Rieth-Riley Construction Co. v. Department of Transportation

In August, 1979, M & B Contracting Corporation entered into a contract with defendant, Michigan Department of Transportation (MDOT), for the construction of 6.1 miles of grading and drainage structures in Kalkaska and Missaukee Counties with a 24-foot bituminous aggregate surface. M & B in turn entered into a subcontract with plaintiff, Rieth-Riley Construction Co., Inc., which provided that the subcontractor was to provide certain materials, including bituminous base course, to M & B for use in the project. The contract between MDOT and M & B contained price adjustments, or escalator…