REA Final - 22 Dec 20 - eBook - 1682 pages

S p ea r head F o ll owup r e BOH p a y men t t e r m s A ndee < andee @ sp ea r headc x . c o m > M o n 7/29/2019 11 47 AM T o : S il v e r man , S c ott < S c ott . S il v e r man @ s kan s ka w al s h . c o m > C c : R os e < ros e @ sp ea r headc x . c o m >

1 a tt achmen ts (132 KB ) S p ea r head - BOH B ackg rou nd - 29 J u l 19. p df ;

Dear Scott, Wanted to circle back regarding our discussion and correspondence from last week. While we had an opportunity to discuss Spearhead Finances and Operations, we did not discuss the Change Order for the BOH additional work, specifically. Thought it would be helpful to provide additional background for the revision in payment terms. I’m available to discuss, or answer questions, all day. Please see attached recap of my discussions with Frank Corallo for your information. Briefly, I met with Frank in June to withdraw our proposal based on three primary concerns: payment terms, scheduling and scaffold requirement above the escalator. During our meeting, Frank shared the project end date had shifted and he agreed to terms to alleviate Spearhead's reservation to perform the work. Spearhead provided an updated proposal reflecting this discussion. The following summary of completed PBB Draws highlights our financial concern with taking on additional scope of work under current payment terms. PBB Draws - completed Average days from Spearhead’s Outlay of funds to Approval date: 114 days Average days from Invoice Submission to Approval date: 28 days Average days from Approval date to Disbursement: 35 days Total time Spearhead “floats/carries” expense: 149 days Scott, we're confident we can perform the additional work with measures in place for timely reimbursement. Because payroll is the largest expense, easily verifiable and most predictable, Rose suggested remittance within 15 days of submission of Spearhead invoice. As you are aware, the schedule for opening the bridge and completing the BOH is extremely tight and Spearhead anticipates working two shifts and Saturdays to meet the new deadline. Agreeing to a $0 amendment to contract payment terms and remittance of Spearhead's labor within 15 days of invoice submission, will allow Spearhead to proceed with the Change Order. Thank you for your attention, Scott. Take care, -Andee Andee Hidalgo Owner & President Spearhead Construction, LLC MBE | WBE | SDVOB | SDVOSB | PANYNJ | NYCSBS Andee@SpearheadCx.com Ph: 917.834.3400 The information contained in this email message is legally privileged and confidential information intended solely for the use of the intended recipient(s). If you are not the intended recipient(s), any distribution, dissemination, or reproduction of this email message is strictly prohibited. If you have received this message in error, please immediately reply to the sender and then destroy this message.