International Experts in Claims Analysis, L I ONG … engineering and construction claims ... Lost Productivity/ ... Prepare Detailed Cost Variance Analysis Matrix k

LONG INTERNATIONAL

During Phase I, we first review any pleadings,statements of arbitration, contractor claims, andowner statements of defenses and counterclaims.We then perform a preliminary review of therelevant project documents prepared prior to andduring the execution of the project. Dependingon the scope of our assignment, the documentsthat we often review include, but are not limitedto, those that describe the scope of work andbasis for the contractual relationship that wasdeveloped, cost estimates, proposals, the drawingsand specifications that were used to develop thecontrol budget, pre-contract correspondence andmeeting minutes, the contract terms and conditions,execution phase correspondence, meeting minutes,monthly progress reports, native baseline scheduleand schedule update files, daily construction reports,job cost reports including control budgets andmonthly cost reports, photographs and videos ifavailable, pay requests and invoices, change orders,requests for information, submittals, materialdelivery records, subcontracts, and any otherrelevant documentation.

If many of the aforementioned documents are ina language other than English, we need to receiveeither 1) English translations of the documentsif they exist, or 2) electronic or clean hard copyversions of the documents for translation to English.Optical character recognition (OCR) software isused to convert the hard copies to electronic filesfor automatic translation followed by humantranslation clean-up.

In addition, we interview key project personneland discuss more completely the project problemsand issues. If possible, we also like to visit theproject site.

It normally takes two to six weeks to perform thisPhase I work. The Phase I duration, depends onthe complexity of the case, the volume and avail-ability of key documents, translation requirements,availability of client personnel, as well as any othertasks that our client requests to be performedduring Phase I.

After we have performed a preliminary review ofthe available documentation, we prepare preliminaryobservations and recommendations regarding theclaim and counterclaim issues, including our pre-liminary observations and opinions on the relevantissues. We also develop Phase II work plans, sched-ules, and budgets corresponding to the scope ofwork necessary to meet our client’s objectives. Wethen discuss our proposed tasks to ensure that ourapproach is consistent with our client’s needs.

OVERVIEW

Long International’s standard work plan for

providing engineering and construction claims

analysis and expert testimony services is to

use a “phased approach.” Our task

assignments are dependent on the work

already performed by our client, the

availability of project documentation, the

issues in dispute, and the timing of required

work products that are defined by the

arbitration/litigation schedule. Therefore, we

can make any necessary adjustments to our

typical work tasks described herein.

PHASE I:Project Orientation, Preliminary Document Review, andWork Plan Development

International Experts in Claims Analysis,

Dispute Resolution, and Project Management

for Process, Oil & Gas, Pipeline, Power, Industrial,

Infrastructure, and Building Construction Projects

LONG INTERNATIONAL

Evaluation of rework, nonconformance reports,inspectors’ logs, delays, absenteeism, supervisionratios, weld failures, correspondence, etc.

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ion

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ClaimResolutionMethodology

Legal Entitlements / Liability*

Design & SpecificationRelated Problems

Directed andConstructive Change

Changed SiteConditions

Delay andSuspension

Lost Productivity /Impacts

Issues and Classification Causation Cost

$ $ $

Contractor-Caused Problems

Pending Change Orders

Approved Change Orders

Bid Estimate Analysis Bid Errors (NONCOMP)

Execution Errors (NONCOMP)

Pending ContractAdjustmentsChange Order

Documentation

IssueNo. 1

Original ContractScope

Contract Drawings andSpecifications and/or

Performance Requirements

CurrentContract

ValueCONTRACT TERMS AND CONDITIONS

AND CONSTRUCTION CASE LAW* Entitlements shown for each issue are presented as

an example only and do not limit other entitlementsfor potentially being appropriate. DOCUMENTATION ACTUAL COST RECORDS

POTE

NTIA

L CO

MPE

NSAB

LE D

AMAG

ES

IssueNo. 2

IssueNo. 3

IssueNo. 4

IssueNo. 5

Evaluation of RFIs, specifications, drawings,contract “order of precedence” clause, notices,correspondence, etc.

Evaluation of change orders, field work orders,contract “changes” clause, bid estimate,notices, etc.

Evaluation of core logs, soil reports, geologicalreports, photographs, notices, correspondence,drawings, etc.

Preparation of CPM schedule analyses such astime impact, as-built but-for, as-planned impacted,windows, or other analyses.

