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


S U M M A R Y


DIARY: October 6, 1988 07:35 AM .......; Rod Welch

Worked on BPP on various matters.

1...Summary/Objective
2...Clyde and Jeff want a letter informing Voith they are obligated to
3...DTL Reviewed Findings Showing DNRC Has Minimal Exposure
4...Acceleration claim, Defense Procedures
5...Inspector Daily Progress Status Report
6...Time extensions As-built CPM


..............
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CONTACTS 
0201 - O-0387 0101 Tudor Engineering Company  415 543 9820   800 noo phon
020101 - Mr. Clyde Earnest,
0202 - O-0389 0101 Tudor Engineering Company  406 266 3728     800
020201 - Mr. Jeff Ghilardi,
0203 - O-0395 0301 Department of Natural      406 444 6699
020301 - Ms. Sarah Bond, Esquire, =406 444 6660, Legal Department

SUBJECTS
Change Order Administration
Prelim Claim Analysis,
Tudor's 891005 letter
Tudor - general views, policies
& procedures
Change Order Log

0708 -    ..
0709 - Summary/Objective
0710 -
071001 - Follow up
071002 -
071003 - Clyde wants a log of change orders and claims showing status.
071004 -
071005 - I indicated I should have done this.  Other business has kept
071006 - putting it back.  But it really should be done for the reasons
071007 - Clyde advanced, and should be maintained daily.
071008 -
071009 - Clyde explained the scope:
071010 -
071011 -    Should show original contract price and completion dates, then it
071012 -    should show changes todate, so the currently approved contract
071013 -    price and completion dates are clear.
071014 -
071015 -    Exposure to claims should be presented to indicate possible
071016 -    adjusted contract price and completion dates, including potential
071017 -    presumed damages.
071018 -
071019 -
0711 -
0712 - P48Q Times of Completion Status
0713 -
071301 - Clyde made a significant point that when contract milestones (e.g.
071302 - Sections 01110) occur, the Engineer needs to have documentation in
071303 - the record that shows whether the date is adjusted or that the
071304 - Contractor is held to the contract date.
071305 -
071306 - He believes that failure to specifically inform the Contractor that
071307 - the Contract requirement has not been adjusted or affirmed, there-
071308 - after waives the requirement.
071309 -
071310 - Does this mean that if adjustments have not been established
071311 - because of pending changes, then to affirm the Contract requirement
071312 - the Engineer must commence withholding liquidated damages?
071313 - ..
071314 - Undoubtedly it is material for both parties to have in the
071315 - record the Engineer's opinion about the times of completion, and that
071316 - this should not be left to speculation.
071317 -
071318 - In the the Sletten contract, the contractor could be notified the
071319 - September 11, completion date is the requirement until evidence is
071320 - submitted showing it should be adjusted.  The theory is that mere
071321 - requests for time extensions are not sufficient to justify changing
071322 - contract times of completion.
071323 -
0714 -
0715 -

SUBJECTS
Welch Assignment, Tudor
Management, Meeting with
Clyde & Jeff
DTL tolerance changes
Case Study Broadwater

