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CUMMINGS/SARAVENTURES ARBITRATION <br />The Board reviewed the following memo dated 2/16/96 and letter <br />dated 2/15/96: <br />TO: Board of County Commissioners( <br />FROM: Terrence P. O'Brien, Assistant County Attorney 1' <br />DATE: February 16, 1996 <br />RE: cumminge/Saraventures Arbitration <br />Background: <br />James A. Cummings, Inc., the prime contractor for the construction of <br />the Indian River County Judicial Complex, subcontracted the millwork for <br />the judicial complex to Saraventures, Inc. During the course of <br />construction, shop drawings for the millwork were submitted to the <br />architect for approval. During the course of review of the shop <br />drawings, it appears that someone at the architect's office scratched <br />out the wood species "white birch" and substituted the word "mahogany." <br />Mahogany was in fact installed. Saraventures submitted to the <br />contractor an upcharge for the wood species change. The architect <br />denied the request for the upcharge because there was no change order or <br />other document signed by the architect and owner authorizing -this wood <br />species change as required by the contract. <br />Settlement Offer: <br />Cummings/Saraventures then filed a demand for arbitration seeking <br />$36,488.09 for the upgrade from white birch to mahogany. Arbitration <br />is scheduled for February 29, 1996. The attorney for <br />Cummings/Saraventures has submitted a settlement offer of $7,500. A <br />copy of the letter is attached. <br />Discussion: <br />The County has a valid legal defense to this arbitration in that the <br />requirements for a change order in the contract were not followed. The <br />arbitrator is not bound to accept this defense, and he could award <br />Cummings/Saraventures the cost or a portion of the cost of the wood <br />species change based on the fact that we did get the mahogany in place <br />of white birch. <br />53 <br />FEBRUARY 20, 1996 <br />BOOK 97 FA.r r ;374 <br />