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, Office Engineer
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, Field Project Coordinator
0204 - O-0393 0301 Gracon Corporation         303 667 2203
020401 - Mr. Mike Ream, Vice President, Construction Department
020402 - Mr. Dale Harrington, Superintendent, =406 266 5747
020403 - Broadwater Power Project
0205 - O-0394 0301 Voith Hydro, Inc.          717 792 3511   717 792 3862 FAX
020501 - Mr. Kenneth L. Carlson, Field Representative, =406 266 3275
020502 -
0206 -

SUBJECTS
Weekly Schedule, & Progress Meeting
Notes & Understandings
Tape Recording Less Useful than SDS, No
Accurate Complete Notes Can be Prepared
Feedback Accuracy Listening SDS Metric
Feedback Metrics Meeting Notes Improve

1408 -
1408 -    ..
1409 - Summary/Objective
1410 -
141001 -
141003 -  ..
141004 - Bill Merriman advised that Sletten did not have any corrections to
141005 - submit for the notes on the meeting last week, 880914.  Bill asked to
141006 - point out matters in Tudor's Notes which Sletten feels require
141007 - clarification.
141009 -  ..
141010 - Bill's clarifications are presented under the applicable headings
141011 - below.
141012 -
141013 -
141015 -  ..
141016 - Tape Recording Meetings, Sletten Requests No Record of Meeting
141017 -
141018 - Follow up ref SDS 5 0001.
141019 -
141020 - Approximately 90 minutes into the meeting Bill Merriman asked if
141021 - Tudor would agree to turn the tape recorder off.  He further requested
141022 - that Norm Barnard, representing the State, discontinue taking notes of
141023 - the discussion.
141025 -  ..
141026 - The Engineer agreed to this, even though Sletten had earlier requested
141027 - on 880907 that meetings be tape recorded in order ensure accuracy of
141028 - understandings. ref SDS 4 3402
141029 -
141030 -     [On 880928 Sletten advises it is no longer taping recording the
141031 -     meetings, ref SDS 6 9330
141033 -      ..
141034 -     [On 881003 DNRC counsel reported complaints by Sletten that notes
141035 -     of this meeting today are inaccurate.  Counsel also reported the
141036 -     SDS record on past meetings which Sletten tape recorded, were
141037 -     accurate. ref SDS 7 7007]
141038 -
141039 -
141040 -
1411 -

