ST8502-CS 860611 (2)GINN, INC.
June 11, 1986
CONSULTING
ENGINEERS
Mr. W. K. Wolfe, Jr.
Ashlar Contracting Co.
P.O. Box 713
Lewisville, TX 75067
Re: Moore Road Improvements
Dear Mr. Wolfe:
In reference to your letter dated May 12, 1986, regarding pay
item 100 "Prepare Rights-of-Way," we have the following comments.
Our initial determination in accordance with the Contract
Specifications, General Conditions of Agreement, Section 2, para-
graph 2.04, "Initial Determinations," (included) is that this
item is ambiguous by definition per the Special Provision Section
to item 100. However, due to the nature of the type contract, we
emphasize that the intention was to pay for only up to 50% bid
for that pay item prior to the final payment application.
This contract is a unit price type contract. Evaluation and
payment for the items of work completed are not on a lump sum
basis or any other method but rather for units of work completed.
When provided for per the contract, whether an item is 25%
complete or 35% or 75% complete, that percentage complete is the
basis of evaluating how much percentage of the money you have
earned (see specification included, item 2.03 "Payments for Work,"
as highlighted). In this case, only the east one-half or 50% of
the right-of-way has been prepared. Therefore, only 50% of the
money is due at this time.
Due to the ambiguity, when the west one-half of the right-of-way
is prepared, we will recommend payment at that time rather than
wait until the final payment application. Your attention is
called to the construction plans, sheet 4 of 25, which states
that "Removal of detours constructed shall be paid for under Pay
Item 100.1 (Prepare Right-of-Way)."
Due to the above, we see no reason to submit to arbitration.
Please call if you should have any questions.
Sincerely,~
Kev. in Peiffer
Enclosure /
cc: Ed Powell7 Randy Fleming
Wayne Ginn Reuben Martinez
16135 Preston Road · Suite IN · Dallas, Texas 7524S · Phone 214, 386-6611