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Business, 27.05.2020 18:59 isobelbunney

A construction contractor entered into a contract with the Federal Government to install central air conditioning in a post office for a contract price of approximately $2,200,000. After performing the work, the contractor filed suit against the Government complaining that it was required, contrary to the alleged proper interpretation of the specifications, to install insulation covering on certain supply ducts. The contractor sought compensation for over $385,000 for such allegedly extra work. The language in the two applicable sections of the contract is as follows: Scope of Work: "All air conditioning air handling units, fresh air intakes, all air conditioning new and existing supply ducts, and all return ducts located in nonconditioned spaces, shall be covered." Covering for Air Conditioning Ducts, Etc.: "The following shall be covered: All supply ducts." During the course of the project, the Government issued an amendment that changed the language in the "Scope of Work" paragraph to read as follows: Scope of Work: "All air conditioning air handling units, fresh air intakes, and all air conditioning new and existing shall be covered and all return air ducts located in non-conditioned spaces shall be covered." Contractor’s Position: It is reasonable to interpret the amended sentence deleting the words "supply ducts" to require covering only the supply ducts in non-conditioned areas, and also to indicate the deletion of the former coverage requirement insofar as the supply ducts in air conditioned areas are concerned. The contractor further argued that the changed language means "that covering which is necessary for an operational air conditioning system", and for such a system, the supply ducts in a conditioned space would not have to be covered. Government Position: If it had been the intent of the amendment to delete the requirement for covering "all supply ducts", the Government would have also changed the wording of the paragraph, "Covering for Air Conditioning Ducts, Etc.", to delete the wordage for covering "all supply ducts". Must the Government pay the claim for $385,000? Why or why not? Explain your answer.

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