CF-TownC CHC-CS 860507 ARCHITECTURE
PLANNING · INTERIORS
May 7, 1986
Mayor Lou Duggan
City Of Coppell, Texas
P. O. Box 4~8
Coppell, Texas 75019
Re: Coppell Town Center
Project No. 8457
Dear Mr. Mayor:
Attached herewith is the response we have received from t~e Howard U.
Freeman Company regarding the proposed carpet change at the above
referenced project.
As you will note from the cover letter as prepared by Mr. Joe Bosquez of
Howard U. Freeman and the backup estimate sheet, the net cost to the City
of Coppell to change from the green carpet originally specified to the
desired plum color carpet as recently selected results iin a net add to
the contract of some $38,255.00. As you can see from the attached
breakdown sheet, the General Contractor has indicated the following
information:
1. The carpet change will involve extended general
conditions in the amount of $800.00.
2. The General Contractor has claimed the sum of $641.00
as delivery costs for the non-returnable green carpet.
The delivery will be from the Lakeway Carpets warehouse
to the City of Coppell storage facility as selected by
the City.
3. The freight costs to return the Type A green carpet of
$427.00.
2850 Lincoln Plaza · 500 North Akard - LB 16 · Dallas, Texas 75201-3394 · (214) 954-3100
McKinney Place · 3131 McKinney Avenue · Suite 850 - LB 113 · Dallas, Texas 75204 · (214) 871-9100
Mayor Lou Duggan
Project No. 8457
May 7, 1986
Page Two
4. A credit of $4,637.00 is being given for the Type A pin-
dot carpet which the manufacturer is willing to accept
in return. This credit is the result of the moneys
available after the 40% restocking charges have been
deducted.
5. The General Contractor has indicated that to purchase
the new plum color carpeting as specified in our
Proposal Request and per your directive, the cost of
this change will result in an add of $36,310.00.
6. The General Contractor has included in his breakdown
the sum of $545.00 for interest on the payment which
the City of Coppell has withheld with regard to
payments which the General Contractor feels were due
for the green carpet which has been purchased and is
presently being stored in a warehouse by Lakeway
Carpets. Per my conversation with Mr. Joe Bosquez of
Howard U. Freeman, the amount of $545.00 is the actual
interest costs for one month's interest on the amount
of $36,310.00 which was not paid by the City of Coppell
for the green carpeting.
7. In addition to the above costs the General Contractor
has included payroll taxes and insurances in the amount
of $168.00, also overhead and profit at 10% on the sub-
contractor provided work in the amount of $3,329.00,
and overhead and profit of 15% on work accomplished by
the Howard U. Freeman Company in the amount of $146.00,
Builder's Risk Insurance Policy in the amount of $72.00,
and a bond as required which results in a cost of $454.00.
The total of all items listed above results in a net add to the contract
in the amount of $38,255.00.
In addition to the costs as quoted, the General Contractor has advised
our office of additional terms which must be met by the City of Coppell
for them to proceed with the carpeting change which you have requested.
These terms are as follows:
1. The General Contractor has requested that the City review
the information provided in this letter and if they still
wish to proceed with the carpeting change that the
Architect's office prepare a Change Order in the amount
of $38,255.00 to cover the cost of this change. This
Change Order will need to be signed by representatives
Mayor Lou Duggan
Project No. 8457
May 7, 1986
Page Three
of the City of Coppell, Architect's office, and Contractor's
office by not later than May 13, 1986. Direction from
the City of Coppell is requested on this item. Once
direction is received by our office we will proceed with
the issuance of this document if directed to do so.
2. The General Contractor is also requiring that payment in
the amount of $36,310.00 be received in his office by
not later than May 15, 1986. This amount represents the
total cost of the Type A and Type B green carpeting which
was purchased and is presently being stored for this
project. The General Contractor is requesting that no
retainage be withheld on these moneys.
3. The General Contractor has advised that until both of the
above terms have been met by the City of Coppell the
General Contractor will not act upon this carpeting change.
In the closing paragraph of this letter the General Contractor indicates
that a 30 to 60 day delay maybe experienced beginning the date of which
the new carpeting is placed on order, thus extending the contract
completion date to approximately mid-July 1986.
Please review the information which has been provided above and also the
information contained in the letter which has been received from Howard
U. Freeman, Inc. dated May 6, 1986 and advise our office as to the
direction which the City of Coppell wishes to proceed. We await your
response on this item.
Si,p ed~ly,~ ?
Richard J. Bertani
RJB/pap
Attachment
cc: Mr. Frank Proctor
Ms. Susan O'Brien
Mr. Tony Callaway
Mr. Mike Henjum
Ms. Belinda McDonnell
Mr. Jack Waschitz
Mr. Larry Lieneke
Mr. Joe Bosquez
HOWARD U. FREEMAN, INC., 1424 E. Grauwyler I P.O. Box 1516571 Irving, Texas 750151 (214) 438.6044
Oommerclal Buildem
May 6, 1986
O'Brien, O'Brien, Callaway
3131McKinney Avenue, ~800
Dallas, Texas 75204
Attention: Mr. Richard J. Bertani
Re: Coppell Town Center
Proposed Change No. 42
Gentlemen:
Attached per your request, please find our Proposed Change No. 42
for an add of $38,255.00 to change the carpet color on the subject project.
Please note that interest indicated is for monies withheld improperly from our
March 1986 estimte. The price is good only for your acceptance and issuance
of a fully-executed Change Order no later than May 13, 1986 and issuance of a
check no later than May 15, 1986 for $36,310. No retainage may b e withheld
on the $36,310 payment. No additional carpet will be ordered until these
terms are met.
Should your decision and/or issuance of said payment extend beyond
these dates, it will be necessary to add additional interest charges.
This price includes delivery of the non-returnable carpet as
directed by the Owner within the City limits of Coppell.
Until actual delivery of the new carpet occurs, we are ~unable to
predict
the
delay
this
will
have
on our project. Our best estimate at this
time is a delay of 30 to 60 days. As soon as the actual delay is determined,
we will forward our costs for additional time and extended overhead.
HOWARD U. FRE~AN, INC.
C~Estimaor %J ~
JDB/mhc
Attachment
cc: P.C. ~42 File, Field, Larry Lieneke
RECEIVED
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