in the compensation owed the subcontractor for that work.
Bechtel argues, under this first theory, that the specification change of June 9, 1980, that allowed Ragnar Benson to use a retardant to assist in cleaning the construction joints was a change within the meaning of amendment 7. Amendment 7 defines a change as a "substitution for, an addition to, or deletion of, any work or other requirement the performance of or compliance with which is contemplated by the subcontract." According to Bechtel, the use of the retardant in accordance with the specification change was an addition to the contractual requirement that Ragnar Benson clean the construction joints by waterblasting or air-water cutting. In this case, the addition resulted in a decrease in the cost of performing the work. Pursuant to the terms of the amendment, therefore, Bechtel argues that it should be entitled to a decrease in the compensation owing Ragnar Benson.
Ragnar Benson, on the other hand, principally argues that Bechtel is not entitled to recover any amounts pursuant to amendment 7 because, in its view, there was no "change." It also argues that Bechtel at no time required Ragnar Benson to use the retardant, and that there were no "written orders" to trigger the cost recalculation provisions of amendment 7.
Ragnar Benson's argument that there was no "change" is based on its contention that it was unnecessary to revise the specifications to permit use of a retardant. Ragnar Benson argues that the specifications issued in the early 1970's, long before construction actually began, expressly prohibited the use of a retardant. Later, this express prohibition was removed from the language of the specifications. According to Ragnar Benson, the deletion of the express prohibition means that the use of the retardant was permitted and no specification change was needed.
Ragnar Benson's argument that there was no change within the meaning of amendment 7 fails for several reasons. First, the clear and unambiguous definition of "change" in amendment 7 does not require a revision in the specifications for an additional work item to constitute a change. All that is required is "an addition to . . . any work or other requirement the performance of . . . which is contemplated by the Subcontract." Not only was application of the retardant an additional step in the joint cleaning process, it was a step both Bechtel and Ragnar Benson contemplated would be performed throughout the remainder of the project. Further, Ragnar Benson itself acknowledged that it "could not use a retardant to assist cleaning the shell horizontal construction joints without first obtaining the approval of Bechtel." Defendant's Request for Admissions 48, N.T. 734. The facts that Bechtel's permission was necessary, and that the parties both contemplated use of the retardant throughout the remainder of the project indicate that there was a change in the work that was more than a permissive use by the contractor of a different tool to accomplish the same result. The evidence indicates that both parties viewed the use of the retardant as a significant change in the method used to clean the joints and that, as a result of its use, the performance of the cleaning operation was significantly altered.
Second, a change in the specifications governing the cleaning operation was indeed necessary. The Bechtel specifications set forth in detail the procedures and processes Ragnar Benson was required to use to accomplish its job. N.T. 704. Only materials explicitly approved by the specifications could be used, and the absence of approval in the specifications was a clear indication that the use of the chemical retardant was not allowed absent a change in the specifications. N.T. 800, 856-57, 1113-1114, Bratchie Deposition at 40; Mandich Deposition at 28. Even Boris Mandich, Ragnar Benson's on-site project manager acknowledged that express approval of the retardant was necessary before Ragnar Benson could begin application:
The nature of the job being nuclear and requiring documentation of everything chemically used on the project, most certainly would require approval by the Bechtel Corporation and the Marley Corporation for any item used on that project that was part of the construction . . . . So that all parties involved would have approved the use of an item so that if that item caused any damage in the future, that all parties could not say that it was not approved by all for use.
Mandich deposition at 28.
Ragnar Benson's next argument against the applicability of the amendment 7 change provisions to this case is that Bechtel at no time required Ragnar Benson to use the retardant and at no time issued "written orders" to Ragnar Benson concerning the use of the retardant. This argument ignores two important facts. First, it is uncontroverted that Ragnar Benson, rather than Bechtel, requested the change. Second, although no formal change order was issued until November, 1980, there were at least three writings adopted by the parties that evidence the request for the change and the change itself. In a June 3, 1980 letter to Marley Cooling Tower Company, the design company through which Ragnar Benson obtained the subcontract to construct the towers, Ragnar Benson clearly requested that Marley "initiate the necessary paperwork" so that Ragnar Benson could begin using the retardant on June 9, 1980. Defendant's exhibit 72. It is the undisputed testimony of Dirk Van Luling, Bechtel's subcontract engineer, that, around this same time, Boris Mandich, Ragnar Benson's project manager, approached him and orally requested that the specifications be changed so that Ragnar Benson could use a chemical retardant. Van Luling advised Mandich:
Marley had to first get involved with the changing of design, and this was a design item. And so I suggested that he go through Mike Alexander of Marley, the Marley field representative, and that Marley needs to generate what they call a JDR, job disposition report. That would form the catalysis [sic] for my initiating a Bechtel in-house document to get our specification change.