CONTACTS 
0201 - O-0389 0101 Tudor Engineering Compa
020101 - Mr. Jeff Ghilard,
0202 - O-0394 0301 Voith Hydro, Inc.
020201 - Mr. Kenneth L. Carlson, Field Representative, =Telephone
0203 - Dep Natrl Rscrs & Consvn                                                                                                                                       O-00000395 0201
020301 - Mr. Norman Barnard; Hydro Power Engineer
020302 - Water Resources Division  fax 406 444 0533
0204 - Sletten Construction Company                                                                                                                                       O-00000392 0302
020401 - Mr. David Marsh; Project Coordinator

SUBJECTS
Draft Tube Liner Dispute

0603 -
0603 -    ..
0604 - Summary/Objective
0605 -
060501 - Follow up ref SDS 1 0000.
060502 -
060503 - Jeff and Norm explained a dispute and construction problem concerning
060504 - installation of the Draft Tube Liner, an activity on the "Critical
060505 - Path."
060507 -  ..
060508 - After considerable discussion with the parties, Dave Marsh of Sletton
060509 - agreed about 1600 in a meeting with me and Ken (Voith) to provide
060510 - crane service oa 0800 tomorrow in support of Voith to install "spider"
060511 - bracing on the Draft Tube.
060513 -  ..
060514 - Ken (with Voith) and his chief mechanic believe there is a good chance
060515 - that when the bracing is installed properly the tube flange will be
060516 - moved into alignment.
060518 -  ..
060519 - Jeff had directed in a letter that Voith would perform the work
060520 - because of defective performance by Sletton in prior assembly work on
060521 - the Draft Tube.  The parties had exchanged a number of letters on this
060522 - matter and held a long meeting about lunch time.
060523 -
060525 -  ..
0606 -
0607 -
0608 - Disputed Issues
0609 -
060901 - Tolerence Requirement for Draft Tube Liner Analysed by Engineer
060902 -
060903 - Voith is the manufacturer.  They require the flange of the Draft Tube
060904 - Liner (DTL) unit to be installed within 0.010 inch tolerance, on the
060905 - basis that plant manufacture of the generator and related equipment
060906 - must fit DTL alignment, otherwise the weight of the propellers
060907 - spinning in the unit during operation will resonate and begin to
060908 - wobble, causing damage to the generator, and to the entire
060909 - hydro-electric structure.
060911 -  ..
060912 - Sletton claims the contract specifications require 0.062 tolerance,
060913 - approximately 500% less than Voith says they need.
060915 -  ..
060916 - Tudor maintains such requirement was intended to apply only to the
060917 - final location of the assembled unit relative to other major
060918 - components, and not to the assembly of the separate pieces of the unit
060919 - itself.  Tudor says that assembly must meet manufacturer requirements,
060920 - and since Voith is the manufacturer, their specifications are
060921 - controlling, since they will be responsible for a working system.
060923 -  ..
060924 - The parties agree that the contract does not mention 0.010, but does
060925 - say the contractor must perform the work according to manufacturer
060926 - guidance.
060928 -  ..
060929 - The parties agree that the DTL flange face, as presently installed, is
060930 - within the 0.062 tolerance and meets the 0.010 inch standard at some
060931 - locations but not at others along the face of the flange.  The
060932 - manufacturer (Voith) insists that the 0.010 tolerance must be met
060933 - uniformly throughout the face of the flange, and that all other
060934 - alignment criteria be met as set out in Tudor's directive to Sletten
060935 - dated 880803.
060937 -  ..
060938 - Jeff, Norm and Ken, all said that the tolerance requirement of 0.010
060939 - inches was conveyed to Sletten in a timely manner; they are frustrated
060940 - that Sletten refused to follow Voith's guidance.  Engineer's Directive
060941 - dated 880803 confirms notice to the contractor.  Ken advised that
060942 - Voith's tolerance requirement is essential for the proper functoning
060943 - of the installed assembly. (see above. ref SDS 0 0Y5R)
060945 -  ..
060946 - Sletten feels unnecessary extra expense will be incurred to accomplish
060947 - this objective, and has already notified the Engineer it will demand
060948 - additional payment.
060950 -  ..
060951 - Jeff expressed concern that Tudor's specification does not adequately
060952 - disclose the tolerance required by Voith.  This was discussed with
