REA Final - 22 Dec 20 - eBook - 1682 pages

PO Box 575 Fort Montgomery, NY 10922

May 1, 2020 Frank Corallo, Pedestrian Bridge B Area Manager Skanska Walsh Design-Build JV LaGuardia Airport Hangar 5A Runway Drive Flushing, New York 11371 Re: Response to Spearhead Credit Change Order Request #21 – Back of House Work Project: Subcontract No. 620-027 Mr. Corallo: Spearhead received your response, dated April 30, 2020 (“Response”), to Spearhead’s Credit Change Order Request #21 – Back of House Work (“COR #21”). Spearhead rejects your Response in its entirety. Three (3) months ago, Spearhead submitted COR #21 after learning SWJV intended to remove scope from its contract. The work is complete and as quickly gleaned from its two short pages, the Response lacks any credibility whatsoever to support the $754,931.00 claim. First, you offer no documentation to support your values other than Spearhead’s COR #21, which was submitted at the time, in good faith, to resolve the credit immediately and transparently, prior to any of the unforeseen events as outlined below. Second, without a change to its contract, Spearhead continued to work in these areas and was even asked to “take back” significant work that had been marked for removal, including both two (2) story walls along the escalator, the roof access corridor walls, roof access corridor ceilings and a portion of the ceiling extending above Level 3, which, notably had never been part of Spearhead’s contract. Your Response takes none of this into account. Third, SWJV failed to provide a change to Spearhead’s contract while concurrently directing another contractor to perform Spearhead’s contract work. This work is now complete. A portion of which was completed by Spearhead, a portion of which was completed by another contractor, all of which was completed without proper documentation issued as a change to Spearhead’s contract. For these reasons, Spearhead rejects your Response in its entirety and is now of the position that SWJV did not follow any of its own contract formalities and is not entitled to any credit for

the work it removed from Spearhead’s contract. Spearhead further replies to your letter as follows: “Severely Low” Credit Value

Spearhead calculated the value of the credits based on the Unit Pricing we provided, which were incorporated into our contract. SWJV accepted the Unit Pricing at the time of contract award. Even if Spearhead agreed to providing a credit, Spearhead would never agree to an amount in excess of published rates in our contract.