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Exhibit "B" <br /> <br />KRAUS-ANBERSON® CONSTRUCTION COMPANY <br />CONTRACTORS & CONSTRUCTION MANAGERS <br /> <br />January9,2002 <br /> <br />Mr. Gary Tushie, President <br />Tushie Montgomery & Associates, Inc. <br />7645 Lyndale Avenue So. #100 <br />Minneapolis, Minnesota 55423 <br /> <br />RE: ELK RIVER MUNICIPAL FACILITIES <br /> <br />Dear Gary, <br /> <br />Our thanks to you and all the representatives from the various city departments for meeting with <br />our team yesterday. We are more convinced than ever that we are the right team to complete <br />this very exciting project for the City of Elk River. <br /> <br />Since our interview we have continued to review the drawings and our strategies for completing <br />the project. We are confident that our abilities as a large general contractor will bring opportu- <br />nities to condense the overall schedule. <br /> <br />Along those lines, we are submitting the following additional information to you for your consid- <br />eration. Kraus-Anderson proposes to assume the risks of completing the project on a more con- <br />densed timeframe and the associated cost savings on our supervisory personnel. Therefore, we <br />will contractually cap the following general conditions costs: <br /> <br />Project Manager Jim Beckwith <br />Project Superintendent Lynn Mann <br />Safety Director Tom Nelson <br />General Superintendent Larry Kelly <br />Fee Percentage <br />Carpenter Foreman <br /> <br />Not to exceed $60,000 <br />Not to exceed $225,000 <br />Included in Fee <br />Included in Fee <br />Unchanged at 2% <br />Reimbursable based on final scope <br /> <br />If selected we are prepared to begin pricing exercises on the project immediately. We look for- <br />ward to hearing from you. As a reminder- we maintain our proposal of exempting any changes <br />from mark-up up to $200,000. We feel there is actual dollar value here to the City. <br /> <br />Very truly yours, <br /> <br />KRAUS-ANDERSON CONSTRUCTION COMPANY <br /> <br />· ~,~;eniorVice Pres'~ent <br /> <br /> www. krausanderson.com <br /> St. Paul Division <br />200 Grand Avenue, St. Paul, MN 55102 <br />Phone: (65 ! t 291-7088 FAX: (651 ) 290-6120 <br /> Equal Opportunity Employer <br /> <br /> <br />