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B-186534 1 (1976-08-10)

handle is hein.gao/gaobaddii0001 and id is 1 raw text is: o ~ - THE COMPTROLLER GENERAL DECISION . OF THE UNITED STATES 4 WASHINGTON, D.C. 20548 FILE: B-186534 DATE: AUguSt 10, 1976 MATTER OF: Mountain Fir Lumber Co., Inc. (q g7O- DIGEST: 1. Purchaser, who removed timber from forest by more expensive route than contemplated in sales contract because of closure of specified road by third party in accordance with terms of Declaration of Taking and Complaint in Condemnation filed by Government, is entitled to adjustment for increased cost, since Government's representation that specific roads are available carries implied promise that, if they are not, the Government will stand the resulting increased cost. 2. Where timber purchaser is entitled to adjustment for increased cost because of additional expense of haul- ing timber as result of closure of road specified in sales contract, in absence of agreement between Forest Service and purchaser as to expense for increased haul- ing, there would be no objection to 'settlement on basis of Forest Service estimate instead of purchaser's unsup- ported amount. 3. In settlement of timber purchaser's claim for increased cost because of additional expense of hauling timber as result of closure of road specified in sales contract, Forest Service should explore with purchaser monetary benefit purchaser may have received on road maintenance in utilizing alternate route, since increased expense of performance has been reduced to the extent of pur- chaser's monetary benefit. 4. In settlement of timber purchaser's claim for increased cost because of additional expense of hauling timber as result of closure of road specified in sales contract, road maintenance cost which would have been included in Forest Service timber appraisal if made originally for alternate route, but which purchaser did not incur, should not be allowed, since it was not actual increase in performance cost which purchaser incurred. - 1 -

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