SS9301-CS 931221 Telephone: {214) 826-2~
A ~ofe~lon~ ~oratlon Tel~opier: {2141 828-~22
Mtom~ & Coun~lors
December 21, 1993 Direr Di~: 826-4784
VIA FACSIMILE: 214/393-0948 ~aU.S. Ce~fl~ Mail#P873387632
Mr. Ken Griffin
City of Coppell
P. O. Box 478
Coppell, Texas 75019
Re: Grapevine Creek Sewer Trunk Main Branch I and Branch II
Dear Mr. Griffin:
On behalf of Southland Contracting, Inc., I write the
following concerning prospective delays and costs caused by the
City of Coppell.
Southland has already tunnelled under Grapevine Creek and is
close to finishing its run to the cul-de-sac on East Bethel Road at
station 95 + 45. Southland expects to be able to remove its tunnel
boring machine from this run by about Friday, December 24, 1993.
I understand that you have told Charlie Griffith by telephone that
Southland is not to excavate the pit in the cul-de-sac until after
January 1, 1994, and that Southland is not permitted to work on
Friday, December 24, 1993, or Monday, December 27, 1993.
Stopping the tunnelling is very risky. The subsurface
conditions are such that with prolonged inactivity the boring
machine or the jacking operation may become stuck. If that
happens, Southland would have to excavate a pit or hand dig a
tunnel to retrieve the machine. Either retrieval method is
expensive--Southland estimates a minimum cost of $25,000.00. If
the machine is between two houses, the retrieval excavation may
undermine the foundations of the houses. The City would be
responsible for these costs.
Southland had planned to work on December 24, and 27, 1993.
Delaying Southland is expensive. The rental cost on the boring
machine is about $50,000 per month. The rental cost on Southland's
backhoes is about $7,000 or $8,000 per month. With downtime for
Southland's crane and crew, the shutdown will cost Southland about
$5,000 per day.
Mr. Ken Griffin
December 21, 1993
Page 2
Under the Contract, Southland will be charged a working day
for December 24 and 27, 1993. The supplementary conditions (which
override the general conditions) define working day as:
a calendar day including Saturdays, Sunday, or legal
holidays in which weather or other conditions not under
the control of the Contractor will permit the performance
of the principal units of work underway for a continuous
period of not less than 7 hours between 8 a.m. and 6 p.m.
One day will be charged against the Contract working time
when weather conditions will permit 7 hours of work as
delineated above.
There is nothing in the Contract that would have notified Southland
that it could not work on the Friday before or the Monday after
Christmas.
I understand that the City may have made some agreement with
property owners concerning the timing of when the pit in the cul-
de-sac would be excavated. Southland was not a party to that
agreement, and was not aware of it until December 20, 1993. With
advance notice, Southland may have been able to adjust its schedule
to accommodate this agreement. As matters stand, Southland must
keep its machinery and crews busy completing this tunnel run, or
pursue a claim for downtime.
If the City chooses to order a shut down of work on December
24 and 27, 1993, Southland hereby notifies the City that Southland
will seek downtime damages of about $5,000 per day. If the City
orders that Southland not excavate the pit in the cul-de-sac until
after January 1, 1994, Southland will again seek downtime damages
of about $5,000 per day. If the boring machine becomes stuck,
Southland will seek its retrieval costs of at least $25,000, plus
its downtime of about $5,000 per day.
If the City allows Southland to complete its current run into
the cul-de-sac, Southland is willing to remove its machine and
crews, and work on another project until shortly after January 1,
1994. Southland would expect that these days away from this
project would not be charged as working days. Southland expects to
complete its run into the cul-de-sac by about December 24, 1993,
and remove its boring machine shortly afterward, which would allow
the property owners a construction-free Christmas and New Years.
Mr. Ken Griffin
December 21, 1993
Page 3
Please allow Southland to complete its run into the cul-de-sac
so that Southland has no claims to present.
Sincerely yours,
Brian W. Erikson
BWE:feb
lc: Mr. Dan Frettinger, Kenco VIA FACSIMILe: Z~4/93Z-$474
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Attorneys & Counselo~ .~
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Mr. Ken Griffin
12 T'I'¥ O}"
P. O. Box 478
Coppell, Texas 75010