Opinion ID: 1568028
Heading Depth: 1
Heading Rank: 4

Heading: Flow Line Bands and Shoes

Text: The construction designs and specifications for the wood stave pipe line below the dam on the Wallenpaupack project called for the installation of saddles eight feet apart along the pipe line and of eighteen pipe line bands and shoes between each pair of saddles. Through an error but sixteen bands and shoes were actually installed between each pair of saddles. Electric Bond and Share's engineers decided that the cost of correcting the error would not be justified by the additional margin of safety to be achieved. The unused bands and shoes were resold to the manufacturing company at a loss of $15,167.99. The loss was claimed as an element of cost but was disallowed by the Commission. The Commission's position is that to allow this item as a cost would be to require the government, if it takes over the project, to pay for a margin of safety not provided by the project as it was actually constructed by paying for materials never incorporated in the work. We agree with the Commission that the loss incurred upon the resale of these unused bands and shoes was not an element of actual cost of the project. They had no more to do with the completed work than if they had been used on another project or had never left the factory. This was not a case of excess material being supplied to cover the possibility of breakage, spoilage or similar contingency and afterward found not to be needed. These materials should have been used in the project but were omitted from it and they, therefore, have no place in its cost.