THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700


S U M M A R Y


DIARY: August 31, 1988 10:00 AM Wednesday; Rod Welch

Progress meeting BPP.

1...Summary/Objective
2...Access Road for Gracon to Work on the Spillway Structure
3...Gracon will post a sign to identify its Job Office
4...Submitting updated CPM Schedule Needed for Effective Planning
5...Weather delays
6...Critical Acitvities
...Canal
7...Engineer Asked Voith About Increasing Height of Pour Lifts
8...Concrete pour lifts for DTL Under Current Authority
9...Water spraying Embedded Equipment during Concreting
10...Voith to Begin Installing Equipment in the Plant on 881003
11...Crane Lifting Pad & Crane Size for Voith's Work
12...Planning Coordination Between Voith & Sletten
13...Status of Voith work on DTL
14...Welding standard Mud lugs on DTL
15...Decision on responsibility for tolerance issue
16...Dewatering Requirements Reduced by Progress of Work
17...Contractor will be Paid on Basis of Completed Welds
18...Sletten Contends It Interpreted Specifications Differently
19...Sletten May Submit Additional Information to Support Welding Claim
20...Sletten Requests Payment for Backfill Concrete
......Over excavation Due to Unsuitable Material as Changed Conditions
......Blasting tolerance


..............
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CONTACTS 
0201 - O-0395 0201 Department of Natural      406 444 6699
020101 - Mr. Wayne Wetzel, Project Manager
020102 - Mr. Norman Barnard, Hydropower Engineer
0202 - O-0389 0101 Tudor Engineering Company  406 266 3728     800
020201 - Mr. Jeff Ghilardi, Resident Engineer
020202 - Mr. Rod Welch
0203 - O-0392 0103 Sletten Construction       406 761 7920   406 761 0923 FAX
020301 - Mr. Bill Merriman, Vice President
020302 - Mr. Paul Robinson, Project Coordinator
020303 - Mr. Kieth Fergeson, Superintendent
020304 - Mr. Dave Marsh, Project Coordinator
0204 - O-0393 0201 Gracon Corporation         303 667 2203   303 667 3621 FAX
020401 - Mr. Dale Harrington, Superintendent,
020402 - Broadwater Power Project
0205 - O-0394 0301 Voith Hydro, Inc.          717 792 3511   717 792 3862 FAX
020501 - Mr. Kenneth L. Carlson, Field Representative,
0206 -

SUBJECTS
Weekly Schedule
& Progress Meeting

0404 -    ..
0405 - Summary/Objective
0406 -
040601 - Progress was made on solving scheduling and engineering problems.
040602 -
040603 - Sletten offered constructive proposals for review on pending claims,
040604 - and will supply additional information needed by the Engineer.
040605 -
040606 -
040607 -
0407 -
0408 -

SUBJECTS
Coordination with
Gracon Contract

0505 -
050501 - Access Road for Gracon to Work on the Spillway Structure
050502 -
050503 - Jeff presented a site plan showing proposed road layout, and
050504 - explained anticipated acitivities in each area.
050505 -
050506 - Sletten staff will examine the proposed plan and report in the
050507 - afternoon on their ideas to coordinate the two contracts in light of
050508 - the proposed access plan.
050509 -
050510 -
050511 - Gracon will post a sign to identify its Job Office
050512 -
050513 - Gracon will post a sign giving notice that fishermen or anyone else
050514 - other than project people are not allowed onto the bridge area.  Dale
050515 - reported that over the weekend, he encountered fishermen entering the
050516 - dam bridge area who claimed to have authorization from Sletten
050517 - subcontractors.
050518 -
050519 - Kieth advised that Sletten has not authorized any of its people to
050520 - enter the Gracon project area.
050521 -
050522 -
050523 -
0506 -

SUBJECTS
Schedule
Time Extensions
Project Planning & Oversight
CPM Contractors Avoid Accountability
Case Study Broadwater

