63738

Sauer Construction, LLC

January 30, 2025Judge Sweet
Denied / Government PrevailedContract Changes / Constructive ChangesDelay / Disruption / Suspension

Sauer Construction, LLC appealed a denial of its claim for rust remediation costs related to a construction contract with the government. The ASBCA denied the government's motion for partial summary judgment, finding ambiguity in the contract releases regarding the claims.

Material Facts

  • Sauer Construction, LLC was awarded Contract No. W91278-12-D-0039 by the United States Army Corps of Engineers on September 7, 2012.
  • Task Order DQ02 was awarded to Sauer on September 28, 2016, to construct a training command headquarters building.
  • The government issued a notice to proceed on February 21, 2017.
  • Sauer raised concerns about the steel design for the project on May 5, 2017.
  • The government issued Requests for Proposal 31 on February 8, 2019, and a revised Request on April 16, 2019.
  • The government issued a partial suspension letter on February 27, 2019, and unilaterally issued Modification No. 19 on July 12, 2019.
  • Sauer submitted Proposal 31 on August 13, 2019, requesting $4,496,542 and 483 calendar days.
  • The government issued Request for Proposal 39 on August 19, 2019, for structural revisions.
  • Sauer submitted Proposal 39 on October 17, 2019, requesting $2,141,546.34 and a 118-day time extension.
  • Bilateral Modification No. 20 was signed on October 18, 2019, increasing the contract price by $4,496,452.
  • Bilateral Modification No. 21 was signed on October 23, 2019, increasing the contract price by $2,141,547.
  • The Modifications contained identical releases stating that the adjustment constitutes compensation in full for all costs and markup directly or indirectly attributable to the change ordered.
  • Some equipment and material rusted due to exposure during the partial suspension.
  • Sauer first identified the nature and extent of the rust and corrosion on or about August 31, 2020.
  • Sauer filed a certified claim on February 21, 2023, including claims for rust remediation impacts.
  • The contracting officer issued a final decision denying the claim on July 21, 2023.

Parties

Appellant
Sauer Construction, LLC
Respondent Agency
U.S. Army Engineer District, Wilmington
Contract Number
W91278-12-D-0039
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