Evaluation of planned vs actual man-hours usingtechniques such as “measured mile”, impact factorsfrom Corp of Engineers, Business Roundtable, MCA,NECA reports, Leonard Study, etc.

$ $ $

$ $ $

$ $ $

$ $ $

SpecificationDelay

7/16 8/30

ProcurementDelay

3/1 3/30

UndergroundFoundation

Delay

7/1 7/20

Period ofPerformance of Defined

Work Change Orders5/1 8/31

Extended Durationof Inspection Work

11/1 2/28

ExtendedDuration of

RefurbishmentWork5/1 7/31

Period of Performance of AdditionalVariable Work Change Orders

11/16 4/15

Delay to CreateAccurate As-Built

P & IDs

7/1 8/9

ProcurementDelay

2/1 3/2

Period ofPerformance

of Defined WorkChange Orders

3/1 4/30

Gas PipelineStart Delay1/1 4/1

31 CDDELAY

92 CD DELAYTO MECHANICAL

COMPLETION

61 CDAWARDDELAY

92 CD DELAY TOCOMPLETION OFREFURBISHMENT

WORK

ENGINEERING7/1 9/30

PROCUREMENT2/1 11/30

CONSTRUCTION5/1 1/31

INSPECTION7/1

2/28

7/1

ENGINEERING FOR UPGRADE8/15

PROCUREMENTFOR UPGRADE

11/1 4/30

7/31

REFURBISHMENTWORK

10/1

CONSTRUCTION FOR UPGRADE2/1 1/31

DISTILLATE GAS PIPELINE1/31

1/1

DIG & BURYPIPELINE CO.ACTUALMECHANICALCOMPLETION

DRACONIAN’SACTUALMECHANICALCOMPLETION OFNEW ETHYLENEUNIT

ACTUALCONTRACTAWARD7/1

ACTUAL MECHANICALCOMPLETION OFREFURBISHMENT WORK7/31

DRACONIAN’SACTUALMECHANICALCOMPLETIONOF UPGRADETO DGS UNIT

10/31

F L O A T92 Cal DaysEF LF

11/1

10/1

ENGINEERING7/1 5/31

DRACONIANSUBMITS BID

PROPOSAL

3/3112/1

INVITATIONTO BID (ITB)ISSUED

PLANNEDCONTRACTAWARD

5/1



INSPECTION7/1 10/31

PROCUREMENT FOR UPGRADE11/1 10/31

REFURBISHMENT WORK10/1 4/30


DISTILLATE GAS PIPELINE1/1 10/31

PLANNEDMECHANICALCOMPLETION10/31

PLANNEDMECHANICALCOMPLETION 4/30

12/31

CONTRACTMECHANICALCOMPLETION

10/31

DRACONIAN’SPLANNEDMECHANICALCOMPLETION

ENGINEERING FORUPGRADE

7/1 5/31

8/1

30 CD

20 CD

120 CD

92 CD151 CD

30 CD

61 CD

90 CD

45 CD

40 CD

123 CD

2008 2009 2010 2011 2012

A S - B U I L T

New EthyleneUnit

A S - B U I L T

Distillate GasSeparation Unit(DGSU)

A S - B U I L T

Distillate GasPipeline

A S - P L A N N E D

New EthyleneUnit

A S - P L A N N E D


A S - P L A N N E D


OCT JUL AUG SEPNOV DEC JAN FEB MAR OCT NOV DECAPR MAY JUN JUL AUG SEPJAN FEB MAR OCT NOV DECAPR MAY JUNJUL AUG SEPJAN FEB MAR OCT NOV DECAPR MAY JUN JAN FEB MAR

031 - 01 4/28/00

LEGEND

Logic Tie

AS-PLANNED vs. AS-BUILTSCHEDULE COMPARISONCelestial Chemical Plant Project

Clean City, Utopia

11/1 1/31R A I N Y S E A S O NSTRIKEPERIOD6/1 - 6/1414 CDs

Activity Description

AS-BUILT

EF - Early FinishLF - Late FinishCD - Calenday Days


Start

AS-PLANNED

Start Finish

Finish

Critical Path

Delays

Additional Variable Work orDefined Work Change Order

Milestones

After performing a preliminary analysis of thedocumentation and technical, schedule, and costissues, Long International then performs a detailedanalyses that support opinions expressed in ourexpert reports. The task descriptions that are listedbelow are definitive analyses that substantiate thepreliminary findings, but they may be tailored tothe needs of our client, the actual scope of workand opinions required, and the deadlines of thearbitration/litigation.