060953 - respect to industry standards and Sletten's duty to investigate when
060954 - put on notice to install according to manufacturer's instructions.
060955 -
060957 -  ..
060958 - Installation under Manufacturer's Supervision
060959 -
060960 - Upon inquiry, Jeff said the specifications call for the DTL to be
060961 - assembled under the supervision of a Voith representative.
060963 -  ..
060964 - Ken (Voith's Field Rep) maintained that the cost to achieve the
060965 - required tolerance is no more than that needed to achieve 0.062 when
060966 - procedures recommended by Voith are used by the Contractor.
060968 -  ..
060969 - Ken said Sletten made three failures that caused the present
060970 - difficulties:
060971 -
060973 -  ..
060974 - Root Cause of Problem
060975 -
060976 - Sletten began the work without the presence of the manufacturer's
060977 - representative.  This occurred because Sletten began work ahead of the
060978 - published schedule and without giving suffsufficient notice (actually
060979 - none was given) to the Engineer so that a Voith rep could be brought
060980 - to the site to provide assembly support.
060982 -  ..
060983 - Sletten failed to use the correct craft for performing the work, and
060984 - the men who were assigned lacked the skill and knowledge necessary to
060985 - accomplish a correct assembly.
060987 -  ..
060988 - Sletten made initial procedure error of attempting to assemble the
060989 - unit in horizontile half circumferential units instead of making up a
060990 - series of whole circumferential verticle segments.
060991 - ..
060992 - Sletten ignored instructions Voith gave with respect to
060993 - installing bracing and to avoid rolling the unit during welding
060994 - operations.
060995 -
060997 -  ..
060998 - Confirmation of Error by Voith
060999 -
061000 - Ken said Voith has Daily Reports from Voith's field representative
061001 - showing the above described failures.
061002 -
061003 - I explained to Ken that the Engineer is directing extra expense be
061004 - incurred on advice of Voith as an expert under its contract and so
061005 - Voith should submit a letter to Tudor confirming Voith's findings and
061006 - expert opinion.  Ken asked me to contact the Voith Broadwater Project
061007 - contract rep in Pennsylvania, Greg Snyder, (717 792 3511) to obtain
061008 - the letter.
061009 -
061011 -  ..
0611 -
0612 -
0613 - Analysis & Comment
0614 -
061401 - Jeff asked for support to analyse this problem.
061402 -
061403 - There was discussion that at this juncture it would seem that Voith's
061404 - representations indicate Tudor's specification was adequate in that it
061405 - cost the same to construct under the manufacturer's instructions to
061406 - 0.010-inch tolerance, as it does to meet the 0.062-inch tolerance
061407 - Sletten achieved.  Therefore, if Voith is correct, the problem arose
061408 - because Sletten failed and refused to perform according to the
061409 - manufacturer's instructions, which is a failure to perform a contract
061410 - requirement.
061412 -  ..
061413 - Since Voith maintains certain tolerances are necessary, and Sletten is
061414 - unwilling and/or unable to perform such work, then the State may be
061415 - justified (indeed has no other choice but) to assume control of this
061416 - portion of the work in order to complete it at the least cost, as
061417 - called for under contract GC Article 13.14 of the Sletten contract
061418 - (1189.2)
061420 -  ..
061421 - Sletten contends its contract commitment was satisfied by having set
061422 - the DTL on 880812 so it meets the 0.062-inch tolerance which Sletten
061423 - contends should be applied to this work (see Section 03365 para
061424 - 3.1C3).  Since there is no dispute that the DTL does not meet the
061425 - standard Voith says is necessary, and since Voith maintains Sletten
061426 - could have met the tolerances in the 880803 Engineer's directive by
061427 - following Voith's installation instructions, then since Sletten was
061428 - required to follow Voith's instructions but did not do so, Sletten
061429 - will be liable for the extra cost, if the manufacturer's position is
061430 - correct.
061432 -  ..
061433 - It, also, appears that even if Sletten's contract is held not to
061434 - require the manufacturer's tolerance (e.g. 0.010 flange face
061435 - alignment), the other alignment defects (concentricity, roundness,
061436 - joints and station, found by Voith may support a finding of defective
061437 - work, if Voith's representations are correct that these tolerances are
