A-12373, FEBRUARY 6, 1926, 5 COMP. GEN. 589

A-12373: Feb 6, 1926

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COSTS - PREMIUM ON EMPLOYEES' COMPENSATION INSURANCE WHERE A CONTRACT FOR THE CONSTRUCTION OF A BRIDGE IN CONNECTION WITH A NATIONAL FOREST ROAD PROJECT PROVIDED THAT THE CONTRACTOR WAS TO PERFORM SUCH EXTRA WORK AS MAY BE ORDERED IN WRITING BY THE DISTRICT ENGINEER. THAT HE WAS TO RECEIVE FOR SUCH EXTRA WORK THE ACTUAL COST OF ALL SUPPLIES AND MATERIALS. "FOR SUCH LABOR AND TEAMS AS ARE NECESSARY HE SHALL RECEIVE THE CURRENT PRICES IN THE LOCALITY * * * PLUS 15 PERCENT OF THE COST OF SUCH LABOR AND TEAMS. " THE CONTRACTOR IS NOT ENTITLED TO REIMBURSEMENT FOR THE AMOUNT EXPENDED BY HIM AS PREMIUM ON EMPLOYEES' COMPENSATION INSURANCE FOR PROTECTION OF THE EMPLOYEES HIRED IN CONNECTION WITH THE PERFORMANCE OF THE EXTRA WORK.

A-12373, FEBRUARY 6, 1926, 5 COMP. GEN. 589

CONTRACTS, COSTS - PREMIUM ON EMPLOYEES' COMPENSATION INSURANCE WHERE A CONTRACT FOR THE CONSTRUCTION OF A BRIDGE IN CONNECTION WITH A NATIONAL FOREST ROAD PROJECT PROVIDED THAT THE CONTRACTOR WAS TO PERFORM SUCH EXTRA WORK AS MAY BE ORDERED IN WRITING BY THE DISTRICT ENGINEER, AND THAT HE WAS TO RECEIVE FOR SUCH EXTRA WORK THE ACTUAL COST OF ALL SUPPLIES AND MATERIALS, ETC., AND "FOR SUCH LABOR AND TEAMS AS ARE NECESSARY HE SHALL RECEIVE THE CURRENT PRICES IN THE LOCALITY * * * PLUS 15 PERCENT OF THE COST OF SUCH LABOR AND TEAMS," THE CONTRACTOR IS NOT ENTITLED TO REIMBURSEMENT FOR THE AMOUNT EXPENDED BY HIM AS PREMIUM ON EMPLOYEES' COMPENSATION INSURANCE FOR PROTECTION OF THE EMPLOYEES HIRED IN CONNECTION WITH THE PERFORMANCE OF THE EXTRA WORK, IN ADDITION TO THE ITEMS ENUMERATED IN THE CONTRACT.

DECISION BY ACTING COMPTROLLER GENERAL GINN, FEBRUARY 6, 1926:

LEE STRATTON, DISTRICT FISCAL AGENT, DEPARTMENT OF AGRICULTURE, REQUESTED DECEMBER 3, 1925, REVIEW OF SETTLEMENT NO. C-28189-A, DATED AUGUST 1, 1925, DISALLOWING CREDIT FOR $84.87 PAID ON VOUCHER NO. 0287 OF HIS SEPTEMBER QUARTER, 1924, ACCOUNTS TO THE BEASON CONSTRUCTION CO. UNDER CONTRACT DATED JUNE 4, 1923, AS PREMIUM ON EMPLOYEE'S COMPENSATION INSURANCE FOR PROTECTION OF EMPLOYEES HIRED ON THE EXTRA WORK PERFORMED UNDER THE SAID CONTRACT.

ON JUNE 4, 1923, THE SECRETARY OF AGRICULTURE, ACTING FOR AND IN BEHALF OF THE UNITED STATES, ENTERED INTO A CONTRACT WITH THE BEASON CONSTRUCTION CO. WHEREBY THE SAID COMPANY AGREED, FOR AND IN CONSIDERATION OF THE SUM OF $30,957.98, TO FURNISH ALL THE MATERIALS, LABOR, ETC., AND CONSTRUCT A BRIDGE IN CONNECTION WITH THE PANGUITCH TROPIC (RED CANYON SECTION) NATIONAL FOREST ROAD PROJECT, ALL IN ACCORDANCE WITH CERTAIN SPECIFICATIONS MADE A PART THEREOF.