1. Prepare Issue Packages for Contractor’sClaim Issues and Owner’s CounterclaimIssues

2. Prepare Issue Summaries/Proof Charts

3. Prepare Detailed Narratives withDocument References

4. Develop Cause-Effect Relationships

5. Prepare Detailed Schedule Analysis

a. Prepare List of Delays/FinalizeRelational Database of Key ScheduleDelay Information

b. Prepare Schedule Activity Start andDuration Variance Tables

c. Identify Responsibility for ActivityStart and Duration Delays

d. Prepare Detailed Schedule Analysesand Calculations Based on AgreedUpon Methodologies

e. Prepare Schedule AnalysisTabular Results

f. Prepare Schedule Analysis Graphics

6. Prepare Detailed Damages Analysis

The work products resulting from our detailedanalyses may take many forms, including butnot limited to claims/requests for equitablecontract adjustments, reports supporting thedefendant’s positions against claims, PowerPointpresentations, or expert reports. One or moreexpert reports may be required for arbitration orlitigation. Rebuttal reports may also be requiredto critique the reports of other experts. In addition,some arbitrations require that opposing expertsmeet to attempt to narrow the issues. Reportsmay be required to document this effort. Foreach claim document, presentation, or expertreport, our work plan is as follows:

1. Prepare Draft ClaimsDocuments/Presentations/Reports

2. Review with Client our Draft ClaimDocuments/Presentations/Reports

3. Prepare Final Claim Documents/Presentations/Reports

For each phase of arbitration or litigation, experttestimony may be required. Our work to performthis testimony includes the following:

1. Prepare for Testimony

2. Provide Expert Testimonyat Depositions

3. Provide Arbitration/LitigationExpert Testimony

Our Detailed Damages Analysis providesadequate detail and supporting spreadsheetsto fully explain the amount of the claim and/or counterclaim. Damages may arise froma variety of problems, and we endeavor tocalculate specific damages for each problemif possible from the data available. The cause-effect relationships linking the damages to theentitlement for each problem are demonstrated,if possible. We often develop a DamagesAnalysis Matrix for both man-hours and costs.This matrix delineates work activities and costtypes on one axis and variances betweenbudget/contract values and actual/projectedvalues along the other axis. These man-hourand cost variances are then allocated toproblems, if possible. Subtasks may include:

a. Evaluate Reasonableness of Bid andCalculation of Bid Error

b. Assess Owner’s Responsibility forDirect Cost Issues

c. Assess Responsibility forQuantity Overruns

d. Assess Contractor’s Responsibilityfor Performance Problems

e. Assess Responsibility for UnresolvedChange Order Requests

f. Allocate Contractor’s Delay Costs

g. Allocate Responsibility for Man-hour and Cost Overruns Associatedwith Welding Problems and otherRework Issues

h. Analyze and Allocate Loss ofProductivity Man-hours and Costs

i. Prepare Detailed Man-hour VarianceAnalysis Matrix

j. Prepare Detailed Cost VarianceAnalysis Matrix

k. Assess Liquidated/Actual Damages

l. Assess Costs Associated with Owner’sCounterclaims

m. Prepare Damages Tabular Results

n. Prepare Damages Analysis Graphics

PHASE II:Document DatabaseDevelopment andPreliminary Analysis

PHASE III:Detailed Analysis

PHASE IV:Report Preparation

PHASE V:Arbitration/LitigationTestimony

During Phase II, we perform tasks required byour client as part of the arbitration/litigationschedule. In addition, other potential Phase IItasks often include the following:

1. Develop Document Database

2. Analyze Contract

3. Review Invitation to Bid, Job Instructions,Procedures, and Contractor’s Proposal

4. Review Drawings and Specifications

5. Review and Prepare (as required) a Listof Problems and Issues for Claims andCounterclaims

6. Review Approved and Unapproved/Outstanding Change Orders

7. Prepare a Preliminary List of Alleged Delays

8. Identify, Organize, and Review ScheduleData

9. Identify any Schedule Software ConversionRequirements

10. Review Schedule Analysis Methodology inany Submitted Claims

11. Identify and Review Key ScheduleInformation

12. Identify, Organize, and Review Contractor’sMan-hour Data, including Control BudgetPlanned Man-hours and Actual Man-hours

13. Identify, Organize, and Review BulkMaterial Quantity Data

14. Identify, Organize, and Review Cost Data

15. Develop Summary Schedule VarianceComparisons

16. Develop Macro Man-hour Variance Analysis

17. Develop Macro Quantity Variance Analysis

18. Develop Macro Labor Productivity Analysis

19. Develop Macro Cost Variance Analysis

20. Evaluate and Select Schedule AnalysisMethodology Options

21. Develop Phases III and IV Work Plans,Budgets, and Schedules

22. Provide an Overall Assessment of theStrengths and Weaknesses of Issues

Experience Matters ...

