THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700
S U M M A R Y
DIARY: August 23, 1988 02:20 PM .......;
Meeting re Draft Tube Liner installation.
2...Tolerence Requirement for Draft Tube Liner Analysed by Engineer
3...Installation under Manufacturer's Supervision
4...Root Cause of Problem
5...Confirmation of Error by Voith
6...Called Greg Snyder Voith Project Manager in York, PA
7...Discussion with Ken
8...DTL Tolerance Manufacture Problem May be Solved with New Procedure
9...Agreement with Sletten
10...Failed Contractor Coordination
11...Modificuations to Spider Bracing for DTL Disputed
12...Craft Skills Expertise Millwrights Needed to Install DTL
13...Draft Tube Liner Installation Requires Millwrights Not Ironworkers
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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
Draft Tube Liner Dispute
0603 - ..
0604 - Summary/Objective
060501 - Follow up ref SDS 1 0000.
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.
060525 - ..
0608 - Disputed Issues
060901 - Tolerence Requirement for Draft Tube Liner Analysed by Engineer
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.
060957 - ..
060958 - Installation under Manufacturer's Supervision
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:
060973 - ..
060974 - Root Cause of Problem
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.
060997 - ..
060998 - Confirmation of Error by Voith
061000 - Ken said Voith has Daily Reports from Voith's field representative
061001 - showing the above described failures.
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.
061011 - ..
0613 - Analysis & Comment
061401 - Jeff asked for support to analyse this problem.
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.
061445 - [...below, confirm request to Voith management for confirmation
061446 - of verbal representations on tolerances. ref SDS 0 0191
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.
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)
061486 - ..
0617 - Confirmation of Voith's Requirements
061801 - Called Greg Snyder Voith Project Manager in York, PA
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.
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.
061832 - ..
061833 - Discussion with Ken
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.
Draft Tube Liner Dispute
080601 - ..
080602 - DTL Tolerance Manufacture Problem May be Solved with New Procedure
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.
080613 - ..
080614 - Agreement with Sletten
080615 - Failed Contractor Coordination
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.
Draft Tube Liner Dispute
Spider Bracing, Interview
100501 - ..
100502 - Modificuations to Spider Bracing for DTL Disputed
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.
Draft Tube Liner Dispute
Improper craftsmen, Interview
130501 - ..
130502 - Craft Skills Expertise Millwrights Needed to Install DTL
130503 - Draft Tube Liner Installation Requires Millwrights Not Ironworkers
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.
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