25 Pa. Commw. 460 | Pa. Commw. Ct. | 1976
Opinion by
This is an appeal by the Commonwealth of Pennsylvania, Department of Transportation (PennDOT) from a judgment of the Board of Arbitration and Claims (Board). Judgment was entered in favor of the Sanctis Construction Company, Inc. (Sanctis) on its claim for interest on money owed by PennDOT under a highway construction contract.
PennDOT had entered into a contract with Sanctis for the construction of highway improvements near the Port Duquesne Bridge and the Three Rivers Stadium in Pittsburgh. In November of 1970, as the improvements were nearing completion, PennDOT directed Sanctis to undertake some additional work not called for in the original contract but to be performed and paid for on a so-called force account basis in accordance with a provision therefor in the original agreement. On or before December 1, 1970, Sanctis completed the work called for under the original contract and, in fact, PennDOT had already opened the highway to traffic by that date. Nine months later, in a letter dated August 19, 1971, PennDOT advised Sanctis that on December 1, 1970, the completed work was “inspected and found acceptable.” And, in its brief before the Court, PennDOT has indicated that the work performed under the force account was completed on June 3, 1971. Pinal payment of $118,000.24 due on both projects, however, was not made by Penn-
In áppeals from Board orders, we are bound by the Board’s findings of ■ fact if such are supported by substantial evidence, and, if they are so supported, we -must affirm the Board’s order unless it violates applicable statutory and-constitutional law. See Section 8(c) of the Act of May 20, 1937, P.L. 728, as amended, 72 P.S. §4651-8 (c); Appel Media, Inc. v. Clarion State College, 15 Pa. Commonwealth Ct. 635, 327 A.2d 420 (1974). The only statute here involved is the Act of May 31, 1911, P. L. 468, as amended, 36 P.S. §742 et'seq.,which governs the date from which interest on PennDOT contracts shall be computed, and Section 746(h) of this act, 36 P.S. §746(h) provides:
■ “(h) In addition to the payments herein authorized, the Secretary of Highways [now Secretary of PennDOT] shall pay to the 'contractor interest at the rate of five (5) per centum per annum on the amount retained, and on the final payment due the contractor beginning ninety (90) days after the work under the contract has been completed and accepted by the Department of Highways [now PennDOT] and running until the date when such amount retained and final payment are tendered to the contractor.” (Emphasis added.)
Order
And Now, this 14th day of July, 1976, the decision and order of the Board of Arbitration and Claims is hereby reversed and interest is awarded to the Sanctis Construction Company at a rate of 5% on the amount of $118,000.24 for the period running from April 11, 1973 to August 22, 1973, the date upon which final payment was received by Sanctis.
Numerous reasons for the long delay in payment are suggested, most of which seem to indicate PennDOT as being responsible for the delay. Sanctis, however, has failed to allege fraud or other mis
The Board’s award provided $10,097.00 interest on $90,875.00 from March 1, 1971 to May 21, 1973, for the work completed and accepted on December 1, 1970, and $2,332.00 was awarded as interest on $27,125.00 from September. 2, 1971. to May 21, 1973, for the work completed and accepted on June 3, 1971.