SpecificationDelay

7/16 8/30

ProcurementDelay

3/1 3/30

UndergroundFoundation

Delay

7/1 7/20

Period ofPerformance of Defined

Work Change Orders5/1 8/31

Extended Durationof Inspection Work

11/1 2/28

ExtendedDuration of

RefurbishmentWork5/1 7/31

Period of Performance of AdditionalVariable Work Change Orders

11/16 4/15

Delay to CreateAccurate As-Built

P & IDs

7/1 8/9

ProcurementDelay

2/1 3/2

Period ofPerformance

of Defined WorkChange Orders

3/1 4/30

Gas PipelineStart Delay1/1 4/1

31 CDDELAY

92 CD DELAYTO MECHANICAL

COMPLETION

61 CDAWARDDELAY

92 CD DELAY TOCOMPLETION OFREFURBISHMENT

WORK

ENGINEERING7/1 9/30



INSPECTION7/1

2/28

7/1

ENGINEERING FOR UPGRADE8/15

PROCUREMENTFOR UPGRADE

11/1 4/30

7/31

REFURBISHMENTWORK

10/1


DISTILLATE GAS PIPELINE1/31

1/1

DIG & BURYPIPELINE CO.ACTUALMECHANICALCOMPLETION

DRACONIAN’SACTUALMECHANICALCOMPLETION OFNEW ETHYLENEUNIT

ACTUALCONTRACTAWARD7/1

ACTUAL MECHANICALCOMPLETION OFREFURBISHMENT WORK7/31

DRACONIAN’SACTUALMECHANICALCOMPLETIONOF UPGRADETO DGS UNIT

10/31

F L O A T92 Cal DaysEF LF

11/1

10/1

ENGINEERING7/1 5/31

DRACONIANSUBMITS BID

PROPOSAL

3/3112/1

INVITATIONTO BID (ITB)ISSUED

PLANNEDCONTRACTAWARD

5/1



INSPECTION7/1 10/31

PROCUREMENT FOR UPGRADE11/1 10/31

REFURBISHMENT WORK10/1 4/30


DISTILLATE GAS PIPELINE1/1 10/31

PLANNEDMECHANICALCOMPLETION10/31

PLANNEDMECHANICALCOMPLETION 4/30

12/31

CONTRACTMECHANICALCOMPLETION

10/31

DRACONIAN’SPLANNEDMECHANICALCOMPLETION

ENGINEERING FORUPGRADE

7/1 5/31

8/1

30 CD

20 CD

120 CD

92 CD151 CD

30 CD

61 CD

90 CD

45 CD

40 CD

123 CD

2008 2009 2010 2011 2012

A S - B U I L T

New EthyleneUnit

A S - B U I L T


A S - B U I L T


A S - P L A N N E D

New EthyleneUnit

A S - P L A N N E D


A S - P L A N N E D


OCT JUL AUG SEPNOV DEC JAN FEB MAR OCT NOV DECAPR MAY JUN JUL AUG SEPJAN FEB MAR OCT NOV DECAPR MAY JUNJUL AUG SEPJAN FEB MAR OCT NOV DECAPR MAY JUN JAN FEB MAR

031 - 01 4/28/00

LEGEND

Logic Tie

AS-PLANNED vs. AS-BUILTSCHEDULE COMPARISONCelestial Chemical Plant Project

Clean City, Utopia

11/1 1/31R A I N Y S E A S O NSTRIKEPERIOD6/1 - 6/1414 CDs


AS-BUILT

EF - Early FinishLF - Late FinishCD - Calenday Days


Start

AS-PLANNED

Start Finish

Finish

Critical Path

Delays

Additional Variable Work orDefined Work Change Order

Milestones

After performing a preliminary analysis of thedocumentation and technical, schedule, and costissues, Long International then performs a detailedanalyses that support opinions expressed in ourexpert reports. The task descriptions that are listedbelow are definitive analyses that substantiate thepreliminary findings, but they may be tailored tothe needs of our client, the actual scope of workand opinions required, and the deadlines of thearbitration/litigation.

