WA0001-PR000126PROPOSAL
PROJECT IDENTIFICATION: Repainting of the 1.5 Million Gallon Elevated Storage Tank Interior in
Coppell, Texas.
BD OF
(NAM OF
TKIS BID IS SUBMITTED TO: City ofCoppell (hercinafter called OWNER)
c/o Purchasing Agent
255 Parkway Boulevard
P.O. Box 478
Coppell, T~xas 75019
CITY OF COPPELL BD NO: (D,,C~ t - OIr'~D ? -.
The undersigned BDDER proposes and agrees, if this Bid is accepted, to enter into an agreement
with OWNER in the form included in the Contract Documents to perform end furnish all Work as
specified or indicated in the Contract Documents for the Contract'Price end within the Contract Time
indicated in this Bid and in accordance with the other t~ms end conditions of the Contract
Documents.
BDDER accepts all of the terms and conditions of the Advertisement or Notice to Bidders and
Instructions to Bidders. This Bid will remain subject to acceptance for ninety (90) days after the day
of Bid opening. BIDDER will sign and submit the Agreement with other documents required by the
Bidding Requirements within ten (10) days ai~er the date of OWNER's Notice of Award.
3. In submitting this Bid, BDDER represents, as more fully set forth in the Agreement, that:
(a)
Co)
BDDER has examined copies of all the Bidding Documents and of the following Addenda
(receipt of all which is hereby acknowledged):
Date:
Rec~d~
BIDDER has familiarized itself with the nature and extent of the Contract Documents, Work,
site, locality, and all local conditions and Laws and RegulatiOns that in any manner may affect
cost, progress, performance or furnishing of the Work.
(c) BIDDER has studied carefully all reports and drawings of subsurface conditions contained in
the contract documents and which have been used in preparation of the contract documents.
(d)
(9
(g)
(h)
(i)
CONTRACTOR may rely upon the accuracy of the technical data contained in such reports,
but not upon nontechnical data, interpretations or opimons contained therein or for the
completeness thereof for CONTRACTOR's purposes. Except as indicated in the immediately
preceding sentence, CONTRACTOR shall have full responsibility with respect to subsurface
conditions at site.
BDDER has studied carefully all drawings of the physical conditions in or relating to existing
surface or subsurface structures on the site, which are contained in the contract documents and
which have been utilized in preparation of the contract documents. CONTRACTOR may rely
upon the accuracy of the technical data contained in such drawings, but not for the
completeness thereef for CONTRACTOR's pth-poses. Except as indicated in the immediately
preceding sentence, CONYRACTOR shall have full responsibility with respect to physical
conditions in or relating to such structures.
BIDDER has obtained and carefully studied (or assumes responsibility for obtaining and
carefully studying) all such examinations, investigations, explorations, tests and studies (in
addition to or to supplement those referred to in (c) above) which pertain to the subsurface or
physical conditions at the site or otherwise may affect the cost, progress, performance or
furnishing of the Work as BIDDER considers necessm'y for the performance or furnishing of
the Work at the Contract Price, within the Contract Time and in accordance with the other
terms and conditions of the Contract Documents; and no additional examinations,
investigations, explorations, tests reports or similar information or data are or will be required
by BIDDER for such purposes.
BDDER has reviewed and checked all information and data shown or indicated on the
Contract Documents with respect to existing Underground Facilities at or contiguous to the site
and assumes responsibility for the accurate location of said Underground Facilities. No
additional examinations, investigations, explorations, tests, reports or similar information or
data in respect of said Underground Facilities are or will be required by BIDDER in order to
perform and furnish the Work at the Contract Price, within the Contract Time and in
accordance with the other terms and conditions of the Contract Documents.
BDDER has correlated the results of all such observations, examinations, investigations,
explorations, tests, r~pons and studies with the terms and conditions of the Contract
Documents.
BIDDER has given ENGINEER wfiuen notice of all conflicts, errors or discrepancies that it
has discovered in the Contract Documents and the wriuen resolution thereof by ENGINEER is
acceptable to BIDDER.
This bid is genuine and not made in the interest of or on behalf of any undisclosed person, firm
or corporation and is not submitted in conformity with any agreement or rules of any group,
association, organization or corporation; BIDDER has not directly or indirectly induced or
solicited any other Bidder to submit a false or sham Bid; BIDDER has not solidted or induced
any person, firm or corporation to refrain from bidding; and BIDDER has not sought by
collusion to obtain for itself any advantage over any other Bidder or over OWNER.
It is understood and agreed that the following quantities of work to be done at unit prices are
approximate only, and are intended principally to serve as a guide in evaluating bids.
r T r
1-13
(j)
It is understood and agreed that the quantifies of work to be done at unit prices and materials to
be furnished may be increased or diminished as may be considered necessary in the opinion of
the OWNER to complete the work fully as pined and contemplated, and that all quantifies of
work, whether increased or decreased, are to be performed at the unit prices set forth, except as
provided for in the Contract Documents.
It is understood and agreed that all work under this contract will be completed within the bid calendar
days. Completion date will be established in the Notice to Proceed.
5. BIDDER will complete the Work for the following price(s):
Item ] E~tm~ted
No. Qnamity
Unit
I L.S,
2 I L.S.
3 I L.S.
4 10 H rs,
5 1 L.S.
CITY OF COPPELL, TEXAS
Repainting of the 1.5 Million Gallon Elevated Storage Tank Interior
BIB SCHEDULE
BASE BID
Price m
Description and Price in Words Figures
Extended
Panount
For Abrasive Blasting the Interior Area of the
1,500,000 Gallon Elevated Storage Tank and
Containing all Blast Material and Existing Paint
Removed
complete in place, the sum of
and F~;'r,~ 'y~OO'V~0dS~ ~ Dol~ra
C~nts per Lump Sum
4 ccc
For Painting the Interior Area of the Tank
complete in place, the sum of
" ~- o
and F~y~C~ "rko,~a-thv x~
c~ts pc, h~ s,,~
For the Proper Disposal of the Interior PaInt and
Blasting Media Removed from the Elevated
Storage Tank
complete In place, the sum of
Dollars
For Pefforramg Miscellaneous Remedial Welding
by a Certified Welder when requested by the
Owner
complete in place, the sum of
and
Cents per Hour
Dollars
For Removing the 24-1nch Double Disk Gate
Valve and Replacing with a 24-Inch Motor
Operated Butterfly Valve. including all SCADA
Cormectious
complete in place, the sum of
a~,(t~ 05~00~/0/~ t~.Z5 Dollars
and ~
Cents per Lump Sum
1-15
sO /
: [
BASE BID
6
~,snraa~cd [
Quantity Unit
Description and Price m Words
I L.S.
For Furnishing and Opcratmg an All Elecu'ic
Dehunudification System for the Interior Blast,
Paint and Cure
complete m place, the sum of
6/C-~/T //U,,l~4~ /~F~ Dollars
Ccnns per L S
AMOUNT: BASE BID (Items 1 Through 6)
Price in
Figures
Extended
Amount
: I
ADDITIVE ALTERNATE
item ~sm'nated ]
No. Quantity Unit
Description and Price in Words
Price m Extended
Figures Amount
1A 1 L.S.
2A 1 L.S.
For the Cleaning all Metal Surfaces Inside the 1.5
MG Elevated Storage Tank Fluted Column
complete m place, the sum of
Cents per Lump Sum
For Overcoatrag of the Interior of all Metal
Surfaces Inside the 1.5 MG Elevated Storage Tank
Fluted Coltram
complete in place, the sum of
d
Cents per Lump Sum
Cents per meat F~t
Through 3A)
(
1-17
BID SUM:MARY
TOTAL ANIOUNT: BASE BID (Items 1 Through 6):
To~al Price Bid
Total Price Bid In Words:
/ '
Total Price Bid
TOTAL AMOUNT: ADDITIVE ALTERNATE (Items 1A, 2A & 3A): $ do 3? ~'() ~'
Total Price Bid In Words:
BIDDER agrees that all Work awarded will be completed within the dates established in the Contract
Documents. Contract time will commence to run as provided in the Contract Documents.
Communications concerning this Bid shall be addressed to the address of BIDDER indicated on the applicable
signature page.
BDDER understands that the Owner is exempt from State Limited Sales and Use Tax on tangible personal
property to be incorporated into the project. Said taxes are not included in the Conwact Price (See Instruaions
to Bidden).
9. The terms used in this Bid which are defined in the General Conditions of the Construction Conu'act included
as part of the Contract Documents have the meanings assigned to them in the General Conditions.
The City of Coppell reserves the right to delete any portion of this project as it may deem necessary to stay within the
City's available funds. Should the City elect to delete any portion, the contract quantities will be adjusted
accordingly.
