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Mr. Ilimanshu Mehta, P.E. 1 December 2009 Page 3 comprised of. (i) a NTE bid price of $226,412.52 to Sawmill for the actual construction work; (ii) a 10% management fee to WMIF in the amount of $22,641.52; and (iii) a 20% contingency fee to account for potential change orders and changes in site conditions in the amount of $49,810.75. The total construction cost for the borrow pond development project was within the Engineer's cost estimate range of $269,805 and 773,805, including the 20% contingency. It should be noted that the upper end of the Engineer's cost estimate assumed that the Contractor would also perform the excavation and stockpiling of the soil in lieu of SWDD staff. SUMMARY OF CONSTRUCTION ACTIVITIES Vertical Expansion and Partial Closure Project Construction of the vertical expansion and partial closure construction project started on 1 June 2009 and was estimated, based on the schedule provided by the Contractor, to be completed by 1 October 2009. Because of significant changes in actual field conditions than originally anticipated in the construction project and multiple delays caused by excessive rainfall, multiple change orders were submitted by the Contractor that resulted in a longer than anticipated construction schedule for completion of the project. A total of 15 days was added to the construction schedule: (i) eleven (11) days were for change order work; and (ii) four (4) days for delays due to excessive rainfall, as documented in the Construction Schedule Extension letter by WMIF presented in Attachment A. Construction, however, was determined to be substantially complete, including demobilization by the Contractor, by 16 October 2009, as indicated in Attachments A and B. As noted in Attachment B, the Construction Certification Report for the Vertical Expansion component was completed and submitted to FDEP on 15 October 2009. The FDEP subsequently conducted an inspection of the constructed cell and issued a final approval for waste placement on 24 November 2009. The Construction Certification Report for the partial closure, GCCS and stormwater management components of the project will be submitted to FDEP on 4 December 2009. Geosyntec does not anticipate any problems with obtaining FDEP approval of this report. Because of significant changes in actual field conditions than originally anticipated in the construction project, 22 change orders were submitted by the Contractor that extended the construction schedule and increased the original contract price. The change orders are summarized in the Final Application No. 7 presented in Attachment C; some of these change orders pertain to: (i) encountering significant leachate seeps on the surface of the North and South slopes that required remedial measures prior to deployment of the geomembrane cap; (ii) regrading and recontouring the North and South sideslopes to the permitted 3 horizontal to 1 vertical (3 H:1 V) sideslopes, including placement of the 12 -in. thick intermediate cover layer to facilitate construction of the cover system; (iii) accumulation of liquids in the gas extraction wells which FL1537-01/JL90230.docx