Amprite Electric v. Tennessee Stadium Group

The electrical subcontractor on the Adelphia Stadium job was required by the contractor, on 212 occasions, to perform extra work. Although the subcontract provided that written change orders must precede and authorize extra work, this requirement was soon mutually abandoned because the contractor, encouraged by the owner, was concerned about a timely completion. The principal issue concerns the dollar amount of compensation for the extra work. Amprite priced its extra work according to manuals used in the construction industry, as contrasted to its actual costs plus 10 percent, as the subcontract provides. Amprite concedes that although its actual costs plus 10 percent were substantially less than the amounts claimed, the contractor was estopped to deny the greater compensation. The trial court held that the contract was abandoned and that, in lieu, a different contract would be implied. Amprite was accordingly awarded compensation for "8686 hours never worked, $90,245.00 for materials never purchased and $6,877.00 for taxes never paid,"for a total recovery of $1,131,311.66. Contractor appeals insisting that the contract was not abandoned and that its provisions control. We hold that the requirement of written change orders was waived by mutual agreement but that the remainder of the contract was enforceable. The judgment is modified to allow a recovery of $170,084.00.