S MII"'EDon~'--~"'~0~c4] "ZG
,2000.
TOTAL AMOUNT OF BID (Base Bid + Additive Alternate):
Total Price Bid
s I 700
QUESTIONNAIRE
Each Bidder shall write in the name, where indicated, of the manufacturers of equipment which Bidder proposes
to furnish and the subcontractors the Bidder plans to utilize. Not more than onemanufacturer's or subcontractors
name shall be listed for each item of equipment. Upon award of a contract, the named equipment shall be
furnished. Substitutions will be permitted only if named equipment or subcontractor does not meet the
requirements of the Contract Documents, the manufacturer or subcontractor is unable to meet the requirements of
the consreaction schedule, or the manufacturer or subcontractor is dilatory in complying with the requirements of
the Contract Documents. Substitutions shall be subject to concurrence of the Owner and shall be confirmed by
Change Order.
Preliminary acceptance of equipment listed by manufacturer's name shall not in any way constitute a waiver of
the specifications covering such equipment; final acceptance will be based on full conformity with the Con~'act
Documents.
Failure to furnish all information required may be cause for rejection of the Bid.
Equipment
24" Butterfly Valve
Electric Valve Operator
Dehumidi~cation Equipment
Manufacturer
Dis. cipline
Electrical
Instrumentation
Subcontractor
B~ ~'F~A~T
The undersigned certifies that the bid prices contained in this bid have been carefully reviewed and are submined as
correct and final. Bidder further cerUfies and agrees to furnish any and/or all commodities upon which prices are
extended at the price offered, and upon the conditions contained in the Specifications of the Invitation to Bid. The
period of acceptance of this bid will be ~ 0 calendar days fi'om the date of the bid opening. (Pc-ned of
acceptance will be ninety (90) calendar days unless otherwise indicated by Bidder.)
undersigned authority, a Notary Public in and f , on this day personally appeared
'T'F*evt ~,//~4 x"' who after being by me duly swom, did dcpose and say:
(Nar~ of Firm)
I hereby certify that the foregoing bid has not been prepand in collusion with any other Bidder or individual(s)
engaged in the same line of business prior to the official opening of this bid. Further, I certify that the Bidder is not
now, nor has been for the put six (6) months, cl'u'ecfly or indirectly concerned in any pool, agreement or combination
thereof, to con~'ol the price of serviccs/coramodities bid on, or t.o influence any individual(s) to bid or not to bid
thereon."
Name and Address of Bidder:
Telephone: ( '~ I '~ )
SUBSCRIBED AND SWOP,.N to before me by the above named
on this the
Notary Pub ~c in and for the State of
2000.
T'9_g,
[2)ARIA KELLEY
MY COMMISSION EXPIRES
OCTOBER 2, 2002
If BIDDER IS:
An Individual
By
doing business as
Business address
([ndividual's Name)
Phone No.
(Seal)
A Partnership
By
Business address
(Firm Name)
(General Parmet)
Phone No.
(Seal)
A Joint Venture
By 5/~'
(N ) (Address)
By
(Name) (Address)
(Each joint venture must sign. The manner of signing for each individual, parmership and corporation that is a
parmet to the joint venture should be in the manner indicated above. I
AFFIDAVIT OF SAFETY RECORD
(I) (We) the underZ~ned do declare and affirm that (my) (our) firm or corporation (has) (have) received
citation from the Occupational Safety and Health Administration
(OSHA) within the past two (2) years and (I) (We) do further declare and affirm that (my) (our) firm or
corporation (has)(have)experienced ~_3 worker injuries related to construction safety on
projects within the past two (2) years.
NAME OF SU/1//O~N~CTOR
OFFICER'S NAME & TITLE
SIGNATURE OF OFFICER
DATE
NAME OF FIllVl
~~&T /-~
STATE OF TEXAS }
}
for,,~?t/~/F,~'t'~ ~'~j0//! ~c. ~o~ to me to be the p~n whose name is subs~d to the
foregoing ins~ ac~o~Zed to me that (he) (she) (~ey) executed the same for the pu~oses and
consid~ations therein expressed as the act and deed of said fin or coloration, and in the capaci~ therein
expressed.
]~L~ C(,_q~4 of Texas
Notary Public in an~e
DARLA KELLEY
MY CGMMI881QN EXPIRES
OCTOBER 2, 2002
TRANSMITTAL OF ADDENDUM
IN STRU CTIONS:
Acknowledge receipt of Addenda in Proposal, on outer envelope of bid AND WITH THE
FORM BELOW FAXED TO (214)361-0204 upon receipt.
Addendum Acknowledgment FAX to (214)361-0204
[ Acknowledge the receipt of Addendure No.
City of:
Project Nmne:
Coppell
Repaint of t .5 Million Gallon Tank Elevated Storage
Tank Interior
By Facsimile Transmission on this date:
· January 20, 2000
Company Name
E-Mail Address:
"PLEASE SIGN &"'FAX THIS PAGE BACK TO SJ&F"
(as verification that you received this Fax)
(214) 361-0204
Total Number of Fax Pages:
JAN-20-2000 17: 0~
-I-
Addendure No. I
~.01
CITY OF COPPELL, TEXAS
REPAINTING OF THE 1.5 MILLION GALLON
ELEVATED STORAGE TANK INTERIOR
ADDENDUM NO. 1
January 20, 2000
Plans and specifications for the Repainting of the 1.5 Million Gallon Elevated Storage Tank Interior
project, for the City of Coppell, Texas, on which bids are to be received untfi 2:00 p.m., January 28,
2000, are hereby modified as follows
1. Refer to the Notice to Bidders, page 1-2. Revise the address of the City of Coppell Town Center to
255 Parlovay Boulevard, CoppelI, Texas 75019
2. Refer to Section SC.30.G. Application of the Special Conditions. Strike the words "or by" from the
last sentence of the third paragraph of this section.
3. R. efer to the Plans in the back of the specifications. Add attached Plan Sheet Number 3 of 3, labeled
Motorized Valve - Electrical Plan, to the consWuction plans.
4. Bidders shall acknowledge receipt of Addendure No. 1 in the space provided in the Proposal, on the
outer envelope of their bid, and by faxiqg back the "Transmittal of Addendure Acknowledgment
Sheet" to Shimek, Jacobs & Finklea. L.LP. at (2,14) 361-0204.
SHIMEl(, JACOBS & ~FIP/KLEA, L.L.P.
CONSULTING ENGINEERS
DALLAS, TEXAS
JAN-20-~000 17: 09 ~. 02
CRY OF COPPEU,, T[XAS
TRANSMITTAL OF ADDENDUM
INSTRUCTIONS:
Acknowledge receipt of Addenda in Proposal, on outer envelope of bid AND WITH THE
FORM BELOW FAXED TO (214) 361-0204 upon r~ceipt.
Addendum Acknowledgment FAX to (214) 361-0204
I Acknowledge the receipt of Addendure No.
City of:
Project Name:
2
Coppell
Repaint of 1.5 Million Gallon Tank Elevated Storage
Tank Interior
By Facsimile Transmission on this date:
Contractor's Signature ~
Ianua~ 25, 2000
Company Name
E-Mail Address:
,'PLEASE SIGN & FAX THIS PAGE BACK TO SJ&F"
(as verification that you received this Fax)
(214) 361-0204
Total Number of Fax Pages:
JAN-25-2(]00 21: i9
-1-
,4ddendum No. 1
P.01
CITY OF COPPELL, TEXAS
REPAINTING OF THE 1.5 MILLION GALLON
ELEVATED STORAGE TANK INTERIOR
ADDENDLIM NO.
Xanuary 25, 2000
Plans and specifications for the R. epalnting of the 1.5 Million Gallon Elevated Storage Tank Interior
project, for the City of Coppe11, Texas, on which bids are to be received until 2:00 p.m., January 28,
2000, are hereby modified as follows
Refer to Section SC.30.G. Application of the Special Conditions. In the fourth paragraph of this
section, revise the etectric service to be provided by the City of Coppell to "240 volt, 3 phase, 200
amp service". Delete alI references to 480 volt, 255 amp service in this paragraph.
Bidders shall acknowledge receipt of Addendum No. I in the space provided in the Proposal, on the
outer envelope of their bid, and by foxing back the "Trsnsmittal of Addendure Acknowledgment
Sheet" to Shimek, lacobs & Finidea, L.L.P. at (214) 361-0204.
S,HI~EIC, JACOBS #'' FINKLEA, L.L.P.
CONSULTING ENGINEERS
DALLAS, TEXAS
JAN-25-2000 21: 19
-2-
Addendure No. I
~. 02
Advantage
hWdlCt
Services, Inc.
