John, I think that will work out great. Thanks, Clay Barnett, P.E. Town Engineer Town of Addison 16801 Westgrove Drive Addison, TX 75001-2818 Office: (972) 450-2857 -----Original Message----- From: Ext_mail John Hill Sent: Wednesday, March 03, 2010 8:40 AM To: Clay Barnett Cc: Lea Dunn; Nancy Cline Subject: Construction Management - Vitruvian ***************************************************************************** IMPORTANT/CONFIDENTIAL: This message contains information from the law firm of Cowles & Thompson, P.C. which may be privileged, confidential, and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient or the employee, or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately at our telephone number (214) 672-2000 ****************************************************************************** Clay, regarding the construction management agreement for the public infrastructure in the Vitruvian area, the draft of the agreement currently provides that UDR, as construction manager, will be paid in installments as the construction work progresses. An installment payment is to be made to UDR within 30 days following the City’s receipt of an invoice from UDR requesting payment of the applicable amount. That amount is determined as follows: Multiply (i) the amount of any unpaid invoice or pay or draw request properly submitted by the contractor (less the amount of any retainage) for payment for the then current month, times (ii) a fraction, the numerator of which is the total cost of the construction contract and the denominator of which is the amount of Funding No. 1 which has been allocated by the City to payment of the construction contract, times (iii) eight percent (8%) The draft provides that the intent of this provision is that payment to UDR for construction management services will parallel payment to the contractor for the contractor’s work. An example follows: Assume the total cost of the Construction Contract is $6,000,000, the City has allocated from Funding No. 1 $4,000,000 to pay toward such cost, the County will pay $1,500,000 of such cost, and UDR will pay $500,000 of such cost. The City’s proportionate share of the $6,000,000 construction cost is $4,000,000 / $6,000,000, or 2/3. The Contractor submits a pay request of $300,000. Based on the pay request, UDR shall be entitled to receive as a construction management fee the sum of $300,000 X 2/3 X 8%, or $16,000. Will this process work? Thanks. John