061438 - essential and achievable using their procedures, which Sletten admits
061439 - were ignored.
061441 -  ..
061442 - Therefore, it is helpful to the State's position for Tudor to obtain
061443 - confirmation from Voith concerning these matters.
061444 -
061445 -        [...below, confirm request to Voith management for confirmation
061446 -        of verbal representations on tolerances. ref SDS 0 0191
061447 -
061448 -        [On 880915 letter from Voith fails to confirm verbal
061449 -        representations about tolerance requirements on installing the
061450 -        DTL. ref SDS 2 EM7I
061452 -  ..
061453 - Ordinarily Tudor should develop extrinsic evidence such as expert
061454 - opinions or published industry standards to support the Engineer's
061455 - determination that the work is defective and subject to correction
061456 - under the contract.  In this case however Voith is an "expert," and
061457 - has a contractual duty to provide the information at issue, and is
061458 - maintianing the need for a particular requirement which Sletten has
061459 - not met and actually indicates it is unable to meet.  The Engineer can
061460 - rely on Voith's representation, since, if it is not upheld by
061461 - subsequent evidence from other experts, then Voith becomes the
061462 - responsible party.
061464 -  ..
061465 - Jeff disagreed.  He related having had many discussions with Voith's
061466 - project manager, Greg Snyder in York, PA, who has given strong
061467 - assurances that Ken's representations on the DTL issue are correct.
061468 - Jeff requested support to obtain formal confirmation from Voith on the
061469 - tolerances, but noted that the Engineer can save time and money by
061470 - expediting the work based on the meeting today, and prior calls.
061471 -
061472 -        [On 880915 letter from Voith fails to confirm verbal
061473 -        representations about tolerance requirements on installing the
061474 -        DTL. ref SDS 2 EM7I
061476 -  ..
061477 - As a result, Tudor issued a change order for Voith to perform the task
061478 - in Sletten's contract to set the DTL, and directed that Sletten
061479 - cooperate in order to mitigate cost. (see below facilitating support
061480 - from Sletten. ref SDS 0 0242)
061481 -
061482 -
061483 -
061484 -
061486 -  ..
0615 -
0616 -
0617 - Confirmation of Voith's Requirements
0618 -
061801 - Called Greg Snyder Voith Project Manager in York, PA
061802 -
061803 - We reviewed analysis from the meeting earlier today, including
061804 - comments from Voith's Ken Carlson, per above. ref SDS 0 0Y5R  Tudor
061805 - needs a letter from Voith to explain the circumstances that require
061806 - the State to contract with Voith for corrections to defective work on
061807 - the DTL by Sletten, per analysis above. ref SDS 0 6X50
061809 -  ..
061810 - Greg said he has already discussed this with Ken, who called after
061811 - leaving the meeting, per above. ref SDS 0 0122  Greg said that Voith
061812 - will draft a letter.  He will call tomorrow to read a draft in order
061813 - ensure that the scope of the problem is fully addressed.
061814 -
061815 -        [On 880915 letter from Voith fails to confirm verbal
061816 -        representations about tolerance requirements on installing the
061817 -        DTL. ref SDS 2 EM7I
061819 -  ..
061820 - Greg further advised that his understanding is that while the Draft
061821 - Tube initially did not meet the needed tolerance when the Voith rep
061822 - first came on the job, Sletten made corrections under Voith's
061823 - supervision, such that the Draft Tube Liner in fact met the tolerance
061824 - standard before Sletten began to pick it for placement in the
061825 - structure.
061827 -  ..
061828 - I asked Jeff to join the telecon to clarify what happened.
061829 -
061830 -
061832 -  ..
061833 - Discussion with Ken
061834 -
061835 - I went next door to the Voith office and discussed the matter further
061836 - with Ken.  Explained the apparent conflict in the record and asked to
061837 - see the Diary Reports he had cited earlier as the basis for believing
061838 - the unit was initially assembled out of alignment.  Ken refused to
061839 - disclose this material.  I asked him to check it and if it supports
061840 - his earlier contention he should convey it to the Greg so it can be
061841 - confirmed in a letter.  He none-the-less was adament that improper
061842 - assembly procedures were responsible for the present defective condi-
061843 - tion of the Draft Tube.
061844 -
061845 -
061846 -
061847 -
061848 -
0619 -