~ta~eConu'~ctSef, ce~,lnc,
7150AJm~Ge~4~Ro~d
Phone:. 713JRI-0747
F&x: 713-991-3939
E-mail: Milu{-~wk~rlOOO~m~n~em
To:
@Fax:
From:
Date:
Re:
Pages:
Mr. Gary Hendricks, P.E., SJ&F
214 - 361-0204
Roy Saldivar/General Manager
Thursday, January 27, 2000 @ 8:31 AM
Repaint of 1.5 MG Elevated Storage Tank Interior
2. including this
Dear Sir;
I am preparing this correspondence as acknowledgment of "Addendure No. 3" for
the City of Coppell, TX-, Repainting of the 1.5 MG Elevated Storage Tank Interior,
Project No. WAO0-01. Please be advised that this Addendum does not alter our
Bid. We received this Addendure after our Bid Package had been forwarded.
Please acknowledEe receipt and acceptance of our fax.
Regards
~O/;O'd 6£~ ;66 £~ 'SAS 'g',lGq8 q~NOII~NSBINI 8~:80 000~-~-N~Z
I
ZO'd qWlOl
TRANSMITT.4,L OF ADDENDUM
INSTRUCTION5:
Acknowledge receipt of Adaenda in Propasai, on outer envelope of bid AND WITH THE
1:OI~4 BELOW FAXED TO (214) 3~1-0~04 upon r~aipt,
AddeadumAc~owledgment F~Y to (214)3fl-0204
Acknowledge the receipt of Addedurn ,No. 3
City of':
Project Name:
Coppell
Rcpaint of l .$ Million Gallon Tank Slevat~d Stonge
Tank Interior
By Fazs~'nile Transmission' on tiffs date:
E-Mail Address:
J~mxry 26, 2000
'C~pany Name
"PLEASE SIGN. & FAX THIS PAGE BACK TO SJ&F"
(as yeri~cati~_n that. you. received this Fax)
(214) 361-0204
Total Numbsr of Fax pages: 2
AD VANTAGE CONTRACT SER VICES, INC.
7150 Aimed. Geno.
Houston, TexM 77075
Phone {713) 991-0747
Fax (715) 991-4671
QUAI,IFICATION STATEMENT
1. Statement of Bidders Qualifications
2. Work in Progress Schedule
3. Completed Projects, Case Histories
4. References
5. Resumes of Key Personnel
6. Current FinanciaLs A. Current, Reviewed Interim Statement
B. Annual, Audited Corporate Statement
Division Office:
222 Thompson Road. Houma, Louisiana 70363 / Telphone (504) 851-7991 / Fax (504) 851-4671
STATEMENT OF BIDDER QUAI.IFICATIONS
Name of Bidder:
Corporate Address:
Division Office: '
Date Organized/lnc:
Number Years
Contracting Present Name:
Advantage ContraCt Service~. [he.
7150 Almeda Cenoa. Xou.~ton. Te~nq 77075
222 Thoml~on Road. Rouma. l .ouhiann 70363
May 1~3
Five 15~ Years
Contracts on Hand:
See Attached Schedule
Type of Work Performed:
Abra, ive Blaqting / Protective Coatin~ ADplie~tion~s) /
Fabrication / Metnlli?ing / Onshore and Off,bore /
Ground and F~evated Stor'l~e Tank Re~babilitation /
Muneipnl Water Plant Constr~etion and Repair
Completed Projects:
See Attached Schedule
Work in Progress:
See Attached Schedule
Major Equipment Avail.: See Attached Schedule
R~UW~:
See Attached R~um,. principal Members
Bank Reference:
Credit Available:
First Community Bank. 1000 E. Broadway; Pearland.
Te~ta~ 77588. Nigel Harrison. Pr, ident. (281)996=1000
5 7~6.000.00 1 .-O.C.. Additional Capitol ReqUirements
Available throug~ Parent Company
Advantage Contract Services, Inc. has never failed to complete work awarded, nor
defaulted on a contract. The undersigned hereby authorizes and requests any
person, firm, or corporation to furnish any information requested by the
in verification of the recitals comprising this Statement of
Bidders Qualification.
, Title:
I I I
Job No.
98-317
99-173
99-195
99-218
99-224
99-228
99-230
99-231
99-232
99-236
99-239
99-245
99-246
99-247
99-251
00-107
*'00-114
*'00-115
ADVANTAGE CONTRACT SERVICES, INC.
Start Comole~
ContractlCustomer Date Date
City of Fort Worth May-00 Aug-O0
City of Richardson, Tex. Oct-99 Mar-00
City of Houston, Texas Feb-00 Mar-01
City, College Sta., Texas Dec-99 Apt-00
City of Denham Springs Dec-99 Mar-00
Town of lderryville, La. Jan-O0 Apr-O0
City of Colleyville, Tex. Dec-99 Apr-00
Baton Rouge Water Co. Jan-00 Apr-00
Harris County MUD 163 Dec-99 Mar-00
Ricewood MU.D. Dec-99 Mar-00
Harris County FWS #51 Dec-99 Sep.-00
City of PeaHand, Texas Jan-00 Apt-00
St. John Parish, Term Jan-00 Apr-00
St. John Parish, Ruddock Feb-iX) Oct-00
City of Highland Park Feb-00 May-00
Harris County MUD 358 Feb-00 Mere30
City of PIano, Tex. Feb-00 Apr-00
City of Sugadand, Tex. Feb-00 Apt-00
Work Under Contract: As of
Total Work to Be Completed:
Work Completed To Date:
Total - Year To Date:
* Notice of Award
** Low Bid - Award Pending
Contract Percent Remaining
4MmHant Comdeee NtComect
$ 743,100.00 10% $ 668,790.00
$ 830,160.00 17% $ 690,195.00
$1,800,668.00 0% $ 1,800,668.00
$ 281,950.00 0% $ 281,950.00
$ 225,900.00 0% $ 225,900.00
$ 128,290.00 0% $ 128,290.00
$ 319,625.00 0% $ 319,625.00
$ 146,300.00 0% $ 146.300.00
$ 83,495.00 0% $ 83,490.00
$ 539,200.00 0% $ 539,200.00
$ 224,400.00 0% $ 224,400.00
$ 173,340.00 0% $ 173,340.00
$1,204,964.00 0% $ 1,204,964.00
$ 271,800.00 0% $ 271,800.00
$ 267,000.00 0% $ 267,000.00
$ 257,500.00 0% $ 257,500.00
$ 7,735,987,00
$ 7,621,712.0e
S 3,160.00
ADVANTAGE CONTRACT SERVICES, INC.
7150 ALMEDA GENOA ROAD
HOUSTON, TEXAS 77075
PHONE: (713) 991-0747
FAX: (713) 991-3939
The following list represents projects completed by Advantage Contract Services, Inc. over the past 30 months.
The list includes references and phone numbers.
A list of current projects under contract to Advantage Contract Services, Inc. is included.
COMPLETED PROJECT SCHEDULE
The following projects have been completed by Advantage in the past 30 months:
Name
Dcscrintion of Work
Amount of Contract
Parish of Lafourche, La.
Rehabilitation, Abrasive Blast &
Paint Interior & Exterior of one 150,000
Gallon, three 300,000 Gallon and two
Chemical Silos, Lead Abatement, an.d
Containment
City of Monroe, Louisiana
Rehabilitation, Abrasive Blast &
Paint Interior of one 1,000,000 Gallon
Ground Storage Tank and one 150,000
Gallon Elevated Tank, Lead Abatement,
Containment
$~/,0,000.00
Parish ofTerrebonne, La.
Rehabilitation, Abrasive Blast &
Paint Interior & Exterior of on~ 75,000
Gallon and two 150,000 Gallon
Elevated Water Storag~ Tanks, Le~cl
Abatement, Containment, Application
15-Year Fluorour~hane Paint System
Date Completed
1999
Southern Montgomery
Municipal Utility District
Rehabilitate, Abrasive Blast & Paint
Interior & Exterior of a 500,000 Gallon
Pedestal Tank, Install Temlxa'ary
Pressure Tank ahd Water System, Lead
Abatement, Containmere
aune 1999
Heritage Park
Harris Coun~ M.U.D. 55
Rehabilitation, Abrasive Blast &
Paim 500,000 Gallon Elevated
Hydropillar Tank, Interior & Exterior
With 100% Containment
$325,050.00 0'uJ.y 1999
$ i 73,400.00
$195,500.00
May, 1999
[ I I
City of Sugar Land, Texas
City of Alvin, Texas
Weston M.U.D.
