THE WELCH COMPANY

440 Davis Court #1602

San Francisco, CA 94111-2496

415 781 5700




October 14, 1998                                                                     03 96060 61 98101401



Mr. Denis Henmi
Executive Vice President
KWAN HENMI
Architecture, Planning, Inc.
74 New Montgomery Street #300
San Francisco, CA  94105
415 777 4770

Subject:  Moscone Center Expansion, Phase III
                 Project Review

Dear Denis,


Here is some

analysis
to assist your review of project management on the
Moscone project.
In sum, a false and misleading
record is placing KH at risk.
A formal

project review
may be helpful, or more
serious steps may be needed.




The

Communication Metrics
experiment needs some fine tuning to accomplish our
goals.  We need to make an early decision on this so that KH interests are not
adversely impacted.




Sincerely,


THE WELCH COMPANY






Rod Welch




Copy to:   Bill Long