Environmental monitoring correspondence regarding remediation contractor, March 2003

NYC 9/n Public Portal Document

THACHER ASSOCIATES is designed to summarize our findings relative to TA’s review of the invoices and back­ up documentation along with findings developed as a result of our field investigations.

TA has analyzed the submittals and reviewed the invoices for potential overcharges and discrepancies and, where applicable, compared them to findings derived from our field observations. According to Safeway, copies of all requested project documents in the possession of Safeway have been submitted to TA for evaluation.

The findings documented in this report are in many instances a sample representation of issues and discrepancies found within the submissions. Based on our findings and due to the complexity of issues identified, TA recommends that an extensive, in depth study of Safeway’s records, with special emphasis on payroll.

Summary of Findings

TA’s review has resulted in the identification of several areas where Safeway has over billed for the work it provided on site. Based upon our analysis, TA estimates that Safeway has over billed in excess of $433,000.00. This aggregate amount relates to overcharges for labor, equipment, and materials and the excessive overhead and profit mark-up of subcontractor’s invoices.

Contract Award Process, Asbestos Abatement/Demolition

Safeway initially worked near the World Trade Center disaster site through private work performed at the World Financial Center (WFC), directly adjacent to the WTC location. According to an interview with Safeway Principal Arthur Wolfman, Safeway was contacted by Jim Abade of Bovis/Lend Lease to perform a limited asbestos abatement. “The original Purchase Order was a Time and Material contract for the abatement of 600 linear feet of asbestos,” according to October 15, 2002, correspondence from Damon Caromilas (Safeway’s Controller). TA found no supporting documentation indicating that competitive quotes or bids were sought for the services provided by Safeway.

In addition to the 600 linear feet of asbestos, Safeway also performed work at the PATH Tunnel, Escalator, South Projection, etc. TA found no evidence indicating that a contract, work order or documented directive to perform asbestos remediation, other than the abatement of 600 linear feet of asbestos, were issued.

According to Safeway, the work grew “tenfold”, since the initial Purchase Order. The asbestos abatement/demolition portion of Safeway’s project was completed between February 21, 2002, and June 30, 2002.

Contract Award Process, Mold Remediation

Toward the end of the project, and prior to other construction demolition activities moving forward within Building 5, Levels B2 and B4, mold remediation was required.

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