Houston, Texas
City of Natchitoches
Natchitoches, Louisiana
Bolivar Pen. Water Supply
Crystal Beach, Texas
Harris County M.U.D. #165
Houston, Texas
Emerald Forest M.U.D. ·
Houston, Texas
Lake Forest U.D.
Houston, Texas
Harris County M.U.D. #149
· Houston, Texas
Grins Parkway M.U.D.
HOuston, Texas
Rehabilitation, Abrasive Blast &
Paim 2,000,000 Gallon "First Colony"
Elevated Water Storage Tank, Interior
& Exterior, 100% Containment
Rehabilitation, Abrasive Blast &
Paint 500,000 Gallon Elevated
Legged Water Storage Tank, Interior
& Exterior, Containment
Rehabilitation, Abrasive Blast &
Paint 500,000 Gallon Ground Storage
Tank, Interior and Exterior; Water'
Plant Piping and Control Building
Rehabilitation, Rcpainting, Lead
Abatement, Containment'of 100,000 '
Gallon and 500,000 Gallon Elevated
Storage Tanks
Rehabilitation, Abrasive Blast, Rcpaint,
& Lead Abatemere of 300,000 Gallon
Elevated Water Tank; Replace all Wind
Rods/Struts; Complete Containment
Abrasive Blast, Repaint 500,000 Gahon
Ground Storage Tank, Interior / Exterior,
All Plant Piping and Control Building
Abrasive Blast, Repaint 500,000 Gallon
Hydro Pillar Tank; Replao=, Install New
Piping ~te.
Rehabilitation, Re-roof, Replace All
Structural; Abrasive Blast, Repaim
Interior and Exterior of Two 500,000
Gallon Ground Storage Tanks; Install
New Hydro's; Rehabilitation, Repaim
All Yard Piping and Control Building
Rehabilitation, Abrasive Bitst, Rcpaint
Interior and Exterior of Two 100,000
Gallon Oround Storage Tanks and One
300,000 Gallon Ground Storage Tank,
Hydro's and Replace all Fill Lines
Rehabilitation, Abrasive Blast, Repaint
Interior and Exterior of 600,000 Gallon
Ground Storage Tank with Piping and
ContrOl Building
$443,850.00
$180,000.00
$148,880.00
$258,000.00
$214,500.00
$89,060.00
$258,475.60
$333,500.00
$209,250.00
May, 1999
March, 1999
January, 1999
JanWry, 1999
January, 1999
October, 1998
October, 1998
III
Mission Bend M.U.D.
Houston, Texas
Hams County MU.D. #16
Houston, Texas
City of Nassau Bay
Nassau Bay, Texas
City of Pearland
Pearland, Texas
City of Longview ·
Longview, Texas
City of Sulphur
Sulphur, Louisiana
V.A. Medical Center
Marlin, Texas
Violet Water Supply
Violet, Texas
Westway Terminals
Tulsa, Oklahoma
Williarns Field Services
Johnson Bayou, Louisiana
City of Bacliff
Bacliffe, Texas
City of Gonzales
Gonzales, Louisiana
Rehabilitation, Abrasive Blast, Repaint
Two 425,000 Gallon Ground Storage
Tanks, Plant Piping, etc.
$140.269.00
October, 1998
Rehabilitation, Abrasive Blast, Rcpaint
500,000 Gallon Ground Storage Tank
$87,650.00
October, 1998
Rehabilitation, Abrasive Blast, Rcpaint
Interior and Exterior with Full
Containment, 1,000,000 Gallon Ground
Storage Tank
$125,000.00
October, 1998
Rehabilitation, Abrasive Blast, Lead $215,000.00 September, 19~8
Abatemere, Full Containment, Paint
Interior and Exterior of 500,000 Gallon
Elevated Water Storage Tank
' $496,000.00 March, 1998
e I 1 IO11 an ~ ng o , . ~ ,
Regional Wastewater Treatment
Replacement of Riser, Rehabilitation $146,750.00
Repainling of 250,000 GallonElevated
Water Storage Tank
March, 1998
Rehabilitation / Repainting / Lend
Abatement of S0,000 Gallon Elevated
Water Storage Tank, Containment
$133,500.00
February, 1998
Recoating of Piping and Tank Farm
$59,000.00
January~ 1998
Recoating of Piping and Tank Farm
$141,000.00
January, 1998
Rehabilitation / Rcpainting of Interior
and Exterior of 300,000 Gallon
Elevated Legged Tank, Containmeat
Rehabilitation / Abrasive Blast / Painting
of One i 00,000 Gallon Elevated Tank
and One 750,000 Gallon Elevated Tank.
Containment, Lead Abatement
$134,000.00
$325,000.00
October, 1997
September, 1997
City of Nassau Bay
Nassau Bay, Texas
Hams County M.U.D. #53
Houston, Texas
City of Mission
Mission, Texas
Tetra Nova M.U.D.
Spring, Texas
Blue Dolphin Energy Co.
11 Greenway Plaza, #1606
Houston, Texas 77046
Mr. Alvin Childs
(409) 233-8547
Columbia Gulf Trans.
90 ! Oak Street
Houma, Louisiana 70363
Mr. Dan B=acom
(504) 879-3301
City of Zachary
Box 310
Zachary, Louisiana 70791
John Woma~k, Mayor
(504) 654-0287
Pine Village M.U.D.
Houston, Texas
Westador M.U.D.
Houston, Texas
Aviara Energy Company
P.O. Box 1350
Houston, Texas 77251
Rehabilitation / Repainting of 300,000
Gallon Elevated Water Tank with
Containment
Rehabilitation / Recoating Interior and
Exterior of 750,000 Gallon Elevated
Legged Tank, Containment, and Lead
Abatement
Rehabilitation / Abrasive Blast / Painting
of 1,000,000 Gallon Elevated Water
Storage Tank, Containment
Rehabilitation / Repainting, Change
Center Column and Roof Support
Rehabilitation / Fabrication / Line
Welding, Blasting, Painting of Two
Offshore Production Platforms
Rehabilitation / Fabrication / Concrete
Work / Blasting / Painting Compressor
Station, Texas and Louisiana GulfCgast
Rehabilitation / Abrasive Blast / Painting
of Two 500,000 Gallon Elevated Water
Tanks, Containment, Lead Abatement
Abrasive Blasting / Painting of Interior
Ground Storage Tank
Rehabilitation / Abrasive Blast / Repaint
Interior and Exterior of 1,000,000 Gallon
Ground Storage Tank
Fabrication / Rehabilitation / Abrasive
Blast / Painting of Two Offshore
Production Platforms in the Gulf of
Mexico
$135,000.00
$208,000.00
$240,780.00
$64,500.00
$500,000.00
$268,000.00
$345,000.00
$43,645.00
$91,000.00
$225,000.00
September, 1997
September, 1997
July, 1997
May, 1997
December, 1996
December, 1996
November, 1996
November, 1996
November, 1996
International Paper Co.
c/o Dozer, Inc.
302 Main Street
Natchez, Mississippi
Bill Jones
(601) 442-1671
City of Dayton
Dayton, Texas
Clear Lake Water Auth.
Clear Lake City, Texas
Fountainhcad M. U. D.
Houston, Texas
Texas A&M University
College Station, Texas
City of Ro~kport
Ro~kport, Texas
City of Splendora
Splendom, Texas
San Miguel Electric Coop.
c/o P.B.W. International
811 Austin Street
Pleasanton, Texas 78064
Bryan Wiley
(318) 726-4039
St. Mary Parish W.W.
SL Mary Parish, Louisiana
Mason Creek M.U.D.
Houston, Texas
City of Floresville
Floresville, Texas
City of LaGrange
LaGrange, Texas
Abrasive Blast / Painting / Containment
Lead Abatement of Railroad Bridge
Crossing, St. Catherines Creek, Natchez
Mississippi
Rehabilitation / Abrasive Blast / Painting
of Elevated Water Storage Tank,
Containment, Lead Abatement
Abrasive Blast / Repaim Exterior of
500,000 Gallon Elevated Water Tank
Rehabilitation / Blasting / Painting of
Four 500,000 Gallon Ground Storage
Tanks and Two Water Plants
Rehabilitation / Blasting / Paiming with
Containment and Lead Abatement of
300,000 Gallon Elevated Water Tank,
Riverside Campus, College Station
Rehabilitation / Abrasive Blast / Painting
of Interior and Exterior, Contninm~t,
And Lead Abatement of S00,000 Gallon
Elevated Water Tank
Rehabilitation / Blasting / Painting of
Two Elevated Water Tanks
Furnish Labor and Equipment, Spring
Outage, 1996
Rehabilitation / Abrasive Blast / Painting
of Elevated Wafer Storage Tank with
Containment
Rehabilitation / Blasting / Painting of
Two 500,000 Gallon Ground Storage
Tanks and Water Plant
Rehabilitation / Blasting / Painting of
Concrete Ground Storage Tanks
Rehabilitation / Blasting / Painting of
Ground Storage Tank and Water Plant
$152,000.00
$138,500.00
$85,000.00
$190,000.00
$200,250.00
$203,000.00
$155,000.00
$320,000.00
$148,000.00
$140,000.00
$48,000.00
October, 1996
AugusL 1996
July, 1996
July, 1996
July, 1996
June, 1996
June, 1996
June;1996
May, 1996
October, 1995
October, 1995
Hams County WC&ID 109 Rehabilitation / Blasting / Painting of
Houston, Texas Ground Storage Tank and Water Plant
Wickson Creek S.U.D.
