ECC.NET Task Order No 3








 Task Order No. 03 Settlement Financial Review


is explain below also you can find in this link


  





















































































































Task Order No. 03 Settlement Financial Review



Serena Hotel, Kabul Afghanistan


 Date: 01 June 2012



Meeting agenda



Settlement of task orders



03



Barrak No. 1 Kunduz



10



Fuel tank Bagram



11



CNPA Kabul



 



Description



 AWCC & ECCI position explanation



AWCC expectation



 


ECCI proposal


 



 


1. Task order No. 03


 


Scope of work was construction of Barrack No.1 at Kunduz without foundation work


 


 


 


 


 


 



Original Subcontract Amount



$ 728,000.00



$ 728,000.00



Repair defective water pipe, which was damage because of building settlement, and that settlement cause because of bad compaction which was not in AWCC SoW,



AWCC is not agree because it was not in AWCC SoW,



ECCI is back charging AWCC


$ 10,000.00



AWCC claim is for the below line items


AWCC estimated project administration cost per day was $1,000 was for 112 calendar days it was $ 112,000.00 but as project was delay by ECCI for a period of 197 calendars day which total extra cost is $ 197,000.00 Delay information in mention in page No. 1 item No. 8



AWCC is requesting amount of


$ 197,000.00


Because of the Daley caused by ECCI



ECCI is not agree with this line item



ECCI is back charging AWCC for Liquidate damage for 99 calendars days and per day they are charging AWCC $1,500.00.



AWCC is not agree with any LD



ECCI is back charging AWCC


$ 148,500.00



Total cost for installation of exterior insulation on the wall.



  AWCC is requesting amount of


$ 40,000.00


for the extra work



ECCI  is agree to pay amount of


$ 30,000.00


for the extra work



Total extra cost for extra out side of barrack No. 1 underground utility and Generator maintenance. Provide hourly labor rates for 2 electricians to work with ECCI site personnel.



  AWCC is requesting amount of


$ 45,007.85


For the extra work



ECCI  is agree to pay amount of


$ 37,500.00


for the extra work the extra work



Total extra cost for  more pipe  extra out side of barrack No. 1



$ 2,500.00



$ 2,500.00



Paid amount to AWCC for this task order



-$ 604,078.15



$604,078.15



Remaining payment to be paid by ECCI to AWCC as explained above, the damages and interest will be calculate in future.



$ 408,429.70



$ 35,422.00


Transfer to AWCC partner account



 



Task Order No. 03 Settlement Explanation



Deduction for Barracks 1 Repairs



 


Deduction for Barracks 1 Repairs


ECCI mention that we repair the damage which cause in Barrack No. 1 of task order No. 3 which ECCI deducting about $10,000.00, but AWCC is not agree  as explain below,


 


ECCI  explain that they repair the damage into barrack No. 1, that is why they want to back charge that to AWCC, in response to this AWCC explain that on that time AWCC was not notified because ECCI was understood that the problem accrue in Barrack No. 1 is not because of AWCC implemented task.


 


AWCC explain before also that settlement of building if accrued that was because of poor compaction of soil, poor compacted material or poor foundation work. which was not in AWCC scope of work that is why ECCI also did not notify AWCC, in writing, within a reasonable time after the discovery of any failure, defect, or damage into AWCC implemented task.


 


So therefore, ECCI should not deduct any amount from AWCC.


 


In addition, AWCC mention that as the damage accrued, AWCC was not notified because ECCI understand that the damage accrued is not in AWCC implemented work.


 


As in last meeting ECCI mention that we notify AWCC on that time, when AWCC did not comply then ECCI repair the damage in Barrack No. 1.


 


In last meeting AWCC mention that AWCC never notified because ECCI understood that the damage is in foundation that is not in scope of AWCC.


 


Base on the last meeting AWCC was expecting to that ECCI will share the proof of the notification email regarding the damage in barrack No. 1 but was not shared with AWCC.


 


ECCI mention they will check the notification email regarding the damage in barrack No. 1 that AWCC was notified for this issue, after that they will decide.


 


Again AWCC mention that the damage explained by ECCI is not accrue in AWCC implemented task, and maybe some pipe damage because of the settlement of building which repair is again responsibility of ECCI. Because as mention before the settlement or damage to building accrued because of poor compaction of soil, poor material placed below foundation or poor foundation work, which was not in AWCC scope of work.



AWCC once again explain settlement of building if accrued that was because of poor compaction of soil, poor compacted material or poor foundation work which was not in AWCC scope of work that is why ECCI also did not notify AWCC, in writing, within a reasonable time after the discovery of any failure, defect, or damage into AWCC implemented task.


 So therefore, ECCI should not deduct any amount from AWCC.



ECCI is deducting


 


 


$ 10,000.00


 


On which AWCC is not agree



 


 


Liquidated Damages


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Liquidated Damages



Liquidated Damages


ECC  mention in last meeting that ECCI mention that AWCC Period of Performance 10/1/2009 and Barracks 1 Completed including repairs 5/8/2010 in result AWCC 219 Days Delayed because of that ECCI was back change AWCC with a Total Liquidated Damages, 219 days X $1,500.00/day= $328,500.


