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Page Three The C-2 contractor, Watson, is about 73% compleie' witi~; the electrical work' ahd has abont 8% of the contract in stored m~terials on site. Overall the C-2 contract is 81~o complete. Division D The Division D contracts are General, D-l, Frauk L. Black, Jr., Inc. Electrical, D-2, Watson Electrical Construction Company; HVAC, D-3, Climate Conditioning; and Plumbing, D-4, H.¥. Allen Company. The Division D-I contracts include the Dewatcring Building, the Sludge watering equipment and two (2) Sludge Thickene~ Tanks. The contractor has the related electrical, the D-3 contractor has the related }IVAC work for the building and D-4 has the related plumbing %~)rk for the building. The Division D-1 contractor, Black, has only erected the structural steel for the Dewatering Building and placed about 98% of the concrete for the gravity thickener tanks. About 60% of the equipment has been installed for the two gravity thickener tanks. Black has had problems getting the sludge dewatering equipment supplier to provide adequate shop drawings for the engineer to review and approve. The problems have been of such a magnitude ~hat Black had to cancel their contract with the supplier and the matter has been protested and hearings held before the Board of Light and Water. This matter will result in the entire project being delayed. The amount of the delay will depend upon how much longer it takes for a final decision and Black to obtain another supplier. The final decision has to be made by the EPA. The estimated sludge production is 90, 000 lbs/day at design. Without adequate operational sludge dewatering equipment the rest of the facilities cannot be planed into operation. The D-2 contractor, Watson, has earned about 48% of the contract which includes stored material. The amount of stored material is approximately 41% which leaves only 7% construction completed. The D-3 contractor, Climate Conditioning, has performed no work but has received 51°/~ of the contract for stored material on the job. The D-4 contractor, H.V. Allen, has no stored material and no work completed as of this report. The Owner has paid the breakdown amount · for [he Bond and Insurance because of the slow start of the General contractor. This amounts to about 2,6~/~ of the contract. EXHIBIT "A" (page 3) 1.