Rehabilitation / Blasting / Painting of
Ground Storage Tank and Water Plant
Clear Lake Water Auth.
Clear Lake City, Texas
Rehabilitation / Blasting / Painting of
500,000 Gallon Elevated Water Tank
South Texas Electric Coop. Furnish Labor and Equipment
Pleasanton, Texas Construction, Spring Outage
$107,900.00
$50,000.00
$125,000.00
$268,000.00
July, 1995
July, 1995
June, 1995
May, 1995
Additional clients and projects have included Plantation M.U.D. with Jones and Cart~, Inc., Cypresswood M.U.D.
with Georgia Wilson and Associates, Forest Cove M.U.D, with Jimmy Dunham, P.E., Waterwood M.U.D. with
East Texas Engineering, Texas Gas Transmission in Kenton, Tennessee and Vicksburg, Mississippi (Arc Spray
Metallizing Compressor Stations).
Advantage Contract Services, Inc. is a wholly owned subsidiary of International Building Systems, Inc. Audited
Financial Statements, Bank References, etc., are available upon request.
Should you have any questions and/or if we may be of service in any capacity, please do not hesitate to give us a
call.
Sincerely,
Travis R. McKcnzie
President
i I I
ADVANTAGE CONTRACT SERVICES, INC.
, -
nginecrs, ~;6
11490 esthcimer, Suite
Houston, Texas 7 077
(.81).558-9701
avi . or in, . .
DuPlantis Engineering, Inc.
200 East Sixth Street
Thibodaux, Louisiana 70301
7150 ALMEDA GENOA ROAD
HOUSTON, TEXAS 77075
PHONE: (713) 991-0747
FAX: (713) 991-3939
Reference List - En,,inccrs
Cartot & Burgess
55 Waugh Drive, Suite 300
Houston, Texas 77007
(713 ) 869-7900
E.G.S.I.
4278 Highway 6, Suite 6
Natchitochcs, Louisiana 71457
Ken Honaker, P.E.
(3t8) 352-2216
Three Riverway, Suite 850
Houston, Texas 77056-1909
(713) 572-0400 '
713)
203 South Tenth Street
Edinburg, Texas 78539
Fred L. Kurth, P.E.
· (210) 381-0981
Miller Engineen
P.O. Box 223
Franklin, Louisiana
Reid A. Miller
318)
INRS Consulting Enginee~
2126 Alpine &l1~
60
Longview, Texas 75 1
MaticE. Ovvcn,P.E
(903) 758-2010
Scheffer. En~~
Meyer and Associates, Inc.
~lities Service Highway
Louisiana 70664
Wayne Harris
(318) 625-8353
Miller Engineers
1313 Sherwood Forest
Houston, Texas 77043
JeffDillard
(713) 461-8455
505 Green Street
Brcnham, Texas
Robert $chmidt, P.E.
Craig Kankel, P.E.
836-7937
1811 Tower Drive ~9
Monroe, Louisiana 71207
Mr. P.C. Taylor, P.E., President
(318) 325-1791
City of FIoresvillc,
P.O. Box 845
Floresvillc, Texas 78114
Vincent T. Gricgo,
Director of Utilities
(210) 393-3 ! 05
& Associates
1555 Polk Street
Hounm, Louisiana 70360
(504) 868-2561
Naismith Engineering
4501 Gollihar Road
Cotpus Christi, Texas 7841 I
Glen Bridges, P.!~.
(512) 814-9900
Pumey,
1303 Shenvood Forest
Texas
(713) 932-6666
Mr. Rick Moffatt,
Glen Shaheen and Associates
P.O. Box 298
Gonzalez, Louisiana 70707
(504) 644-5523
I I I
Shimek, Jacobs & Finklea, L.L.P.
8333 Douglas Avenue, #820
Dallas, Texas 75225-5816
Ron Conway
~214) 361-0204
Stiver Engineering
1305 Peden Street
Houston, Texas 77006-I 123
Maury Stiver
(713) 526-3478
ADVANTAGE CONTRACT SERVICES, INC.
7150 ALMEDA GENOA ROAD, HOUSTON, TEXAS 77075
(713) 991-O747: FAX (713) 991-3939
TRAVIS McKENZIE
Qualifications:
· PHILLiP BUR. LEY
Qualifications:
DAVID GASPARD
Qualifications:
ROY SALDIVAR
Qualifications:
MIKE FOWLEK
Qualifications:
ROBERT TYSON
Qualifications:
ANGELOS VOZIKAKIS
Qualifications:
LARRY HTr. BERT
Qualifications:
DANNY PICOU
Qualifications:
PERSONNEL F. XPERLENCE QUALIFICATIONS STATEMENT
PP, EStDENT 35 Yeats Expefence in Construction
SSPC C-3 Competent Person in Deleading Industrial Structures / OSHA Safety Training / Stale
Certifications in Texas and Louisitna
VICE-PRESIDENT
Lead Abatement Training / OSHA Sat~ty Training
16 Years Experience in Construction
GENERAL SUPERX:NTF. NDENT 21 Years Experience in Constm~ion
SSPC C-3 Competent Person in Deleading Industrial Structures/AWWA Certified Welder
GENERALMANAGER
20 Yetrs Experience in Management
2 Y~'s Expe'ience in Construction
SSPC C-3 Competent Person in Deleeding Industrial Structures
DIRECTOR OF SAFETY & COMPLIANCE
6 Y~ts ~ in OfBr. e Management
I Year F. xperie~ ~ Construction
SSPC C-3 Competent Person in Deleading Industrial Structures / 24 Hour OSHA Safety Certified
SUPEP-,.~NTENDENT
Lead Abatement Training
37 Years Experience in Tank Re~bititation
and Construction
SU~ERXNTENDENT
Lead Abatement Training
30 Years Experience in Tank Kehabilitation
and Constmaioa
OPERATIONS MANAGF_,R
20 Years Experience in Blastin61 Psintir. S
12 Years Experience in ~ment
SSPC C-3 Contpetent Person in Deleading Industrint Struaurns / OSHA Safety Trainin~
SALES MAaN'AGER
Firefighting Training; Lead Abatement Training
25 Years Experience in Siea / Management
[ I i
KAY CHMELIK
Qualifc~tions:
MARCOS KASVICIS
Qualifications:
DWAY'NE SFE~PFIARD
Qualifications:
DON SPELL
Qualifications:
HAROLD SMITH
Qualifeations:
R.AY TYSON
Qualifications:
MIKE McK~NZIE
Qualifications:
DUANE PARTLOW
Qualifications:
KYA~N SPAR. KS
Qualifications:
DAVID SIDWELL
Qualifications:
CURTIS SMITH
Qualifications:
SUPERINTENDENT
~-0+ Years E, cpericncc
SSPC C-3 Competent Person in Deleading Industrial Strucrure~ / OSHA Safety Training
NACE Certification Level 3; NACE Corrosion Technical Specialist; NACF Marine Coatings Specialist
Welding inspection Specialist
PROJECT FOREMAN
Lead Abatement Training
20 Years Experience in Blasting / Painting
- PIPEFITTER / ASSISTANT FOREMAN
Lead Abatement Training
I 8 Years h,.dnsz~ Experience
W~LDING FOREMAN
Certified Arc Welding AW~/A; Lead Training
17 Years Experience in Welding
SUPERJ. NTENDENT
Lead Abatement Training
I 5 Years Experience in Blasting / Painting
10 Years Experience as Superimendent
PROJECT FOREMAN 12 Years Experience in Industry
SSPC C-3 Competent Person in Deleading Industrial Strucrure~
METALLIZING SUlmERIN'FENOENT
Lead Abatement Training
SLrPEILrN i ~.NDENT 9 Years Experience
SSPC C-3 Competent Person in Deleading industrial Structures / OSFIA Safety Training
AWWA Certified Arc Welder
ASSISTANT SL~PEP-JNTENDENT
Lead Abatement Training
3+ Years lndust~ Experienea with
Advantage Contract Set~ices, Inc.
