Sanders Construction Co. v. United States

Summary

The Court of Claims reviewed a Corps of Engineers Board of Contract Appeals decision involving a contractor’s claim for an equitable adjustment after the acreage requiring clearing substantially exceeded the contract estimates. The court adopted the trial judge’s recommendation, granted summary judgment for the contractor, and remanded for determination of the adjustment before the petition was later dismissed pursuant to a stipulation.

Holdings

1. The Board's decision was unsupported by substantial evidence and erroneous as a matter of law because it disregarded material testimony supporting the contractor's position while relying on less credible contrary testimony.
2. The contractor established the elements of a changed-conditions claim and was entitled to an equitable adjustment because the actual acreage materially exceeded the acreage indicated in the contract, the discrepancy was not reasonably foreseeable, the contractor reasonably relied on the government's estimates, and the variation caused damage.
3. The contractor was not required to remeasure the acreage from the photographs or make further inquiry because the photographs were unambiguous on their face, the acreage ambiguity was latent and construed against the government as drafter, and the advance notice to bidders was too vague and was not part of the contract.

Questions Presented

1. Whether the Board of Contract Appeals' denial of an equitable adjustment was supported by substantial evidence and correct as a matter of law.
2. Whether the materially greater acreage encountered by the contractor constituted a changed condition entitling it to an equitable adjustment.
3. Whether the contractor reasonably relied on the government's acreage estimates despite the site-investigation provision, contract documents, aerial photographs, and advance notice to bidders.

Disposition

remanded