142 Iowa 538 | Iowa | 1909
Plaintiffs are general contractors, and as such they undertook the erection and construction of what was to be known as the “Central Heating Station” for the State Agricultural College at Ames. They sublet the “brickwork, masonry and bricklaying” to one Glattfeld,
The condition of this obligation is such that, whereas the said principal has entered into two certain written contracts with said Bartlett & Kling, for the doing by said principal of taking down and reconstructing and completion of the brickwork and the setting of the partitions of construction of Macon County Infirmary, Macon, Missouri, under date of June 6, 1906, and brickwork, masonry and bricklaying,' including setting of stone trimmings for construction of Central Heating Station Building, city of Ames, Iowa, under date of June 25, 1906, now, if the said principal shall well and truly keep, do, fulfill, and perform each and all of the covenants, obligations, undertakings, conditions, and guaranties of said contracts by said principal to be kept, fulfilled or performed and at cost to said Bartlett & Kling as in said contract provided for, then this obligation to be void, otherwise to remain in full force and virtue.
The contract with reference to the work at Ames is very long and need not be set out in full. We shall refer to the material parts by setting out the substance thereof or by excerpts taken from the record. Glattfeld was named as the first party, and Bartlett & Kling the second, and it was promised, among other things, that:
Article 1. First party agrees to furnish all labor and material, and do and perform all the work required, for the full doing and completion of the brickwork, masonry, -and brick laying, including setting of stone trimmings, for construction of Central Heating Station building in city of Ames, Iowa, all in full and strict accordance with the present plans and specifications, and their requirements, including all work and material of character and kind above mentioned, that is required by said plans and specifications, some provision therein to the contrary not*542 withstanding, together with all work and material specified under headings in specifications applicable to work herein contracted for, and all that is ordinarily done or furnished by contractors or workmen, in carrying on such work, together with and subject to all changes, alterations, additions, deductions and details, as herein provided for, and maintain same in place until fulfillment of this contract. All of which first party agrees to do and perform in good, true, perfect, prompt and workmanlike manner, and to satisfaction and acceptance of second party, the architect and owners of said building, and all at the cost to second party as herein provided. Where the word ‘world occurs in this contract it shall be held to mean and refer to labor, work and material the same as though each time repeated. The plans and specifications above referred to are same as are furnished by the architects, Proudfoot and Bird, and are on file with the college authorities.
Article 2. Second party shall have the right to furnish further details with written explanations, to illustrate and show the work to be done and furnished, and first party agrees to conform to the same as part of this contract, the same as though fully set out in original plans and specifications, but this provision shall not require second party to plan or lay out any of first party’s work. Second party shall have the right to make any and all changes in the work called for by this contract, plans and specifications, and in the amount of, or character of, work to be furnished, that they may be directed or allowed to make, by said architect, or owners, without in any way making void or otherwise affecting the provisions or covenants of this contract. The order from second party for such changes, together with the price, as herein provided for, shall become a part of this contract, and be complied with by both parties the same as though fully set out in original plans, specifications and contract, and such changes, the order for same, nor agreed value of the changes, if agreed on, shall in no manner, relieve or release the sureties on any bond given to guarantee this contract, but becoming a part of this contract are covered by said bond. The value of and agreed cost to second party for the work famished, in accordance with this provision, shall be in proportion to this contract price for the work, herein con*543 tracted for, unless the parties agree in writing as to the value of such changes, which they are authorized to do, in which case all interested parties shall be bound thereby. But first party agrees to make no alterations in the work contracted for, or shown or described by the drawings and specifications, except upon the written order of second party,- and the production, by first party, of such written order, calling for work not already covered by this contract, shall be a condition precedent to first party’s right of recovery for any work or material claimed as extras. This provision for changes shall not be used so as to decrease by more than one-half the total amount of the work now contemplated by this contract. Should first party for any reason not covered by these provisions furnish work, labor or material of a poor or less expensive grade or kind, or of less amount or value, than is herein contracted for, and if same is accepted and allowed to remain, there shall be deducted from the cost to second party, and from the amount otherwise to be paid to first party, such an amount as the work so supplied is worth to furnish, or should have cost, less than the work herein contracted for. It is agreed that no verbal order, objection, claim, or notice by either party to the other shall be of effect or binding, and no evidence of such order, objection, claim or notice shall ever be introduced in any suit in law or equity wherein these parties are interested, both parties agreeing to execute and deliver in writing all communications from them by which the other party is to be charged, notified, or affected, and when same are given verbally they shall be held as not material or binding, and none of the provisions of this contract, plans or specifications, shall be held to be waived, or interpreted, by second party, by reason of any act whatsoever, or in any manner, other than by an express waiver, or definitely agreed interpretation thereof in writing, signed and sealed by second party, and it is agreed that no evidence shall -be introduced against second party of any other waiver or interpretation. All work done or furnished by first party, and chargeable to second party, on said building, -shall be held to have been done under this contract.
