Opinion ID: 1638588
Heading Depth: 3
Heading Rank: 3

Heading: Termination of Contract 15

Text: On November 14, 1997, Asarisi informed Harbert by letter, a copy of which was sent to Federal, as follows: It appears that a number of items remain incomplete that will keep the new system from going on line when Reactor 2 is satisfactorily sealed and tested. Most if not all of the items are electrical (i.e. loadshedding, etc.). In order to avoid further delays on this project we request that you provide an updated schedule which includes all work associated with starting the new system. This schedule should be in our office no later than November 24, 1997. Failure to provide a schedule within ten days will be grounds for finding [Harbert] in default of the Contract in accordance with [subsection] 8.11 of the Specifications.  (Emphasis added.) The letter contained no indication that, apart from BCM's request in the letter itself, the contract documents imposed on Harbert the obligation to provide to the Board the particular schedule of work described in the letter or that Harbert had breached its contractual obligations by not having already provided the requested schedule on or before the date of the letter. The Board held a meeting on December 8, 1997. According to the minutes from the meeting, Asarisi said, based on his November 14 letter to ... Harbert[, that] Harbert was asked to provide a schedule of completion and they were given ten days as required in the contract. They failed to provide this within the 10-day time frame and today we still have not received this. It is BCM's recommendation that the Board find Harbert ... in default.  (Emphasis added.) A motion to accept BCM's recommendation carried unanimously. Also on December 8, 1997, Harbert sent the Board a letter by facsimile transmission and by mail; it is not clear from the record when the letter was received in relation to the Board's December 8 meeting. Harbert's letter stated: This letter will serve as our official notice to the [Board] that the actions and/or lack thereof by your engineer, BCM ..., have now delayed the project an additional seventy-five (75) calendar days. Specifically, these delays are: (1) the timely approval of our proposed `Liquid Boot' repair method and (2) the slow rate of progress by your contractor, Phoenix Coatings, in repairing the sealant at one cell of Reactor No. 2. .... To date, your engineer, BCM ..., continues to reject our proposed `Liquid Boot' repair method even though this system has proven to be successfully applied in other treatment plants throughout the country. In contrast to the work being performed by Phoenix Coatings, the `Liquid Boot' system can be installed, tested and completed within two or three weeks. Your approval and acceptance of this method will not only allow for Reactor No. 2 to be put into operation much sooner but also will mitigate any further delays to the project's start-up testing and completion dates. We trust that you share our concerns and will act accordingly towards bringing this project to completion. The letter makes no reference to Asarisi's request for an updated schedule for Project 15. In a letter dated December 9, 1997, Asarisi informed Federal that [t]he Board ..., in conference December 8, 1997, voted to terminate ... Harbert['s] contract on [Project 15]. A copy of the resolution will be forwarded to you when we receive it. ... Harbert ... is hereby notified to cease all work related to this project. We request that Federal ... provide a schedule of their plan of action to complete the remaining work on the project. Please let us have this schedule by January 5, 1998. (Emphasis added.) A copy of the letter was sent to Harbert. The record contains an undated resolution from the Board that states: WHEREAS, on November 14, 1997 the Board ... as party to the contract with ... Harbert ... for [Project 15] declared Harbert to be in default and properly notified Harbert and Harbert's surety, Federal ..., by registered mail of said default and; WHEREAS, the Board has allowed Harbert in excess of ten days from the date of default notice to remedy the deficiencies documented by various letters and multiple meetings between the parties to the project and; WHEREAS, Harbert has failed to remedy the deficiencies under the contract; It has been moved, ratified and affirmed by vote of the Board on December 8, 1997, that ... Harbert ... cease all work on said project and the contract with ... Harbert ... be terminated.  [9] (Emphasis added.) After the Board terminated Contract 15, Harbert left the Project 15 site. Neither Harbert nor Federal performed any further work under Contract 15. The Board used other contractors to complete Project 15.