THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700
S U M M A R Y
DIARY: October 15, 1991 10:10 AM Tuesday;
Meeting with Walt, Sarah and Wayne re Welch scope and planning meeting.
....Workmen's Comp Exemption
........Record of Expense
.....Coordination btwn Lee/Maritech
.....DNRC should develop an Engineering Management ment budget from
.....Tudor or someone else, then advise Voith of the expected cost and
6...No Welch Assignment
Click here to comment!
0201 - Department of Natural Resources 406 444 6699 fax 6721
020101 - Ms. Sarah Bond, Esquire
020102 - Department Counsel =406 444 6660; Legal Division
020103 - Mr. Walt Anderson; Hydro Power Section Supervisor
020104 - Engineering Division
020105 - Mr. Wayne Wetzel
Voith Contract Closeout
Planning meeting, 911009
Strategy on Evaluating all Claims
0605 - ..
0606 - Summary/Objective
060701 - Scheduled meeting for next Tuesday 0830 to plan contract closeout, per
060702 - ref SDS 5 and 5 and DIP 1.
060704 - Walt will develop some tasks he sees need to be done to reach
060705 - contract closeout.
060707 - Sarah is preparing an overview of the legal issues in making claims,
060708 - arbitrating and closing out the contracts, per ref SDS 1 and 2.
060710 - Objective
060712 - To is identify relationships between contract closeout activities
060713 - and filing claims/litigation (i.e. the Welch contract scope).
060715 - Develop a specific schedule objectives for closeout.
060717 - See as well discusison below re Speed Increaser line 140849.
A01 - Voith Claim Computer &
Payment Mobilization & Computer
Independent Contractor Exemption
090801 - Sarah clarified that the new DNRC computer will be used primarily for
090802 - the work of the Welch contract until completion, as set out at ref SDS
090803 - 2 line 191.
090805 - She will complete the language of the amendment and get it circulated
090806 - today for approval.
090808 - The new DNRC computer arrived today. I brought my cpu into the
090809 - office this morning in order to commission the new one which was
090810 - accomplished. Wayne and Walt dropped by briefly before the
090811 - meeting to see it. Walt and Mike Simms observed the fully loaded
090812 - system in the afternoon and discussed applications:
090814 - E-Mail via modem between Plant and DNRC Helena office;
090815 - networking with Legal; backup.
090818 - Payment
090820 - I requested that DNRC try to expedite payment on the computer invoice
090821 - because Welch is carrying this as a personal expense at the present
090822 - time. Wayne and Sarah indicated this could be accomplished.
090824 - Workmen's Comp Exemption
090826 - Sarah advised DNRC accounting people have still not received the
090827 - approval on the Workman's Comp Exemption. Walt indicated Welch
090828 - cannot be paid until this step occurs.
090830 - Sarah said she would go pick it up at the Labor Relations office.
090833 - Mobilization payment - Sarah's feels this can be made today or
090834 - tomorrow, since the Workmen's comp exemption thing is done. She had
090835 - not received it, but after lunch, it was delivered.
Voith Claim Review
Organize existing record, 911004
100501 - There is not a chronological "reading" file for Voith contract in
100502 - DNRC. It would be very helpful to have at least one comprehensive
100503 - assemblage of actual documents in date order.
100505 - This makes it possible to immediately obtain documents that are
100506 - cited in other documents and by individuals verbally.
100508 - Sarah indicated Charity is doing some work on this. She also expects
100509 - the Welch contract work will organize documents according to claim or
100510 - other issue.
100512 - She recalls seeing a box of correspondence files which may be the
100513 - missing the missing letters from Tudor to Voith for period from
100514 - Voith's contract inception to April 1989. The correspondence from
100515 - April 1989, forward appears to be in the Tudor jobsite records.
100517 - After the meeting, I discussed this briefly with Charity and she
100518 - has not encountered that box yet.
100520 - An action plan was developed in the afternoon by Sarah and Walt
100521 - for Charity to proceed in creating the chronology, if it exists.
Welch Contract Assignments
Backcharges to Voith from Sletten Contract
Speed Increaser; Presumed damages
DNRC procedures for Recording Damages
Strategy on Evaluating all Claims
Need for Engineer
170901 - Sarah and Walt confirmed earlier directions that Welch should
170902 - initially develop support for the Tudor letter of Oct 5, 1989, setting
170903 - out backcharges to Voith (see ref SDS 1 line 091001.
