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Fr <br />600K 104 PAGE 234 1 <br />The contractor is approximately 70 days behind schedule on this <br />project; however, the reduced retainage in the amount of $330,507.05 <br />would be sufficient to cover any liquidated damage situation that <br />could arise. For additional details, please reference the attached <br />letter dated January 8, 1998 from Camp Dresser and McKee Inc. <br />The staff of the Department of Utility Services recommends approval of <br />a retainage reduction on this project to $330,507.05. <br />CDM Camp Dresser & McKee Inc. <br />1701 State Road A -1-A, Suite 204 <br />Vero Beach, Florida 32963 <br />Tel: 561 231.4301 Fax: 561231-4332 <br />January 8, 1998 <br />Mr. William F McCain, P.E. <br />Capital Projects Engineer <br />Indian River County <br />1840 25th St. <br />Vero Beach, Florida 32960 <br />JAN 0 9 1998 <br />IBY: <br />Subject: Indian River County <br />Hobart Park RO Plant <br />CDM Project No. 6706-13876-050 <br />Proposed Reduction of Retainage <br />Dear Mr. McCain: <br />The Contractor for the above referenced project, Wharton -Smith, Inc. (WS) has requested <br />a reduction of partial payment application retainage. The Contract states, on in paragraph <br />5.1.2 of Section 00500, the Agreement, that the Contractor will receive ninety (90) <br />percent of the amount completed (10 percent withheld for retainage). WS has requested <br />that retainage be capped at ninety (90) percent on fifty (50) percent of the total <br />construction Contract cost. The amount of retainage would be $330,507.05 until the end <br />of the project, unless further reduction in retainage is approved at a later date. <br />The only reservation that CDM would have about this request is that WS's latest project <br />schedule -report indicates that the project is 77 dates late. Potential liquidated damages <br />could be as much as $77,000 if there are no further delays, and possibly less, if there are <br />any time extensions are granted by the County. <br />CDM believes that the proposed reduced retainage is more than sufficient to protect the <br />County's interests, and therefore recommend the County's approval. <br />Pay request No. 14 was submitted by WS with the reduced retainage included. They have <br />been informed that the pay request cannot be processed as submitted, since the proposed <br />retainage reduction needs to be approved by the County Commission. WS declined to <br />resubmit the pay request without the retainage reduction, preferring to wait for the results <br />of the Board action. Therefore, CDM will "hold" pay request until the issue is resolved, <br />without concern for the time restrictions in the Contract for processing partial pay <br />requests. <br />If you have any questions or comments, please contact me. <br />Very truly yours, <br />CMP ADRESSER & McKEE <br />La�__ <br />JANUARY 27, 1998 <br />0 -34- <br />