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<br />. <br /> <br />. <br /> <br />- <br /> <br />Memorandum <br />February 14,2006 <br />Page 2 <br /> <br />amounted to only 2.2% of awarded construction amounts (5%-10% is common in the industry). We <br />attribute this to good quality plans and solid supervision of contractors during construction to minimize <br />claims. [ acknowledge that we need to focus on improving our estimates for budgeting of future projects. <br /> <br />The financial performance analysis chart also indicates total URS design and construction services fees <br />as a percentage of the construction contract amounts collective]y at 18.11 %. These fees are based upon <br />our contract terms, We feel are fees are very competitive in the industry where fees range as high as 25% <br />for similar work (Ramsey County Public Works charges 24% for its engineering services to the City). <br /> <br />New City Organizational Structure <br />We are excited to continue our relationship with the City under the revised organizational structure with <br />the hiring of Kristine Giga. Most of the metro area municipalities that we work in have in-house <br />engineering staff and we are very comfortable working in this type of organization. We are confident that <br />the single point of contact will ease some of the strains on communication lines that have occurred in the <br />past. We agree that we should revisit our fee structure especially as it relates to retainer type services <br />which willlarge]y be performed by Kristine as we move forward. <br />