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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 PlAY 6 ~ ...... , ~ ~ 4 ~ ~, ~ ~ p~'~' ....... ~ ' ~,,~ ....... .. ~'~ ~/c .... ~._ Tox~ i : ~ r ' / ] 10 11' ~ ' .... { Il 15: { I I ?d 15 16r} : __~/_~. { ~.' ~ · 16 ~' { d -- ~ 18 20~ I:o~ ~ ~ '20 21~ ~o~'~ ~..~ ~o. ~ ~-~ [ · :Q~ 21 24;~ ~ . :I24 25~ ~ ~ 5~ 25 } 26 27~ i r I ~{i ,27 r i [ ~, ~ 30 . 32 --33] I ,' 33 38 r ~ ~ ~ ~ 38