IT WAS ALSO AGREED THAT THE CONTRACTORS WERE TO PERFORM SUCH EXTRA WORK AS MAY BE ORDERED IN WRITING BY THE DISTRICT ENGINEER AND THAT THE CONTRACTORS WERE TO MAKE NO CLAIM FOR EXTRA WORK UNLESS SO ORDERED IN WRITING. WITH RESPECT TO PAYMENT FOR SUCH EXTRA WORK THE CONTRACT PROVIDED:

THE CONTRACTOR SHALL RECEIVE FOR SUCH EXTRA WORK THE ACTUAL COST OF ALL SUPPLIES AND MATERIALS, INCLUDING FREIGHT, FURNISHED BY HIM, AS SHOWN BY HIS PAID VOUCHERS, WHEN APPROVED BY THE ENGINEER, AND A REASONABLE RENTAL CHARGE PREVIOUSLY AGREED TO IN WRITING BETWEEN THE ENGINEER AND THE CONTRACTOR FOR THE USE OF SPECIAL EQUIPMENT OR MACHINERY SUCH AS POWER- DRIVEN ROLLERS, TRACTORS, TRUCKS, SHOVELS, DRILLS, CONCRETE MIXERS, PUMPS, AND HOISTS, ALSO INDUSTRIAL RAILWAY EQUIPMENT; STONE CRUSHERS, ETC., REQUIRED FOR THE ECONOMICAL PERFORMANCE OF THE WORK; FOR SUCH LABOR AND TEAMS AS ARE NECESSARY HE SHALL RECEIVE THE CURRENT PRICES IN THE LOCALITY, WHICH SHALL HAVE BEEN PREVIOUSLY AGREED TO IN WRITING BY THE ENGINEER AND BY THE CONTRACTOR, PLUS 15 PERCENT OF THE COST OF SUCH LABOR AND TEAMS WHICH SHALL BE CONSIDERED AS FULL COMPENSATION FOR GENERAL SUPERVISION AND THE FURNISHING AND REPAIRING OF SMALL TOOLS AND ORDINARY EQUIPMENT USED ON THE CONTRACT, SUCH AS PICKS, HAND SHOVELS, PLOWS, FRESNOES, SCRAPERS, WAGONS, ROAD GRADERS, ETC.

ORDERS WERE ISSUED FOR THE PERFORMANCE OF THE EXTRA WORK IN ACCORDANCE WITH THE TERMS OF THE CONTRACT AND THE CONTRACTOR IN SUBMITTING ITS VOUCHER IN PAYMENT THEREFOR INCLUDED THE AMOUNT OF $84.87 PAID AS PREMIUM ON EMPLOYEES' COMPENSATION INSURANCE FOR PROTECTION OF EMPLOYEES HIRED IN CONNECTION WITH THE PERFORMANCE OF EXTRA WORK, WHICH AMOUNT WAS PAID BY THE DISBURSING OFFICER ON THE VOUCHER HERE IN QUESTION. CREDIT FOR THE AMOUNT SO PAID WAS DISALLOWED IN THE DISBURSING OFFICER'S ACCOUNTS FOR THE REASON THAT THE CONTRACT PROVIDES THAT "SUCH PERMITS, LICENSES, INSURANCE POLICIES, ETC., AS FEDERAL, STATE, OR LOCAL LAWS NECESSITATE IN CONDUCTING THE WORK SHALL BE PROVIDED BY THE CONTRACTOR AT HIS OWN EXPENSE.' HOWEVER, IT NOW APPEARS THAT THIS PROVISION OF THE CONTRACT RELATED ONLY TO THE WORK ORIGINALLY CONTEMPLATED UNDER THE CONTRACT AND HAS NO APPLICATION TO THE EXTRA WORK TO BE PERFORMED AS THEREIN PROVIDED FOR. PREVIOUSLY NOTED, THE CONTRACT MAKES SPECIFIC PROVISION WITH REFERENCE TO THE PERFORMANCE OF THE EXTRA WORK AND PROVIDES FOR THE COMPENSATION THEREFOR.

THE CONTRACT DOES NOT PROVIDE FOR REIMBURSEMENT OF ACTUAL COST OF LABOR INVOLVED IN CONNECTION WITH THE EXTRA WORK. IT PROVIDES THAT FOR THE LABOR AND TEAMS THE CONTRACTOR "SHALL RECEIVE THE CURRENT PRICES IN THE LOCALITY, WHICH SHALL HAVE BEEN PREVIOUSLY AGREED TO IN WRITING BY THE ENGINEER AND BY THE CONTRACTOR, PLUS 15 PERCENT OF THE COST OF SUCH LABOR AND TEAMS.'

THE ORDERS ISSUED FOR THE PERFORMANCE OF THE EXTRA WORK SPECIFY THE PRICES TO BE PAID PER DAY FOR THE LABOR AND TEAMS AND, THERE APPEARING NOTHING TO THE CONTRARY, THE PRICES SO FIXED MAY BE ASSUMED TO BE THE CURRENT PRICES FOR LABOR AND TEAMS IN THE LOCALITY AS REQUIRED BY THE CONTRACT. THEREFORE IN THE ABSENCE OF A SPECIFIC PROVISION IN THE CONTRACT FOR INCLUDING PREMIUM ON INSURANCE AS A PART OF THE COST OF THE WORK, IT MUST BE HELD THAT THE PAYMENT OF SUCH PREMIUM IN ADDITION TO THE ITEMS SPECIFICALLY ENUMERATED IN THE SAID CONTRACT WAS UNAUTHORIZED.