18 A.D.2d 1124 | N.Y. App. Div. | 1963
Petitioners appeal from an order of the Supreme Court in an article 78 proceeding which denied their application for an order removing Sanitation Mechanics, Inc., as the successful low bidder for the plumbing installation in a new building to be constructed in connection with the State University of New York Downstate Medical Center in Brooklyn, and awarding the contract therefor to the petitioners as the second low bidder, and which dismissed the proceeding. Petitioners’ bid for the sanitary and plumbing construction was $3,222,000, which is $191,000 more than the low 'bid of Sanitation Mechanics, Inc. Petitioners seeks the removal of Sanitation Mechanics, Inc., as subcontractor on the grounds that it does not hold a plumbers’ license issued by the City of New York; that it is not a qualified and responsible bidder; that it is not authorized by its certificate of incorporation to do plumbing work, and that collusion exists between it and Lasker-Goldman Corp., the general contractor. The last two grounds are entirely lacking in merit because, although it does not use the word “ plumbing ”, the certificate of incorporation of Sanitation Mechanics, Inc., is clearly broad enough to include the work called for by this contract, and there is no factual support whatever for the conelusory allegation of collusion. The State University Construction Fund was created by article 8-A of the Education Law (L. 1962, ch. 251), and subdivision 7 of section 376 of the Education Law expressly authorized the Fund to award one contract for all the work to be performed without separate contracts for subdivisions of the work to be performed. This was done here, and a contract for the entire construction, including the sanitary work, was let to Lasker-Goldman Corp., whose qualifications are not questioned. However, the Fund did advertise for separate bids on some subdivisions of the project, including the sanitary and plumbing work, and accepted the bid of Sanitation Mechanics, Inc., and required Lasker-Goldman Corp. to enter into a contract with Sanitation Mechanics, Inc., as a subcontractor. The Fund did not enter into any direct contractual relations with Sanitation Mechanics, Inc. Subdivision 3 of section 375 of the Education Law provides, among other things, that no city shall have the power to require that any person, firm or corporation engaged in construction work for State University purposes obtain “ any other or additional authority or permit from such * * * city * * * as a condition of doing such work, nor shall any