THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700
S U M M A R Y
DIARY: September 29, 1988 10:00 AM .......;
Met Sarah Bond, get acquainted and discuss general approach to case.
2...Need Case in 9th Circuit on Arbitration in Montana
3...Teleconference Bill Cahill on State Claims
...Voith Corrective Work on DTL
4...Voith Contract Interface Sletten Contract
5...Bill, Sarah asked about notification with respect to State claims
6...Taping recording meetings
7...Bill Cayhill Coordinate on Representing Tudor
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0201 - O-0395 0301 Department of Natural 406 444 6699
020101 - Ms. Sarah Bond, Esquire, =406 444 6660, Legal Department
Preliminary Meeting, Counsel
0504 - ..
0505 - Summary/Objective
050601 - Follow up
050605 - Need Case in 9th Circuit on Arbitration in Montana
050607 - Should request a copy from Bill Cahill. Sarah is short handed.
050608 - Bill's para legal can pull a copy and send to both of us, if it is
050609 - available.
050611 - It should be something like -- Clark County v. Frank Briscoe
050612 - Construction Company.
050614 - This is a major case dealing with entitlement for time extensions and
050615 - extended overhead expense arising from design changes. Similiar
050616 - issues my exist on BPP. A major case like this would likely get
050617 - attention if cited, even it is not within this jurisdiction. It
050618 - would be helpful to have the language in order to structure the BPP
050619 - performance record in a way that recognizes any bright line rules set
050620 - out in the opinion.
050623 - ..
050624 - Teleconference Bill Cahill on State Claims
050626 - Bill and Sarah feel the State should be giving notice to Sletten of
050627 - the approximate amount of damage the State expects to incur resulting
050628 - from its claims against the Contractor.
050630 - The State should submit its claims to the Engineer for determination
050631 - as provided by the contract. The State need not immediately adjust
050632 - payment to the contractor, if the Engineer finds in favor of the
050633 - State. The arbitration clause may affect the actual disbursement of
050634 - funds. Such amounts could be paid into an interest bearing
050635 - account, if Sletten objects to the Engineer's determination.
050637 - Discussed two examples:
050640 - ..
050641 - Welding Prequalification
050643 - Failure of the Contractor to perform welding prequalification
050644 - requirements. The State ultimately took over this work and
050645 - incurred $3,000 to $4,000 plus the delay to the job.
050648 - Voith Corrective Work on DTL
050650 - This is a major expense arising from Sletten's failure and refusal
050651 - to perform the requirement to utilize the recommendations and
050652 - suggestions for assemblying the DTL from the manufacturer's Field
050653 - Representative.
050654 - ..
050655 - This could be $20,000 to $50,000, plus delay cost.
050658 - ..
050659 - Dewatering/Standby Electricity
050661 - Has been disputed for some time and also resulted in a number of
050662 - occassions when the work has been flooded. It will touch the
050663 - acceleration claim and the Contractor intends to claim cost of
050664 - clean up, delay, etc. That aspect could reach $100 000 or more
050665 - (Sletten recently claimed $60,000 for 3 or 4 days of lost time due
050666 - to a lightening strike that caused flooding -- the merits appear
050667 - questionable, but show an intent to inflate claims, so it should be
050668 - expected that a major claim will arise on this matter).
050670 - The State might be liable for failing to take corrective action in
050671 - order to mitigate. The issue is of greater importance now because
050672 - of the pending installation of Voith equipment which is more
050673 - susceptible to flood damage.
050674 - ..
050675 - It was expected the contractor would have installed flood
050676 - gates which would reduce the amount of water the dewatering system
050677 - must handle; however, this work is now a week or so behind because
050678 - the gates have not been delivered to the job. If Voith is delayed
050679 - in its start, then the flood gates might yet be delivered, and
050680 - installed in time to help solve the problem. If not then other
050681 - measures may be needed. The State has recently considered
050682 - installing a supplemental backup power system.
050685 - ..
050686 - Voith Contract Interface Sletten Contract
050688 - Explained the conflict Tudor faces in demanding Sletten complete to
050689 - the point where Voith can commence its contract on 881017 and such
050690 - demand resulted from verbal understandings with Voith; then within
050691 - past few days Voith has backed away and informed Tudor in writing
050692 - that it cannot start until 881114.
050694 - Advised this reversal is consistent with other Voith conduct and
050695 - thereby presents a management problem, as well as an immediate
050696 - coordination issue with the Sletten contract. Cited review of
050697 - Voith's 880912 letter re equipment tolerances ref 4. Bill said he
050698 - would like to review it. Sarah said she has a copy and will send one
050699 - to Bill.
050700 - ..
050701 - Advised that Tudor and State staff will be meeting with Voith in
050702 - York, Pa next week.
050706 - ..
050707 - Bill, Sarah asked about notification with respect to State claims
050709 - Advised I have written a status report to Jeff and Clyde on this
050710 - matter, ref 8. Bill will obtain a copy from Clyde. Sarah thinks she
050711 - has a copy, but has not had a chance to review it.
050714 - Taping recording meetings
050716 - Advised of the impact this has had on Sletten's project manager,
050717 - Mr. Merriman, and that Sletten has discontinued taping the meetings
050718 - probably in order to submit its own meeting notes without the
050719 - burden of accountablity.
050720 - ..
050721 - Bill recommended that Tudor consider taping meetings. He finds
050722 - this is helpful in expediting acceptance of written notes, as
050723 - competent evidence.
050726 - ..
050727 - Bill Cayhill Coordinate on Representing Tudor
050729 - Bill will call me tomorrow at the job or the motel after talking to
050730 - Clyde.
050732 - [On 881007 Clyde requested less contact between DNRC and Welch.
050733 - ref SDS 3 0951]
050735 - Bill asked me to call him the week of 881010 when I am in SF, to
050736 - arrange a meeting. Explained potential conflict with my knee
050737 - operation, about getting together, but I will call him for sure.
050739 - We concluded the conference call about 1200.
050740 - ..
050741 - Sarah had an appointment. I will call her this afternoon to
050742 - discuss a few remaining issues, ref 7 - 9. Made a copy of documents
050743 - and left on her desk to facilitate our discussion.
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