SUBJECTS
Coordination with Gracon Contract
Notice Provisions

1904 -
190501 -  ..
190502 - Gracon Access across Upstream Cofferdam
190503 -
190504 - Rod Welch confirmed that the Engineer's Directive for Sletten to
190505 - permit Gracon access and remove its crane, ref 13, is in full force
190506 - and effect, and that damages are resulting from Sletten's failure to
190507 - perform the Directive in the estimated amount of approximately
190508 - $17,000 per day.
190510 -  ..
190511 - Rod asked if Sletten had any objections to this Directive, and whether
190512 - it is causing Sletten any extra expense?
190514 -  ..
190515 - Bill Merriman indicated that Sletten was not obligated to perform the
190516 - Directive, because it had requested proof of insurance coverage that
190517 - has not been furnished by the Engineer.
190519 -  ..
190520 - Rod Welch asked if Sletten had obtained advice of counsel on this
190521 - matter?
190523 -  ..
190524 - Timely Notice
190525 -
190526 -   Bill Merriman stated that Sletten did not receive the Directive
190527 -   until 880921 1900, and so has been unable to obtain legal advice,
190528 -   as of the meeting this morning.
190529 -
190530 -   Rod Welch noted in substance and effect that the Engineer notified
190531 -   Sletten's Project Coordinator, Mr. Paul Robinson (present at the
190532 -   meeting today) by telephone yesterday afternoon at approximately
190533 -   1430 of the Engineer's Directive.  The Engineer finds that such
190534 -   notice is sufficient under the Contract provisions regardless of
190535 -   when other off-site Sletten staff may have seen the confirming
190536 -   document.
190538 -    ..
190539 -   [That Sletten was properly notified is supported by the ensuing
190540 -   conduct shortly after the Engineer's call to Paul Robinson, in that
190541 -   Sletten hand delivered a letter (ref 19) within minutes of the
190542 -   call, objecting to the Directive, stating:
190543 -
190544 -     "...you continue to ignore these concerns and have allowed Gracon
190545 -     to proceed [with their work requiring access across the coffer-
190546 -     dam]...  This cannot and will not continue.
190548 -      ..
190549 -     Today, Gracon attempted unsuccessfully to place concrete via a
190550 -     slickline routed across the Cofferdam.  After that attempt failed,
190551 -     we were advised that tomorrow they were going to reset their
190552 -     pumper truck at the base of the stairs...
190554 -      ..
190555 -     Whatever action is necessary to see that your actions cease will
190556 -     be taken by Sletten Construction."
190558 -    ..
190559 -   Within minutes of receipt of this letter, Sletten moved its crane to
190560 -   block Gracon's access to the dam and thereby bar implementation of
190561 -   the Directive.  The crane was unmanned and performed no purpose
190562 -   except to prevent Gracon from using the Cofferdam access route in
190563 -   the manner Directed, as promised in Sletten's letter.]
190565 -  ..
190566 - The Engineer advised that Sletten's "concerns" have been fully
190567 - considered and found not sufficient under the Contract to deny Gracon
190568 - reasonable access across the Cofferdam (see Section 1560 para 3.11
190569 - H4), as embodied in the Directive.  The Engineer advised that the
190570 - damages resulting from Sletten's failure to perform the Directive are
190571 - therefore chargeable to Sletten beginning yesterday afternoon when the
190572 - crane was moved to block implementation of the Directive.
190573 -
190575 -  ..
190577 -  ..
190578 - Sletten Demands Proof of Insurance as Condition of Performance
190579 -
190580 -   Bill Merriman requested a copy of Gracon's insurance coverage.  He
190581 -   maintained that the Engineer had a duty to provide this as a
190582 -   condition precedent to Sletten complying with the Directive.
190583 -
190584 -   Rod Welch advised that Gracon has no relationship with Sletten.
190586 -    ..
190587 -   What is at issue now is whether Sletten intends to perform its
190588 -   contract requirement to comply with an Engineer's Directive (see
190589 -   Article 6.29, 9.11).  The Engineer has issued a Directive upon which
190590 -   Sletten may rely, such that, if Sletten incurs extra expense as a
190591 -   result of the Engineer's Directive, it may pursue recovery in the
190592 -   manner provided by the contract (see Article 7.1).  Further, Sletten
190593 -   has met its burden to mitigate by notifying the Engineer of its good
190594 -   faith belief that certain risks arise from the Engineer's
190595 -   Determination.  Therefore Gracon's insurance coverage is relevant to
190596 -   the Engineer in formulating the Directive  but is not material to
190597 -   Sletten's decision to comply.
190599 -    ..
190600 -   The Engineer submitted a copy of Gracon's insurance certificate to
190601 -   Sletten for information without agreeing that it was a necessary
190602 -   condition for Sletten's performance of the Directive.
190604 -    ..
190605 -   Rod Welch asked if Sletten is prepared to move its crane so Gracon
190606 -   can continue its work.
190608 -    ..
190609 -   Bill Merriman said Sletten wants to "...think about it."
190610 -
190612 -    ..
190613 -   Gracon Gives Notice of Willingness to Mitigate
190614 -
190615 -   Rod Welch asked Mike Ream, representing Gracon Construction, whether
190616 -   Sletten's delay in disclosing its decision to remove the crane,
190617 -   would cause Gracon continuing extra expense.  Mike said that it
190618 -   would because, among other reasons, the pump truck cannot standby on
190619 -   a continuing basis due to contract commitments for other jobs.  If
190620 -   he knows now that Sletten will remove the crane today, for example,
190621 -   Gracon will suffer reduced damage by giving sufficient notice to
190622 -   retain the Concrete Pumping truck.
190624 -    ..
190625 -   Wayne Wetzel, representing the State, suggested that we adjourn for
190626 -   a period while Sletten consults, so a timely decision can be given
190627 -   that enables Gracon to plan its work in a way that reduces the
190628 -   damages.
190630 -    ..
190631 -   Bill Merriman rejected this proposal.  He said Sletten does not want
190632 -   to consider this matter more carefully nor consult with anyone.
190634 -    ..
190635 -   Rod Welch explained that this position increases damage for which
190636 -   Sletten may be responsible, because simply by informing Gracon when
190637 -   it can expect to commence work, further damage can be avoided.
190638 -   Otherwise they must continue to standby.
190640 -    ..
190641 -   Mr. Merriman advised there are a number of other matters Sletten
190642 -   wants to discuss and since this is the weekly Progress meeting,
190643 -   Sletten wants to complete that agenda first.
190645 -    ..
190646 -   Accordingly, the meeting was continued without resolving the matter.
190647 -   Gracon was left on standby until Sletten renders its decision to
190648 -   move its crane.
190649 -
190651 -  ..
190652 - Gracon Access Across Powerhouse
190653 -
190654 - Bill Merriman asked what access Gracon will need on 881010 when it
190655 - will be entitled to access across the powerhouse.  Sletten's Schedule
190656 - currently shows its work will not be sufficiently complete to permit
190657 - such access until sometime after the contract date.  He said that
190658 - Sletten would like to work out a reasonable alternative in order to
190659 - accommodate Gracon, and asked for a suggestion.
190661 -  ..
190662 - Mike Ream explained that on an interim basis, access along the
190663 - Cofferdam road that is now blocked by Sletten's crane, would be fine.
190664 -
190665 -
190666 -
190667 -

