What were the merits of murphys position in the case

Assignment Help Macroeconomics
Reference no: EM131034400

CASE STUDY ASSIGNMENT

CASE 1: Gjehlefald v: Drainage District Number 42 et al. (212 N. W. 691)

Summary: This case concerned a unit price contract to make improvements in a drainage system. Gjehlefald was deemed the low bidder with a total price of $143,000. This total was based on the application of the unit prices quoted by Gjehlefeald to the estimated quantities prepared by the owner. For overdepth excavation work, Gjehlefald's bid stated that this work would be priced at "50% above the attached schedule." When the contract was sent to Gjehlefald for his signature, he did not notice that the wording for the overdepth pricing had been changed to "50% of the prices specified in Exhibit A [the attached schedule]." Other changes had also been made to Gjehlefald's bid submittal these changes remained unnoticed when Gjehlefald signed the contract. When overdepth work was encountered, the unit price paid by the drainage district was considerably lower than Gjehlefald had expected. He sued to obtain the unit price payments as bid.

Task: Discuss the merits of Gjehlefald position in this case. Which one of the two unit prices at issue i.e. the bid unit price and the ammended unit price in the signed contract should be taken as binding in this case and why?

CASE 2: Depot Construction Corp. v. State of New York (224 N E.2d 866)

Summary: Depot was awarded a lump sum contract to construct a building for the Manhattan State Hospital for a sum exceeding $6 million. The owner's engineer determined that this project included 500 cubic yards of rock excavation, and for any variations from that quantity, the contract would be adjusted at a rate of SIO per cubic yard. The contract sum would be also be adjusted at a rate of $22 per cubic yard for rock excavation in piers and trenches that varied from 600 cubic yard. The total rock excavation was 2,982 cubic yards, which exceeded the anticipated amount. The contractor was paid for the additional rock that was excavated, but the contract rate of pay was not considered sufficient to cover the actual costs of excavation. Depot sued to get the unit prices adjusted. Depot argued that excess rock was beyond the reasonable contemplation of the contracting parties and therefore was not bound by the unit prices, which should be adjusted. The state of New York stated that the contract was clear concerning the unit prices and that no provisions called for unit price adjustments for large variances in quantity. Depot argued that the scope of the work was misrepresented. But the State denied this. The state had taken 17 for the excavation area and had used those findings to compute the quantity of rock to be excavated. Furthermore, bidders were advised that the information on the borings was "presented in good in faith, but it is not intended as a substitute for personal investigation, interpretation, or judgment of the Contractor."

Task: Assume that you are the sitting judge in this case, how would you rule on the case brought by the plaintiff and for what reasons?

CASE 3: City of Baytown v. Bayshore Constructors, Inc. (615 S. W.2d 792).

Summary: Bayshore entered into an agreement with the city of Baytown to install specified sewer lines within 150 days. The agreement stated that certain procedures were to be followed for all changes authorized by the owner. The specified procedures was used on one change but ceased to be used after that. Numerous changes were then authorized which did not follow the specified changes procedures. When the contractor submitted a bill for $312,411 for the extra work, the city refused to pay. The contractor then filed suit.
Task: How should the extensive changes made in this contract outside the specified procedures be viewed by the court? In the light of your conclusion what were the merits of the contractor's position in this case? What remedy, if any, should the court grant?

CASE 4: Standard Construction Co. v. National Tea Co. (62 N. W. 2d 201)

Summary: On March 23, 1946, Standard entered into a contract to build a large, multipurpose warehouse, bakery, and office building for National. The contract award had been accelerated to avoid a building ban that was to become effective 2 days later, on March 25. The ban did not apply to projects on which some construction work had already started. To satisfy this deadline, the design phase had been drastically shortened, resulting in numerous errors and omissions in the contract documents. The construction contract was for a "total cost, not to exceed $1,245,000." This upper limit of the total price was soon abandoned as change orders were issued. Among the 145 change orders issued, 4 became the source of dispute. One dealt with compaction costs of $71,815.66, which Standard claimed were not anticipated. The other three contested change orders related to costs incurred as a result of acceleration. Standard had paid overtime to workers to hasten the project completion: it had also rented equipment for longer periods than originally estimated and had incurred higher costs for concrete placement as a result of winter conditions. Standard claimed that it had advised against the overtime and the winter concrete work, but National insisted that the work had to be done in a hurry.