SUPEKZNTENDENT 3 Years Experience with Advantage
SSPC C-3 Competent PerSon in Deleading Industrial Structures
ASSISTANT SUPEKXNTENDENT
Lead Abatement Training
2 Years Industry E~perie~e
'~ " ADv.-Xt'i't .-Xt.,~ tZtJiNTRAt~'t ~Ft~/ICES, INC.
**STANDARD TOOL BOX EOUIPMF. NT LIST**
JOB#:
II I
A D E4NTA GE CONTRACT SER VICES, INC.
7150 Almeda Genoa
Houston, Texas 77075
Phone (713) 991-0747
Fax (713) 991-4671
TO WHOM IT MAY CONCEI~N:
Advantage Contract Services, Inc. is a wholly owned subsidiar,/of International Building
Systems, Inc. As such our financials axe consolidated. with our Parent Company.
We are attaching the latest monthly compiled/revie~ved interim statemere for Advantage-
Contract Services, Inc. and the Year End Audited Financials for your review. Should you
have any questions and/or if' we may be of service in any capacity, please advise.
INTERNATIONAL MODULAR AND PANEL BUILDING
SYSTEMS, INC., AND SUBSIDIARY
ADVANTAGE CONTRACT SERVICES, INC.
CONSOLIDATED FINANCIAL STATEMENTS
DECE~MBER 31, 1998
Pr~ By:
HARPER & PEARSON COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
CONTENTS
PAGE
Independent Auditor's Report ..............................................................................................................2
Consolidated Balance Sheet ....; ............................................................................................................3
Consolidated Statement of Operations ..................................................................................................~.
Consolidated Statement or Stockholders' Equity ....................................................................................5
Consolidated Statement of Cash Rows .................................................................................................6
Notas to Consolidated Financial Statements ............ ~ ..........., ............................................................7-3.3
i i i
iNDEPENDENT AUDZTOR'S REPORT
To the Stockholders and Directors of
In[erna[ional Modular and Panel Building Systems, Inc. and Subsidiary
Houston, Texas
We have audited the accompanying consolidated balance sheet of International Modular and Panel Building
Systems, Inc. and Subsidiary as of December 31, ).998, and the related consolidated statements of
operations, changes in stockholders' eduity and Cash flows for the year then ended. The consolidated
financial statements are the responsibility of the Company's management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those star~lards require
that we plan and perform the audit to Obtain reasonable assurance about whether the consolidated financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
suoporting the amounts and disclosures in the consolidated financial statements. An audit also includes
assessing the accounting pdndples used and signi~car?t estimates made by management, as well as
evaluating the overall financial statement presentation. We balieve that our audit provides a reasonable basis
for our opinion.
In our opinion, the consolidated ~nandal statements referred to ab3ve present fairly, in all material respeCtS,
the financial position of International Modular and Panel Building Systems, Inc. 8ncl Subsidiary at December
31, 1998, and the resultS of their operations and their Cash flows for the year then ended, in conformity with
generally accepted accounting principles.
Houston, Texas
3uly 7, 1999
2
One S{~vfrwu). Su,c I IXX! · Huu%|un. Texa~ 7705h · 171 ) I h.~.%23 lil· Fax l? 1 )) bZ=-)hl 3
III
INTERNATIONAL MODULAR AND PANEL BUILDING SYSTEMS, INC. AND SUBSIDIARY
CONSOLZDATED BALANCE SHEET
DECEMBER 31., 1.998
ASSETS
CURRENT ASSETS Cash
Accounts recevables, trade, net
EmOloyee receivables
Costs and estimated earnings in excess of billings
PreDaids and other assets
PreDaid income taxes
Note receivable, current portion
Deferred income taxes
s 469,909
3,210,367
3,641
1,018,150
32,132
132,163
41,010
184,688
TOTAL CURRENT ASSETS
5,092,060
PROPERTY AND EQUIPMENT
Less accumulated depreciation
3,464,260
(1,140,497)
2,323,763
OTHER ASSETS
Used parts inventory held for resale
Note receivable, long term
81,252
40,000
121,252
TOTAL ASSES
s 7,537,075
L/ABILITIES AND STOCKHOLDERS' EQUITY
CURRENT UABXLIT~ES
Notes Dayable to bank
Current portion of long-term debt
ACcounts payable, trade
ACcounts payable, related pardes
Billings in excess of costs and estimated earnings
ACCrued liabilities
Income taxes payable
TOTAL CURRENT LIABILITIES
LONG-TEP-J'4 DEBT
DEFERRED INCOME TAXES
STOCKHOLDERS' EQU~rY
Common stock; no par value, 2,000,000 shares authorized,
1,048,900 shares issued and outstanding
Retained earnings
TOTAL LIABILI'FIES AND STOCKHOLDERS' EQUI'I'Y
S 1,489,924
364,193
978,681
22,800
1,173,539
53,773
22,719
4,105,629
1,760,073
62,065
174,288
1,435,020
1,609,308
S 7,537,075
See accompanying notes.
3
[ I I
INTERNATIONAL MODULAR AND PAINEL =!mU~LLh,'tG :SYS'I'F-IvmS, I. PmU. ~m~u ',UU.iiU LAF, Y
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
REVENUES
Contracts S 17,903,554
Sales 562386
Rentals 458,433
Delivery fee ~ncome 24,615
Returns and allowances (20,621)
COSTS OF REVENUES EARNED
18,928,367
14,883.195
Gross Profit 4,04S,172
OPERATINGEXPENSE5
GeneBland adminis~a~ve
Oeprecia~on
Bad debt expenses
Income from operabons
OTHER, INCOME (EXPENSES)
Znterest income
Interest expense
Other income
Other expense
Gain on sale of assets
LOSS BEFORE FEDERAL INCOME TAX BENEFIT
FEDERAL INCOME TAX BENEFIT
CONSOLIDATED NET LOSS
3,'~89,823
222,325
3,917,094
28, 78
102
47,765
26o09~
(3~8.903)
(220,825)
129,337
S (91,¢88)
See accompanying notes.
4
INTERNATIONAk MODULA~ AND PANFL ~.U~LD~I'~G ~.Y~TPM~, ~N~..~ ~u~i~ARt
FOR THE YEAR ENDED DECEMBER 31, 1998
Common Stock Retained
Share Amount Earnings Total
Balance at DecemOer 33., 1997
Prior period adjusCmen~
Consolidated net loss
Balance at December 31, ].998
1,048,900 s 17~.,288 S 1,482,.~07 s 1,656,695
,M,~0]. 44, Z01
(9Z,~88) (9Z,488)-
1,048,900 S 174,288 S 1,435,020 S 1,609,308
See accompanying notes.
5
CONSQLZDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED OECEHBER 33., 3.998
CASH FLOWS FROM OPERATING ACTIViTiES:
Consolidated net loss
Adjustments to reCOncile consolidated net loss
to net cash used by operating activities:
Depreciation and amor'cizatton
Gain on sale of fixed assets
Change in operating assets and liabilities:
Accounts receivable, trade
Emptoyee recesvables
Costs and estimated earnings in excess of billings
Prepa~ds and other assets
Prepaid income taxes
Used parts inventory held for resale
Note receivable
Accounts payable, trade
Accounts payable, related parties
Billings in excess of costs and estimated earnings
Accrued liabilities
income taxes payable
Deferred income taxes
Net Cash used by Operating Activities
CASH FLOWS FROM INV~NG ACTIVITIES:
Purchase d property and equipment
Proceeds from sale of proix'try and equipment
Net Cash Used by Investing Activities
CASH FLOWS FROM FINANCING AL'I xVl'i'IES:
Proceeds of borrowings on notes payable to bank
Repayments of notes payable to bank
Proceeds of borrowings on long-term debt
Repayments on long-term debt
Net Cash Provided by Financing Activities
NET INCREASE IN CASH
CASH AT BEGINNING OF YEAR
CASH AT END OF YEAR
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid dudng the year for:
Interest
Income taxes
$ (91,488)
222,325
(26,094)
(1,233,8,+3)
(2,794)
377,652
(3.2,937)
( 3.32, 3.63)
(81,252)
(8L010)
(230,263)
22,800
38,477
C I02.052)
(122,6~)
(290,487)
(479,075)
130,000-
(349,075)
1,710,032
(1,186,628)
548,360
(253,138)
8Z8,626
179,064
290,845
279,429
lO0,O00
See accompanying notes.
