Question: Watts Construction Co was awarded a construction contract with Cullman

Watts Construction Co. was awarded a construction contract with Cullman County to complete a County Water Works Improvement Project. One section of the contract provided that it would not become effective unless and until approved by a certain federal agency, namely, the Farmers Home Administration, U. S. Department of Agriculture. The agency’s approval was delayed, which in turn delayed the initiation of the project. In response to this delay, Watts Construction Co. requested a 5 percent increase in the contract price due to seasonal and inflational price increases. In his letter to Cullman County, Watts stated, “If this is not agreeable with you, please consider this letter a withdrawal of our bid.” Cullman County refused to pay the additional 5 percent and hired another company to take on the project. Watts then informed the county that he was willing to perform the contract at the original price ( without the 5 percent price increase) but with certain modifications. The county refused and Watts sued for breach of contract. Should he be successful? ( Watts Construction Co. v. Cullman County, 382 So. 2d 520)

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  • CreatedSeptember 15, 2015
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