1208 -
120801 -  ..
120802 - Submitting updated CPM Schedule Needed for Effective Planning
120803 -
120804 - Considerable effort was made to formulate plans for expediting
120805 - progress (see Voith below). ref SDS 0 6829
120806 -
120807 - Jeff presented a plan from his meeting with Ken yesterday, showing
120808 - schedule objectives for Voith's work (reviewed below, ref SDS 0 8481).
120809 -
120810 - Bill Meriman offered some helpful ideas on coordinating the Sletten
120811 - and Voith contracts. ref SDS 0 6829 and ref SDS 0 7301
120812 -
120813 - Rod Welch pointed out that in order to implement good ideas developed
120814 - at the meeting today (see for example Voith, ref SDS 0 8481), target
120815 - milestone objectives need to be reduced to an actual schedule showing
120816 - planned activities, constraints, resouce allocation and contract
120817 - interface.  Such effort is the only way to determine whether what
120818 - appears to be desirable and possible in conversation during a meeting,
120819 - is really feasible and practical.
120820 -
120821 -      [On 880921 recommended that Engineer direct Sletten and Voith to
120822 -      submit CPM schedules, and that DNRC pay any extra expense
120823 -      required. ref SDS 2 7365]
120824 -
120825 - Bill Meriman advised that Sletten intends to submit the current
120826 - schedule revised to move all activities ahead by the 20 days granted
120827 - in the latest change order.
120828 -
120829 - Rod Welch suggested that the updated schedule should reflect actual
120830 - conditions that exist with respect to all uncompleted activities, and
120831 - should include the detailed planning solutions the parties are
120832 - developing today, in order to adequately guide future analysis and
120833 - decisions.
120834 -
120835 - The schedule should also include consideration of matters that are
120836 - known today that were not known when the schedule was last updated in
120837 - April, 1988.  During this meeting, as questions were asked, more and
120838 - more ideas were advanced from various participants about constraints
120839 - and opportunities, none of which are reflected in the existing
120840 - schedule intended to be updated.
120841 -
120842 - The State and the Contractor need to know whether there are other
120843 - matters of the kind discussed at the meeting today, that will impact
120844 - completion objectives, but which were not considered at the meeting.
120845 -
120846 - The CPM network scheduling process by its nature uncovers such matters
120847 - when diligently performed, as contemplated by the contract requirement
120848 - to update the schedule.  It is to be expected that some of the ideas
120849 - advanced in conversation in the meeting will turn out for subtle
120850 - reasons, that were not clear at the meeting  to be unworkable.  As
120851 - well, different solutions will emerge, which will save the contractor
120852 - and the State time and money.
120853 -
120854 - Dave Marsh said Sletten can meet these objectives in preparing an
120855 - updated CPM schedule.  Bill Merriman said that Sletten will submit an
120856 - updated Schedule that complies with the contract.
120857 -
120858 -
120859 -
120860 - Weather delays
120861 -
120862 - Sletten advised the work has progressed to the point that rain alone
120863 - would not cause the work to be suspended and therefore should not
120864 - adversly affect meeting the completion objectives for starting the
120865 - Voith contract work on or about 881003.
120866 -
120867 -
1209 -
120901 - Critical Acitvities
120902 -
120903 - Draft Tube Liner
120904 - Schedule, Voith Coordination
120905 - Concrete Pour Rates
120906 -
120907 -
120908 -   Canal
120909 -
120910 -   Sletten needs to mobilize a crane on or about 881001 in the
120911 -   upstream area affected by canal operations.
120912 -
120913 -   Sletten intends to perform shotcrete work which will require
120914 -   access to the canal area after 881001.
120915 -
120916 -   At this time the State intends to make this area available to
120917 -   Sletten for its work; however there is a possibility that
120918 -   irrigation activities may delay this availability.  Sletten will
120919 -   be kept informed of the status.
120920 -
120921 -
120922 -
120923 -
120924 -
120925 -
1210 -

SUBJECTS
Concrete Pour Rates
Equipment Embedment

1305 -
130501 -  ..
130502 - Engineer Asked Voith About Increasing Height of Pour Lifts
130503 -
130504 - Dave Marsh pointed out that the schedule could be improved if the pour
130505 - lifts could be increased for the Draft Tube Liner embedment concrete,
130506 - activities 14, 16 and 17 on the 880406 schedule.
130507 -
130508 - Jeff submitted inquiry to Voith via FAX on 880829, ref 9.
130509 -
130510 - Jeff will call Voith today for an answer and advise Sletten.
130511 -
130512 -
130513 -  ..
130514 - Concrete pour lifts for DTL Under Current Authority
130515 -
130516 -
130517 -    1st lift - 6" per hour to depth of 4 feet in front and 5 feet in
130518 -    rear
130519 -
130520 -    2nd lift - 6 inches per hour to "spring" line.
130521 -
130522 -    3rd lift - 1 foot per hour from "spring" line to "top out."
130523 -
130524 - No more than 2 feet of wet concrete is permitted by Voith.
130525 -
130526 -
130527 -  ..
130528 - Water spraying Embedded Equipment during Concreting
130529 -
130530 - Dave Marsh asked whether this requirement is necessary even though the
130531 - Draft Tube is covered to protect it from solar radiation.
130532 -
130533 - Jeff explained that watering also reduces heat from concrete pouring
130534 - operations passed to the DTL.  Therefore, the water spray task is
130535 - necessary.
130536 -
130537 -
1306 -
1307 -

