3/10/1987 - Laserfiche WebLink

Home Browse Search

FUARIU u Boos 67 TO: Sonny Dean, Director DATE: February 25, 1987 General Services SUBJECT: Items 6 and 9 of Change Order #6 - Interest Expense FROM: Joseph A. Baird OMB Director This department has difficulty approving Items 6 and 9 of Change Order 6. We feel that this aspect of the change order fails for the following reasons: 1. RSH has failed to provide adequate proof that.they are entitled to any interest at all. Article 5 of the contract between RSH and the County has this to say about timing of the payments. "Based upon applications for payment submitted to the architect by the contractor, and certificates for payment issued by the archi- tect, owner shall make progress payments..... for the period ending the 25th day of the month, as follows..... Not later than 10 days following the end of the period covered by the application for pay- ment....." Before payment is made by the County a document called "Application for Payment" must be formally drawn up by RSH and then submitted to the architect. The architect verifies the information on the document and certifies it. He then passes the completed form on to the County for payment. RSH claims that the County has not tendered payment to them in a timely fashion in accordance with the terms of the contract (10 days from the 25th of each month). However, analysis of several of RSH's applications for payment indicate several timing prob- lems on their part; so material as to make it impossible for the County to comply with the ten day rule: A. Not one payment was calculated by the contractor for the period ending the 25th of the month as per the contract. Payments were dated no earlier than the end of the month in every circumstance. Not only has a term of the contract been breached by this action, but at this point, the contractor has already held the "Application for Payment" for at least 5 of the 10 day payment period (25th of month to end of month is at least 5 days ex- cept February). B. The contractor did not necessarily sign the ap- plication for payment on the same day it was dated. Sometimes it was signed three or four days later. For example one month the appli- cation was dated 5-30 but not signed until 6-2, -three days later. C. The architect did not certify the application for payment until, onaverage, days later. 90.