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


S U M M A R Y


DIARY: December 21, 1988 05:45 AM .......; Rod Welch

Respond to Sletten letters received 881219; called Bill Cahill, Jim

1... 2...Summary/Objective
3...Follow up
4...Follow up


..............
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CONTACTS 
0201 - O-0395 0202 Department of Natural      406 444 6699SUBJECTS
Claim Notice Rebar
detailing expense
Fast Track

0505 -    ..
0506 - Summary/Objective
0507 -
050701 - Responded to letter ref DRP 1, with ref 9.
050702 -
050703 - Enter Rebar claim in CO Log and respond.
050704 -
050705 - Jeff wants to request additional detail on the claim.  He discussed
050706 - this with Paul yesterday, so I need to confirm that discussion.  I
050707 - recommended that the Engineer not be overly stringent on small claims
050708 - like this particularly on a Fast Track job where plan revisions are
050709 - generally greater than normal.
050710 -
050711 -
0508 -

SUBJECTS
Completion Dates
Backfill by Sletten
Start Voith & Gracon

1106 - Responded to letter ref DRP 2 with DCT 2.
1107 -
1108 - We have responded with letters ref DCP 1 & 2.
1109 -
1110 - If they have any further questions, let us know.
1111 -
1112 -
1113 -
1114 - Voith Work Authorization sheets.
1115 - Responded to letter ref DRP 7.
1116 -
111601 - This appears to be a response to notice of facts that may lead to a
111602 - claim determination relative to coordination between two contractors
111603 - on the same site that need simultaneous access.
111604 -
111605 - Prepared letter ref DCT 4.
111606 -
1117 -
1118 -