SUBJECTS
Schedule
Time Extensions

2204 -
220501 -  ..
220502 - Proposal to Waive Rights
220503 -
220504 - Bill asked about the State's interest in entering into an agreement
220505 - that if Sletten met the Voith Contract interface dates, as generally
220506 - reflected in Sletten's Updated Schedule, ref 10, then the parties
220507 - would relinquish mutual claims related thereto.
220508 -
220510 -  ..
220511 - Voith Contract Start 881017
220512 -
220513 - Rod Welch advised that the State is open to such proposal provided
220514 - Sletten can demonstrate it can meet the Schedule objectives.
220515 -
220516 - Specifically, how is Sletten going to perform a scope of work which it
220517 - has estimated will take 10 days (the Curb Ring), that is now a week
220518 - behind schedule, within the Schedule objective for Voith to start on
220519 - 881017, and still accomplish work it has contended requires an
220520 - additional 8 days to perofrm?
220522 -  ..
220523 - Bill said he didn't see any problem.
220524 -
220525 -
220527 -  ..
220528 - Sletten Reserves Rights re Acceleration Claim
220529 -
220530 - Bill explained that Sletten does not intend to waive its right to seek
220531 - extra compensation for acceleration expense it believes was caused by
220532 - others.  Sletten wants the State to waive its right to recover damages
220533 - it may have incurred due to Sletten's failure to meet completion
220534 - requirements, if Sletten meets certain Voith contract interface dates
220535 - (see Voith Contract Coordination  below).
220537 -  ..
220538 - The Engineer will draft a letter explaining what the State is willing
220539 - to do along these lines.
220540 -
220541 -
220542 -
2206 -
2207 -

SUBJECTS
Schedule Impacts
Curb Ring, Difficulty
Meeting Tolerance
Requirements
Contract Disputes
CPM Contractors Avoid Accountability

2808 -
280901 -  ..
280902 - Sletten Expects Difficulties Meeting Tolerances for Curb Ring
280903 -
280904 - Bill Merriman advised that the "difficulty" Sletten will have in
280905 - setting the Curb Ring is in meeting the tolerances for alignment of
280906 - the unit centerline of the pier to within .010"  called for in the
280907 - Engineer's Determination, ref 11.  Bill feels this is an important
280908 - point that was not mentioned in the Notes of the meeting for last
280909 - week. ref SDS 5 0026
280911 -  ..
280912 - Bill also pointed out that Sletten did not encounter delay due to
280913 - unavailability of Ironworkers, and did make the concrete pour
280914 - discussed at ref 9 line 190909, on 880910.  This fact is shown on
280915 - line 190920.
280916 - ..
280917 - Bill's point was accepted.
280918 -
280919 -    [The purpose of this is to show that nothing that occurred prior to
280920 -    880910 can cause delay in meeting the 881015 objective for starting
280921 -    the Voith Contract work, since Sletten's schedule was intended to
280922 -    consider all known constraints.]
280923 -
280925 -  ..
280926 - Duty to Disclose
280927 - Contractor Demonstrate Viability of CPM Schedule
280928 -
280929 - Bill asked why the Engineer is so insistent on obtaining information
280930 - from Sletten about possible delays in completing the work.  He cited
280931 - specifically ref 9 line 190922, inquiring about the reliability of
280932 - Sletten's Schedule, transmitted via ref 10.
280934 -  ..
280935 - Rod explained that the Engineer has a number of other contracts to
280936 - manage which depend upon completion of Sletten's work   The other
280937 - Contractors require advance notice in order to prepare to start on the
280938 - date Sletten completes controlling activities.  This situation
280939 - together with a variety of other obligations the State has could
280940 - result in severe damage to the State, if Sletten fails to meet
280941 - projected completion dates.  Therefore, the Engineer must take great
280942 - care to investigate the reliability of schedule projections based upon
280943 - good faith disclosure by the Contractor of potential adverse impacts.
280944 -
280945 -    [An example is the "difficulty" Sletten expects to have in setting
280946 -    the Curb Ring. ref SDS 0 5940  Sletten's disclosure enables the
280947 -    Engineer to weigh the advantage to both Sletten and the State of
280948 -    having someone who will have less "difficulty," perform the work in
280949 -    order to reduce the damage caused by unnecessary delay due to
280950 -    Sletten's projected difficulties.]
280951 -
280952 -
280953 -
280954 -
2810 -

