Final Combined Book v.4.0 test

PO Box 575 Fort Montgomery, NY 10922

February 14, 2020 John Dolan, Project Executive Skanska Walsh Design-Build JV LaGuardia Airport Hangar 5A Runway Drive Flushing, New York 11371 Re:

Response to SWJV 11 Feb 20 Response - Notice of Reduced Scope Bridge B Project: Subcontract No. 620-027 Mr. Dolan: We received your correspondence dated, February 11, 2020. Please be advised we disagree with the contents of your letter as set forth in our prior letter dated, January 31, 2020. Commitment Spearhead's commitment includes an increase in hours worked, manpower, overtime, and shift work as outlined in the table, below. The consequence of these stepped-up efforts resulted in substantial increase of payroll. Even still, with the three (3) month delayed start, Spearhead was asked to take on 25 additional workers.

Average Aug - Dec

% Increase Aug -Dec to Jan

Jan

Manhours Worked

1431

4062

184% 144% 172% 240%

# Workers

18

44

Overt me Hours Week y Payro

2461

2101

$35,000

$119,000

Cashflow Burden As Spearhead’s weekly payroll increased by 240%, there was no contract vehicle to execute to allow payment applications for weekly approval. Cashflow commitments prevented Spearhead from adding workers and hindered its ability to pay vendors and union benefits in a timely manner. Scope Removal Per our discussion on February 6, 2020, Spearhead’s PM, Sean Reed and SWJV’s Brian Mock, walked the areas removed from Spearhead’s scope. Mr. Mock confirmed the locations for turnover and that the installed work was satisfactory at the time of turnover. Please see attached quantities and takeoffs memorializing their agreement. Spearhead will not accept any back charges by SWJV due to the removal of scope from Spearhead’s contract. Spearhead reserves all rights and remedies under the Subcontract Agreement. Sincerely,

Andee Hidalgo Owner & President