I agree with your accounting. At the time we received the May invoice we had not come to an agreement on the Oncor changes. Your invoice was reduced to reflect that. We now have an agreement and as I stated we will pay you for that less the amount not paid by the Town. The Town has scheduled survey on the improvements to confirm compliance to the docs. We will process the balance early next week. I appreciate your attention to the remedial work. Thanks Robert Farrow Chief Operating Officer CPS Civil LLC -----Original Message----- From: David Jones [mailto:DJones@jbcco.com] Sent: Friday, July 22, 2011 8:18 AM To: Robert Farrow Cc: Eric T. Little; Clay Barnett; Mike Henjum; Driskoll Tubbs Subject: RE: Vitruvian Robert, John Burns has billed you for 100% of our contract value for the work we have performed as part of the Vitruvian Park-Phase II project. Attached is our pay estimate for May 2011 work, which was our billing of 100% of our contract value($133,408.00) less retainage At the bottom of the pay estimate you will find: Total work completed to date: $133,408.00 (100% of John Burns Contract with CPS Civil) Less 5% retainage: $6,670.40 Net due to date: $126,737.60 (Total to date, less retainage) Less Previous Billings: $13,300.00 (Billed in April and paid in June 8th) Net this estimate: $113,437.60 (100% billed, less retainage, less previously paid) You should have a copy of this pay estimate in your records, as it accompanies all of our invoicing. Last week we were paid $100,000.00 of our May 2011 invoice. The remainder of which would be 13,437.60. Also attached is our agreement that John Burns would be paid in full (100%) of our contract value after removal of 24lf of 4e4 duct that was installed per stakes, provided by CPS Civil, that did not reflected plan changes. It is our understanding that the Town of Addison has paid CPS Civil %100 of our scope of work less 10% of the subsurface vault. Paying only 90% of our total invoice instead of paying our contract amount less 10% of the vault is ridiculous. Please see previous correspondence below regarding further payment of our work. From 7-21-11: Robert, I have not heard from you on this issue. The remainder of invoice #2(may bill) is $13,347.60 for the subsurface vault after your partial payment of $100,000.00 that was paid last week. I understand that the city has only paid for 90% of the vault to date. If the vault was paid to you at 90% then that would reduce your money owed to John Burns to $11,205.10. Once you are paid 100% for the vault by the City , less retainage, the remainder (10%) for the vault would be $2,142.50. When do you expect payment to be available the subsurface vault? Thank you and have a great day! If the above is correct regarding the Town’s payment of your contract with them, then John Burns is owed additional funds that are outstanding. Please promptly notify John Burns when payment of our additional funds is available if the above is your understanding of our contract and invoicing. David A. Jones John Burns Construction 655 E. Main Street Lewisville, Tx 75067 (P) 972-434-6789 (F) 972-221-8301 From: Robert Farrow [mailto:rfarrow@concretepaversystems.com] Sent: Thursday, July 21, 2011 3:06 PM To: David Jones Cc: Eric T. Little; Clay Barnett; Mike Henjum Subject: Vitruvian David: Sorry I had not gotten back to you on your request for additional funds from the May invoice before now. As I explained before, when your May invoice came in you billed for 100 % of the contract amount. At that time we were still negotiating the misplaced ducts and the vault relocation. We reduced your May billing to 90% of the contract total, or $120,067.20 Retainage @ 5% is 6003.36 leaving a gross total due of $114,063.84. Your received a payment of $13,300.00 for your April billing on June 8th and a payment of $100,000.00 on July 14th. Leaving a very small balance on the May invoice. After the remedial work performed on the duct banks and as per our agreement, I entered the remaining balance of your contract total. Remember I did this although the Town deducted the reduced work from our invoice. This was entered as a June invoice. The Town did not pay the balance on the vault repair in June, so upon receipt of the June funds from the Town we will release the remaining balance of your contract billing less retainage and 10% of the unit price of the vault. If the vault balance is paid by the City on our July draw we will remit that balance to you upon receipt of funds from the Town. I reviewed your contract payment history with the Town in our weekly meeting and they appeared to understand our actions. The Town was under the impression that you had not received any funds from us until last week. I am sure this was just a misunderstanding but please adjust your records to indicate the $13,300.00 payment received in early June if you are under that impression as well. Thanks Robert Farrow Chief Operating Officer CPS Civil LLC