Nomellini Construction Co. v. State Ex Rel. Department of Water Resources

Nomellini Construction Co. (Nomellini) had a contract with the State of California, acting through the Department of Water Resources (Department), to construct 50 portable houses to be placed on concrete foundations. By the terms of the contract the houses could either be constructed off-site or on-site. If built off-site they were to be transported to the site, placed upon the foundations (also to be built by Nomellini) and assembled and completed ready for occupancy. The contract included full plans, specifications and other contract documents. In compliance with Government Code section 14376 the contract provided a time period for completion and for liquidated damages for unexcused late completion, viz., work was to begin within 30 days after notice and completed within 105 days. Nomellini agreed to pay the Department as liquidated damages $10 per house per day for each calendar day’s delay. Notice to proceed was given July 9, 1963. The completion date, therefore, was scheduled for October 22, 1963. The houses were not completed according to schedule. They were completed as to various houses between January 15 and March 27, 1964, a total “overrun” of 6,840 house…