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