REA Final - 22 Dec 20 - eBook - 1682 pages

DocuSign Envelope ID: AE9675E4-3C03-4BD4-B347-E581DE648143

Skanska/Walsh Joint Venture LaGuardia Airport Hangar 5A Runway Drive Flushing, NY 11371

November 20, 2020

Andee Hidalgo Spearhead Construction, LLC PO Box 575 Fort Montgomery, NY 10922

Via Procore: andee@spearheadcx.com

RE: LaGuardia Airport Central Terminal Building Replacement Project (the “ Project ”); Subcontract No. 620-027 (the “ Subcontract ”) between Skanska/Walsh Joint Venture (“ SWJV ”) and Spearhead Construction, LLC (“ Spearhead ”); SWJV Response to Spearhead RE: Request for Meeting and Release of Funds

Ms. Hidalgo:

SWJV is in receipt of the above-referenced letter from Spearhead dated November 6 th , 2020 regarding a “request for meeting and release of funds.” Please allow this letter to serve as a response. In summary and at this time, SWJV is averse to the release of funds, as Spearhead requests, for the reasons set forth herein. However, SWJV looks forward to good faith discussions with Spearhead to address the issues surrounding this matter.

More specifically to the $409,440 that Spearhead requests be released, please note as follows:

- SWJV agrees that the current contract retainage is $190,943, however SWJV has notified Spearhead repeatedly of Spearhead’s adverse impacts to the Project (for example, see SWJV January 27, 2020 letter, entitled “Notice to Spearhead of Reduced Scope Bridge B”; see also SWJV February 11, 2020 letter, entitled “Response to Spearhead Feb 1 2020 response – Reduced Scope Bridge B”; see also SWJV February 13, 2020 letter, entitled “Refusal to perform contract work” ). Given that the value of the financial impacts alone from the cited letters significantly exceed the Subcontract retainage value, SWJV is entitled to offset such damages in Spearhead’s payment application pursuant to Section 4.7 in Exhibit E of the Subcontract, among other remedies. Even Spearhead’s own pricing of one of the credits owed to SWJV pertaining to the Back of House scope reduction, which was transmitted to SWJV on January 27, 2020, was $291,670, which greatly exceeds the retainage amount. However, for the avoidance of confusion and ensuring the record of correspondence is abundantly clear, SWJV disagrees with Spearhead’s valuation of the credits and maintains that the value is significantly greater. - SWJV agrees that Spearhead has a balance of submitted unprocessed Change Order Requests pertaining to overtime totaling $79,684. SWJV has sent Spearhead a Change Order to execute this value along with portions of the above mentioned credits that Spearhead owes to SWJV, but Spearhead has refused to sign that Change Order.

Page 1 of 3

PBB-10832-201120-SWJV Response to Spearhead RE: Request for Meeting and Release of Funds

ts