Document bBRqBbMzy7n2jene6KGjR4M3y

r 3 L.-r* . M' *. l i* .*; INSULATION & CONTRACTING DIVISION P.O. BOX 145 PRINCETON. NEW JERSEY 08540 phone 16091 452-8090 | : December 28, 1973 Bechtel Corporation ! Fifty Beale Street San Francisco, California 94119 : Attention Mr. H. Yost Gentlemen: Enclosed cure the following submissions .of items scheduled for invoicing in accordance with our agreement letter: 1. Added costs of emergency material substitution 2. Additional support, labor costs on EWO's 3. Costs of aluminum gauge!change from .016 * to .025 i 4 4 Before submitting actual invoices with backup documentation, I felt it would be advisable to subirit^ tunse preliminary copies for your review. I would like to call you about mid j^eec, to discuss any questions or suggestions in connection with theseisubmissions. KEENE INS U L A T ION CONTRACTING DIVISION MEMO INVOICE Added material cost for securing calcium silicate from, substitute sources Added labor cost for application of double vs single layer calcium silicate Added material cost for . 01G aluminuft jacketing Added labor cost for application of . 0JL(5; vs factory applied i,. Loss on emergency Unibestos materials Sub Total 20% Oll/Profit TOTAL $ 6,493. 14,358. 7,412. 11,408. 20,200. 59,871. 11,974. $71,545. \ -1- KEL'N hNuU'L.ATlU^ CUM'li; 1 UN .. DIVISION ADDED COSTS OF EMERGENCY LATEIUAL SUBSTITUTIONS After contract award, order? for'calcium silicate were placed with Owens-Coming. With respect to Labadie, that vendor constituted our primary source for such materials. Labor problems encountered in late 1971, forced a shutdown of OwensComing plant at Berlin for an extended beriodiof time. We waited .for a period of approximately two months in anticipati oi^ thai:||the strike would be settled and j j !: j | j ' ' ' permit sliipment of our orders. Prcssut e to p pceed with insulation'work mounted. :! rnj| ; i ! Demand for materials became critical. t fin ly reached a point where alternate i r ti sources for materials had to be located and substitute methods utilized to accomplish emergency insulation work. * In order to meet scheduled dates and demands Keene incurred a series of additional labor and material costs as a result of such substitutions which costs were neither anticipated nor included in the job estimate. The attached invoice covers such costs and the accompanying narrative explains thfe basis for their incurrance. * SG.493. - Increased purchase price of calcium silicate. ------ !------------ j I' : Because of the strike at the Berlin plant, we had to cancel our calcium silicate orders with Owens-Coming on December 27, 1071 and secure same from other sources. Our purchase price wad $0-1,929. Our cost from Owens-Coming for the same materials would have been $5S,436. isince we were price-protected in connection with Labadie requirements,; M|!; j $14,353. - Additional labor costs incurred on Unit #3 as a result of expediting insulation of the auxiliary steam piping ;md heating system to avoid freezing. During the period of the O-C strike, we were notified in the last week of October 1971 that the auxiliary steam was to be turned on in Unit #3 for temporary I heating during the winter months and instructed to proceed immediately to secure whatever materials were necessary from all available substitute sources in order to accomplish insulation of these systems. Wc advised Bechtel that the only avail able material was double layer without factory applied aluminum jacketing. We were then instructed to install at least one layer of insulation on the auxiliary steam system. Wc had" provided $12,GS7. in our estimated basic use of single layer factory applied aluminum jacketing in accordance with specifications. Our cost for installing double layer insulation amounted to $27,045. *) I $7, 412. - Material costs to provide . 016j aluminum jacketing for the foregoing insula tion of the auxiliary steam system. It was necessary to place our order for . 01G aluminum jacketing with Childers and specify that same be fabricated to match the factory applied jacketing. The material costs for the special fabricated jacketing was $14,825. and this represented a 5uSb pre mium over our regular factory applied jacketing. $11, 40S. - Labor costs for Held applying . 016 jacketing. Specifications called for .025 a|uminum on field applied jacketing and re stricted .010 to off-site application. We jvore advised that specifications would huv; to be followed. -3- I ! Since wc had already purchajscd the .01G jacketing, it became necessary to ship same to our Fabricating Shop for application and re-sliipmcnt to the job. Wc expended $0,12G. in fabrication labor at the shop and S2, 2S2. in re handling and re-shipping. Sli, 500. - Material costs for disposing of substitute materials not approved for use under the Bechtel-Labadie contract. In order to supply the materials necessary to comply with Bechtel directed emergency requix*ements, we checked for sources capable of furnishing materials in sizes and thicknesses required. Pittsburgh Coming was ceasing manufacturing of Unibcstos and offcx'cd inventory for sale at each of their plants. After reviewing their inventory and checking against sizes anti thicknesses necessary for the job, we purchased the inventory of their Tyljcr, Texas plant for $15, 000. We felt this material was satisfactory because it was in the Combustion Engineering Specs, and was being sliipped by their supplier for use on Unit #3. However, wc were informed that wo could use it only on the C. E. portion of flic work and not on tho Bechtel portion. Wc did use as much of the material as possible in areas that C. E. supplier had shipped short or had not sliipped at all, but the balance of the material was dis carded with the exception of two (2) trailer loads sold as distressed material at $250. per trailer load. This resulted in a cost to Keene of $14, 500. for material loss. We also expended $2, 700. for warehousing and $3,000 for trucking and handling. * ** ***** ** ********** *****., The foregoing does not incluc;! ej adde^i labor costs that were incurred on the auxiliary steam system due to the r(lipase sequence of such work. ' I; -3-