Letter re WTC ARD disposal reimbursement impact, April 2003

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Termon Construction Inc. 388 Third Avenue,Brooklyn NY 11215 Tel:(718)694-0900 Fax:(718)694-0200

April 7, 2003 Mr. Rajjapan Radhakrishnan NYC DEP 59-17 Junction Boulevard FAX: 718 595-3648 Corona, NY 11368

Re: Additional Cost due to Disposal of Large Items Dear Krish:

On or about January 28, 2003 the American Red Cross issued a letter, formalizing a reimbursement program for residents of lower Manhattan who dispose of furnishings that may have been impacted by WTC dust. The letter, distributed to residents by Athenica Environmental during their pro-inspections, prior to cleaning is a noble one, but one that has a negative financial effect relative to the waste removal portion of Termon Construction Inc.'s contract. Since the reimbursements are quite generous to residents, i.e., $1000.00 for a queen mattress, residents have taken this opportunity to refurnish their apartments with new beds, couches, chairs, etc. thus increasing the volume of disposal. We approximate that the disposal is 20 times greater than originally bid and agreed to by Termon Construction Inc. and the DEP in the contract.

Currently, Termon Construction Inc.'s contract (TCI) is incurring additional costs for disposal, labor, time and materials to remove these items off site, using additional waste removal vehicles. In some instances, we are not provided with the agreed upon 24 hour notification to dispose of these additional items, which forces our company to double handle the waste and, in some instances, forces the company to provide temporary storage of the additional disposed items, until they can be safely removed off site. This change along with the increase in items to be disposed causes our company to incur additional costs over and above our agreed contractual price.

Since these additional disposal requests are not part of our contractual agreement, we request that you review and then make the following adjustments:

a. Termon Construction, Inc must be given prior notice (24 hours)for large Items so that we can arrange for proper and safe disposal ofsame

Termon Construction Inc respectfully requests that DEP consider this additional disposal a change In conditions of the contract and reimburse TCIfor all additional costs associated with this work

Note: In the pre-bid meeting attended by the DEP, EPA and bidding contractors for the project, concerns were raised by bidding contractors regarding the removal and disposal of furnishings. The EPA and DEP representatives stated that there would be, if any at all a very limited reimbursement program offered without placing dollar values, so not to create the massive removal and disposal situation that presently exists. It was also stated that should such a situation arise it would be addressed. Subsequent to this meeting, the ground rules changed whereby reimbursement to residents have been generously granted for the removal and disposal of said items, yet no such reimbursement has been granted to the contractors responsible for the safe and timely removal and disposal of these items. The sheer volume of items being removed by the contractor (TCI), is placing a grave financial burden and hardship to the company because the contractor is forced to absorb labor, materials, waste hauler fees, etc. Again

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