HomeMy WebLinkAboutPenalty Letter
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JACOBI, TOOMBS AND LANZ, INC.
CONSUL TINC ENCINEERS
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120 Bell Avenue
Clarksville, Indiana 47129
(812) 288-6646 (812) 288-6656 Fax
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August 21, 2007
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1v1r. Michael T. Nutt, President
M1N Construction, Inc.
1194 Armory Place, Suite 'D'
Brandenburg, Kentucky 40108
Re: Magnolia Avenue Lift Station
Jeffersonville, Indiana
Dear Mr. Nutt:
It has come to my attention that you have submitted the final pay estimate directly to the City of
Jeffersonville to get your retainage. I have advised the City not to issue any payments that I have
not reviewed and recommended for payment.
There are two (2) outstanding issues: First, liquidated damages. Construction was to be
completed within 120 calendar days from October 18,2006, or by February 18,2007.
Construction did not commence until November 30, 2006.
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Construction was substantially completed on June 15,2007, 117 days beyond the contract
completion date. Of these 117 days, 79 days are justified due to inclement weather andlor utility
conflicts. This results in a 38-calendar day penalty at $250/day, totaling $9,500.00. This amount
has been approved by the Jeffersonville Sewer Board.
According to our records, the retainage amount of $26,496.60 has not been released. From this
amount, the City will deduct the $9,500.00 penalty, which results in an outstanding balance of
$16,966.60.
The City is receiving numerous complaints from your equipment and materials suppliers
regarding non-payment. We direct your attention to paragraph 9.3 of the general conditions of
the project specifications, page C-I04. Please submit payment releases from all your suppliers
and subcontractors with your final payment request of$16,996.60.
Thank you for your attention to this matter.
LANZ, INe.
Cc: Jeff. Sewer Board
Bob Miller, City Engineer
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