SUBJECTS
Draft Tube Liner Dispute
Mitigation, Actual
Installation

0805 -
080601 -  ..
080602 - DTL Tolerance Manufacture Problem May be Solved with New Procedure
080603 -
080604 - Ken and his chief mechanic said that if the "spider" bracing is
080605 - installed correctly, there is a good chance the tolerance problem will
080606 - go away, i.e. Voith's tolerance requirement will be achieved. They
080607 - said Sletten's crane will be needed for about 20 minutes tomorrow
080608 - morning.
080609 -
080610 -
080611 -
080613 -  ..
080614 - Agreement with Sletten
080615 - Failed Contractor Coordination
080616 -
080617 - I asked Ken if he has arranged with Sletten to use the crane.  Ken
080618 - said he does not feel comfortable coordinating directly with Sletten.
080619 - He intends to ask Jeff to make the arrangements.  After some
080620 - discussion, Ken observed that ordinarily he would discuss the matter
080621 - with the contractor then confirm arrangements with the Engineer.  He
080622 - feels communications are too strained on this job and so prefers to
080623 - use formal channels only.
080625 -  ..
080626 - I asked for some examples of these problems.  Ken cited some vague
080627 - generalities.  I could see this is a serious problem, and so
080628 - volunteered to go with him to Sletten's office to make the
080629 - arrangements (actually I asked him to go with me to make sure I didn't
080630 - misrepresent Voith's needs).
080632 -  ..
080633 - We then went to the Sletten trailer.
080635 -  ..
080636 - I introduced myself to Dave Marsh and explained the problem.
080638 -  ..
080639 - Dave initially said that if Voith or anyone supplies the "spider"
080640 - bracing, Sletten will install it.
080642 -  ..
080643 - I noted that Tudor (Jeff) has already determined that this work is to
080644 - be performed by Voith, and asked about the availability of some crane
080645 - time in the morning.  Dave agreed to supply it.  Ken confirmed that it
080646 - will be needed at 0800. Dave said it will be provided.
080648 -  ..
080649 - In returning to the Tudor office, Ken remarked that Dave is
080650 - cooperative in meetings like we just had, but often will write letters
080651 - that misrepresent the understandings.
080653 -  ..
080654 - I said all we can do is try to help people, and provide a record
080655 - demonstrating good faith to get things done.  If people fail to
080656 - perform, as in this case, Sletten, then Sletten risks compounding the
080657 - damage it will suffer.
080658 -
080659 -
080660 -
080661 -
080662 -
0807 -

SUBJECTS
Draft Tube Liner Dispute
Spider Bracing, Interview

1004 -
100501 -  ..
100502 - Modificuations to Spider Bracing for DTL Disputed
100503 -
100504 - Sletten claims the bracing is inadequately sized and requires
100505 - modifications that are beyond its scope.
100507 -  ..
100508 - Ken with Voith (who supplied the bracing materials) said that
100509 - modifications to bracing are always required in the field.  It is
100510 - unclear whether the degree of modifications are at issue or merely
100511 - modifications of any kind.  If the latter is true, it would mean that
100512 - bracing at issue is manufactured as integral part of Draft Tube
100513 - assembly.  If this is industry practice, then Sletten would seem to
100514 - have a good point.
100516 -  ..
100517 - Regardless this does not seem sufficient grounds to delay the job.
100518 -
100519 -
100520 -
100521 -
100522 -
100523 -
1006 -

SUBJECTS
Draft Tube Liner Dispute
Improper craftsmen, Interview

1304 -
130501 -  ..
130502 - Craft Skills Expertise Millwrights Needed to Install DTL
130503 - Draft Tube Liner Installation Requires Millwrights Not Ironworkers
130504 -
130505 - Tudor decided to contract with Voith to correct the Draft Tube
130506 - assembly because the efforts of Sletten todate indicate they lack the
130507 - will and/or expertise to perform the work.
130509 -  ..
130510 - The record cited above shows the work should be performed with
130511 - Millwrights and Sletten is using Ironworkers.
130512 -
130513 -
130514 -
130515 -
130516 -
130517 -
130518 -
130519 -
130520 -
130521 -
130522 -
130523 -
130524 -
1306 -