6
I I 1
NOTES TO CONSOLIDATED FINANCIAL ~TATEMENTS
DECEMBER 31, 1998
NOTE A
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
International Modular and Panet Building Systems, [nc. (the Company) was established in
t980. These consolidated finanoal statements include the financial activity of the Company,
~t's wholly owned subsidiary, Advantage Contract Services, Inc. (Advantage). The Company
also operates two divisions: International Building Systems, Inc. ([BS) and C. ary-Way
Budclings Company (Cary-Way). All material intercompany tranSactions have been eliminated
in the consolidated statements.
Subsequent to ).998, Air Cool, Inc., doing business as International Safe Air was incorporated
as a wholly owned suhsidiary of the Company. Initial start up costs incurred in 1998
amounting to $1',tl,830 are included as other expense on the consolidated statement of
operations.
Nature of Business - [BS constructs modular and panel buildings for Sate or rental to
customers worldwide, primarily for use in the oilfield industry. Cary-Way owns and rents
temporary buildings to customers along the Texas Gulf Coast. Advantage prov~es Cleaning
and rehabilitation of storage tanks for customers mainly in Houston, Texas and Louisiana.
Ooerationf
For the year endec) December 31, 1998, the Company incurred lOsses of $91,488 and
borrowed in excess of $2,258,000 in order to fund its operations. Accounts receivable from
customers of the Company increased in excess of $l,200,000 which ec~ounted for some of
the Company's need to increase its debt load during 1996. The Company was able to obtain
some financing from third parties in ].998, however a significant portion, $].,075,640 of the
Company's' increased debt-obligations was obtained from shareholders and entities related .to-
the Company by common ownership.
During ].999, the Company will be required to pay or refinance substantial amounts of its
debt obligations. It is now estimated that the required payments or refinancing of current
debt obligations will amount to approximately $1,854,000 not considering the possibility of
other debt payments being demanded or accelerated. These amounts do not include the
normal or potential for increase in operating Cash flow requirements of the Company in 1999
and thereafter.
8etause the Company often operates in foreign counties, dealing with large multi-national
corporations, the Company may experience extended collection periods associated with
certain of its contract receivables. These extendel collection periods may require the
Company to seek addiUonal finanCing of these long-term receivables until collection occurs.
The Company is also subject to certain litigation, as defendant, bhat could result in
disruptions to scheduling and timing of certain jobs, and may subject the Company to
increased operating results in order to defend the litigation. It is not now possible to
estimate these disruptions and associated costs, consequently they are not included in the
accompanying finanCial statements or in the above discussions regarding Cash requirements.
Subsequent to year- end, the Company has attempted to increase sales and reduce overhead
in order to improve its operating results.
r r i
NOTE A
[NTERNATIONAL MODULAR AND PANEL BUILDING SYSTEMS, INC. AND SUBSIDIARY
NOTE5 TO CONSOLXDATED FXNANCXAL STATEMENTS
DECEMBER 31, 1998
SUNNARY OF SIGNIFICANT ACCOUNTING POUCIES (CONTINUED)
Use of Estimates - The preparation of financial statements in conformity w~th generally
accepted accounting principals requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the repOrted amounts of revenues
and expenses during the repOrting period. Significant estimates used in preparing these
financial statements include those amounts assumed in recording and valuing the collectability
of receivatiles, costs and estimated earnings in excess of billings, billings in excess of costs
and estimated earnings, recognition of revenues an~d costs and the federal income tax
benefit. Actual results could differ from those estimates
Concentrations of Credit Risks - Financial instrumentS
to concentrations of credit risk consist principally of trae
places itS Cash with high quality financial institutioe
generated by one customer and at December 33.
vhiCh pOtentially subject: the Company
le receivables and cash. The Company
:s. During 3.998 48% of Sales were
3.998, two customers account for
doubtful accounts in the amount of $154,485. a I
Cash- For purpOses of the statement of cash flows, cash includes cash on hand and demand
deposits. ~
Used Parts Inventory Held for Resale - Inventory held lot resale consLs~ of pOrtable buildings
Property, Plant and EauiDment - Property, plant andi equipment are stated at cost. Rental
buildings are valued at the cost of construction. Depredation is computed using the straight-
line method over the estimated useful lives.
Expenditures for additionS, major renewals and bettermentS are capitalized and e~pOnditures
for maintenance and repairs are charged to earnings a~ incurred.
When properties are retired or otherwise disposed of, the cost thereof and the applicable
accumulated depreoation and amortization are remc
the resulting gain or loss is reflected in earnings.
Revenue Reccxinition - The Company recognizes
and rehabilitation contracts on the percentage of
are determined by applying the ratio of cost incurre
~eq from the reslx, ctive accountS and
enues from construction and cleaning
~pletion method under which earnings
for work pedormed to date and the
total estimated cost of the contract to the estimated ' ~ro~t. Contract costs include all direct
material and labor costS and those indirect costs related to contract performance, such as
indirect labor and supplies. General and edminlsra~Ne COSts are charged to expense as
incurred. Changes in job performance, job condition, and estimated profitability may result in
revisions to costs and income, which are recognized in the period in which the revisions are
determined. Provision for estimated losses on unComl
in which such losses are determined. Because of inhe
is at least reasonably pOssible that the estimates used
Revenues from rental buildings are recognized wl~
customers and are recorded as a sale, operating le
nature of the contract.
,leteq contracts are made in ~e period
ent uncertainties in estimating costs, it
will change within the near term.
!n the buildings are delivered to the
~se or capital lease depending on the
8
INTERNATIONAL MODULAR AND PANEL BUILDING SYSTEMS, INC. AND SUBSIDIARy
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1998
NOTE A
SUMMARY OF SIGN[FTCANT ACCOUNTTNG POLICIES (CONllNUED)
Pnor oenod adiusr/neqt - A prior period adjustment has been recorded to correct for
miscalculations in the depreciation of Cary-Way rental buildings. This adjustment increased
income taxes payable by SZ2, 73.9 and increased beginning retained earnings by S44, 101.
NOTE 8
COSTS AND ESTIMATED EARNINGS ON UNCOMPL:i :D CONTRACTS
CostS, estimated earrungs, and billing on uncompleted contracts are as follows at December
31, 1998:
Costs incurred on uncompleted contracts
Estimated earnings
Less billings to.date
Included on the accompanying balance sheet: under the rollowing categories:
$ 2,569,434
L,046,919
3,616,353
3,77!,742
S (~55,389)
NOTE C
Costs and estimated earnings in excess of billings
Billings in excess of costs and estimated earnings
PROPERTY PLANT AND EQUIPMENT
TOols
Furniture and fixtures
Hachinery and equipment
Rental Buildings
Buildings
Less accumulated depredation
Property, plant and equipment, net
S years
S years
7 years
7 years
39 years
$ 1,018,1S0
(1,173,539)
S (ZSS,389)
Z2,720
Z,3~2,TS3
799,341
Z,0SZ,TZ8
23,5,000
3,464,260
(1,140,497)
S 2,323,763
9
INTERNATIONAL .-vtODULAR AND PANEL BUILDING SY~TEr-'.S, INC. AND SUBSIDIARY
NOTES TO CONSOITDATED FXNANCIAL ~TATEMENTc~
DECEMBER 31, 1998
NOTE D
RELATED PARTY TRANSAC'T'[ONS
The Company's majority stockholder, George I. Pindeft owns and exercises substantial control
over three unconsolldated entities providing debt financing to the Company. The entities
are United States Modular Building Systems, Inc., Ranger Enterprises, Inc. and Three Way
Investmenr~ Company. See note F for terms and balances of related party notes payable.
Interest expense on related entity notes payables amounted to approximately S4S,666 for the
year ended December 31, ].998.
U.S. Modular Building Systems, Inc. leases certain real estate to [BS under a non-cancelable
lease that expires in December 1999. Lease expense in ].998 was $54,000.
Houston Ranger Enterprises, Inc. teases vehicles to EBB, Advantage and Car,/-Way on a
month-to*month basis. Lease expense for 1998 was $111,228.
The Company's President and majority shareholder is a shareholder and Director of First
Community Bank N.A.
NOTE E
NOTES PAYABLE TO BANKS
Line of credit payable to Frost; National Bank
by IBB, secured by life insurance, cash,
accounts receivable, inventon/; varial}le
interest payable monthly (8.5% effective at
December 31, 19981; due December 3., t999.
Une of credit payable by Advan~ge to FirSt
Community Bank, secured by life insurance,
accounts receivable, inventory, vadable
interest due monthly (9.25% effective at
December 31, 1998); due Hay 3.7, 3.999.
