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TEODORI v. PENN HILLS SCHOOL DISTRICT AUTHORITY (01/07/64)

January 7, 1964

TEODORI
v.
PENN HILLS SCHOOL DISTRICT AUTHORITY, APPELLANT.



Appeal, No. 87, March T., 1963, from judgment of Court of Common Pleas of Allegheny County, Oct. T., 1960, No. 3650, in case of Carlo Teodori, doing business as Superior Coal Company, v. Penn Hills School District Authority. Judgment affirmed.

COUNSEL

C. Francis Fisher, with him R. Rhody Brenlove, and Brenlove & Fisher, for appellant.

Thomas R. Eddy, for appellee.

Before Bell, C.j., Musmanno, Jones, Cohen, Eagen, O'brien and Roberts, JJ.

Author: O'brien

[ 413 Pa. Page 128]

OPINION BY MR. JUSTICE O'BRIEN

Plaintiff-appellee (Teodori), on April 10, 1958, entered into a written contract with defendant-appellant (Authority) for certain excavation work to be done on a site to be used as an athletic field. The contract was

[ 413 Pa. Page 129]

    let to Teodori after competitive gidding, for a total price of $134,485.

The contract provided that changes and alterations should be ordered in writing by the owner. It also provided, however, as follows: "Conditions Differing From Those Shown On Plans Or Indicated In Specifications. Should the Contractor encounter subsurfaces and/or latent conditions at the site materially differing from those shown on the Plans or indicated in the Specifications, he shall immediately give notice to the Architect of such conditions, before they are disturbed. The Architect shall thereupon promptly investigate the conditions and if he finds that they materially differ from those shown on the plans or indicated in the Specifications, he shall at once, make such changes in the Plans and/or Specifications as he may find necessary. Any increase or decrease or cost resulting from such changes shall be adjusted in the manner provided herein for adjustments as 'Extra Work'."

The method of computing payment for extra work is set forth in the contract in the following language: "By such applicable unit prices, if any, as are set forth in the Contract; or If no such unit prices are so set forth, then by a lump sum mutually agreed upon by the Owner and the Contractor; or If no such unit prices are so set forth, and if the parties cannot agree upon a lump sum then by the actual net cost in money to the Contractor of the materials and of the wages of applied labor (including premiums for Workmen's Compensation Insurance, Social Security and Unemployment Compensation) required by law, plus such rental for plant and equipment (other than small tools) required and approved for such Changes and Alterations, plus fifteen per cent (15%) as compensation for all other items of profit, ...."

A further pertinent provision of the contract provides: "All Work Subject To ...


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