CONTACTS 
0201 - Amer. Arbtrn Assn.                 415 981 3901 fax 781 8426
020101 - Ms. Catherine Mulford; Case Administrator =415 984 5411
020102 - Case Administration

SUBJECTS
AAA N. Bay Drywall v. Swinerton & Walbberg, 74 110 01185 95
Assignment

0404 -    ..
0405 - Summary/Objective
0406 -
040601 - Received notice of appointment, ref DRT 1 line 19, including case
040602 - documents shown above.
040603 -
040604 - I prepared the Notice of Appointment and other documents requested at
040605 - ref DRT 1 line 27.
040606 -
040607 -     [See follow up where I discovered contacts with Swinerton &
040608 -     Walberg staff, and with Anning-Johnson, ref SDS 2 line 60.]
040609 -
040610 -
040611 -
040612 -
0407 -
0408 -
0409 - Case Documents
0410 -
041001 - The documents received from AAA via ref DRT 1 line 19, includes the
041002 - following attachments:
041003 -
041004 -     f: 04 00064 CC BC 00101           Submission to Dispute, Parties & Coun
041005 -
041006 -        This is ref OF 1 line 10 prepared on AAA form by the moving
041007 -        party, NBD on 951201.
041008 -
041009 -        It lists the partis and their counsel, ref OF 1 line 62.
041010 -
041011 -        The respondent's representative appears be an employee of
041012 -        respondent rather than counsel, ref OF 1 line 98.
041013 -
041014 -
041015 -     f: 04 00064 LC CD 00101           NB Claim against SW
041016 -
041017 -        This is ref OF 2 line 10 prepared on pleading paper by NBD's
041018 -        attorny.  It indicates Anning Johnson was a subcontractor to
041019 -        NBD who in turn subcontracted with Swinterton & Walberg.
041020 -
041021 -        The cause of the claims are listed as:
041022 -
041023 -            S&W failed to provide access to the work so NBD could
041024 -            perform its work in sequence and according the an agreed
041025 -            schedule, ref OF 2 line 49, also ref OF 2 line 80, ref OF 2
041026 -            line 91, ref OF 2 line 101.
041027 -            This seems like an acceleration claim.
041028 -
041029 -            S&W failed to provide adequate plans and specs and other
041030 -            contract documents, ref OF 2 line 58.
041031 -
041032 -            S&W failed to coordinate the work preventing NBD from doing
041033 -            the work in a cost effective manner. ref OF 2 line 66, ref
041034 -            OF 2 line 106.
041035 -
041036 -            S&W failed to supervise its work and this disrupted NBD's
041037 -            work, causing it extra expense. ref OF 2 line 76.
041038 -
041039 -            S&W failed to provide materials in a timely manner, ref OF
041040 -            2 line 85.
041041 -
041042 -            S&W failed to pay NBD for change order work, ref OF 2 line
041043 -            94.
041044 -
041045 -            S&W showed in negotiations with the owner a greater
041046 -            interest in its own interests than in NBD interests, ref OF
041047 -            2 line 109.
041048 -
041049 -                This claim does not appear to state that S&W
041050 -                misrepresented or failed to present NBD claims to the
041051 -                owner.
041052 -
041053 -        Damages.  NBD seeks:
041054 -
041055 -             $325K       Withheld payments under the contract
041056 -             $325K       Delay, impact, disruption
041057 -
041058 -             Indemnity against Anning Johnson from any claims asserted
041059 -             by S&W against Anning Johnson.
041060 -
041061 -     f: 04 00064 LC CF 00101           AJ Claim against SW
041062 -
041063 -        This is ref OF 3 line 15 is a single sheet in single space
041064 -        stating AJ's claim.  It is not signed and there is no
041065 -        indication of who prepared the document.
041066 -
041067 -        A&J claims S&W directed A&J to install fireproofing out of
041068 -        sequence and that subsequent rain and on-going construction
041069 -        activity caused the fireproofing to delaminate, i.e., fail, ref
041070 -        OF 3 line 29.
041071 -
041072 -        S&W directed AJ to repair failed fireproofing on T&M and
041073 -        failed to pay for it.
