84 Reporter's Statement of the Case tions for the entire project, was furnished to prospective bidders. This invitation for bids, so far as pertinent here, was as follows: SEALED BIDS, in triplicate, subject to the conditions contained herein, will be received by the Veterans Administration April 19, 1932, and then publicly opened for furnishing all labor and materials and performing all work required for constructing and finishing complete at VETERANS ADMINISTRATION HOME, TOGUS, MAINE, Hospital Building. This work will include excavating, roads, walks and drainage, reinforced concrete, hollow tile, brickwork, cut stone, architectural terra cotta, slate stair treads, marble work, terrazzo floor and wall tile, rubber tile, compressed asphalt tile and lineoleum floors, iron work, steel sash, steel stairs, steel shelving, cabinets and partitions, metal and built-up roofing, roof ventilators, skylights, lightning conductors, metal lathing, plastering, sound deadening, carpentry, metal weatherstrips, insect screens, linen chute, platform scales, painting, glazing, hardware, plumbing, refrigerating, heating and ventilating, electrical work, electric elevators, and outside distribution systems, and such other items as shown or specified. Separate bids will be received for (a) General Construction; (b) Plumbing, Heating, and Electrical Work; (c) Electric Elevators; and (d) Refrigerating Plant; all as set forth on bid form. Bids must be submitted upon the Standard Government Form of Bid and the successful bidder will be required to execute the Standard Government Form of Contract for Construction. Time of performance will be an essence of the contract and bids will be evaluated on the basis of time. In evaluating bids there will be added to each bid other than the one offering to complete in the shortest time an amount equal to the daily liquidated damages named in the Invitation for Bids, multiplied by the number of calendar days that such bidders have named for performance of the work in excess of the days named by the bidder proposing to do the work in the shortest time. The invitation for bids, as well as paragraph 37 of the specifications and art. 9 of the standard contract form, provided that liquidated damages for delay by failure of the Reporter's Statement of the Case 95 C. Cls. contractor to complete the work included in his bid within the time specified would be at the rate of $130 a day for "general construction"; $70 a day for "plumbing, heating, and electrical work"; $10 a day for "electric elevators"; and $10 a day for "a refrigerating plant". As a part of the invitation for bids the Government, in writing, advised all prospective bidders that it was the general intention that the contractor for general construction would, unless otherwise specified, completely prepare the site for building operations and furnish all labor and materials required to construct and finish complete as shown on the drawings, as described by the specifications, and as noted in his bid, upon which an award might be made, the one hospital building, and roads, walks, grading and drainage, etc., and that the mechanical equipment covered by contracts made upon awards therefor under separate bids would be installed in the building as its construction progressed, as called for in the construction contract and specifications. Par. 7 of the specifications and art. 13 of the contracts provided that each contractor should fully cooperate with other contractors and carefully fit his own work to that provided under other contracts as might be directed by the contracting officer, and that no contractor should commit or permit any act which would interfere with the performance of work by any other contractor. The bidder for general construction work of erecting the hospital building was required by the invitation for bids and the specifications to state the time within which such work would be completed, and time of performance was to be an essence of the contract between the Government and the contractor for general construction; the specifications relating to plumbing, heating, electrical work, and other mechanical work, provided that the general conditions set forth therein would govern where applicable all work in connection with plumbing, heating, and other mechanical work, and further provided as follows: TIME FOR COMPLETION: All work under this section [plumbing, heating, etc.] of the specification shall be completed at a date not later than that provided for in the contract for General Construction (see construc 84 Reporter's Statement of the Case tion section of specification and bid forms for the completion of work under that contract.) Failure to comply with the above will result in the deduction of liquidated damages from contract payments as hereinbefore provided under "General Conditions". 