Jonathan Clark & Sons Co. v. Pittsburgh

Citations

• 217 Pa. 46
• 66 A. 154
• 1907 Pa. LEXIS 652

Syllabus

<p>Municipalities — Municipal contract — ■Extra work — Advertisements— Acts of May 23, 1874, P. L. 230, and March 7, 1901, P. L. 20 — Arbitration clause.</p> <p>A municipal contract for the construction of a reservoir in a city of the second class may lawfully provide that the contractor shall do such extra work as the director of public works shall require, and that the compensation for such work shall be its reasonable cost to the contractor, plus ten per cent, for profits, use of tools, etc. Such a provision does not violate the Acts of May 23, 1874, P. L. 230, and March 7,1901, P. L. 20, which require municipal contracts to be awarded to the lowest responsible bidder after advertisement for proposals.</p> <p>Items of extra work which are clearly incidental to the general work, which have been recommended by the engineer in charge, and the cost of which is ascertained beforehand by an understanding with the contractor, may be ordered by the director, and if the work is done by the contractor, he is entitled to compensation therefor.</p> <p>Where an arbitration clause in a municipal contract provides that any dispute respecting the work, or materials “or respecting any pay for extra work,” shall be referred to the director of the department of public works, “whose decision thereon shall be final, conclusive and binding,” the decision of the director as to the amount due the contractor for extra work, is conclusive upon the city in the absence of fraud, accident or mistake.</p> <p>Where a municipal contract authorizes the director to pass upon “any question or dispute .... respecting any matter pertaining to” the contract, a decision of the director that the contractor should not be charged for any sum as liquidated damages for delay in completing the work, is binding upon the city.</p>