041074 -
041075 -        Damages   A& seeks
041076 -
041077 -             $93K        T&M invoices to fix the fireproofing
041078 -
041079 -     f: 04 00064 LC CH 00101           SW Claim against NB & AJ
041080 -
041081 -        This is ref OF 4 line 10 is a single sheet in single space
041082 -        stating S&W's claims.  It is not signed and there is no
041083 -        indication of who prepared the document.
041084 -
041085 -        S&W claims NBD failed to provide adequate shop drawings for
041086 -        exterior framing in "...time to relate to the project
041087 -        schedule."  This delayed the project and caused S&W to incur
041088 -        extra overhead expense.  ref OF 4 line 10.
041089 -
041090 -            The meaning of "relate to the project schedule" is unclear.
041091 -
041092 -        S&W claims delays caused by NBD resulted in the work being
041093 -        damaged by the weather, and changing the sequence of the work
041094 -        to avoid such damage that caused inefficient performance and
041095 -        required additional work for winter protection. ref OF 4 line
041096 -        15.
041097 -
041098 -        S&W claims NBD failed to perform the fireproofing work in the
041099 -        manner required by project specifications. ref OF 4 line 23.
041100 -
041101 -        ...and that NBD failed to complete repairs of defective
041102 -        firproofing work during the process of obtaining architect
041103 -        approval of as-built condition, which causd delayed completion
041104 -        and extra expense ref OF 4 line 25 and ref OF 4 line 30.
041105 -
041106 -        Damages     S&W list no damages
041107 -
041108 -            Presumably they have withheld the damages they suffered.
041109 -
041110 -     f: 04 00064 LC BC 00101           Subcontract NB with AJ, 940914
041111 -
041112 -        This is ref OF 6 line 10; it appears to be a typical
041113 -        subcontract form to set out the agreement between NBD and AJ.
041114 -
041115 -        AJ's work was to perform fireproofing under section 07255, ref
041116 -        OF 6 line 27.
041117 -
041118 -        The amount is $202K.
041119 -
041120 -
041121 -     f: 04 00064 LC BE CC 00101        SW Transmittal 930915
041122 -
041123 -        This is ref OF 7 line 10; it is prepared by Kevin Hall, S&W's
041124 -        project manager, transmitting the subcontract agreement, which
041125 -        is entered separately in this record at ref OF 7 line 10, and
041126 -        described below.
041127 -
041128 -        The transmittal cites attachments to the subcontract document
041129 -        which are to be retained by NBD for reference, ref OF 7 line
041130 -        30.
041131 -
041132 -        Payment procedures are explained at ref OF 7 line 37.
041133 -
041134 -        Requests for insurance certificates and bonds are at ref OF 7
041135 -        line 43.
041136 -
041137 -     f: 04 00064 LC BE CF 00101        Subcontract SW with NB 930914
041138 -
041139 -        This is ref OF 8 line 10; it is actually a series of documents:
041140 -
041141 -          •  Subcontract beteween S&W and NBD, ref OF 8line 59
041142 -
041143 -                   $1,630,000
041144 -
041145 -          •  Appendix A, NBD clarifications, ref OF 8 l72
041146 -
041147 -          •  Subcontract performance bond, ref OF 8 lin.
041148 -
041149 -          •  Subcontract payment bond, ref OF 8 line 62
041150 -
041151 -          •  Contract documents, listing drawings, ref OF 8line 701
041152 -
041153 -          •  Constract specification indes, ref OF 8 li3
041154 -
041155 -
041156 -
041157 -
0412 -

SUBJECTS
SW Project Procedures Manual
Construction Communication Methods Derive

0805 - Summary/Objective
0806 -
080601 - S&W's procedures manual is at ref OF 9 0000.
080602 -
080603 - This appears to be a standard S&W document, possibly modified
080604 - according to the City College of San Francisco's requirements.  It is
080605 - not clear from the record, if S&W bid this job competitively and so is
080606 - using entirely its own procedures, or is a Construction Manager in
080607 - which case it is formulating a special set of procedures for this
080608 - project that integrate City requirements other than as would be in the
080609 - prime contract documents.