It was also provided that it should be no excuse to
Should the second party discontinue the erection of said building, on account of the owners or their agents failing to comply with their contract with second party or for any other cause not the fault of second party, then first party shall, upon written order, discontinue work for such a time as he may be required to by such cause, and proceed again at such time as shall be ordered by second party, but should such suspension be continued and the building not be completed by second party, first party shall be entitled to pay for so much of said work as he performed or furnished, at such a price as said work is worth in proportion to the total work to be done under this contract, at this contract price, and no further compensation or damages. Should first party be delayed on account of the progress of other portions of the building, or on account of material to be furnished by second party, or any other delay caused by second party, the same shall not be grounds to first party for claim of damages or extra compensation.
It was further agreed that the first party should be subject to all the requirements, provisions, orders, rulings,
Except only, should there be changes, alterations, additions, deductions, or omissions, as herein provided for, then there shall be added to, or deducted from this sum mentioned, so much according to the methods provided for valuing the same, as the work done and furnished is worth more or less than the work herein contracted for, and this sum so found shall stand in the place of the sum above mentioned, which sum shall be due and payable only upon the fulfillment by first party of all the covenants, agreements and conditions by him to be performed and kept. Second party shall, however, be at liberty to make monthly or other payments as the. work progresses, and pay faster, earlier or in different manner than herein provided, without such acts being a waiver of any rights or remedies, and without in any way relieving or releasing the sureties on any bond given by first party for the execution of this contract; and should first party for any reason be overpaid, or the work done or furnished cost second party more than the agreed price, he agrees to make payment back to second party. When final payment is made to first party, or the amount due him is offered as a final payment, he agrees to give to second party a receipt in full of all demands, and both parties agree that such receipt shall be conclusive evidence of full settlement between them.
Article 7. At time of final settlement, which shall be only when all obligations and agreements, except as provided in this article, are by first party fully carried out, first party agrees to present in writing a full, detailed and
The contract further provides that:
The full carrying out by first party of all obligations, acts, covenants and agreements by him to be kept or performed, including the provisions for settlement and arbitration, shall be a condition precedent to the rights of first party to commence or maintain any action in law or equity on account of this agreement, which is to be regarded as an entire contract. . . . No remedial or other provision of this agreement is made or shall be construed for the benefit of the surety on any bond given by first party to guarantee the carrying out of this contract, nor for the benefit of any other person not a party to this contract. The remedial provisions of this contract shall be considered accumulative to second party!, and the election or use of one remedy or right shall not bar the benefits of other provisions. Should first party at any time be indebted for material, or labor furnished to or done by him, second party may, if he so elects, make payments, and first party agrees to make good such payments to second party. In case first party abandons the work provided*547 for in this contract, or fails to furnish bond as hereinafter provided for, all his rights under this contract shall by such act be canceled and waived, bnt such act shall not limit the rights or remedies of second party. Should second party furnish or pay for labor or material that is included -in this contract to be furnished or paid for by first party, the accounts and statements rendered by second party, showing cost of same, shall be conclusive evidence, except wherein first party shows that same are not correct. Each party agrees to pay any final judgment that may be rendered against him, but also agrees to commence no action or suit in law or equity on account of this contract, or any of the conditions or covenants herein contained, at a date later than six months after the last work shall be done or furnished under this contract, unless action within such time is hindered or prevented, by the other party. . . . Second party shall be under no obligations to furnish any notice or information to bondsmen of first party. Should any such notice or information be necessary or called for, or their interests in any way need attention, first party agrees to attend to and supply same. Any interpretation put on plans and specifications by owners or architect, and not objected to by first party when first brought to his attention, shall be held to be his own interpretation also. No agent or representative of second party shall be held to possess or to have exercised other authority than is granted to him in writing, under his instructions from second party, which instructions are subject to inspection by first party if called for. No custom or usage shall be claimed by first party. . ; . Eirst party shall not claim for his benefit, or as an interpretation of plans, specifications, or this contract, any claims or charges which second party may make under their contract with owners. Work that first party proceeds with without objections as already provided for, shall be held to have been done under conditions satisfactory and acceptable to him. The first party agrees to give a bond satisfactory to second party both as to form and sureties in the sum of $-:- within - days, guaranteeing the full carrying out of this contract.