SUBJECTS
Schedule
Voith Contract
Coordination

1506 -
150601 -  ..
150602 - Voith to Begin Installing Equipment in the Plant on 881003
150603 -
150604 - Ken Carlson said that Voith needs notice of when it can begin its work
150605 - on the structure, which Sletten is constructing?
150606 -
150607 - Bill Merriman advised that Sletten plans to have the work completed to
150608 - a point that Voith can begin its contract on 881003 instead of 881001.
150609 -
150610 - Based upon careful analysis of pour schedules (see ref SDS 0 9402),
150611 - and work sequences (see ref SDS 0 8481) it was agreed that 881003 is a
150612 - viable target date for beginning the Voith contract work.
150613 -
150614 -
150615 -  ..
150616 - Crane Lifting Pad & Crane Size for Voith's Work
150617 -
150618 - Voith needs lifting capacity when it begins work.
150619 -
150620 - Discussed the viability of Sletten providing a "work bridge" in lieu
150621 - of a backfilled work area for Voith's crane operations  as
150622 - contemplated in the discussion concerning Voith start date above.
150623 -
150624 - Bill Merriman pointed that while it does appear feasible at this time
150625 - that concrete work can progress to permit backfilling the structure
150626 - sufficiently for a Voith staging area (see line 270704), there is a
150627 - risk that unforseen delays may arise.
150628 -
150629 - He asked the Engineer to consider hiring Sletten to construct a "work
150630 - bridge" instead of relying on the backfill option.  The terms of such
150631 - proposal were discussed earlier in a telecon between Jeff and Bill.
150632 -
150633 - How much notice is needed in order for Sletten to complete the
150634 - operation prior to 881003?
150635 -
150636 -
150637 -  ..
150638 - Planning Coordination Between Voith & Sletten
150639 -
150640 - See also discussion for CPM schedule, above. ref SDS 0 4829
150641 -
150642 - First 5 weeks, Voith will work through Turbine Hatch
150643 -
150644 -   Gate Mechanism
150645 -   Gate Barrel
150646 -   Discharge Ring
150647 -
150648 -
150649 - At the conclusion of same 5 week period, Sletten will complete:
150650 -
150651 -   Slab area at elevation 3950.
150652 -   Shoring removal
150653 -   Concrete finish
150654 -
150655 - Beginning on week 6, Voith will work through Generator Pit opening
150656 - without interference from Sletten operations or hindered by incomplete
150657 - work.
150658 -
150659 -   Shaft & Speed Increaser
150660 -   Generator Pit Opening
150661 -   Bearings
150662 -
150663 -
1507 -

SUBJECTS
Draft Tube Liner

2004 -
200401 - Status of Voith work on DTL
200402 -
200403 - Ken said the corrective work will be complete today.
200404 -
200405 - Voith is beginning to perform alignment today.  It is expected to
200406 - require 2 to 4 days to complete.
200407 -
200408 - Sletten can begin production welding today.  Dave said they will
200409 - assemble a crew of welders to begin work tomorrow and expect to
200410 - complete it on Friday, 880902.
200411 -
200412 - Welding and alignment will be performed concurrently.
200413 -
200414 - Jeff submitted written confirmation of these understandings to Sletten
200415 - via memo, ref 8.  The memo contains instructions for performing the
200416 - work.
200417 -
200418 - Forming can start in this area after Voith has set alignment jacks.
200419 -
200420 -
200421 -
200422 - Welding standard Mud lugs on DTL
200423 -
200424 - Dave asked for a clarification of the welding standard.  He advised
200425 - that the Voith representative, Larry Wrights, informed Sletten that
200426 - this welding could be a "full weld" on one side.
200427 -
200428 - If this is acceptable, then the work can proceed faster.
200429 -
200430 - Jeff submitted inquiry on this point to Voith via FAX on 880829  ref
200431 - 9.
200432 -
200433 - Jeff will call Voith today for an answere and advise Sletten.
200434 -
200435 -
200436 -
200437 - Decision on responsibility for tolerance issue
200438 -
200439 - This will be issued next Monday, 880905.
200440 -
200441 - Jeff advised that he has concluded entitlement exists for extra
200442 - cost, if any, for achieving the .010 tolerance standard for the work
200443 - because this is a standard that cannot reasonably be discerned from
200444 - the specifications.
200445 -
200446 -
200447 -
2005 -
2006 -

SUBJECTS
Dewatering

2204 -
220401 - Dewatering Requirements Reduced by Progress of Work
220402 -
220403 - Jeff feels that if the Bulkhead Gates are delivered as currently
220404 - promised (880930 - see ref 1 line 451102), then the dewatering
220405 - capacity currently available will be adequate, even though the other
220406 - Metelna equipment is delivered later.
220407 -
220408 - The canal is expected to be diverted by 881003.  This together with
220409 - the protection afforded by the Bulkhead Gates reduces the magnitude of
220410 - potential flooding due to a power outage, to a point which can be
220411 - accomodated by the standby power presently available.
220412 -
220413 -
2205 -
2206 -
2207 -

