ASBCA 55905
Board: ASBCA
Date: 2013-04-11
Outcome: sustained
ARMED SERVICES BOARD OF CONTRACT APPEALS
Appeal ofâ )
)
Strand Hunt Construction, Inc. ) ASBCA No. 55905
)
Under Contract No. W911KB-04-C-0008 )
APPEARANCE FOR THE APPELLANT: James F. Nagle, Esq.
Oles, Morrison, Rinker & Baker, LLP
Seattle, WA
APPEARANCES FOR THE GOVERNMENT: Thomas H. Gourlay, Jr., Esq.
Engineer Chief Trial Attorney
Anne L. Burman, Esq.
Engineer Trial Attorney
U.S. Army Engineer District, Alaska
OPINION BY ADMINISTRATIVE JUDGE THOMAS
The U.S. Army Corps of Engineers (the Corps or government) awarded Strand
Hunt Construction, Inc. (SHC) a contract to design and build a Joint Security Forces
Complex (JSFC) for the Air Force at Eielson Air Force Base (AFB), Alaska. SHC claims
that the government delayed contract completion by 105 days and is responsible for delay
costs of $491,722. It also claims that the government erroneously imposed liquidated
damages since any delay was either concurrent or government caused. (R4, tab 10) The
Contract Disputes Act (CDA), 41 U.S.C. §§ 7101-7109, is applicable. A hearing was
held in Seattle, Washington. Only entitlement is before us for decision (tr. 1/183).
INTRODUCTION
The Corps awarded the captioned contract on 27 February 2004. It took beneficial
occupancy of the JSFC on 20 January 2006. The Corps' position at that time was that the
contract completion date was 31 August 2005, based on a contract completion date of
1 July 2005 at time of award plus 60 days of time extensions granted by modification.1 It
asserted a right to liquidated damages on that basis. SHC's position, set forth in its
14 February 2006 request for equitable adjustment (REA) and subsequent claim, was that
the contract completion date was 23 November 2005, based on a contract completion date
of 23 September at time of award plus the 60 days reflected in modifications.
1 Sixty days would be 30 August 2005. The parties generally refer, however, to a
completion date of 31 August 2005 and we use that date for convenience.
Furthermore, it contended that there was a concurrent delay period from 1 September
2005 through 7 October 2005, and that it would have achieved substantial completion on
7 October 2005 but for Corps delays. It claimed that it was entitled to compensatory
damages of $491,722 for the 105-day period from 7 October 2005 to 20 January 2006.
Prior to the hearing in the appeal, the parties entered into stipulations which
resolved some of the issues. The parties continued to disagree about whether the
contractual completion date at award was 1 July 2005 or 23 September 2005. They
stipulated, however, that the government "was concurrently responsible for delays
relating to training extended through September 30, 2005" and for delays in the parking
bay resulting from a stop work order (which we find infra was lifted on or about
19 September 2005). They also stipulated that "[t]he substantial completion date was
November 1, 2005, and the liquidated damages and Government provided utility costs
withheld from the contractor for the period of November 1, 2005 through January 20,
2006 should be and were partially released to the contractor." They also stipulated that
the 60 days of time extensions granted by the modifications "should be in addition to
whatever the contract completion date is determined to be," whether 1 July 2005 or
23 September 2005 or some other date. (Stipulations dated 2 February 2009) We refer
only to liquidated damages rather than liquidated damages and utility costs hereafter for
simplicity.
Remaining for decision, therefore, is (1) what the original contract completion
date was, (2) if the original contract completion date was 1 July 2005, whether the
government is entitled to withhold liquidated damages for the period from 30 September
2005 to 1 November 2005, (3) whether appellant has established government-responsible
delay such that but for the delay it would have substantially completed the work on
7 October 2005 rather than 1 November 2005, and (4) whether appellant has established
further government-responsible delay such that but for the delay it would have completed
the remaining work as of 1 November 2005 (other than landscaping and other warm
weather work) rather than on 20 January 2006.