entitled to compensation therefor. Where an arbitration clause in a municipal contract provides that any dispute respecting the work, or materials “or respecting any pay for extra work,” shall be referred to the director of the department of public works, “whose decision thereon shall be final, conclusive and binding,” the decision of the director as to the amount due the contractor for extra work, is conclusive upon the city in the absence of fraud, accident or mistake. Where a municipal contract authorizes the director to pass upon “any question or dispute .... respecting any matter pertaining to” the contract, a decision of the director that the contractor should not be charged for any sum as liquidated damages for delay in completing the work, is binding upon the city.