B-182809, JAN 28, 1975

B-182809: Jan 28, 1975

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CONTRACTOR'S REQUEST FOR ADDITIONAL COMPENSATION UNDER LUMP-SUM PAVING CONTRACT IS ALLOWED SINCE PARTIES ENTERED INTO CONTRACT ON BASIS OF MUTUAL MISTAKE AS TO AREA OF PARKING LOT TO BE PAVED AND ACTUAL AREA EXCEEDED ESTIMATE IN IFB BY 67 PERCENT. IOWA ROAD BUILDERS WAS THE LOWEST OF THREE BIDDERS AND WAS AWARDED THE CONTRACT ON JUNE 25. THE ADMINISTRATIVE REPORT INDICATES THAT DURING THE COURSE OF PERFORMANCE THE CONTRACTOR NOTICED THAT A LARGER AMOUNT OF ROAD MIX WAS NEEDED FOR THE PARKING LOT THAN THAT COVERED BY ITEM 1.B OF THE IFB. A REMEASUREMENT REVEALED THAT THE AREA WAS 7. THE CLAIM PRESENTED IS FOR AN ADDITIONAL 2. IT IS APPARENT THAT THE ACTUAL AREA OF THE PARKING LOT EXCEEDED THE ESTIMATE IN ITEM 1.B BY MORE THAN 67 PERCENT AND THAT THE PARTIES ENTERED INTO THE CONTRACT ON THE BASIS OF A MUTUAL MISTAKE AS TO THE AREA OF THE PARKING LOT.

B-182809, JAN 28, 1975

CONTRACTOR'S REQUEST FOR ADDITIONAL COMPENSATION UNDER LUMP-SUM PAVING CONTRACT IS ALLOWED SINCE PARTIES ENTERED INTO CONTRACT ON BASIS OF MUTUAL MISTAKE AS TO AREA OF PARKING LOT TO BE PAVED AND ACTUAL AREA EXCEEDED ESTIMATE IN IFB BY 67 PERCENT.

IOWA ROAD BUILDERS COMPANY:

IOWA ROAD BUILDERS COMPANY HAS REQUESTED ADDITIONAL COMPENSATION FOR PAVING WORK PERFORMED AT THE VETERANS ADMINISTRATION HOSPITAL AT KNOXVILLE, IOWA, UNDER CONTRACT NO. V592C-440.

THE INVITATION FOR BIDS (IFB), DATED JUNE 5, 1974, REQUESTED BIDS FOR THE ASPHALT PAVING AT TWO PARKING LOTS AND ONE ROADWAY AT THE HOSPITAL. IOWA ROAD BUILDERS WAS THE LOWEST OF THREE BIDDERS AND WAS AWARDED THE CONTRACT ON JUNE 25, 1974. THE ADMINISTRATIVE REPORT INDICATES THAT DURING THE COURSE OF PERFORMANCE THE CONTRACTOR NOTICED THAT A LARGER AMOUNT OF ROAD MIX WAS NEEDED FOR THE PARKING LOT THAN THAT COVERED BY ITEM 1.B OF THE IFB. A REMEASUREMENT REVEALED THAT THE AREA WAS 7,046 SQUARE YARDS WHILE THE IFB HAD LISTED THE AREA AS BEING 4,200 SQUARE YARDS. THE REPORT INDICATES THAT THE CONTRACTING OFFICER HAD RELIED UPON ESTIMATES PREPARED BY A SALES REPRESENTATIVE OF IOWA ROAD BUILDERS IN PREPARING THE IFB, AND THE REPORT INDICATES FURTHER THAT ALL THREE BIDDERS RELIED UPON THE ESTIMATES IN THE IFB IN PREPARING THE BIDS WITHOUT VISITING THE SITE OR TAKING MEASUREMENTS.

THE CONTRACTOR HAS COMPLETED THE CONTRACT AND HAS BEEN PAID THE LUMP SUM CONTRACT PRICE OF $46,250 PLUS AN ADDITIONAL $5,063.50 FOR AN UNRELATED CHANGE. THE CLAIM PRESENTED IS FOR AN ADDITIONAL 2,846 SQUARE YARDS OF PAVING AT A UNIT PRICE OF $2.72 PER SQUARE YARD. THE ADMINISTRATIVE REPORT INDICATES THAT THE UNIT PRICE HAS BEEN SUBSTANTIATED BY THE CONTRACTOR'S WORKSHEETS.

IT IS APPARENT THAT THE ACTUAL AREA OF THE PARKING LOT EXCEEDED THE ESTIMATE IN ITEM 1.B BY MORE THAN 67 PERCENT AND THAT THE PARTIES ENTERED INTO THE CONTRACT ON THE BASIS OF A MUTUAL MISTAKE AS TO THE AREA OF THE PARKING LOT. WE BELIEVE IT WOULD BE APPROPRIATE TO RECTIFY THE SITUATION BY AN ADJUSTMENT IN THE CONTRACT PRICE. SEE B-138109, DECEMBER 23, 1958; B-159937, OCTOBER 18, 1966; B-164995, AUGUST 26, 1968.

ACCORDINGLY, PAYMENT MAY BE MADE IN THE AMOUNT OF $7,741.12 AS ADMINISTRATIVELY RECOMMENDED.