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<br />Memorandum, Architectural Allianee Request for Re-Bid and Construction Phase
<br />Administration Cost Adjustment
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<br />Page Two
<br />February 16,2001
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<br />In April of2000, the estimated cost ofthe building rose to $2,942,000,00 for the same size
<br />building, based on adjustments that included utility work, expansion of the basement, and stone
<br />exterior. In March of that year, we were sent a letter by Arehitectural Alliance alerting us to the
<br />fact that they would be asking tor an increase in their fee, adjusted according to Article 11,2,1,
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<br />At this time, it seems to come down to what Arehitectural Alliance should be paid, not if they
<br />should be paid, I've done the following calculations, based on the contract language, and my
<br />understanding of the relationship between the architect and owner. I've deducted out $315,000
<br />from the $2,942,000 cost for the stone to bring it into alignment with the previously mentioned
<br />cost of$1,887,500,OO,
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<br />20% of8,6% of$2,627,000 $45,184.00
<br />Minus 20% of 8.6% of $1 ,887,500, 32,465,00
<br />Difference 12,719,00
<br />Add baek the Re-bid Assistance Fee 8,125,00
<br />New Total $20,844.00
<br />Difference from requested Architectural Alliance $1.445.00
<br />amount of $22,289,00,
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<br />(This is basically 20% of8.6% difference between the $2,711.00,00 that Peter
<br />Vesterholt uses, and the $2,627,000 number that I use in comparing the
<br />construction phase and re-bid assistance without stone,)
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<br />The architect and the City have agreed at this time, that the re-bid assistance fee should be the
<br />same amount, based on the faet that the scope of services shouldn't have expanded once the
<br />drawings and changes in building design had been completed, The architect was paid an
<br />additional $25,000 for the expansion ofthe basement, the inclusion of the windows, and the
<br />movemcnt of the oi1ices from the second floor to the main level.
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<br />I will not be able to be in attendance at the meeting on February 20th, Mr. Post will be in
<br />attendance, and I will update him to allow him to answer any of your questions at the meeting, I
<br />will also contact you by phone on Friday to properly explain this before the meeting,
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