170905 - Background
170907 - Sarah indicated this letter has been sent to Voith (evidently
170908 - several years ago). Voith has not responded, but has verbally
170909 - requested substantiation. Sarah recalls DNRC asked Tudor for the
170910 - substantiation, and Tudor has not responded.
170912 - I requested copies of the letter to Voith making claim, and any
170913 - notes of Voith's response, and DNRC's correspondence with Tudor on
170914 - follow up.
170917 - There was some discussion about Welch developing an independent
170918 - opinion based on the record of increased entitlement by DNRC. Sarah
170919 - cited Jeff's view about the Pit Pier matter. Voith's misrepresentation
170920 - of DTL tolerances is another such issue; Sarah feels it is reflected
170921 - in Tudor's $12,500 recommendation. In general, if the record shows
170922 - greater entitlement exists, this will be presented to DNRC for
170923 - consideration.
170926 - Presumed Damages
170928 - This will be treated as an independent matter after completion of the
170929 - first assignment.
170932 - Other Claims
170934 - Walt cited other backcharges that may exist. He indicated some
170935 - notices have been issued to Voith.
170937 - Punch List
170939 - Some of these (Other Claims) appear to be defined within the
170940 - current Punch list, submitted by Walt, ref DIP 1, showing items
170941 - complete and others still pending.
170943 - Record of Expense
170945 - Of the items completed, which were performed by DNRC and at
170946 - what expense? Of the items performed by DNRC what does the
170947 - record show was the understanding between the parties with
170948 - respect to entitlement?
170950 - Responsibility
170952 - Can any of the work performed by DNRC have a negative impact on
170953 - Voith work, and will this cloud the liability issue with
170954 - respect to recovery and/or warranty? The punch list does not
170955 - designate who did the work nor the order of magnitude and
170956 - implications.
170959 - ..
170960 - Speed Increaser
170962 - Received telecon report from Sarah, following up review on 911005 of
170963 - Tudor's finding that Speed Increaser had a noise problem. ref SDS 3
170964 - 3088
170966 - This has a lot of stuff that requires rigorous follow-up (SDS ?).
170968 - It lists a number of potential consequent impacts to the plant
170969 - from the SI failure which require discreet treatment (e.g.
170970 - overhead crane concrete foundation, bearing housing concrete).
170972 - Consideration should be given to have the caller submit a written
170973 - report of all such findings, and to link them to findings of
170974 - excessive vibration. Alternatively, the telecon memo might be
170975 - formalized and sent to the caller to confirm understandings.
170977 - Where caller states:
170979 - ...we need to have [Voith's] finite analysis, absolutely must
170980 - have or we can't sign off on the design.
170982 - This expert might be asked to confirm its position in writing, if
170983 - it has not already done so, stating what concerns they have that
170984 - make this so essential. Such report would then support placing a
170985 - demand on Voith and/or hiring engineering oversight support at
170986 - Voith's expense.
170989 - Engineering Management
170990 - Coordination btwn Lee/Maritech
170992 - Memo raises serious concern about management of engineering
170993 - disciplines. This is Tudor's job. They have or should have the
170994 - expertise and professional insurance (?) to perform this function.
170996 - DNRC should develop an Engineering Management ment budget from
170997 - Tudor or someone else, then advise Voith of the expected cost and
170998 - let Voith convince you through its written promises and conduct
170999 - that it is not necessary to incur such expense. It may turn out
171000 - Tudor no longer has the expertise to do this job; in which case
171001 - someone else should be hired, depending upon Voith's response.
171004 - It is not clear whether DNRC views this as contract work, or whether
171005 - it is a separate cause of action outside the contract. If Tudor's
171006 - substantial completion letter was formally rejected and/or it can be
171007 - demonstrated the plant has never met contract performance standards
171008 - then the matter may still be within the contract.
171010 - In either case, the same questions arise with respect to accumulating
171011 - evidence of damages.
171013 - How is DNRC expense being identified?
171015 - a. Direct labor, materials and equipment
171016 - b. Management and engineering time
171017 - d. Expert evaluation and advice
171018 - c. Legal and consultants
171021 - Discussed the importance of recording conditions encountered at the
171022 - worksite and giving timely notices (both informational and demands for
171023 - performance) through verbal and written communications to Voith on its
171024 - obligations with concomitant notice to Tudor for its guidance on
171025 - insuring compliance with contract provisions. My general sense is
171026 - that DNRC is working at carrying out these objectives.
171029 - No Welch Assignment
171031 - At this time, Welch has no specific assignment with respect to the
171032 - Speed Increaser matter, and is only addressing it as coincident
171033 - information like this record.
Distribution. . . . See "CONTACTS"