633166339763398

Hensel Phelps Construction Co.

August 28, 2026Judge Stinson
Partially SustainedContract InterpretationContract Changes / Constructive ChangesDiffering Site ConditionsDelay / Disruption / SuspensionLiquidated DamagesQuantum / DamagesAuthority of Government Agents

Hensel Phelps Construction Co. appealed three contracting officer final decisions concerning airfield paving, a wastewater lift station, and multiple cost-and-delay items under a fixed price construction contract. The Board denied ASBCA Nos. 63316 and 63397, granted ASBCA No. 63398 in part, and awarded Hensel Phelps $677,680 plus interest for liquidated damages released.

Material Facts

  • The contract was a fixed price contract for construction of a 200-member Army Reserve Center, Aviation Support Facility, helicopter parking apron, and related facilities at MacDill Air Force Base.
  • The contract incorporated FAR 52.236-2, FAR 52.236-21, FAR 52.246-12, FAR 52.248-3, FAR 52.211-12, DFARS 252.236-7001, and DFARS 252.201-7000.
  • Specification Section 32 11 16 required stabilization of cohesionless underlying courses or subgrades before placement of the overlying course by mixing overlying course material into the underlying course and compacting it.
  • The pavement drawings depicted a 12-inch compacted subgrade but did not separately depict a stabilization layer.
  • Hensel Phelps assigned earthwork to McKenzie and paving work to Ajax, but neither subcontract expressly assigned stabilization responsibility.
  • Hensel Phelps instructed Ajax to proceed with separation-layer work despite Ajax's stated concerns that the subgrade was unstable and should be stabilized.
  • Hensel Phelps and Ajax ultimately stabilized the subgrade by mixing separation-layer material into the subgrade using the methodology described in Specification Section 32 11 16.
  • Ajax's initial bid did not include lift-station work; Ajax added that work after Hensel Phelps received the prime contract.
  • The lift-station area was surrounded by boring logs, but no contract boring was taken at the actual lift-station location, and the contract geotechnical report warned that subsurface conditions could vary between boring locations.
  • The contract required two MAUs powered by a circuit, although the drawings did not identify the necessary feeders.
  • The government granted time extensions through modifications, including 170 days in Modification No. A00036, and the government withheld liquidated damages from Hensel Phelps.

Parties

Appellant
Hensel Phelps Construction Co.
Respondent Agency
United States Army Corps of Engineers
Contracting Agency
United States Army Corps of Engineers, Louisville District
Contract Number
W912QR-17-C-0043
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