B-127973, JUN. 7, 1956

B-127973: Jun 7, 1956

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THE FACTS AS INDICATED ARE THAT THE BARNET BREZNER CONSTRUCTION COMPANY WAS AWARDED CONTRACT NO. 04-19-008-2371 TO PERFORM CERTAIN CONSTRUCTION. IT WAS INTENDED THAT THE CITY OF NATCHITOCHES WOULD FURNISH AND INSTALL TRANSFORMERS IN CONJUNCTION WITH THE WORK TO BE DONE BY THE CONSTRUCTION COMPANY. FAILED TO FURNISH THE TRANSFORMERS AND PURSUANT TO SECTION 20 OF THE GENERAL CONDITIONS OF THE CONTRACT THE WORK BY THE CONTRACTOR WAS ORDERED SUSPENDED UNTIL THE TRANSFORMERS WERE OBTAINED. THE TRANSFORMERS WERE SUBSEQUENTLY ACQUIRED BY THE GOVERNMENT AND AFTER SEVEN WEEKS THE SUSPENSION ORDER WAS LIFTED AND THE CONTRACTOR WAS ORDERED TO RESUME WORK. THE WORK WAS SUBSEQUENTLY SATISFACTORILY COMPLETED BY THE CONTRACTOR AND PAYMENT WAS MADE IN ACCORDANCE WITH THE TERMS OF THE CONTRACT.

B-127973, JUN. 7, 1956

TO MR. W. E. CORBIN, AUTHORIZED CERTIFYING OFFICER, DEPARTMENT OF THE INTERIOR:

YOUR LETTER OF MAY 16, 1956, REQUESTS AN OPINION AS TO WHETHER THE ATTACHED VOUCHER IN FAVOR OF THE BARNET BREZNER CONSTRUCTION COMPANY IN THE AMOUNT OF $1,166.50 MAY BE PAID.

THE FACTS AS INDICATED ARE THAT THE BARNET BREZNER CONSTRUCTION COMPANY WAS AWARDED CONTRACT NO. 04-19-008-2371 TO PERFORM CERTAIN CONSTRUCTION. IT WAS INTENDED THAT THE CITY OF NATCHITOCHES WOULD FURNISH AND INSTALL TRANSFORMERS IN CONJUNCTION WITH THE WORK TO BE DONE BY THE CONSTRUCTION COMPANY. THE CITY, HOWEVER, FAILED TO FURNISH THE TRANSFORMERS AND PURSUANT TO SECTION 20 OF THE GENERAL CONDITIONS OF THE CONTRACT THE WORK BY THE CONTRACTOR WAS ORDERED SUSPENDED UNTIL THE TRANSFORMERS WERE OBTAINED. THE TRANSFORMERS WERE SUBSEQUENTLY ACQUIRED BY THE GOVERNMENT AND AFTER SEVEN WEEKS THE SUSPENSION ORDER WAS LIFTED AND THE CONTRACTOR WAS ORDERED TO RESUME WORK. THE WORK WAS SUBSEQUENTLY SATISFACTORILY COMPLETED BY THE CONTRACTOR AND PAYMENT WAS MADE IN ACCORDANCE WITH THE TERMS OF THE CONTRACT. ON MARCH 23 THE CONTRACTOR FILED A CLAIM FOR ADDITIONAL EXPENSES INCURRED BECAUSE OF THE SUSPENSION ORDER. THEREAFTER, ON APRIL 16, THE CONTRACTOR EXECUTED A RELEASE ON THE BACK OF THE FINAL PAYMENT VOUCHER TO THE EFFECT THAT PAYMENT IN ACCORDANCE WITH THE TERMS OF THE CONTRACT CONSTITUTED FULL PAYMENT "OF ALL AMOUNTS DUE" UNDER THE CONTRACT. ON APRIL 21 THE CONTRACTOR'S CLAIM FOR ADDITIONAL EXPENSES WAS MODIFIED TO REFLECT THE PRESENT FIGURE OF $1,166.50 AND ON MAY 2 THE CONTRACTING OFFICER'S AUTHORIZED REPRESENTATIVE SUBMITTED A STATEMENT RECOMMENDING THAT THE CLAIM FOR ADDITIONAL EXPENSES AS MODIFIED RECEIVE FAVORABLE CONSIDERATION. YOU QUESTION WHETHER THE RELEASE EXECUTED ON APRIL 16 PRECLUDES ANY FURTHER PAYMENT, AND, IN ANY EVENT, WHETHER ADDITIONAL PAYMENTS MAY BE MADE FOR EXPENSES INCURRED BY VIRTUE OF THE SUSPENSION ORDER.

NORMALLY A RELEASE MADE WITHOUT RESERVATION PRECLUDES THE PAYMENT OF ANY FURTHER CLAIM ARISING UNDER THE CONTRACT. UNITED STATES V. WILLIAM CRAMP AND SONS COMPANY, 206 U.S. 118. IN THE ABSENCE OF ANY INDICATION THAT THE CLAIM FOR $1,166.50 WAS NOT INTENDED BY THE PARTIES TO THE CONTRACT TO BE INCLUDED IN THE RELEASE, OR OF ANY OTHER FACTOR WHICH WOULD RENDER THE RELEASE INEFFECTIVE, YOU ARE ADVISED THAT THE VOUCHER MAY NOT BE CERTIFIED FOR PAYMENT. CF. 30 COMP. GEN. 335. ACCORDINGLY, IT IS NOT NECESSARY TO CONSIDER WHETHER THE CONTRACTOR MAY BE REIMBURSED FOR ADDITIONAL EXPENSES INCURRED BECAUSE OF THE SUSPENSION.