1208 -
120801 - Met with Jeff and Clyde for breakfast next door at the restaraunt.
120802 -
120803 - Clyde asked about the areas of my work?
120804 -
120805 - Jef and I gave him the following main issues I am supporting...
120806 -
120807 -          DTL Findings
120808 -          CPM Schedule
120809 -          Document Control Procedures
120810 -          Document and Correspondence drafts
120811 -          Management Support, analysis and research
120812 -          Meetings
120813 -
120814 -
1209 -
1210 - N56W Claims & Change Order Status
1211 -
121101 - Sletten Contract
121102 -
121103 - Jeff is meeting with Bill Merriman next Tuesday to discuss Sletten's
121104 - needs change order matters, including adjusting the times of
121105 - completion for the 0951 contract.
121106 -
121107 - He advised of his understanding that Sletten has been pursuing a large
121108 - claim on a job in Neveda (this must be the one Bill Merriman mentioned
121109 - the other day in connection with Gracon's access across the
121110 - cofferdam), and that they recently decided to abandon it.
121111 -
121112 - Clyde feels they may be expecting to concentrate their claim resources
121113 - on this job.
121114 -
121115 -
121116 -  ..
1212 -
1213 - Respond to Voith
1214 -
121401 - Clyde and Jeff want a letter informing Voith they are obligated to
121402 - perform the contract, rejecting their proposals of 880927 and 881005
121403 - (a FAX that came in yesterday).
121404 -
121405 - Voith's request for time extension is not accepted.
121406 -
121407 - Jeff advised that when he visited Voith in York last week, Greg Snyder
121408 - told him that Voith decided 6 months ago to delay the Broadwater work,
121409 - without notice to Tudor, because they expected that Sletten would not
121410 - be ready on time.
121411 - ..
121412 - We reviewed the challenge of suddenly relying on the contract
121413 - when the record has not been developed on the Voith matter.  Where for
121414 - example, is the record of the recent meeting with Voith, discussed on
121415 - 880921? ref SDS 2 8526
121416 -
121417 - Clyde asked if I can go ahead and prepare an effective directive to
121418 - Voith on the matters at hand.
121419 -
121420 - I will work on this with Jeff and provide a draft for Clyde to
121421 - review.
121422 -
121423 -
121424 -
121425 -  ..
121426 - DTL Reviewed Findings Showing DNRC Has Minimal Exposure
121427 -
121428 - Clyde feels this is an area of considerable exposure.  He asked me
121429 - about the status.
121430 -
121431 - I explained the work is complete through a 2nd draft of Findings...
121432 - ref 26.  Clyde has seen the document, but has not had a chance to go
121433 - through it.
121434 -
121435 - I need about a week to write the argument.  I have not felt it is
121436 - needed now because Sletten has been issued a Decision which intends
121437 - that the Contractor submit its costs and time claimed for evaluation.
121438 - At that time, an argument would be needed to more fully support the
121439 - Engineer's decision.
121440 - ..
121441 - Clyde is concerned that the Engineer may have exposure because
121442 - the specification failed to disclose the tolerances in the 880803
121443 - Determination.
121444 -
121445 - I reminded him that, if, as alleged, Voith consulted in preparing the
121446 - specification, then it may be accountable for Sletten's expense
121447 - resulting from defective bidding materials on the grounds that Voith
121448 - failed to inform Tudor of the correct tolerances. Additionally, if
121449 - Voith's representations to Tudor regarding needed tolerances are not
121450 - supported by objective evidence, then Voith may be liable for the
121451 - extra expense as a matter it initiated for its own convenience.
121452 -
121453 -
121454 -
121455 -  ..
121456 -
121457 -  ..
121458 - Acceleration claim, Defense Procedures
121459 - Inspector Daily Progress Status Report
121460 -
121461 - Recommended that Tudor include in the reports occassions when the
121462 - work is delayed because the Inspector finds work is defective.  The
121463 - Inspector is notifying the Contractor, but is not reporting these
121464 - occassions in the job reports.
121465 -
121466 - Jeff advised he will discuss it with Larry, but that he is kind of
121467 - independent.
121468 -
121469 -
121470 -  ..
121471 - Time extensions As-built CPM
121472 -
121473 - Jeff confirmed he wants this done next week.
121474 -
121475 - I explained the advantage of hiring an outside firm that specializes
121476 - in this work, so I can focus on gathering and positioning the record
121477 - to "fix" the job, as Clyde and I discussed on 880815. ref SDS 1 0770
121478 -
121479 - We reviewed the recommendation on a CPM schedule discussed with Clyde
121480 - on 880921, and why it is essential to apply resources for planning to
121481 - complete the remaining work, as well as to prepare as-builts under
121482 - discussion today. ref SDS 2 4896
121483 -
121484 - Clyde asked me to do this, and feels the as-built need not be very
121485 - detailed.  He suggested using Sletten's 880908 submittal and marking
121486 - the dates of actual concrete pours.
121487 - ..
121488 - Jeff explained the advantages he sees in developing an as-built
121489 - based entirely on Tudor's job records.
121490 -
121491 - I indicated the PSR's and concrete pour records I have seem to be
121492 - adequate for this task.  JoAnne has mailed this stuff to my SF
121493 - address.
121494 - ..
121495 - Jeff believes that if Tudor presents a credible as-built in
121496 - negotiations with Sletten, they will be persuaded to accept Tudor's
121497 - position.
121498 -
121499 -     [On 890317 Tudor accepted Sletten's as-built CPM. ref SDS 5 8594]
121500 -
121501 -
1216 -
1217 -

SUBJECTS
Prepare billing

1404 -
140401 - Clyde said they need a detailed billing for the State's audit.  I
140402 - probably won't have time to get this today, but will get to it next
140403 - week.
140404 -
140405 - Advised I have a problem with Lotus which is the calculation driver
140406 - due to changing the operating system.
140407 -
140408 - I will give my billing to Clyde tomorrow at the meeting with the
140409 - State.
140410 -
140411 -
1405 -

SUBJECTS
Meeting Notes &
Understandings, Procedures

1905 -
190501 - Called Jeff this evening to see if he had any corrections to the
190502 - meeting notes produced for yesterday.
190503 -
190504 - He didn't have a chance to look at them today.  Advised I will send a
190505 - transmittal with JoAnne tomorrow.
190506 -
190507 -
1906 -

