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<br />WATER TANK MAINTENANCE CONTRACT
<br />AMENDMENT SHORT ELLIOTT HENDRICKSON INC. 10
<br />Schedule of Payments
<br />Compensation for the ongoing maintenance tasks for your tank are typically invoiced on an annual basis. The next
<br />annual payment will be billed upon completion of the 2020 work plan. The subsequent annual fees are typically billed
<br />on the anniversary date of the contract, starting in the year 2021.
<br />PAYMENT PLAN OPTIONS
<br />Our clients have the option of paying the costs associated with their maintenance
<br />contract as they are incurred, or by summing the total cost of the services
<br />provided over the contract term and amortizing them into an annual payment. In
<br />some cases, a possible a hybrid plan may incorporate both methods. The
<br />following table identifies some sample payment plans.
<br />For the purpose of this contract amendment, we have identified two basic sample
<br />payment options for your review. A ten-year extension affords the City of Orono
<br />the option to lock-in prices for a longer term.
<br />The first alternative is a variable payment plan. The variable payment plan
<br />invoices the rehabilitation and maintenance costs as incurred by SEH D|B and
<br />our tank maintenance partner Classic Protective Coatings.
<br />The second alternative is an equal-annual payment plan. This payment plan
<br />sums the total cost of the proposed rehabilitation and the ongoing maintenance
<br />costs, and subsequently amortizes them into more-manageable payments
<br />(including a nominal interest charge) for each year of the service contract.
<br />As a reminder, these costs are inclusive of initial project specifications, work
<br />orders, critical-path inspections, ongoing maintenance items, in addition to
<br />all of the project scope items identified in Tables A and B. Similarly, the project
<br />workmanship will continue to be warranted for the duration of the amendment.
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<br />Long-term maintenance contracts do not require payment and/or performance bonds. The prices identified above do not include the acquisition costs for these bonds.
<br /> Five-Year Extension
<br />Payment Options
<br />Ten-Year Extension
<br />Payment Options
<br /> Variable
<br />Payment Plan
<br />Equal Annual
<br />Payment Plan
<br />Variable
<br />Payment Plan
<br />Equal Annual
<br />Payment Plan
<br />2020 $4,200 $18,450 $4,200 $21,500
<br />2021 $4,200 $18,450 $4,200 $21,500
<br />2022 $4,200 $18,450 $4,200 $21,500
<br />2023 $4,200 $18,450 $4,200 $21,500
<br />2024 $75,450 $18,450 $75,450 $21,500
<br />2025 N/A N/A $5,250 $21,500
<br />2026 N/A N/A $5,250 $21,500
<br />2027 N/A N/A $5,250 $21,500
<br />2028 N/A N/A $5,250 $21,500
<br />2029 N/A N/A $101,750 $21,500
<br />Totals: $92,250 $92,250 $215,000 $215,000
<br />Our clients have the
<br />option of choosing
<br />between paying for
<br />services as they are
<br />incurred, or amortizing
<br />to the total maintenance
<br />contract costs into equal
<br />annual payments, or
<br />possibly a hybrid of
<br />both.
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<br />Our goal is to provide a
<br />customized payment
<br />plan that accommodates
<br />the owner’s budget and
<br />current financial needs.
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