1. Prepare Issue Packages for Contractor’sClaim Issues and Owner’s CounterclaimIssues

2. Prepare Issue Summaries/Proof Charts

3. Prepare Detailed Narratives withDocument References

4. Develop Cause-Effect Relationships

5. Prepare Detailed Schedule Analysis

a. Prepare List of Delays/FinalizeRelational Database of Key ScheduleDelay Information

b. Prepare Schedule Activity Start andDuration Variance Tables

c. Identify Responsibility for ActivityStart and Duration Delays

d. Prepare Detailed Schedule Analysesand Calculations Based on AgreedUpon Methodologies

e. Prepare Schedule AnalysisTabular Results

f. Prepare Schedule Analysis Graphics

6. Prepare Detailed Damages Analysis

The work products resulting from our detailedanalyses may take many forms, including butnot limited to claims/requests for equitablecontract adjustments, reports supporting thedefendant’s positions against claims, PowerPointpresentations, or expert reports. One or moreexpert reports may be required for arbitration orlitigation. Rebuttal reports may also be requiredto critique the reports of other experts. In addition,some arbitrations require that opposing expertsmeet to attempt to narrow the issues. Reportsmay be required to document this effort. Foreach claim document, presentation, or expertreport, our work plan is as follows:

1. Prepare Draft ClaimsDocuments/Presentations/Reports

2. Review with Client our Draft ClaimDocuments/Presentations/Reports

3. Prepare Final Claim Documents/Presentations/Reports

For each phase of arbitration or litigation, experttestimony may be required. Our work to performthis testimony includes the following:

1. Prepare for Testimony

2. Provide Expert Testimonyat Depositions

3. Provide Arbitration/LitigationExpert Testimony

Our Detailed Damages Analysis providesadequate detail and supporting spreadsheetsto fully explain the amount of the claim and/or counterclaim. Damages may arise froma variety of problems, and we endeavor tocalculate specific damages for each problemif possible from the data available. The cause-effect relationships linking the damages to theentitlement for each problem are demonstrated,if possible. We often develop a DamagesAnalysis Matrix for both man-hours and costs.This matrix delineates work activities and costtypes on one axis and variances betweenbudget/contract values and actual/projectedvalues along the other axis. These man-hourand cost variances are then allocated toproblems, if possible. Subtasks may include:

a. Evaluate Reasonableness of Bid andCalculation of Bid Error

b. Assess Owner’s Responsibility forDirect Cost Issues

c. Assess Responsibility forQuantity Overruns

d. Assess Contractor’s Responsibilityfor Performance Problems

e. Assess Responsibility for UnresolvedChange Order Requests

f. Allocate Contractor’s Delay Costs

g. Allocate Responsibility for Man-hour and Cost Overruns Associatedwith Welding Problems and otherRework Issues

h. Analyze and Allocate Loss ofProductivity Man-hours and Costs

i. Prepare Detailed Man-hour VarianceAnalysis Matrix

j. Prepare Detailed Cost VarianceAnalysis Matrix

k. Assess Liquidated/Actual Damages

l. Assess Costs Associated with Owner’sCounterclaims

m. Prepare Damages Tabular Results

n. Prepare Damages Analysis Graphics

PHASE II:Document DatabaseDevelopment andPreliminary Analysis

PHASE III:Detailed Analysis

PHASE IV:Report Preparation

PHASE V:Arbitration/LitigationTestimony

During Phase II, we perform tasks required byour client as part of the arbitration/litigationschedule. In addition, other potential Phase IItasks often include the following:

1. Develop Document Database

2. Analyze Contract

3. Review Invitation to Bid, Job Instructions,Procedures, and Contractor’s Proposal

4. Review Drawings and Specifications

5. Review and Prepare (as required) a Listof Problems and Issues for Claims andCounterclaims

6. Review Approved and Unapproved/Outstanding Change Orders

7. Prepare a Preliminary List of Alleged Delays

8. Identify, Organize, and Review ScheduleData

9. Identify any Schedule Software ConversionRequirements

10. Review Schedule Analysis Methodology inany Submitted Claims

11. Identify and Review Key ScheduleInformation

12. Identify, Organize, and Review Contractor’sMan-hour Data, including Control BudgetPlanned Man-hours and Actual Man-hours

13. Identify, Organize, and Review BulkMaterial Quantity Data

14. Identify, Organize, and Review Cost Data

15. Develop Summary Schedule VarianceComparisons

16. Develop Macro Man-hour Variance Analysis

17. Develop Macro Quantity Variance Analysis

18. Develop Macro Labor Productivity Analysis

19. Develop Macro Cost Variance Analysis

20. Evaluate and Select Schedule AnalysisMethodology Options

21. Develop Phases III and IV Work Plans,Budgets, and Schedules

22. Provide an Overall Assessment of theStrengths and Weaknesses of Issues

Experience Matters ...

