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March 26, 2024 <br />Harrison Youngblood, P.E. <br />Indian River County Department of Utility Services <br />1801 27th Street <br />Vero Beach, FL 32960 <br />RE: Indian River County Department of Utility Services <br />South Oslo Road Water Treatment Plant Improvements <br />Change Order 4 — Time Extension & Deductive Credit for IRCDUS Project #2021-026 <br />The intent of this letter is to outline our recommendation to Indian River County Department of Utility <br />Services (IRCDUS) to provide TLC Diversified, Inc. with a deductive change order and contract time <br />extension for the South Oslo Road Water Treatment Plant Improvements project. The original contract <br />had a final completion date of November 2, 2023. TLC was not able to meet this final completion date <br />due to delays in lead times for materials as well as an increase in scope through change orders. TLC <br />formally requested a time extension request in October 2023 and was granted an extension under work <br />change directive #2 and the contract final completion date was extended to May 17, 2024. <br />Since the execution of work change directive #2, TLC has encountered further delays as outlined in the <br />letter to Indian River County dated March 6, 2024 (see attached). TLC is no longer able to meet the <br />current final completion date for this project. TLC has formally requested a second time extension <br />request of 77 days to yield final completion date of August 2, 2024 (1,094 days from NTP). The revised <br />schedule includes the following major milestones: <br />Milestone <br />Date <br />Caustic Tank Startup <br />4/5/2024 <br />CO2 Tank Startup <br />4/9/2024 <br />Permeate and Concentrate Trench Piping in Service <br />3/30/2024 <br />Train 1 Demolition <br />3/25/2024 <br />Train 4 Startup <br />4/8/2024 <br />Wellfield FO Panel Work Complete <br />4/12/2024 <br />CTF Piping Complete <br />4/15/2024 <br />Train 1 Startup <br />4/22/2024 <br />Raw Water Blend Improvements <br />4/22/2024 <br />CIPS stem Startup <br />6/15/2024 <br />Substantial completion <br />6/15/2024 <br />Final completion <br />8/2/2024 <br />This time extension results in additional cost burden to IRCDUS. Per discussions with the TLC project <br />manager and IRCDUS, line item 345 of the schedule of values, which totals $54,928.65, will be <br />deducted from the contract value in exchange for additional time. This credit to IRCDUS appears <br />satisfactory to cover costs associated with this time extension. We have reviewed the milestones and <br />TLC's completion schedule and believe them to be achievable. <br />1920 Wekiva Way, Suite 200, West Palm Beach, FL 33411 <br />