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If You Don't Specify 'Project Duration, A Jury May Decide

Friday, April 23, 2010 03:27 am

 

Contract Interpretation -- Ambiguity DP Concrete Products, LLC v. American Spring Wire Corp., 2010 U.S. Dist. Lexis 2581 (Jan. 13, 2010)

A contractor will have to go to trial to settle its payment dispute with a supplier because the phrase "duration of the project" in the parties? contract was ambiguous.

DP Concrete Products, LLC (DP) submitted a bid to supply concrete pilings for an oil refinery expansion project in Texas. DP uses materials supplied by other companies to make its pilings. When composing the bid, DP asked its regular strand suppliers for price quotes. (Pre stressed concrete strand is a wire product used in concrete pilings) By email, American Spring Wire Corp. (ASW) quoted a price of $0.22 per linear foot, with that price "to be held through the duration of the project." When DP won the project award, it confirmed the $0.22 price with ASW for "the duration of the job with no price escalation." DP informed ASW that it anticipated starting the project in May 2007 and finishing "sometime in 2008"; however, DP had [...]

 
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