HomeMy WebLinkAboutLtrs re contractors no longer working on hse MAY. -10' 02 (FRl ) 08 � 19 VOGT HTG & A/C TEL; 952 929 1164 P. 001
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Heating/Alr Conditionfng � CommerciQl/Re,�ldential
May 10, 2002
City o�f Orono
2750 Kelley Parkway
Orono, MN 55356
ATTN: Lyle
RE: 152013ohns Poini Road
Plcasc be advised as of Friday, May ]0, 2002, we arc no longer doing any worlc on tlus
job.
This in�lud�s HVAC, 1-Iydronics, and Plumbing.
VOGT Hcating
Neu Plumbin�
l WL
Don Bell
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May 22, 2002
C ity of Orono
2750 Kelly Parkway
P.O. Box 66
Crystal Bay, MN 55323
RE: Building project at 1520 Bohns Point Road, Orono, MN
Please be advised that effective May 9, 2002 we have terminated Zvi Leibovich and Paragon
Designers and Builders as our contractor for our homebuilding project at 1520 Bohns Point Road.
We have retained Tom Mihm and Mihm Custom Homes, Inc. as our contractor for the project.
We wish to have Tom Mihm and Mihm Custom Homes named on our building permit.
Please advise me of anything else you may need from us to properly transfer the permit to Mihm.
I apologize for any inconvenience this may cause to you or your staff during this change.
Kindest regards,
David F. Dalvey
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LEONARD, STREET AND DEINARD
PROFESSIONAL ASSOCIATION
May 22, 2002 Robert J. Huber
612-335-1714
Bob.Huber@leonard.com
BY E-MAIL ONLY
James O'Connor
Maslon Edehnan Borman& Brand
3300 Wells Fargo Center
Minneapolis, MN 55402
Re: 1520 Bohns Point Road
Orono, Minnesota
Dear Jim:
Following several conversations with Jim Killian about the dispute between the Dalveys and
Paragon, I now understand that you will now be handling this matter.
While our position is fundamentally unchanged from our prior conversations with Jun, it may be
of assistance to you to inform you of the Dalveys position so that you hear it directly from me.
The Dalveys wish to resolve the issue quickly so that they may continue their homebuilding
project, but they simply feel they have the right to understand the amount they are being asked to
pay. Additionally, there remains a small amount of unfinished work for which Paragon is asking
for full payment, but the resolution here should have been simple.
Regarding the payment of the final draw request, as previously mentioned to Jim, the Dalveys
would be willing to make an unmediate interim payment of$127,256.64 pending the completion
of the audit and negotiations. This would be sufficient to pay off all of Paragon's subs and
suppliers except Shaw Lumber and Vogt, whom Dalveys feel may have overcharged them for
the services and products they received. Should this interim payment be acceptable, full lien
waivers from those subs and suppliers would be exchanged for payment as well as the required
warranties for the work and materials these subs and suppliers have furnished. Other than the
windows and the small amount of plumbing work done so far, the Dalveys have no other
disputes with the subcontractors. Once these two amounts are known, the Dalveys intend to
resolve the appropriate Paragon fee amount payable at that time as well.
The unfinished work involves only the removal of unbonded mortar from the foundation walls
and their tuckpointing and the negotiation of related charges. The Dalveys expect Paragon to
honor its contractual and statutory warranties with the qualification that the warranty will be
voided if the new builder modifies Paragon's work.
150 SOUTH FIFTH STREET SUITE 2300 MINNEAPOLIS, MINNESOTA SS402 TEL 612-335-I500 FAX 612-335-1657
22'�62g1V1 LAW OFFICES IN MINNEAPOLIS, SAINT PAUL, MANKATO, SAINT CLOUD AND WASHINGTON, D.C.
May 22, 2002
Page 2
The Dalveys were unable to complete their audit on Monday, but would like have the two
disputed amounts reviewed by a qualified consultant. They are prepared to proceed
immediately. Following the review, we can sit down and negotiate a final payment.
Sincerely,
LEONARD, STREET AND DEINARD
/s/ 8017
Robert J. Huber
RJH/jm
cc: Jodi and David Dalvey(by e-mail)
llibzsi�i
' May, 16, 2002 10; 2fiAM BRAUN INTERTEG CORP No. 3677 P. 3/4
Mr. David Dalvcy
F�roject BADX-U1-11U9
May 14, 2002
Pagc 2
hlasonry Foundation Wall E�v�luation Report
I�2U Bohns Point� Orono,Minnesuta
Uurin�;CUnvt;r�3i�vns wi'-fti `Vir. Daiv�v, ic w�s indicated d�at concuris were raised aboac ihe stone
masu��ry wal► coustrucu� ,�,�:�IaFade to:detached�ara�c and ihe con�rete masonry used in the
founda�►on�v�alf uf tl�c i�ous::. Tt,csc cunccn+s wcrc rocuscd around thc potcn�ial for frozcn mortar and
d�e appareiu loose�y Lorided sconc i��asotin� I�is our understanding ihat tl�e masonry wds placc:d in
Ucc�mbu� 2UU 1 and lanu:irv lUi�2.
