Miller to Shogren/Goose Bay Contract SettlementMONTANAYENTUREPARTNERS LLC,
June 18, 2007
Mr. John Shogren, General Manager
Goose Bay Construction and Ready Mix
P.O. Box 9350, Stillwater Road
Kalispell, MT 59904
RE: Final Contract Settlement
Dear Mr. Shogren,
The objective of this letter is to finalize Montana Venture Partners, LLP's contract agreement with Goose
Bay. As you know, this contract has escalated well beyond the contract terms. It is our understanding that
there are items still remaining to be completed, hopefully in an expeditious fashion within the next thirty
days. Some of these items are landscaping along the highway, refinishing the gravel phase portion of the
bike path, and the final checklist in order for all of the parties to sign off on the project.
According to our contract records, the original notice to proceed for this project started on May 15, 2006
with a substantial and final completion date of October 12, 2006 and November 11, 2006, respectively.
These completion dates were based on the amount of contract time stipulated in the agreement (150 days
to reach substantial completion and 180 days to reach final completion from the original start date).
During the course of this project, your firm requested and were granted 62 additional calendar days (including
the 10 additional days required by MDT) be added to the contract time because of the result of unforeseen
changes in the work program. As a result of this additional contract time, the substantial completion date was
changed to December 13, 2006 and the final completion date was changed to January 12, 2007.
The certiticate of Substantial completion was issued on iviar'ch30, 2v07. An intriCate pa.: of tl'e- contract
was that the contractor and the owner recognized that time was of the essence and that the owner would
suffer substantial lost opportunity cost if the work was not completed within the times specified in the
contract. It further spelled out that the owner and contractor agree that as liquidated damages for delays,
the contractor shall pay the owner $500.00 for each day that expires after the date specified for
completion of the work, as well as damages for unscheduled employment of the engineer.
Unscheduled employment of the engineer based on the rates stipulated in the bid form of the executed
contract documents result in additional engineering of $97,433.00. As a result, the total liquidated
damages to date are as follows:
Damages for delay (107 days at $500.00 per day): $53,500.00
Damages of unscheduled employment of the engineer: $97,433.00
Total liquidated damages that can be assessed at $150,933.00.
P.O. Box 1477 Kalispell, MT . 59903-1477
406.270.0985 / 406.751.4341
Because of the delays in your firm completing the project, Montana Venture Partners, LLP was not able to
start collecting EDU's from potential users along Highway US 93, as well as land sales within Old School
Station were delayed. Even our first building project (Fun Beverage) had to hire additional fire protection
to meet the Kalispell Fire Regulations.
In conclusion, it is our objective to live by that contract we acted upon by completing our monetary
obligation when you complete your work. We know this project has a performance bond and Montana
Venture Partners, LLP is prepared to communicate these issues with your bonding company if necessary,
but in turn, it is imperative that we get this matter settled as quickly as possible.
And J. filler t
Man ing artner
Monta enture Partners, LLC
Cc: Morrison Maierle, Inc. (Terry Richardson)
Kalispell Public Works (Jim Hansz)
,/Kalispell City Manager (Jim Patrick)