REA Final - 22 Dec 20 - eBook - 1682 pages

SPEARHEAD

meeting to discuss the costs. 4 The time we have waited for a meeting now exceeds the total time we spent on the job.

Spearhead has been damaged as a result of the actions of other parties listed above. The specific damages stemming from aforementioned items amount to over $3 million dollars. These are uncompensated additional costs which Spearhead has incurred and paid. Failure of SWJV to compensate Spearhead has financially harmed Spearhead's ability to use or increase its existing Lines of Credit, access other sources of capital, and obtain a bonding facility. This MWBE, Veteran owned company desperately needs a payment by the end of the month. Spearhead is requesting release of readily available funds that are straightforward and not controversial by the end of the month. These monies, outlined below, are retainage and time-related change orders totaling $409,440.

• Retainage - Total: $190,943

• Overtime - Spearhead submitted Change Order Requests (CORs) for overtime that have been ignored since March 2020. 5 Total: $79,684

• Labor Rates Adjustment - SWJV denied Spearhead's COR for labor rate adjustment when Trades' rates increased. 6 Total: $138,813

Spearhead is a well-run company with a history of financial success on other projects. We have continued to perform in an excellent manner on other PANYNJ projects. By all accounts, the team at Skanska's Moynihan Train Hall Project is pleased with our performance as we close out the LIRR General Trades Fit-Out. Our work at the National Purple Heart Hall of Honor received accolades. We continue to be proud of our final product at PBB, particularly in light of the drastically different work conditions compared to our contract. We had reason to believe that Skanska was also satisfied with our work given Skanska submitted Spearhead to ENR for its piece on the Redevelopment Project, highlighting the work of MWBEs, in addition to being featured in Skanska's 2019 Annual Shareholder Report. 4 Under prior leadership, Spearhead received an email from the Assistant PM to discuss inaccurate and incorrect back charges, lacking any supporting documentation, that coincidentally totaled the amount of the job cost damages we provided. 5 Spearhead did not accept SWJV Change Orders ( COs ) that combined Spearhead CORs for overtime with inaccurate and disputed back charges. Spearhead's requests to disengage the two unrelated issues were ignored. Resubmitting original, outstanding CORs for OT. 6 In violation of the terms of the PLA, SWJV Assistant PM ( APM ) informed Spearhead PM that, "Don't even bother. I didn't allow the steel guys to increase their rates so I'm not gonna let you guys submit yours. That wouldn't be fair." Carpenters and Finishers new rates went into effect January 1, 2020 and delays on the project by others forced Spearhead into this new period.

PO BOX 575 I FT. MONTGOMERY NY I 10922