SUBJECTS
Notice to submit data
on Excavation claim

2005 -
200501 - Jeff requested a notice to Sletten to provide information on claims
200502 - associated with work that will be covered up.
200503 -
200504 - Prepared this as ref 16.
200505 -
200506 -
2006 -
2007 -

SUBJECTS
Claims & Contractor
General Administration
DNRC legal - Discovery

2206 -
220601 - Sarah called today to confirm meeting tomorrow with Clyde.
220602 -
220603 - I mentioned that we should condition disclosure of Voith materials on
220604 - mutual release of Sletten bid estimating and scheduling information.
220605 - This responds to ref 12.
220606 -
220607 - She has obtained a copy of the Clark v. Briscoe case, we discussed the
220608 - other day.
220609 -
220610 - Get copy of Clark v. Briscoe.
220611 -
220612 - 1640 called Sarah back and reminded her about this.  She had forgotten
220613 - to include it in the letter which she intends to issue today.  She
220614 - will indicate Sletten can come to a common location where both parties
220615 - can view documents requested by the other.  Sarah will not mention the
220616 - Estimate file by name.
220617 -
220618 -
2207 -
2208 -

SUBJECTS
Coordination with Gracon
Upstream Cofferdam Access

2605 -
260501 - Prepared response (ref 7) to Gracon's claim letters, ref 5 & 6.
260502 -
260503 - Prepared response (ref 9) to Gracon's letter regarding the accident
260504 - where Gracon's concrete pump truck broke the electrical line leading
260505 - to Sletten's pumps.
260506 -
260507 -
260508 - Disclose diminished access after Swan removes 96" pipes.
260509 - See ref 1 line 1801.
260510 -
260511 - Mentioned this to Clyde.  He feels Engineer should address it.  He
260512 - will ask Jeff to call me about it.
260513 -
260514 - Discussed it with Jeff late this evening (called him about 2100).
260515 - He feels it will not turn out to be a problem because Sletten will
260516 - continue to need access across the cofferdam to service its pumps.
260517 - He thinks Sletten will make arrangements with Swan to leave the 96"
260518 - pipes in place until later when the cofferdam is removed.
260519 -
260520 -
2606 -

SUBJECTS
Coordination with Gracon
Gracon Barge Operation
Safety of Procedure

2706 -
270601 - When I ran into Dale two evenings ago (he was at the restaraunt and
270602 - took me for a ride to see the rip rap operation he had underway up the
270603 - road about a mile or so), I asked him about the barge operation.
270604 -
270605 - He said Gracon has not had occassion to land the barge since the time
270606 - he had trouble the other day, but he feels it will likely be okay now
270607 - that he has experience with the swifter currents.  He also expects the
270608 - current to slack off before too long.
270609 -
270610 -
2707 -
2708 - 0491

SUBJECTS
Coordination with Gracon
Gracon Access
Feasibility Downstream
Sletten Earthwork Schedule

3207 -
320701 - Prepared response (ref 14) to Sletten's letter on need to access the
320702 - area Gracon is using for its barge (ref 13).  Response is based on
320703 - interview with Bill Clark yesterday, ref 2 line 1801.
320704 -
320705 - Prepared confirmation to Swan re meeting yesterday on earthwork
320706 - scheduling which supports the determination issued to Sletten.  Jeff
320707 - decided not to publish this confirmation.  I recommended that Tudor
320708 - issue this document with a cc to Sletten as support of the position
320709 - taken with Sletten.
320710 -
3208 -

SUBJECTS
Scheduling & Management
Management of Voith Contract
Interface with Sletten
Time Extensions

3607 -
360701 - Prepared response Voith Sep 27 letter, ref 20 and 21.
360702 -
360703 - This is really a draft with ideas for Jeff to consider.  Not sure
360704 - exactly how he wants to approach the matter.
360705 -
360706 - I incorporated Voith's disclosure that it decided to delay fabrication
360707 - Broadwater equipment, per Jeff's explanation this morning (see above
360708 - notes of breakfast meeting with Clyde and Jeff).
360709 -
3608 -
3609 -

SUBJECTS
Draft Tube Dispute
Defective work by Sletten
showing inexperience

3806 -
380601 - Jeff requested a response to this thing (ref 23 and 24) in light of
380602 - the analysis, ref 25.
380603 -
380604 - Thinking about the potential for discovery, ref 12  and the rest of
380605 - the record (ref 26), I believe it would be best not to respond at all
380606 - to Greg's letter for now.  It is isolated by the rest of the record.
380607 - To dispute it, would give it unwarranted credibility and attention.
380608 -
380609 -
380610 -
380611 -
380612 -
380613 -
380614 -
3807 -
3808 -
Distribution. . . . See "CONTACTS"