NA-MASHPEE HIGH SCHOOL PROJECT MANAGEMENT

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Town of Mashpee High School Building Committee 16 Great Neck Road, North Mashpee, MA 02649 January 3, 1996 Liberty Mutual Insurance Company 75 Second Avenue Waite 340 Needham, MA 02192 RE: Performance Bond No. 12000883; Contractor: The Stone Building Company Project: Mashpee High School Owner: Town of Mashpee, Massachusetts Dear Sir/Madam: This letter is submitted on behalf of the Owner of the above-referenced construction project, the Town of Mashpee (Town), to alert the Liberty Mutual Insurance Company, as surety for the General Contractor, of the significant concerns which have arisen relative to the Contractor's ability and commitment to complete the subject project on time and in accordance with the contract documents. The subject project is a $18,090,000 school construction project. The general contract was executed on May 1, 1995. Substantial completion of the entire work required under the contract is to be achieved within 473 work days of commencement of work; i.e., on or before August 23; 1996. Despite numerous meetings between the Owner, Project Manager and the General Contractor, the project is substantially behind schedule and the General Contractor has failed to satisfy the Town that it possesses the ability to perform its obligations in a timely and satisfactory manner. As a school construction project, time is of the essence to the completion of the subject contract work. At this point in time, it appears unlikely, unless there is a significant increase in the manpower deployed on the project and dramatic improvements in the coordination of the work being performed, that the subject project can be completed within the contract completion time. Over the past six months, the Contractor has persistently failed to comply with its own construction progress schedules. Recent attempts to realistically revise the construction schedule to enable the contractor to "catch up" with the project schedule have failed to improve this situation.