2. Chas. Smith & Sons, Inc., of Hartford, Conn., was the successful bidder for the work of constructing and finishing complete the hospital building, together with all roads, walks, grading and drainage in connection therewith. On April 21, 1932, this company and the Government through L. H. Tripp, Director of Construction, Veterans' Administration, as contracting officer, entered into the standard form of contract for this work for a total consideration of $374,000, and art. 1 of this contract provided that "The work shall be commenced within ten (10) calendar days after date of receipt of notice to proceed and shall be completed within two hundred and fifty (250) calendar days after date of receipt of notice to proceed." On or shortly before April 19, 1932, the date specified in the invitation for bids issued March 12, 1932, the D. C. Engineering Co., Inc., hereinafter referred to as plaintiff, submitted its bid for plumbing, heating, and electrical work called for by the specifications and drawings to be installed in the hospital building to be constructed by defendant under a separate contract, and stated that it would complete the same within the period fixed by the Government in its contract for general construction for a price of $89,500, in accordance with specifications, schedules, and drawings prepared and furnished by the Government. The printed Government bid form stated "The above bid is made with the understanding that all work covered thereby will be completed at a date not later than that provided in the contract for General Construction." Plaintiff's bid was accepted by the Government and, on April 29, 1932, the plaintiff and the United States, represented by L. H. Tripp, Director of Construction, Veterans' Administration, as contracting officer, executed the standard form of contract, which, with the exception of description of the work to be performed thereunder, was, in all respects, identical with the Reporter's Statement of the Case 95 C. Cls. contract between the Government and the contractor for the work of constructing the building. 3. May 9, 1932, the Government through its contracting officer gave Chas. Smith & Sons, Inc., the contractor for general construction, notice to proceed, and on May 12 gave plaintiff written notice to proceed as follows: You are hereby notified to proceed with the installation of Plumbing, Heating, and Electrical Work at Veterans' Administration Hospital, Togus, Maine, as contemplated by Contract VAC-196, dated April 29, 1932, your copy of which is attached. The performance bond signed by you and the Globe Indemnity Company, 150 William Street, New York City, N. Y., in support of this contract, has been approved and is on file with the Service record of this agreement. It will be noted that the contract provides for completion of the work at a date not later than that provided for in the contract for General Construction. The General Construction work is due for completion within 250 Calendar Days after May 9, 1932. Under these notices to proceed, the work of constructing the building and the work of furnishing and installing therein the plumbing, heating, and electrical equipment were due for completion January 14, 1933. The progress of plaintiff's work under its contract was dependent upon progress of the general construction work being performed by the Government under a separate contract. 4. At the time of preparing its bid, plaintiff, being aware of the importance to it of the period for performance under its contract if it was the successful bidder, conferred with the Director of Construction of the Veterans' Administration, who was the Government's contracting officer, to determine when the work of constructing the hospital building would commence and the period of the year during which it would be prosecuted. The contracting officer advised plaintiff that construction work would commence in early spring of 1932 as soon as weather conditions would permit so that the building would be under roof and enclosed beforé cold weather set in during the following months. Plaintiff made its bid in reliance upon that advice and upon the basis of the provisions of the standard form 84 Reporter's Statement of the Case of contract and the specifications. Plaintiff was ready to proceed and perform the work called for by its contract at all times on and after the date on which it received notice to proceed. Plaintiff's contract provided in art. 1 that "The work shall be commenced promptly after date of receipt of notice to proceed and shall be completed at a date not later than that provided for in the contract for general construction." Art. 3 of plaintiff's contract and, also, of the contract between defendant and Chas. Smith & Sons, Inc., for general construction provided that the contracting officer might at any time by written order make changes in the drawings and specifications of the contract, or in either, and within the general scope therof, and that if such changes caused an increase or decrease in the amount due under the contract, or in the time required for its performance, an "equitable adjustment shall be made and the contract shall be modified in writing accordingly;" that any claim for adjustment must be asserted within ten days from the date the change is ordered, unless the contracting officer should extend the time, and that if the parties could not agree upon the adjustment the dispute should be determined as provided in art. 15 of the contract; but that nothing in that article should excuse the contractor from proceeding with prosecution of the work so changed. Art. 4 of both contracts provided that should the Government discover, during progress of the work, subsurface and/or latent conditions at the site materially differing from those shown on the drawings or indicated in the specifications, the contracting officer should promptly investigate the conditions and if he found that they materially differed from those shown on the drawings or indicated in the specifications he should at once make such changes in the drawings and specifications as he might find necessary, "and any increase or decrease of cost and (or) difference in time resulting from such changes, shall be adjusted as provided in Article 3 of this contract." Art. 15 provided that all disputes concerning questions of fact arising under the contract should be decided by the contracting officer or his authorized representative, sub |