080610 -
080611 - This question arises because the document is identified as a procedure
080612 - manual for:
080613 -
080614 -             LIBRARY BUILDING/LEARNING RESOURCE CENTER
080615 -                   CITY COLLEGE OF SAN FRANCISCO
080616 -
080617 -    ...rather than S&W's manual which is subject to requirements of the
080618 -    prime contract.
080619 -
080620 -
080621 - Documenting the Work
080622 -
080623 - The manual sets out specific documents the subcontractor must submit
080624 - in order to perform the work, including a submittal log, see Exhibit
080625 - M, ref OF 9 0002.
080626 -
080627 -
080628 -  ..
080629 - Communication Requirements
080630 -
080631 - Methods used in this contractor's project management manual to ensure
080632 - understanding and follow up, per discussion on Asilomar conference,
080633 - ref SDS 1 6994, include;
080634 -
080635 -    Notice Provisions
080636 -
080637 -    The subcontractor is notified to request answers from the
080638 -    contractor on any procedures that are not understood, ref OF 9
080639 -    0684.
080640 -
080641 -        This means that if no questions are asked, then the
080642 -        subcontractor will be held liable for having understood a
080643 -        requirement within appropriate legal standards, e.g., industry
080644 -        standards, ordinary construction, etc.
080645 -
080646 -    The manual does not superscede more strenuous requirements.  The
080647 -    subcontractor is required to notify the contractor of any
080648 -    conflicting requirements to obtain clarifications. ref OF 9 8567.
080649 -
080650 -        This is another notice requirement, which in this case, may not
080651 -        achieve what appears to be the desire of the contractor to
080652 -        avoid responsibility for issuing conflicting requirements.
080653 -
080654 -    Change Orders are explained at ref OF 9 0562.
080655 -
080656 -    Disputed work is at ref OF 9 6566.
080657 -
080658 -
080659 -    Communication Management
080660 -
080661 -    This is identified as "Correspondence and Action Personnel."
080662 -
080663 -
080664 -        Action Personnel
080665 -
080666 -        The various people who are to issue and receive various types
080667 -        of information are set out in the manual at ref OF 9 5111.
080668 -
080669 -        Terminology
080670 -
080671 -        Special language is defined at ref OF 9 5511
080672 -
080673 -
080674 -        Change Orders - Section 5
080675 -
080676 -        Information processes for identifying "change orders" and
080677 -        notice provisions are at ref OF 9 0562.
080678 -
080679 -
080680 -        Document & Track Work
080681 -
080682 -        There is a requirement under Section 5E for disputed work which
080683 -        says to use the procedure to document and track the work on
080684 -        disputed work that is used for "Time and Material" and the
080685 -        manual cites section 6E.  However, there does not seem to be a
080686 -        section 6E in the manual. ref OF 9 9566.
080687 -
080688 -        There is a section 5D for Time and Material Work, which has
080689 -        procedures.  This may be the reference intended under section
080690 -        5E.
080691 -
080692 -        Section 5D has a requirement under 5D1.d. for
080693 -
080694 -            Complete description of the work including type, location,
080695 -            extent, quantities, etc.
080696 -
080697 -          ...per ref OF 9 8888.  "Complete" is underlined.  There is no
080698 -          explanation of what "complete" and/or "ect." entails, and
080699 -          there is no indication of what the subcontractor is to do in
080700 -          the event there is not enough time to prepare the complete
080701 -          description.
080702 -
080703 -          Why is the description of the work needed?  How does it save
080704 -          time and increase earnings?  What justifies this expense?
080705 -
080706 -          Does the contractor have a duty of notice to the contractor
080707 -          under this provision, that it needs additional resources in
080708 -          the event there is not enough time for the personnnel
080709 -          available to prepare a complete description, or any
080710 -          description.
080711 -
080712 -
080713 -        Submittals - Section 7
080714 -
080715 -        Subcontractor is responsible for his submittals' compliance
080716 -        with applicable contract documents and for any delays
080717 -        occasioned by lack of such compliance, ref OF 9 7733.
080718 -
080719 -        What's a submittal?  Why is this necessary if everyone is on
080720 -        the same team, and attending the same meetings?
080721 -
080722 -
080723 -
080724 -
0808 -