Evening star., 1900-08-18
EXTENSION OF CONTRACTS
IMPORTANT DECISION OF THE con-
TROLLER OF THE TREASURY.
Cannot BE Done Except for the In
terests of the Govern
ment.

r. ]. TracSwell, the controller of the
treasury, has decided that the time for
completing government contracts cannot be
extended unless it Is of interest to the gov
ernment to do so. thereby overturning a
policy that has existed for a number of
years.
The decision is one OF great importance.
1t is made in a letter addressed to Major
E H. Ruffner. corps of engineers. New
York. Major Ruffner submitted voucher
in favor of the Hudson Contracting Com
pany for the retained percentages due on
its contract of October I, 1899, for pur-
chasing and placing riprap stone in jetties
at Fort Jefferson Inlet, N. Y, amounting
to s64'.3S. from which he proposed to de-
duct s220S3 for expenses of inspection dur
ing the period which the contract was ex-
tended. viz. from May IA to July 6, 1900.
He asked whether the deduction mentioned
was authorized.
For the Contractors Benefit.
The date for completing the work was
May 13. 1900. Upon application of the con-
tractor the time for completing the work
was extended two months, or to July 13,
1900. and 1t was completed July 6, 1900. The
controller says that it pretty clearly ap-
pears that the extension was granted for
the sole benefit of the contractor.
Mr.. Tracewell reviews the position of his
office on the extension of contracts end
then says:
This indicates that there are two condi-
tions precedent necessary to authorize a
modification of a written contract. viz:
First, a new and valuable considerati ton :;
second, that 1t must be done before breach
of the contract. OF course where the law
requires agreements to be in writing that
formality cannot be dispensed with.
Only for Benefit of Government.
1T appears clear that contract may be
extended as to time, i.e., modified, so as to
relieve the contractor of penalties or
damages, only when said modification is for
the interests of the government, being
based upon new and valuable considera-
tion. 1t naturally follows from this that If
an extension of time be granted solely for
the benefit of the contractor without any
new consideration flowing to the govern
ment such extension will not relieve the
contractor from any of the penalties, for
FIXTURES. or damages provided for in the
original contract. 1t will be understood,
however, that the question whether an eX-
tension or modification of contract is for
the interests of the government which
makes new and valuable consideration is
one ordinarily for the officer authorized to
extend the contract to decide.
II nowhere appears that the extension
was granted because of quarantine re-
Strictions. freshets, ice or other force or
ests of the government were augmented
or any new duties imposed upon the con-
tractor.
Terms of the Contract.
1.-The very terms of the contract impose
upon the contractor the expense of inspec-
tion and superintendent during the period
of the extension, and there is no power in
an executive officer to relieve him of the
same under circumstances which exist in
the case.
AS time is usually an important element
considered by bidders in fixing the price
for piece of work it is fair to presume
that bidders named a higher price for COM
pleting the work covered by this contra ct
than would have been named had 1t been
understood by the that longer time would
be granted the successful, bidder To give sue h
succussful bidder additional time after the
award has been made and without an ade-
quate consideration is an undue advantage
to the successful bidder, If not an actual
fraud upon the other bidders. and a damage
to the United States, none the less real be-
cause the amount thereof is not easily as
certanable.
In conclusion / have to advise YOU thai
you are authorized and required to deduct
from the amount otherwise due the con-
tractor all cost of inspection and superin-
tendence incurred during the extended peri
3D. as well any other damage which
the United States has suffered from the
failure to complete the work at the time
specified in the original contract