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, o <br /> 850 Trafalgar Court <br /> Suite 300 <br /> Maitland, Florida 32751 <br /> Tel: (407) 661 -9500 <br /> Fax: (407) 661 -9599 <br /> www. brownandcaidwell . com <br /> ATTACHMENT 1 TO AMENDMENT NO . 4 <br /> B , <br /> October 21 , 2005 <br /> Mr. Michael Hotchkiss, P . E . <br /> Capital Projects Manager <br /> Indian River County Utilities Department <br /> Post Office Box 1750 <br /> 1840 25thStreet <br /> Vero Beach, Florida 32960 22 / 125896 . 001 <br /> Subject: Construction Phase Services Budget — <br /> Utility Operations Complex <br /> Dear Mr. Hotchkiss : <br /> As I have mentioned to you on a number of previous occasions, Brown and Caldwell's <br /> (BC) budget for project management on the Utility Operations Complex project (Work <br /> Order 1 of our contract) is nearly exhausted. The two primary reasons for this are (1 ) a <br /> significant percentage of BC 's construction management budget was utilized during the <br /> Value Engineering process and negotiations with Summit Construction prior to award of <br /> the construction contract, and (2) the project duration has extended well beyond the <br /> September 30, 2005 completion date established in Work Order 1 . Since construction <br /> began in April 2005 , we have been trying to conserve our available budget resources by <br /> limiting our site visits to the monthly construction meetings and the several structural <br /> inspections that are specifically our responsibility. Nevertheless, as of September 30, <br /> 2005, there was only about $3,500 remaining in BC's budget for project management <br /> services . This amount will not be sufficient for us to attend monthly construction <br /> meetings through project completion, currently scheduled for April 28, 2006, process <br /> Contractor invoices and change order requests , and perform inspections to document <br /> substantial and final project completion. <br /> As you probably remember, this project got off to a slow start because the bids received <br /> were all substantially higher than BC and the County anticipated. Before deciding <br /> whether or not to rebid the project, Indian River County directed the BC Team to <br /> perform Value Engineering and work with the apparent low bidder, Summit <br /> Construction, to reduce the cost of the project. This process occurred during the period <br /> from November 2004 through January 2005 and was successful in reducing project cost <br /> to a figure approximating the County's original expectation. During this period, our <br /> records indicate that BC staff spent approximately $ 11 , 663 . 00 on Value Engineering and <br /> negotiations with Summit Construction prior to contract award. This money was <br /> En v i r o n mental E n g i n e e r s C o n s u l t a n t s <br />