CONTACTS 

SUBJECTS
Claims, Settlement Proposal,
Meeting, Sletten Management & Counsel
Accuracy, SDS Records Inaccurate
Conflict Improves Productivity Early Notice Problems
Tape Feared by Those Who Complain SDS Inaccurate
Welch Assignment

1108 -
1108 -    ..
1109 - Summary/Objective
1110 -
111001 - Jeff presented the State's settlement position, relative to the
111002 - Contractor's offer, ref 6.
111004 -  ..
111005 - He advised the State would expect to issue change orders to Sletten in
111006 - the total amount of $6.5M, and extend the 880911 contract completion
111007 - date to 881010.  Jeff explained that the State's offer permits the
111008 - Contractor to recover approximately $180K above the amount Sletten has
111009 - shown entitlement for, and would waive LD to 881128.
111011 -  ..
111012 - Wade Dann advised that he reviewed Sletten's claims in their office
111013 - yesterday.  He also advised that a major part of his practice is
111014 - representing Engineers (mentioned Brown & Caldwell).  Wade offered an
111015 - opinion that based upon his review, the Contractor is entitled to
111016 - substantial recovery.  Wade advised he developed his contract expertise
111017 - as counsel with the Corps of Engineers.
111018 - ..
111019 - This position was not supported by reference to specific facts
111020 - and evidence.  He did not explain what is ment by "substantial
111021 - recovery." Accordingly, it is essentially posturing (justifying to
111022 - Sletten his fee for the past two days).
111024 -  ..
111025 - The bottom line is that nothing was presented at the meeting to
111026 - create doubt about the correctness of the State's proposal relative
111027 - to the merits of the Contractor's claims, or the soundness of
111028 - business judgement.
111029 -
111031 -  ..
111032 - Welch Background and Experience
111033 -
111034 - Sletten's VP, Marty Becker, and counsel, Wade Dann both inquired about
111035 - Welch's position at the job, asked for a business card, asked about
111036 - education and experience in management -- a sort of voir dire.  Marty
111037 - objected that Welch was not forthcoming in answering these questions.
111038 -
111039 -     Earlier, on 881005 Bob Sletten asked about Welch experience.
111040 -     ref SDS 3 DL5M
111042 -  ..
111043 - Wade asked to sit behind Welch during the meeting in order to observe
111044 - efforts to capture the record.  At one point, Wade bent over and
111045 - without warning added a notation to Welch's writing.
111046 - ..
111047 - Wade said this additional notation would help the Engineer
111048 - understand Sletten's position.
111050 -  ..
111051 - Jeff noted that the meeting is being tape recorded at Sletten's
111052 - request, and so accuracy of understandings should not be an issue.
111053 - ..
111054 - The parties were encouraged at this point to submit any writings
111055 - they want the Engineer to consider.  Additionally, people can provide
111056 - feedback to correct and extend the record of information issued by the
111057 - Engineer.  During meetings people can clarify understandings verbally,
111058 - rather than attempt to change writings of others during meetings.
111060 -  ..
111061 - Wade agreed this is an acceptable procedure to protect his clients
111062 - interests.
111063 -
111065 -  ..
111066 - Tape Recording to Correct the Record Refused
111067 - Sletten Says Engineer's SDS Record Inaccurate, Offers No Corrections
111068 -
111069 - Wade Dann, Sletten's counsel, requested to go "off-the-record" by
111070 - turning off the tape recorder, so that he could make some confidential
111071 - proposals on settling claims.
111073 -  ..
111074 - The Engineer, Jeff, agreed to this request.
111076 -  ..
111077 - Once the tape recorder was turned off, Wade launched into a long, and
111078 - heated charge that the Engineer's project record (SDS) is inaccurate,
111079 - and contended that unspecified inaccuracies harm his client, Sletten.
111080 - He did not offer corrections, nor were any settlement proposals put
111081 - forward.
111083 -  ..
111084 - Jeff asked if it would help this part of the discussion to turn the
111085 - tape recorder back on in order to ensure an accurate record of
111086 - Sletten's corrections to the SDS record?
111088 -  ..
111089 - Wade declined.
111090 -
111091 -     (On 880907 role of accurate records was discussed with DNRC
111092 -     management. ref SDS 2 6927)
111094 -  ..
111095 - Jeff explained again that Sletten can submit corrections to anything
111096 - that seems to be misrepresented in the Engineer's record.  He noted
111097 - that on 881005 Sletten reported plans to submit corrections, but over
111098 - the past 4 weeks has not done so. ref SDS 4 0001  He reviewed
111099 - understandings from the meeting on 880907 about the importance of
111100 - timely notice in order to facilitate prompt payment to the contractor.
111101 - ref SDS 1 0594
111103 -  ..
111104 - Wade said Sletten is familiar with notice requirements, and will
111105 - submit corrections to assist the Engineer in determining an equitable
111106 - adjustment on pending claims.
111108 -  ..
111109 - Wade suggested that details of the settlement not be disclosed.
111111 -  ..
111112 - Marty Becker indicated Sletten's objective is to avoid binding Sletten
111113 - to subcontractor claims based upon the Engineer's allocation.
111115 -  ..
111116 - Bill Merriman asked whether the State is prepared to pay for those
111117 - things where there is agreement and litigate the balance.
111119 -  ..
111120 - Jeff explained that the State will pay Sletten all of the money it has
111121 - earned in performing the work required by the contract.  Sletten
111122 - should submit evidence showing additional payment is owed under the
111123 - contract, so that prompt payment can be issued.
111125 -  ..
111126 - Jeff will meet with Bill Merriman tomorrow at the site to discuss
111127 - details of the State's offer and explore alternatives.
111128 -
111129 -
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1112 -