Baldi Construction Engineering, Inc. v. Wheel Awhile, Inc.

This appeal involves the question of whether a verbal understanding between the parties to a cost plus construction contract, that the proposed project would be within a given cost range, justified the cancellation of the written contract by the property owner when the contractor presented an estimate substantially in excess of the price range contemplated between the parties, the written contract containing no mention of any cost estimate.

The appeal arises from the execution on February 18, 1969, of an American Institute of Architects (A.I.A.) standard form of “cost of the work plus a fee”…