Opinion ID: 2124349
Heading Depth: 1
Heading Rank: 7

Heading: Factors which confirm changed conditions.

Text: There are two important factors in this record which confirm the conclusion that R. W. encountered changed conditions. The first is the cost of completing the project. W. J. Lazynski, Inc., bid and received in excess of 8 million dollars for completing 85 percent of the work which R. W. had agreed to perform for less than 4 million dollars. Lazynski itself had originally bid less than 5 million dollars for the entire job. The trial court specifically found that the substantial increase in the Lazynski bid on 222-A is not explained solely by inflation and increased workmen's compensation rates. The inference which is compelled by these facts is that Lazynski increased its bid because it had become aware that the conditions actually encountered by R.W. materially differed from those originally indicated in the contract 222 drawings. The second confirmatory factor is the increased compensation which Lazynski received from the MSC for work which it had originally subcontracted to do for R. W. The facts regarding this subcontract are undisputed and are set forth in the trial court's findings of fact. [23] Lazynski was the contractor on an adjoining segment of the sewer tunnel, and subcontracted to do the extreme northern portion of R. W.'s segment for the unit prices which it had set forth in its original bid for Contract 222. When the contract between the MSC and R. W. was terminated, Lazynski would have been entitled to about $38,000 under the subcontract price for the work that remained. However, the MSC added this work on a cost-plus basis to the contract for the adjoining segment, and eventually agreed to pay in excess of $86,000 for it. Although factors not relevant to changed conditions were the cause of some of this increase, it is undisputed that one of the reasons for the increase was running silt and sand which Lazynski encountered in doing the work. The inference is that at least part of the increased compensation received by Lazynski was attributable to actually encountered conditions like those encountered by R. W.