Document rBpkqQNMV359BpkXoJGbL3Mk7

./ X K BARNARD AND BURK, Inc. INDUSTRIAL DIVISION ENGINEERS AND CONSTRUCTORS MAYFAIR DRIVE PARK PLAZA BOX IS4B BATON ROUGE, LA. 70815 August 15, 1973 Ethyl Corporation 451 Florida Street Baton Rouge, Louisiana 70801 Attention: Mr. G. S. Roberts Chief Engineer Subject: Ethyl Corporation Job No. 03981 B&B-CD Job No. 7316 Gentlemen: When we negotiated and signed the agreement for the above referenced contract, we advised you that we were will ing to try the job for a period of time that we felt long enough to determine whether or not it would be profitable to our Company and satisfactory to the Ethyl Corporation. During the past few months we have found that we are experiencing difficulties in several areas which we cannot seem to overcome and after analyzing our cost vs. income from the beginning of the project through July 31st, we learned that we have incurred approximately a $3,800 loss. I am advised that at a recent meeting your construction personnel asked for our completion date of the present project and this information was furnished as October 5, 1973. Therefore, we feel in the best interests of both firms and, in particular, in view of our long association and suc cessful tenure of servicing you, we feel we should terminate our contract effective October 5, 1973. This will give ample notification in keeping with the thirty (30) day terms in the contract and also give us time to discuss the project or renegotiate it if you so desire. P-091 81 Ethyl Corporation August 15, 1973 Page 2. We have absolutely nothing to hide and our books are open to audit and we are attaching a copy of a report pre pared by our Accounting Department since the beginning of the project of costs vs. income through July 31st. In addition to the monetary loss, other factors entering into this decision are: 1. The high costs and loss of small tools which occurs daily from "in-plant" breakins after our working hours--a situation that has gone on since the job began and is certainly more pronounced during the weekend--and we find there is nothing we can do to stop this. The 3% fee just will not cover or off set this continuous loss. 2. There appears no way that the estimate between our group and yours can easily be accepted and this causes us many manhours of time negotiating and renegotiating. 3. The many scope changes we encounter in which there are no fees paid. 4. When there is an overrun in labor on estimated scope, there is no fee on the overage which again reduces our fee to a minimum. 5. Our Accounting Department reports it takes 25-35% more time to bill this project than any other pro ject we work on--cost-plus or lump sum. 6. The 6% fee is just not adequate in today's market against total labor costs to offset the home office overhead and other expenses. 7. Finally, we cannot afford to have the caliber of superintendents like Landon Varnado, W. M. Johnson and John Fischer assigned to the project which pro duces a loss to us (perhaps Johnson or Fischer, but certainly not Varnado or all three). We appreciate the time and effort of your construction and engineering personnel in allowing us the opportunity to E--09182 t. t Ethyl Corporation August 15, 1973 Page 3. service you, but with these facts in mind and with the risk of impairing our relations, we feel it's the best for all concerned to ask either for a renegotiation or termination of this contract. JLD/sr Attachment (1) cc: Mr. J. B. Rhorer Mr. J. S. Burk Mr. A. J. Harth Senior Vice President E-09183