SUBJECTS
Schedule
Voith Contract
Coordination

3105 -
310601 -  ..
310602 - Voith to be Notified it can Start Work on 881015
310603 -
310604 - Jeff indicated that based upon Bill Merriman's representations (line
310605 - 160701 - 160714) and the Engineering judgement that the work to be
310606 - performed could be completed by a reasonable contractor within the
310607 - Schedule objectives, he believes there are sufficient grounds to
310608 - officially notify Voith of its contract start date.
310610 -  ..
310611 - Jeff advised that based upon this information  the Engineer has
310612 - notified Voith that it can begin work according to the Schedule
310613 - presented last week (ref 9 line 251001), as recommended by Sletten,
310614 - ref 8 line 270701.
310615 - ..
310616 - Mobilize week of 881010
310617 -
310618 -   Voith will receive materials and equipment during this week.
310619 -
310620 -   Voith will mobilize a 150 ton crane.
310621 -
310622 -   A laydown area will be needed adjacent to the Powerhouse, approxi-
310623 -   mately in front of the Engineer's office.  Sletten will make this
310624 -   location available beginning the week of 881010.  The exact size
310625 -   will be such as to not unreasonably impede Sletten's work, as
310626 -   determined by the Engineer.
310628 -    ..
310629 -   Voith will be working in the Powerhouse to install storage shelving
310630 -    ..
310631 -   and stocking materials and equipment in support of its work.  Such
310632 -   work shall be performed so as not to impede Sletten's performance.
310633 -    ..
310634 -   Staging Area Plan ----------------- Voith will prepare a site
310635 -   drawing for its staging needs which Sletten can review and offer
310636 -   suggestions for reasonable adjustments to insure that its operations
310637 -   are not delayed or hindered unneces- sarily.
310639 -    ..
310640 -   This plan should be provided by 880930.  Voith will endeavor to
310641 -   have a draft available for the next Progress meeting next
310642 -   Wednesday, 880928, for discussion.
310644 -  ..
310645 - Contract work will commence 881017
310646 - ..
310647 - Voith Deliveries
310648 -
310649 -   Kieth Ferguson asked what procedures should be used to manage
310650 -   deliveries Sletten is getting for Voith.  He explained that Voith
310651 -   deliveries are addressed to Sletten instead of Voith.
310652 -
310653 -   Ken said he will arrange to correct this problem.
310655 -    ..
310656 -   Sletten has been cooperating in assisting Voith unload such
310657 -   deliveries.  Compensation for this support should be arranged
310658 -   between Voith and Sletten.  If Voith fails to compensate Sletten
310659 -   for its services, Sletten may present a claim to the Engineer for
310660 -   approval.  The Engineer would intend to make an equitable adjust-
310661 -   ment to both contracts.  It is expected that this step will not be
310662 -   necessary in that usually enough occasions arise where reciprocal
310663 -   aid of the kind involved here precludes the need for payments.
310664 -   ..
310665 -   Jeff emphasized it is important that deliveries be unloaded
310666 -   under the supervision of Ken where possible so Voith can maintain an
310667 -   accurate inventory of what has been delivered and where it is
310668 -   located.  Bill Merriman asked about compensation for Sletten's time
310669 -   in attempting to locate Ken.  The Engineer recognizes this is a
310670 -   compensable expense which should be worked out between Voith and
310671 -   Sletten.
310673 -    ..
310674 -   Voith should promulgate and distribute to the Engineer and to
310675 -   Sletten instructions for handling deliveries in the event Ken is
310676 -   not on site when a delivery occurs.
310678 -    ..
310679 -   Such instructions should be available for review at the next
310680 -   Progress meeting, 880928.
310681 -
310682 -
310683 -
310684 -
3107 -

SUBJECTS
Rip Rap
Submittals
Silt Barrier

3305 -
3307 -    ..
330701 - Rod Welch suggested that since Sletten management will be in Helena
330702 - this afternoon for a meeting, they might stop in and discuss with the
330703 - approving Agency the status of the silt barrier submittal.
330705 -  ..
330706 - Sletten is attempting to expedite work that requires approval of this
330707 - submittal. It was suggested that the projected 30 day approval period
330708 - might be greatly reduced by such a meeting in which ideas can be
330709 - advanced on the spot for overcoming concerns of the State.
330710 -
330711 -
330712 -
330713 -
3308 -

SUBJECTS
Backfill Concrete
Pay Item #24

3404 -
3406 -    ..
340601 - Bill Merriman asked that the Engineer submit a letter setting out his
340602 - interpretation of payment terms for concrete backfill to supplement
340603 - prior discussions.
340605 -  ..
340606 - Jeff said he is working on this.
340607 -
340608 -
340609 -
340610 -
340611 -
340612 -
340613 -
340614 -
340615 -
340616 -
3407 -