LONG INTERNATIONAL

Other tasks that our clients may request LongInternational to perform during arbitrationor court proceedings include:

1. Develop Requests for Arbitration

2. Develop Detailed Memorials/Statementsof Claim for Arbitration

3. Develop Detailed Responsesand Counterclaims

4. Assist with Settlement Negotiations

5. Prepare Presentations for Useat Mediations

6. Assist with Developing DocumentRequests from Opposing Party

7. Assist with Developing DepositionQuestions for Opposing Witnesses

8. Assist with Developing Interrogatories

9. Assist with Preparing Witness Statements

10. Prepare Issue and Event Timelines

11. Prepare Graphics for Technical Issues

12. Prepare Multimedia GraphicsPresentations for Use at Trial or Hearing

13. Prepare Document Indices

14. Attend Depositions as Requestedby Counsel

15. Perform Other Tasks as Requestedby Our Clients

Arbitration/LitigationSupport ThroughoutProject As Required

Engineering and Construction Claims Analysis Experience

You Can Rely On...

LONG INTERNATIONAL

Project Work Activities

ApprovedChangeOrders

CurrentContract

Value

PendingChangeOrders

Bid Error(Noncompensable)

ContractorCaused

Problems(Noncompensable)

InaccurateP&IDs

IncreasedPiping

Quantities Delay

Disruption/Loss of

Productivity

TotalActualCosts

Cost / Damages Matrix

Potential Compensable Damages

OriginalContract

Value

C/D MATRIX GS 8/1/03

(All Costs Shown in $000)

ENGINEERING $2,500 $400 $2,900 – – $120 $250 $500 – $3,770

EARTHWORK $1,000 – $1,000 – – $200 – – – – $1,200

CONCRETE $500 $20 $520 – – $100 – – – – $620

STRUCTURAL STEEL $1,000 $100 $1,100 – – – – – – $1,100

INSTALLED EQUIPMENT $7,200 $900 $8,100 – – $50 – – – – $8,150

PIPING $2,000 $1,055 $3,055 $2,500 $500 $750 $1,250 $345 – $2,500 $10,900

Direct Labor $500 $250 $750 $600 $75 $112 $300 $75 – $600 $2,512

Labor Taxes & Burdens $215 $108 $323 $280 $35 $53 $145 $35 – $280 $1,151

Permanent Material & Equip $800 $400 $1,200 $950 $200 $300 $475 $100 – $950 $4,175

Consumable Materials $50 $25 $75 $50 $10 $15 $40 $5 – $50 $245

Owned Construction Equipment $25 $10 $35 $25 $10 $15 $30 $5 – $25 $145

Rental Equipment $10 $5 $15 $10 $50 $75 $10 $25 – $10 $195

Subcontracts $400 $257 $657 $585 $120 $180 $250 $100 – $585 $2,477

TANKAGE $500 $100 $600 – – – – – – – $600

INSTRUMENTATION $800 $200 $1,000 $700 – $600 $1,000 – – $700 $4,000

ELECTRICAL $1,500 $450 $1,950 $900 – $800 $1,800 – – $900 $6,350

PROJECT/CONST MANAGEMENT $2,000 $425 $2,425 $1,800 $400 $750 $2,200 – $600 $1,800 $9,975

OTHER FIELD INDIRECTS $1,500 $300 $1,800 $1,300 $300 $600 $1,000 $300 $450 $1,300 $7,050

HOME OFFICE OVERHEAD $2,000 $400 $2,400 $800 – $400 $400 $200 $600 $800 $5,600

FEES/PROFIT $2,500 $850 $3,350 $1,000 – – $800 $80 $750 $1,000 $6,980

TOTAL PROJECT $25,000 $5,200 $30,200 $9,000 $1,200 $4,370 $8,700 $925 $2,900 $9,000 $66,295

IssueNo. 1

IssueNo. 2

IssueNo. 3

IssueNo. 4

TOTAL COST OVERRUN = $36,095

POTENT IAL CLA IM VALUE = $21,525

www.long-intl.com5265 Skytrail Drive Littleton, Colorado 80123-1566 USA Telephone: (303) 972-2443 Fax: (303) 200-7180••• •Long International, Inc. •