Fax regarding concerns with contract addendum, September 2002

NYC 9/11 Public Portal Document

ole • f Slmsfcfd Executive Park. Building 5 @rpe 2269 Saw Mill River Road b Elmsford. New York 10523 Telephone 9'14 • 34$ • 0000 ■ pAcaMiLE 914 * 345.0045

Date: 06 September 2002 To: Carol Fenves FAX NYC.DEP Fax: 718’595-3278 Akin A. Cole Transnihal Froh: Subject: AooEKi^tm mo.5 ~ coFtYRAcr wtc-amb Pages: 2

♦ This is to acknowledge receipt of Addendum No. 5 regarding the above-referenced WIC contract.

♦ I wish to point out certain concerns regarding the addendum:

I) First paragraph does not provide for the verification or validation of claims for theft, disappearance, destruction of/or damage to property by building owners and their ocajpants. This suggests that claims are automatically attributed to the environmental consultantfs) and its employees without a built-in process of verification or validation. It does not address potential fraudulent claims by owners of building and/or their occupants, it leaves the consultant's) open to such fraudulent claims.

2) The additional 5% retainage called for as additional security to the fidelity bond in place for this project is excessively high. This amounts to a 15% retainage of the entire contract amount plus the costs of obtaining a fidelity bond, The agency should consider waiving this additional 5% retainage because of the additional financial burden it places on the respective consultants.

3) The third paragraph calls for release of any retainage owed to the consultant three(3) months following the completion of ail work. If this moiiey were placed in a bank, it would yield interest over the duration it is maintained in the bank. Since the agency has presumably divested this money into mcerest-yielding instruments, the agency should consider and be willing to pay interest on the substantial amoiinls to be withheld.

4) Article 26, Waiver of Right to Assert Mechanic's Liens, I think this paragraph needs to relate Lien waivers to payments v/ithheid for specific reasons. The consuftantfs) should be abk to have recourse

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