National argued that some of these costs should have been anticipated as being typical in the industry. The court decided in favor of Standard, ruling that the plans were grossly in error. For example, the building size was increased by about 25 percent, and the project was constructed of reinforced concrete rather than steel as in the original plans. In addition, change orders were occasionally revived by telephone, thus waiving the procedures established by the contract. The problems for National began with the hastily prepared, incomplete plans and were further aggravated by the 24-hour limitation imposed on Standard to bid the project. This culminated in drastic alterations that were subsequently ordered by the owner.

Task: Discuss this case and the lessons to be learned from it.

CASE 5: Donald B. Murphy Contractors, Inc. v. State of Washington (696 P.2d 1270).

Summary: Donald B. Murphy Contractors entered into an agreement with the state of Washington for the construction of two adjacent sections of Interstate 90, east of Issaquah, Washington. The project scope included the laying of new traffic lanes, the demolition of two bridges, the construction of two new bridges, and the construction of several detours. During construction, a record amount of rainfall occurred, causing floodwaters to reach an all-time high level. The floodwaters severely damaged the excavation work Murphy was doing at the time. The worst damage was incurred as a result of the destruction of a diversion culvert that had been designed by the state. The damage had to be repaired before construction could resume. The state paid Murphy for the replacement cost of installing a new culvert. Murphy brought suit for additional funds for the added costs incurred as a result of the delay. Murphy contended that the state had designed the culverts and had thereby warranted their performance. The state was thus to blame for the damage caused by water when the culvert failed. The record amount of rainfall constituted a changed condition as well. The state claimed that the culvert was for temporary use only and that for typical rainfall it would have been adequate. The state also claimed that the heavy rainfall constituted an act of God.

Task: What were the merits of Murphy's position in this case? Was the State liable for delays resulting from the adverse weather as contended by the contractor in this case?

Should the unusual weather not be construed as constituting a changed condition in this case, if so, why? What remedy should the court grant Murphy in this case and why?

CASE 6: Farmer Construction v. Washington State Department al General Administration (656 P.2d 1086).

Summary: On the bid form for a construction project at a reformatory. Farmer had no signature on the bid document; however, the president's name had been typed on the form. Farmer's bid was accompanied by the required bid bond. The state rejected Farmer's bid as being nonresponsive. Farmer filed suit on the premise that the lack of the signature did not invalidate the bid. The state contended that Farmer could claim that its own bid was invalid if it was to its advantage to do so. This was construed as placing Farmer in a unique position not enjoyed by the other bidders. The bid documents were reviewed during the court hearing and it was found that the bid and the bond were in writing and that the two instruments were connected by internal reference.

Task: Was the State right in rejecting Farmer's bid? If you were the judge in this case how would you rule and why?

Reference no: EM131034400

Questions Cloud

Determine the molar concentration of the gas in the solid : explain how you would determine the molar concentration of the gas in the solid at the solid-gas interface at a specified temperature.
Determine the composition of the vapor phase of this mixture : determine the composition of the vapor phase of this mixture. Saturation pressure of NH3 at 25°C is 1003.5 kPa.
What is the ethical responsibility do organizations have : What is the ethical responsibility do organizations have (or not have) to help their employees manage their work and family responsibilities effectively?
Whats the difference between a project risk and an issue : What would be your response if a team member came to you with one or more of the following questions - Why do we have to do all of this project documentation ahead of the real work?
What were the merits of murphys position in the case : What were the merits of Murphy's position in this case? Was the State liable for delays resulting from the adverse weather as contended by the contractor in this case?
Manage a large part of the project management process : you will be looking at some software that claims to be able to manage a large part of the project management process: the Celoxis project management and project portfolio management software.
Describing emotional response to a particular piece of music : Describing your emotional response to a particular piece of music, a response to a video you have watched about some world music topic or a brief essay in response to one of the readings.
Discuss any two brands from two different industries : Segmentation, targeting and positioning are interrelated activities which are important to achieving a successful Marketing Mix. Discuss any two brands from two different industries who have been successful in using these concepts in pursuit of th..
How did the song enhance or hinder the story : Did the plot make sense? Was it engaging or disjointed? Was it too long, or not long enough? Did it hold your attention? How? If you are familiar with the original source material, what do you think of the adaptation? Do not give a full plot summa..

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd