Plumley v. United States
Headline: Court mostly denies a contractor’s claims for extra work, enforces written change-order rules and the Secretary’s decisions, and reverses the delay-damages award because the contractor failed to give required notice.
Holding: The Court held that the contractor cannot recover for most extra work because required written change orders and the Secretary’s decision bound him, and it reversed the delay-damages award due to the contractor’s failure to give the required notice.
- Makes contractors follow written change-order procedures to claim extra pay.
- Treats the Secretary’s contract rulings as binding on contractors.
- Bars delay claims when the contractor fails to give required notice.
Summary
Background
In 1888 a construction firm originally contracted to build the Naval Observatory, but that contract was forfeited after most work was done. The Government advertised for bids to finish the job. Plumley agreed to complete the building under the original contract terms for $25,840 by June 1, 1892. After finishing, he sued the Government for delay damages and for extra work totaling about $12,813. The Court of Claims awarded him $502 for insurance during the delay and denied all other claims; both parties appealed.
Reasoning
The Court addressed whether Plumley could recover extra payments or delay damages. For a ventilating system the architect had approved plans and directed work; Plumley knew the prior approvals but insisted no written change was signed. The Secretary and the architect rejected that view, and the Court held Plumley was estopped and bound by the contract provision to “abide by [the Secretary’s] decision.” A claim for drain pipe was likewise rejected based on the Secretary’s ruling. Other claimed extras were disallowed because the contract required written change orders and Secretary approval, which were not followed. Although the Court found some work was extra and valuable, the contract’s procedures barred recovery. The delay award was reversed because Plumley failed to notify the Secretary of the delaying circumstances as the contract required.
Real world impact
This ruling enforces strict compliance with written change-order procedures and makes Secretary decisions binding under the contract. Contractors on government projects risk losing pay for unapproved extra work and delay claims if they do not give the timely notice and follow approval steps required by their contracts.
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