SUBJECTS
Welding Payment Claim

2304 -
230401 - Contractor will be Paid on Basis of Completed Welds
230402 - Sletten Contends It Interpreted Specifications Differently
230403 -
230404 - Sletten feels the scope of the this section permits payment of each
230405 - welding pass, ref 7.
230406 -
230407 - Jeff said that the intent of the Tudor specification was to pay for
230408 - welding on the basis of "completed" welds, and that this is a
230409 - generally accepted standard for compensating the contractor on work of
230410 - this kind (see Tudor letters, ref 5 & 6).  He noted that Sletten has
230411 - offered no basis for concluding that it could have interpreted the
230412 - language differently.
230413 -
230414 - Bill Marriman pointed out that Sletten's bid for this pay item was
230415 - much lower than the other bidder's.
230416 -
230417 - Rod Welch explained that this fact alone is not sufficient to conclude
230418 - that Sletten in fact construed the specification differently from that
230419 - intended, since the bid may have been "unbalanced."  Second, Sletten
230420 - must also show that it was reasonable to construe the language in the
230421 - manner claimed.
230422 -
230423 -
230424 -
230425 - Sletten May Submit Additional Information to Support Welding Claim
230426 -
230427 - Jeff asked that Sletten submit information on these two points as a
230428 - basis for reconsideration of this matter, as follows:
230429 -
230430 - Submit estimating data showing calculations based on payment per
230431 - welding "pass."
230432 -
230433 - Submit examples of other projects with similar language regarding
230434 - payment for welding where Sletten was paid for each welding "pass"
230435 - instead of "completed" welds.
230436 -
230437 - Alternatively, submit third party references (e.g. expert opinion,
230438 - welding manuals, construction bidding source material)  showing that
230439 - Sletten's position with respect to applying the payment language is
230440 - accepted within industry standards.
230441 -
230442 - Paul Robinson said that he will furnish the information.
230443 -
230444 -
230445 -
2305 -

SUBJECTS
Backfill Concrete

2404 -
240401 -  ..
240402 - Sletten Requests Payment for Backfill Concrete
240403 -
240404 - Jeff explained that backfill concrete occurred under the following
240405 - catagories:
240406 -
240407 -  1.  Unnecessary excavation beyond reasonable allowance of plan line.
240408 -
240409 -  2.  Over excavation within reasonable allowance beyond plan line.
240410 -
240411 -  3.  Over excavation beyond reasonable allowance of plan line due to
240412 -      unsuitable material
240413 -
240414 - Jeff advised that payment is only permitted by the contract for the
240415 - catagory pertaining to unsuitable material.  This was discussed in the
240416 - context of the following sub-catagories.
240417 -
240418 -       ..
240419 -      Over excavation Due to Unsuitable Material as Changed Conditions
240420 -
240421 -      Jeff advised that payment was not approved for this item because
240422 -      none was required within the meaning of the contract pay item,
240423 -      based upon information available to the Engineer.
240424 -
240425 -      Jeff asked Sletten to submit information showing the over
240426 -      excavation was needed because of unsuitable material encountered
240427 -      at plan grade.
240428 -
240429 -      The Engineer will consider a claim for payment under the changed
240430 -      conditions provisions of the contract.
240431 -
240432 -       ..
240433 -      Blasting tolerance
240434 -
240435 -      Jeff feels that backfill concrete under slabs where blasting
240436 -      occurred, by its nature and industry practice required the
240437 -      contractor to anticipate some over-excavation in calculating the
240438 -      cost for the concrete pay item.
240439 -
240440 -      Sletten claims it calculated only 6" of over blasting and this
240441 -      amount is consistent with its business practices and is within
240442 -      industry norms.  Sletten attributes excavation that occurred
240443 -      beyond the 6" limit to unsuitable material, compensable under the
240444 -      Engineer's intrepretation.
240445 -
240446 -      Bill Merriman said Sletten has sufficient records of excavations
240447 -      to determine the actual quantities attributable to this item.
240448 -
240449 -      Jeff asked that Sletten submit information showing the manner it
240450 -      calculated overblasting and the basis for concluding that method
240451 -      was reasonable under the terms of the contract and industry
240452 -      practice.
240453 -
240454 -      The Engineer will reconsider payment for this item based upon
240455 -      this additional support data.
240456 -
240457 -
240458 - Paul Robinson said this information will be provided.
240459 -
240460 -
240461 -
240462 -
2405 -
Distribution. . . . See "CONTACTS"