SUBJECTS
CO & Claim Decisions
Sletten request to meet
Arbitration Issues

1506 - Responded to letter ref DRP 3 & 6, with DIT 3.
1507 -
150701 - Sletten requests cost data for CO's decided to date (DRP 3) and
150702 - DNRC requests an opinion about arbitration issues (DRP 6).
150703 -
150704 -   Sletten's request is in accordance with the Engineer's offer to
150705 -   meet and supply information.  Normally the Contractor should
150706 -   support its cost request, however the Engineer has no difficulty
150707 -   explaining the basis for its determinations.
150708 -
150709 -   Since the contractor has initiated litigation, it should pursue its
150710 -   remedies as provided by established procedures.  If it wishes to
150711 -   work out an exchange of information this is possible.
150712 -
150713 -   This will take pressure off the Engineer while Sletten decides
150714 -   whether to comply with the contract or not.
150715 -
150716 -
150717 -
150718 - CO #3 Pending Issues
150719 -
150720 -   Sletten lists following matters it believes have not been decided
150721 -   by the Engineer:
150722 -
150723 -   What does Jeff know about these?  What does the record show?
150724 -
150725 -     316-2 Concrete Pipe Trench
150726 -     317-3 Concrete Pipe Chase
150727 -     317-3 Servo Motor A.B.'s
150728 -     330 Fillet @ Cantilever Wall
150729 -     SK-M-4 B.O. Downstream Pitwall
150730 -     358 Shear keys in Base Slab
150731 -     366-3 Anchors in Draft Tube Pedestals
150732 -     367 Anchors for Turnbuckles
150733 -
150734 -
150735 -
150736 -
150737 - CO #4
150738 -
150739 -   The Engineer has CO #4 under review pursurant to Sletten's sub-
150740 -   mittal of 881205.
150741 -
150742 -   Since the contractor has initiated arbitration on CO #3, it can
150743 -   acknolwedge this aspect of the matter is removed from the arbi-
150744 -   tration until decided by the Engineer, or proceed to arbitration.
150745 -
150746 -   We should take the position that matters not decided by the
150747 -   Engineer, are not ready for arbitration (see contract GC para
150748 -   9.12).
150749 -
150750 -
150751 -
150752 -
150753 -
1508 -
1509 - Arbitration Issues
1510 -
151001 - DNRC requests in its letter to Clyde of December 16  for "...
151002 - relevant factors normally encountered in matters of this kind."
151003 -
151004 - Within this scope is the question of whether issues are ready for
151005 - arbitration.  The letter to Sletten (03 00053 8122103, ref 13) lists
151006 - issues not ready for arbitraton.
151007 -
151008 - Should draft a letter to DNRC stating grounds for opposing inclusion
151009 - of issues for arbitration set out in the above letter.
151010 -
151011 -
1511 -
1512 - Called Clyde
1513 -
151301 - He is out until 881227.
151302 -
151303 - Drop by and see Clyde 881227.
151304 -
151305 -
1514 -
1515 - Called Bill Cahill re Arbitration Issues
1516 - Bill was away, I left a message on his machine.
1517 - 1545 Bill called back
1518 -
151801 - Bill called on 3728, and I wanted to discuss this matter more
151802 - privately, so I called him back on the 3932 number.  He was out of
151803 - his office, so I left another message on his answering machine.
151804 -
151805 - Finally got through at 1610.
151806 -
151807 - I explained the background and read the draft, ref DIT 3.  Bill
151808 - generally thought the objective and proposed procedure was okay.  He
151809 - strongly concurs that DNRC should argue the Contractor may not submit
151810 - additional evidence in arbitration.  He feels the draft may be more
151811 - properly submitted by DNRC rather than the Engineer.
151812 -
151813 - I advised that Clyde and Jim Madden (DNRC interim counsel while Sarah
151814 - is on vacation) have copies.
151815 -
151816 -
151817 - DNRC counsel
151818 -
151819 -   Bill asked my opinion of DNRC's ability to try this case.
151820 -
151821 -   I advised that I think Sarah is not experienced enough in construc-
151822 -   tion litigation to be a strong advocate in the arbitration.  I also
151823 -   indicated that her uncertainty with both construction and legal
151824 -   issues is manifested in dealings with the Contractor (she is weak,
151825 -   perhaps due to lack of experience).
151826 -
151827 -   I explained that Clyde has indicated DNRC has someone who has done
151828 -   some successful arbitrations against Sletten, so far that person
151829 -   has not done any visible work on the case.  Also, at Jeff's
151830 -   Christmas party, Sarah mentioned that this attorney has not done
151831 -   arbitrations as complicated as this one.
151832 -
151833 -   Bill asked me what I think should be done.  I suggested that Tudor
151834 -   point out to DNRC the level of expertise and effort that will be
151835 -   required to present the case.  I advised that I have addressed this
151836 -   in a memo to DNRC in some respects, but the point needs to be
151837 -   explained more fully, ref 2 line 051042.
151838 -
151839 -
151840 - Tudor Arbitration Support
151841 -
151842 -   I also advised that, depending upon the agreement between Tudor and
151843 -   DNRC, Tudor would be a paid consultant as well as a percipient
151844 -   witness.  The time required for this should be compensable, since
151845 -   it is recoverable under the contract.  This is another reason for
151846 -   taking a strong position with the Contractor that it must present
151847 -   its evidence to the Engineer.
151848 -
151849 -
151850 -
151851 -
151852 -
1519 -
1520 - 1325 called DNRC legal
1521 - Asked for Jim Madden
1522 -
1523 - He is in a meeting, left message for Jim to call back 1342 Jim called
1524 - back, I was in Jeff's office and away from the documents I need to
1525 - discuss, so told him I will call back.
1526 -
1527 - 1403 called Jim back
1528 -
152801 - Read the proposed letter to Jim.  He generally concurs.  I faxed a
152802 - copy for his review and comment toward getting a final version by
152803 - next week.  He will try to get comments back by tomorrow.
152804 -
152805 -
1529 -
1530 - Discussions with Jeff
1531 -
153101 - Jeff feels the contract permits Sletten to submit issues concurrently
153102 - to the Engineer and arbitration.  I explained that the general intent
153103 - of provisions like those in this contract is to avoid concurrent sub-
153104 - mission.  Advised Jeff of my discussion with Bill Cahill and Jim
153105 - Madden on this point.  Jeff will consider his postition further.
153106 -
153107 - He said Clyde is developing a draft response to DNRC's letter, ref
153108 - DRP 6.  It should include the claims of the State against the
153109 - Contractor.
153110 -
153111 - Develop list State claims against Contractor.
153112 -
153113 -
1532 -
1533 - Wayne Wetzel
1534 -
153401 - Wayne was on the job for the weekly Progress Meeting.  He came into
153402 - the office to say hello.
153403 -
153404 - I showed him the draft of this letter, ref DIT 3, and explained the
153405 - objectives.
153406 -
153407 - Advised I have discussed this with Jim Madden  per above.  Wayned
153408 - concurred with the position set out in the draft.
153409 -
153410 -
1535 -
1536 -

SUBJECTS
Submittal & Shop Drawing
Delays

1805 - This is part of Sletten's strategy to show entitlement to the
1806 - acceleration payment they received under co #5.
1807 -
1808 - Considered response to letter ref DRP 6.
1809 -
180901 - This is just posturing.  It doesn't really set out a claim for
180902 - actual lost time.  Tudor should investigate and develop a response
180903 - on the merits of shop drawing approval.
180904 -
180905 - Maybe we should just ignore it because no actual claim for anything
180906 - is made.
180907 -
180908 - Sletten asks about status of Silt Barriar submittal?
180909 -
180910 - Jeff said Tudor's records show the submittals were made timely.  He
180911 - asked for a postmark from Sletten yesterday, so suggest this. First,
180912 - find out what Tudor records show.
180913 -
180914 - Follow up
180915 -
180916 - Investigate status Silt Barriar submittal?
180917 -
180918 -
1810 -
1811 -

SUBJECTS
Payment delays

1904 - Considered response to letter ref DRP 5
1905 -
190501 - Jeff feels the contract payment procedures in toto have been timely.
190502 - Regardless of when actual processing is done by the Engineer, the
190503 - issue is when payment is made relative to when the pay application is
190504 - received by Tudor.
190505 -
190506 - Jeff also feels the provision which gives Sletten permission to stop
190507 - work due to non-payment establishes the period when actual harm
190508 - occurs to the Contractor.
190509 -
190510 - Follow up
190511 -
190512 - Investigate Pay Estimate files and craft response.
190513 -
1906 -
Distribution. . . . See "CONTACTS"