11/5/2006 3:09:26 PM
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Section 5: OPA Board Subject: OC Today Story Msg# 385346
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We have already spent about $200,000. Assume the builder would claim a lost profit on the project of 15%. That's another $450,000. So we are probably on the hook for about $650,000 minimum right now -- plus any materials already ordered, although that could be minimal at this point. To think the builder would "resell" the structure is a giant streetch -- at best. If the project moves into the actual construction phase and assuming at some point Marty's attempt to stop the project is successful, it would be reasonable to predict a potential loss of $1 million to $2 million. The project is over the anticipated cost by $1.5 million. So, if Marty is successful OPA might spend one to two million and end up with nothing. The time for Marty and his group to have taken action should have been BEFORE any contract was signed. He had plenty of time. |
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For reference, the above message is a reply to a message where: To possibly ease the concern of cost if we terminate the contract, keep in mind that amy money we should have to pay we would be entitled to the work in process, i.e. the steel, drawings etc. Chances are the building supplier would resell the building and our likability would be minimal. Hope this reduces the shock numbers. |
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