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


S U M M A R Y


DIARY: November 30, 1998 10:14 AM Monday; Rod Welch

Call Dave on Comm Metrics, Moscone project situation.

1...Summary/Objective
2...Conceptual Review JV Agreement Breaches


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CONTACTS 
0201 - Thelen, Reid & Priest LLP            415 392 6320
020101 - Mr. David Buoncristiani, Esq.

SUBJECTS
Demo SDS via Web Site
Evaluation, Legal Firms
Clear Concise Complete Communication
Cost Savings Self-evident Need Cool Comm
Sel -evident Cost Savings
Time Not Enough to Read and Write
Para Legal Aide to Collaborate Research Prepare Case
Legal Practice

1610 -    ..
1611 - Summary/Objective
1612 -
161201 - Follow up ref SDS 16 0000, ref SDS 12 0000.
161202 - ..
161203 - Dave has not read my letter yet, ref DIP 3 0000, issued on
161204 - 981114, see ref SDS 16 1200, that is linked to recent correspondence
161205 - describing Communication Metrics on the Internet as "neat," ref SDS 13
161206 - 0207 and "cool." ref SDS 14 2070
161207 -
161208 - He has not had time to read my letter, ref DIP 1 1728, issued on
161209 - 981103 that transmits USACE cost savings report which Dave asked to
161210 - see. ref SDS 12 2294
161211 -
161212 - Dave has been traveling a lot the past several weeks.  His trips to
161213 - London relate to Bechtal projects in Russia and India.  I asked if
161214 - they have litigation on the Euro-tunnel project, and he seemed to
161215 - indicate that project is not on his current agenda with Bechtal.
161216 -
161217 - We considered briefly the prospect of Dave using Communication Metrics
161218 - to support his legal work, per our telecon on 981103. ref SDS 12 3040
161219 - ..
161220 - It can support current litigation by expediting discovery and
161221 - issue analysis.  More importantly, if used
161222 -
161223 - He seems to recognize conceptual value of an "intelligence" role using
161224 - Communication Metrics tools and methods, but he is still looking for a
161225 - way to incorporate it into their fee structure.  We considered billing
161226 - as para legal support.  Dave sees "intelligence" as broader, since it
161227 - entails attending meetings and preparing a record, which often is
161228 - needed for claims support, as a dimension of legal work.
161229 -
161230 - We considered doing a few pro bono meetings with his clients to
161231 - demonstrate the self-evident benefits of a "paperless" office
161232 - information system, which the letters on "neat" and "cool" demonstrate
161233 - when he gets time to take a look. ref DIP 3 6150
161234 -
161235 -
161236 -
161237 -
161238 -
161239 -
161240 -
161241 -
1613 -

SUBJECTS
Dispute Resolution

1704 -
170401 -  ..
170402 - Conceptual Review JV Agreement Breaches
170403 -
170404 - I explained the current situation of a JV Agreement involving three
170405 - (3) architects to design a major public works facility.
170406 -
170407 - Dave asked who is involved?
170408 -
170409 - I indicated that for now, we can discuss this without specifics of
170410 - who, what and where the project is located.
170411 -
170412 -     [On 981202 discussed with Bill Long. ref Sds 19 5643]
170413 -
170414 -     [Note: links are suppressed in the public record to avoid
170415 -     inadvertant disclosure in advance of approval by the client.]
170416 - ..
170417 - My client is one of the JV partners, which is led by another
170418 - partner who is a large design firm in a major city.
170419 -
170420 - The lead JV partner has responsibility for project management.
170421 -
170422 - Project management is not being performed according to the Agreement
170423 - nor within industry standards like PMBOK, ISO. ref Sds 17 5887  There
170424 - is no project schedule to control the work, and the project manager
170425 - has failed to use any kind of daily or weekly work planning system.
170426 - My client on its own intitative instituted a highly effective Work
170427 - Plan system, which the project manager is now practively disrupting.
170428 -
170429 - The Project manager's ill mannered and unprofessional conduct has
170430 - caused my client to change its Project Architect a number of times.
170431 -
170432 - There is disparate treatment by the project manager toward my client
170433 - which is negative, without cause or justification, and the favorable
170434 - treatment afforded to the other JV partner.
170435 - ..
170436 - I mentioned the report in the San Francisco Chronicle on 981116
170437 - about a similar situation involving a leader of the California
170438 - Assembly, which seems to show that a hostile work environment is
170439 - actionable... ref Sds 17 6120
170440 -
170441 - Dave indicated that a hostile work environment can be actionable,
170442 - including grounds for recovery of personal and business damages.
170443 -
170444 - He asked about motivation?
170445 -
170446 - I explained my sense that the motives appear to be largley personal,
170447 - side effects of stress and lack of emotinoal control; although the
170448 - impact has the markings of attempting to place a partner in a
170449 - non-performing status to justify termination.
170450 -
170451 - It mainly appears that the project manager is suffering stress that
170452 - comes with big, complex projects, especially when accepted methods and
170453 - techniques are not used to manage the work. ref Sds 17 5887
170454 - ..
170455 - This suggests a simple solution.  The lead JV partner need
170456 - merely follow its Agreement and have the project Design Coordinator
170457 - perform design coordination so that project manager is less involved
170458 - in this stressful task, and can give greater attention to project
170459 - management. ref Sds 17 2352
170460 -
170461 - There is discussion that "design coordination" is different from
170462 - construction document preparation, which is the current focus of
170463 - problems.  This is largely a definition issue.  Given the laxity in
170464 - applying other JV Agreement provisions, placing the design coordinator
170465 - as the primary contact between the lead JV partner and my client would
170466 - be within the range of application given to other provisions in the
170467 - Agreement.  This would remove the project manager from day-to-day
170468 - contact with my client in the Project Office doing design work.
170469 - Another solution is for my client to move out of the Project Office,
170470 - but there are advantages to staying.
170471 - ..
170472 - The lead JV partner resists this solution because the project
170473 - manager does not want to make this change, insisting there is no
170474 - problem, except for my client to improve its work.
170475 -
170476 - I mentioned the argument advanced by the owner of the lead JV partner,
170477 - that it has done other big public works projects with this project
170478 - manager and has not been sued successfully.
170479 -
170480 - Dave indicated that the time to take corrective action is not when a
170481 - lawsuit is filed.
170482 -
170483 - He said the problem we have is not that rare.
170484 -
170485 - Dave cited the City of San Francisco Jail project in which the design
170486 - team became ensnarled in significant disputes among JV partners.  I
170487 - think he indicated a woman was the project manager, but I am not sure
170488 - of this point.
170489 - ..
170490 - Litigation on contractor claims disclosed a record of letters
170491 - showing disputes between the design team partners, and this led to
170492 - significant recovery for the contractors.
170493 -
170494 - This presents a dilemma for our situation.
170495 -
170496 - Dave suggests that charges against my client should not go unanswered,
170497 - with which I generally agree.
170498 -
170499 - Yet, filling the record with dispute letters increases the risk to the
170500 - client and to the partners that third party litigation during
170501 - construction can cause significant recovery against the client, and
170502 - possibly against my client, given the imprecision of litigation.
170503 -
170504 -
170505 -
170506 -
170507 -
Distribution. . . . See "CONTACTS"