 


As AWCC explain that project was delayed by ECCI because ECCI didn't provide project submittals that is why project was delayed and after that in ECCI reduce the back charge for LD from $328,500.00 to $164,250.00,


 


While in the last meeting once again AWCC explain that project was delayed by ECCI because ECCI didn't provide project submittals that is why project was delayed and after that in ECCI reduce the back charge for LD from $164,500.00 to $148,500.00, also ECCI find that ECCI give a time extension to AWCC up to 15, Feb 2010


 


AWCC response was that before award of this task order AWCC clearly mention in its email on June-10-2009 as below.


"We will be able to start the work with in one week after NTP, and if design with all of the submittals are approved we will try to complete the job as soon as possible because we will place order for all require material and equipment which is require for this project."


 


ECCI mention that their site manager mention in last meeting that he delivered all of the submittal to AWCC site manager, AWCC explain as in last meeting we contact with the AWCC project manger of that task order he deny and mention that Mr. Arnulfo Ellazar never delivered any construction submittal. Also AWCC mention that in last meeting AWCC request Mr. Arnulfo Ellazar if he can present any proof for his thought in result he was not able to provide any proof.


 


AWCC explain that ECCI site manager don't have idea about submittal because as mention in attached Reference file No. 3-1a & Reference file No. 3-1b that he is referring to installation procedure and polystyrene picture as submittal of insulation material.


 


ECCI mention that why you did not ask for submittal after award of the contract up to Dec 02, 2009, AWCC explain that we was supplying every material as per ECCI site personnel recommendation that is why we did not ask again for submittal and project was delay because of not having a complete package of submittals.  Also AWCC explain that steel bar was supplied which was already used, concrete was used which was available in project area also CMU and truss work  was done as per ECCI team recommendation.


 


In addition, AWCC explain that the ECCI Kabul office was not having the complete package of submittal of task order No. 3 that is why on Dec 02, 2009 to AWCC the few submittals was handover which belong to (003, 004, 006, 007, 009, 010) for using in task order No. 003. This submittal package was delivered to AWCC on Dec-02-2009 just about 144 calendars days after award of the contract, which is a big cause for delay of this project by ECCI, Reference file No. 3-2 and Reference file No. 3-2 was presented in the meeting.


 


Also AWCC explain that for the remaining items for which ECCI did not delivered the approved submittal cause delay in project such as exterior wall insulation, door lock.


ECCI did not delivered any approved submittal exterior wall insulation, which they got on Jan 03, 2010 because of which project totally delayed for 176 calendars days, Reference file No. 3 was presented in the meeting.


 


Also ECCI did not delivered any approved submittal door locks which approval ECCI got for AWCC just on March 16, 2010 because of which project totally delayed for 248 calendars days, Reference file No. 3-4 was presented in the meeting.


 


In result AWCC deny the ECCI claimed delay of 99 calendars days because project was delayed by ECCI because of not providing the approved submittal on time. In addition, AWCC mention that project one other cause for delay can be the extra work such as extra work out side of barrack No. 1, underground utility, generator maintenance and exterior insulation.


 



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


AWCC is requesting extra payment for the delay caused by ECCI for late delivered of construction submittals or late approval of construction material which was to be provided by ECC, in result AWCC is a total amount of $248,000.00


 


248 days X $1,000 = $248,000.00



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


ECCI deducting amount of $148,500.00 for 99 calendars days and per day they charge 1500 USD


 Liquidated Damages accrued as per ECC



Installation of exterior insulation on the wall



Installation of exterior insulation on the wall


As in 65% design there was only mention rigid insulation and in specification nothing was mention about its other require material and AWCC consider a sample rigid insulation to be installed on the wall. When AWCC was working 99% design submittal was given in which there was enough detail was given under SECTION 07240 ( EXTERIOR INSULATION AND FINISH SYSTEMS) which extra cost to AWCC about $40,000.00 (Reference file No. 3-5a & Reference file No. 3-5b)


 


But in today meeting ECCI mention that before to do this extra work AWCC should inform ECCI, and for this reason ECCI will not accept this claim amount. In response to that AWCC mention that AWCC will also not accept any claimed amount by ECCI on which AWCC was not notified in advance, such as  EFS and install System STO in task No. 10 and others because for the extra cost AWCC was not notified in advance.



AWCC requested extra payment for Installation of exterior insulation amount of


$40,000.00


 



ECCI offer is


$30,000.00



Extra work which was not in original scope of work



 


Total extra cost for extra such as listed below.


Detail information about the work authorization, price and quantity for extra work  is available in Reference file No. 3-6a, Reference file No. 3-6b, Reference file No. 3-6c, Reference file No. 3-6dReference file No. 3-6eReference file No. 3-6f


 


Work out side of barrack No. 1 underground utility is total cost is $45,007.85 as shown in Reference file No. 3-6b


 


As explained above AWCC will be expecting a total payment of $50,007.85 for the extra work


 



AWCC requested extra payment for the extra work a total amount of


$ 45,007.85



ECCI is in agreement with the extra work and ECCI propose amount for the extra work is amount of


$ 37,500.00



Extra work which was not in original scope of work



Two mechanics was provided for generators maintenance and other electrical works they was in the job site for a period of one month for which AWCC is expecting a payment of $5000 for both mechanics, but to minimize the settlement period AWCC is requesting $2,500.00



AWCC requested extra payment for the extra work a total amount of


$ 2,500.00



ECCI is in agreement with the extra work and its propose


$ 2,500.00