Note was renegotiat;ed subsequent; to year
Note payable to FirSt Community Bank N.A.,
secured by modular building; interest at
9.25% payable monthly; pdndpal due and
paid Nay t, 3.999
1,100,148
349,776
40,000
S 1,489,924
10
I I I
NOTE F
INTERNAI'ZONAL MODULAR AND PANEL BUILDXNG SYSTEMS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCXAL STATEHENTS
DECEMBER 31, 1998
LONG TERM DEBT
Note payable to Frost National Bank, secured by
the land and buddings at 7150 Aimado Genoa
Road, payable in monthly installments of $7,025
plus interest at 9%, matures December 18, 2002
with a final payment of $693,801 due at that
time
S 765,725
Note payable to First Commumty Bank N.A.,
secured by property in Houma, Louisiana,
payable In monthly installments of $2,974,
indudincj interest at t0%, and a final payment of
all remaining principal of $/,41,655 and interest
due March 24, 2003
214,727
Note payable to United States Modular Building
Systems, Inc., a related entity, due after April L,
2000 on demand, subject to satisfaction of
certain conditions; interest at/,0% due annually
/,50,000
Note payable to Three Way Investment
Company, a related entity, due after April 1,
2000 on demand, subject to Satisfaction of
certain conditions; interest at 10% due anr;uelly
t,13,6Z8
Note payable to George [. Pinder; stockholder;
due after April 1, :ZOO0 on demand, subject tx}
satisfaction of certain conditions; interest at tO%
due annually
130,383
Note payable to Travis and 3one NcKenzie,
stockholders; unsecured; due on demand,
interest at 10% payable monthly
100,000
Note payable to George I. Pinder, Jr.,
stockholder; unsecured; due on September 21,
1999 pdndpal and interest at 6.85%
95,000
Note payable to First Community Bank N.A.,
secured by equipment, due in monthly payments
of $2,088 including interest at 9.2:5%, matudng
on October 20, 2003
97,260
Note payable to First Community Bank N.A.,
secured by equipment, due in monthly payments
of $8,903, including interest at 11%, maturing
on November 27, t999
92,885
11
[ I I
XNTERNAT~ONAL MODULAR AND PANEL BUILDING SYSTEMS, INC. AND SUBSIDIARy
NOTES TO CONSOLIDATED FINANCXAL STATEHENTS
DECEMBER 31, 1998
NOTE F
LONG TERM DEBT (CONT'[NUED)
Note payable to C~r' Group, secured by
forklift, due in monthly installments of
$1,683, including interest at 8.3%, maturing
~anuary 4, 2004
Note payable to George [. Mnder,
stockholder; due after April 1, 2000 On
demand, subject to satisfaction of certain
conditions; interest at 10% due annually
Note payable to Sanwa Credit Corporation,
secured by forklift truck, due in monthly
installmentS of $1,772, including interest at
9.6%, maturing January 11, 2002
Note payable to Three Way. Investment
Company, a related entity, due after April 1,
2000 on demand, subject: to satisfaction of
certain conditions; interest at 10% due
annually
Note payable to United States Modular
Building Systems, Inc., a related entity, due
after April 3., 2000 on demand, subject to
satisfaction of certain conditions; interest at
1.0% due annually
Note payable to Houston Ranger Enterprises,
Inc., a related entity, due after April 1, 2000
on demand, subject to satisfaction of certain
conditiOns; interest at 10% due annually
Note payable to Houston Ranger Enterprises,
Inc., a related entity; due after April 1., 2000
on demand, subject to satisr-dction of certain
conditions; with interest at 1.0% due annually
Less current portion
Long-term debt: S
80,677
73,718
56,623
28,H9
27,365
27,236
2,1.24,266
{364,193)
1,760,073
The aggregate Drincipal payments on long-term debt during the years subsequent to Z998
are: 1.999 - $364,1.93; 2000 - $706,624; 2003. - $93,53.2; 21302 - $7'/4,358; 2003 - $3.84,373.;
and 2004 - $1.,208.
12
INTERNA'I'ZONAL MODULAR AND PANEL BUILDXNG SYSTEMS, XNC. AND SUBSZDIARY
NOTES TO CONSOLTDATED FTNANCXAL STATEMENTS
DECEMBER 31, 1998
NOTE G
FEDERAL iNCOME TAXES
Federal income tax benefit (expense) consists of the following:
Current S 6,714
Deferred, current 18~,688
Deferred, noncurrent (62,065)
129,337
NOTE H
The differences between the effeCive rate of income tax expense at December 31, 1998 and
the amounts which would be determined by applying the statutory U.S. income tax rate of
34% relate to certain expenditures which are not fully deductible for tax purposes.
Deferred income taxes result from the timing differences in repomng income and expense for
tax and financial purposes. The sources of deferred income taxes include ~e direct writa.off
of bad debts, the use of different metl~ds of deprec3alion for income tax and finanoal
statement purposes and net operaling loss carryforwards. Deferred tax assets and lialiilities
at December 31, 1998 amount to $18~,688 and $62,065, resl:~-~ively.
CONTTNGENCTES
IBS is a defendant in two lawsuits whereby plaintiffs have alleged damages approxrnating
$100,000. IBS has filed counterclaims amounling to $82,000, NO amounts have been
recorded with respect tO these actions.
From time to time the Company and its subsidiaries are defendants in lawsuits in the ordinary
course of liusiness in which plainlifts seek alleged damages. Hanagement is of the opinion
that no substantial liability will be incurred with respect to arty and all lawsuits filed.
13
ADVANMGE
CONTRACT
SERVICES, INC.
SPECIALIZING IN:
· Paint and coating applications
· Abrasive blasting
· Multi-industry I'abrication
· Electric arc spray mctalizing
· Tank lining and pipe repairs
· Fireproofing and no-slip
applications
· Welding and fabrication
· Contract skilled labor
dva~ttage Contract Services. Ira'.
is committed to decreasing, I,'eve~H-
ing aml rel~airi~zg damage rattsed fly
co/'rosio,. We/'e,~7}o,d quickly to soh'e the
I,'oble,ts q/'a diverse clic,t lutse i,
iHdttstries, iiic'htdi,g:
MUNICIPAL
PIPELINE &
PETROCHEMICAL
· Abrasive blasting
· Control buildings (fiberglass)
· Paint & coating applications
· Custom containment shrouds
· Tank lining & repair
· Maintenance & repair
· Quarters fabrication & rchab
· Complete containment shrouds
designed to fit your necds
· Tank rehab & tank repair
· Abrasive blasting
· Multi-industry fabrication
· Electric arc spray metalizing
· Non-skid surface applications
Texas: 7150 AImeda Genoa Rd. · Houston, Texas 77075 · Ph: (713) 991-0747 · Fax: (713) 991-4671
OFFSHORE
SERVICES
COMMERCIAL &
IHDUSTRIAL
· High pressure washing
· Abrasive blasting
· Custom containment shrouds
· Paint & coating applications
· Non-skid & deck coatings
· Abrasive blasting
· Platform rchab & fabrication
· Portable shot blasting
· Paint & coating applications
· Quatiers fabrication & rehab
· Tank lining and repair
· Maintenance & rehab
· Electric arc spray metalizing
· Fireproofing applications
Louisiana: 222 Thompson Rd. · Houma, Louisiana 70363 · Ph. (504) 851-7991 · Fax: (504) 851-1446
INTERNATIONAL SAFE AIR
Explosion Proof A/C, Heat, Pressurization, Ventilation,
& Corrosion Resistant Coatings
Buildings
,~tdlgear Buildings
The following products arc available liar non-hazardous
or hazardous locations, Division I ur 2.
1. Air Couditioncrs ;~lnd tieat I~umps
A, Wall mounl units
B. Package units
C. Roof-top unils
D. Split systems
E. Window unils
II. Prcssurizing kinits (per NFPA 496)
A. Single model - skid or thru Ihe-wall nlounting
B. I)ual model skid or Ihru-the-wall mutmlin~
III. Pressure Mollitor Colill'o] Panels
A. Ten/peralure Conlro] Panels Pneunl;itic or
Electric
IV. 'Fherlnostats
V. Ventilalion Fau,, Exhaust or Supply
VI. Elcclric Heaters; - Fan Forced, Convectiou. or
Duct Type
VII. Steam Heaters Fan Forced. Convcclion, or
Duct Type
VIII. Ice Machinc~,
IX. Water Hcatcp, - Electric
X. Water CooleFs
XI. Refrigerators and Freezers
XII. Sample Chillors
OPTIONS
Fifty cycle 150ItZ} equipment is available.
[ndttntrial corronion resistant coatings arc avaiktb[c.
Built-in steam coils are available ibr units in item
I above.
Cousu]I us I'or special rcqtlirellletlls.
7150 Almeda Genoa Rd. · Houston, Texas 77075 · Ph: (713) 991-7900 · Fax: (713) 991-3939