From the CBH archives - the SPG Contract

The following extracts are taken from various documents previously circulated to Owners:

August 1st, 2007, Bi-Annual Update from the Board
The spalling project has been moving along quite well up to now. Unfortunately the contractor is experiencing some internal problems, along with a very wet June and July slowing the process down. It is hoped these matters will be resolved in short order.

Owners' Forum December 20th, 2006
Now that the spalling and painting is complete on the east and west elevations of Building 1 and east elevation of Building 3, installation of the (hurricane) shutters can go ahead there, and as the contractors finish their work on the other facades, so installation can take place.

Undated letter from Vice Chairman & Treasurer, Phil Galiano (received on 8th December, 2006):
In order to turn around the neglect and deterioration of our 38 year old structure a major rehabilitation project was engineered, planned and commenced during the 2005-6 fiscal year and is continuing into the 2006-2007 fiscal year. The work is more than 1/2 completed on the exterior of our complex. At the same time the interior rehabbing is taking place. We have sufficient monies to complete all work that has been contemplated. Future work will be financed with the monthly income from all sources.. Revenue from the sale of four CB owned studios and a one bedroom apartment will be added to our reserve in the form of term CD's until such time as the funds may be needed for future capital improvements.

Owners Forum November 28th, 2006
A number of Owners reported water leaks at the eastern side of Building 2. PG said that until the flashings are complete on the building it is not possible to be sure where the leaks come from. Terrace roofs remain a problem and getting the entire complex wind and water tight is a priority over the next two years but it must be done systematically. A new type of material may be used on the terraces and a redesign might also take place.

President's Report for 2007 AGM dated October 24, 2006
The Spalling project and the selected contractor are working out better than expected. Phil Galiano's constant attention has kept this multi faceted project on budget and on time. We are anticipating completion of the project towards the middle of February 07.

Board Minutes January 25, 2006
Spalling Contract - Phil has included a bonus and penalty clause in the contract regarding the time limit to complete the contract. This may be an incentive to get the work done in a reasonable time frame.

Building & Ground Notices #1-06 January 22, 2006
Starting sometime in February 2006 and forward approximate one year or more the SPG (Spalling, Painting, Guttering) Project will begin. Note: (The exact intended plan, of work starting from this beginning phase as outlined above, from section to section of all the buildings in the Coral Beach Complex will be posted on this web page, when completed and other areas throughout the Complex.) This project though long in coming has had many long hours put to fine tuning the many parts of the Project, the safety of both Owners, Guests, Public and Contractor, the procedures and knitting of the various construction trades under the direction of an experienced Contractor so the project will flow smoothly, was thoughtfully explored with the objective to the least inconvenience to Owners.

Board Minutes January 13, 2006
Phil reported that he and George (Turner, Board Member) had visited other sites that the proposed contractor has worked on, on the island. They were very satisfied with the quality of work on those jobs. There was a concern with the amount of surpervision of the contractor, once the job was started and through to completion. Phil has assured the Board that he will be on the island intermittently, and will inspect the work being done. It was suggested that Phil English, professional engineer be contacted in the event that extra surpervision would be necessary. The Buildings and Grounds Commitee have received bids from four construction firms in the Freeport area after sending out bid requests and specifications for specialised work to be performed at and on Coral Beach complex, namely: Spalling repair, pressure washing and painting, fascia and down spouting installation, balcony railing reconstruction and related work on the exterior renovation project.(aka SPG Project) for work to commence sometime in January 2006 and to be completed prior to 2008, the award for the work is to G-Seven Construction Company of Freeport, GBI, Bahamas in the amount of $372,000, as per the Tacoma Specifications, dated September 21, 2005 and bid tender dated November 14, 2005. Moved by T Mulvihill, second M. Diliberto that the Board approves the contract bid from G-Seven Construction Company of Freeport, GBI, Bahamas in the amount of $372,000, as per the Tacoma Specifications, dated September 21, 2005. And further, that this is a labor only contract and that the Board approves the amount of $150,000 be budgeted in the Coral Beach budget for the materials for this contract. Carried. The amount of $150,000 includes the $50,000 that was approved for this contract at the December 13, 2005 ~363 Rev. 1 Meeting.

Coral Beach Management Company, President's Report, 2005 (for 2006 AGM)
New roofs were installed on all three buildings. These roofs are of a melted tar base that seals and waterproofs the base concrete structure. It is comprised of a total of 3 layers of varying roofing material. This type of roof has much better Hurricane resistant qualities. The fascia and gutters were redesigned by Phil Galiano and strongly endorsed by the consulting Engineer. This new fascia design adds additional protection to the new roofs and eliminated the multitude of downspouts along the building face. This was truly Phil at his best. Not only did his novel recommendations beautify and strengthen but also saved hundreds of feet of spouting pipes which translates into big dollar savings. Great work Phil!. The Assessment is required to reclaim the $360,000 insurance deductible payment as well as contributing to the Spalling Project and other necessary projects from past years. The assesment amount is $800,000 calculated over two years. The first installment is set for September 2005, and then equally spaced payments in February, May and August 2006.

Re-reading the above extracts from written information emanating from either the Board, the President, the B&G Committee or my circulated reports of Owners' Forums, there are a number of obvious questions to be raised:

1. Has the Contractor incurred any of the penalty clauses due to the over-run of the contract?
2. How much is left of the $372,000 in the G-7 labour only contract?
3. How much is left of the $150,000 budgeted for the materials involved in this contract?
4. Have B&G ensured that all of the Tacoma specifications as per the Sept. 21st 2005 documentation been followed by the contractor?
5. How many change orders have been issued to the Contractor and how much have they added to the cost of the contract?