It was also agreed that first party should buy of sec
But defendant strenuously insists that, while as between Glattfeld and Bartlett & Kling they might under the contract make any changes they chose, they could not make these changes orally without releasing the defendant as surety. In other words, its insistence is that any change made in the contract, or in the manner of doing the work not made by written order of Bartlett & Kling, released it from liability.- This presents the most troublesome question in the case. As a general proposition-we would agree with defendant that a change in the manner of the doing of work under a contract amounted to a change of the contract. But as the contract in question authorized the making of any and all changes in the work called for by the contract, plans, and specifications, the trial court commit
It is true, of course, that sureties on a bond to secure the performance of a building contract are discharged by any substantial change or alteration of the plan of work, unless the right to make suclr change or alteration is expressly given in the bond itself, or in the contract which it secures. Morgan Co. v. McRae et al., 53 Kan. 358 (36 Pac. 717); United States v. Freel, 186 U. S. 309 (22 Sup. Ct. 875, 46 L. Ed. 1177), and cases cited. And in this connection it is entirely immaterial that the surety enters into his obligation for pay. Lonergan v. San Antonio Co. (Tex.), 104 S. W. 1061. But the surety may by his con
Going back now to the contract, we are constrained to hold that the defendant consented to all such changes as were madelin the manner of doing the work, and that the provision for the written order was for tire protection of the plaintiff, and that they might waive the same without releasing the surety company. See, as supporting this view, Smith v. Molleson, 148 N. Y. 241 (42 N. E. 569); De Maltos v. Jordan, 15 Wash. 378 (46 Pac. 402). Moreover, Glattfeld, the principal on the bond, agreed that he would make no changes without the written order, and the surety company, defendant herein, promised that Glattfeld would perform all the obligations of the contract on -his part.- Manifestly the surety can not rely upon a default of the principal which it promised he would not make. It is not too much to say that the changes, if any were made, were not such as entitled Glattfeld to additional compensation, and for that reason he did not insist upon the written order therefor. He might waive this requirement as to a written • order, and' we are inclined to the view that a written order was not required, save where the contractor was of the opinion that the changes and alterations were such as entitled him to additional compensation. Surely he could not claim anything for extras without this written order, unless he was able to show a distinct and independent contract therefor. This is the rule announced in the Bartlett case, supra, and we believe it to be sound.
Complaint is made of various instructions relating to these matters. These instructions are long, and we shall not set them out. It is sufficient to say that they were as favorable to defendant as it was entitled to, and no prejudice resulted therefrom.
V. In one of the instructions the trial court said, in effect, that the defendant insured and guaranteed the performance of the contract by Glattfeld. In this there was no error, for the statement was made as a prelude to the further remark that it was bound by the contract and all
Having considered the controlling points in the case, and finding no prejudicial error, we reach the conclusion that the judgment should be, and it is, affirmed. .