Detacl�ed Gararc 5to»c Mnsonrv Ffl�adc
Uurin�our sitc obc�r�,ai,�c�ns, ih�purtions of tl��stonc masonry�vall thx�wcro of conccirn�app�:arcd io
have bcen dun�li�f,ce'..�nd rebu�lelina,ot'thc u-all h�d commenced. Several u�uu of stone were
dislodgcd b�� L;r<�n;i Inicrtcc u�,d tl�,;Vhumwwncr du��ng uur visit. M�rtar samplcs wcrc rctriev��d from
titic cast elc;v:�liori ai,c'1 dcl,ri� p�lcs Tl�c�:�st cic�auoo coniai„cd ooly 3 to� courscs of masonry at thc
time of our vtsit �cv�;rcu ot Ihcsc m��rtar sttmplcs frona bo[h thc dcbns p�lc�nd w�tll,wcre nolcd to
cOniBm froSt c')s'ia! �ui�).Css:on-
lt is uncl�ar m whai��t�nd �h�u�ortar in thc�tiall was frozcn sincc demolition and repair had already
commence�l. Thc rLmain�ug walls dicl not appe�r to be affectcd by freezmg temperature. S�me areas
oftl�e remainin� i�ayl v.ere alrcad� it►ck-pointe;d in small areas.
On thc norlh cic��lion_ ;rlsstt:rs w�rc b�m��conslructcd surrounding stu:l colunuu that support an ovcr
h�v�g abov� �hc;�aral�c ci�or5 Ti��mu�t�vcslcm piltu[cr was partially constructcd with a protruding
stone from the �+all a�proxi:nalcly �-l%L fcet from the ground. 7`his slone was loose and itnbonded
Itnql L}1C SUl7plllIillqP ,naso�zr�.
AL f�7�f1111C:UI JUC SUC v)j��. )� ;lO�C:1fC(� LI1Fll [�lC Il1il�UflCy Of lI]C fC�7:llf5 W [31C w1����crc alrcady
undc:nvay. fh� rc��i�uuin�� w:<Ils d�d noi appear to ne;e:d fi�nl�er a<<emion at this time, with the e:xception
of che iouu:lv boo�cti ;tcmc�n thc ►v�s�cicvation.
Nuuse Fuundati��n 'v�':�li
Durin�our sit� v;sit. t��os,ci7�stal unpressions u�crc obscivcd m many locations of the masonry wall.
T}►ccc trost cr�•stal unE,ress�ons l:� us to bclieve:that at some poi�it i�i time the mortar had frozen,at
least superticially G� is �ur undeistanding tha�as soon as di�first floor devation was inscalled, a
h��atcr was pfaccd :n�I�c bas��l�cn1 and[h� LcmpCr�turC�-as hcld abovc frccr.ing from that point on.
Thc tnurfar ap��c:ar�cl :u b��v�ll i�ondcd to the masonry un�ts ��d was judged to bc relatively liard when
scratchet] witl� a rneta! ob�cci tiomr isol�icd minor areas of the niortar joints, typically in the l�ead
JUIiIIJ,(�C�DU115if':ICCI� �O�Iti�;SU�T�t7l�FjZf.
' May, lfi. 2002 10:27AM BRAUN INTERTEG GORP No, 3677 P. 4!4
Mr. David DAivCy
Project BADX-01-11�9
May 14, 2UU2
Page 3
A step cracl:was iocatad ou���e sou�hcast cur��er oFthc masonry wall. This type of crack indicates a
small amounc of dtf�crcnual s�iticmcni has occuncd alon�the wall. Thc width of this crack was
relati��ely small, a:thoush �e�hould bc mc�nitorcd�n thc luturc to chcck that movc;ment is not continuing,
A a�ck moniTur r.ttiy l�c;��I�ccci aGross thc craCk and thc homwwner or contractor may monitOr its
progrCSs.
Uuriug our site obsc�vations,tne grout in th�block c�lls was not visible and its condition was not
I:nown. Marku�gs���crc located on th�wall a�proximatcly every third ceU,which may indicate that
these arc the celis �n tl��niasourv wall���I�,cl�arc fi11eJ wich gTout. Further evaluation would be
rcquircd to dcicrminc thc coudiciou of tlie grouc and thc IocaUon of dic groutc;d cclis.
TI1C\VESt WaI� �f�)L` bascu��nt�►�si�rne�aortie�n uf thc nonh and soudi walls were notc:d to bv wet.
'1'his is oftcn sc�n 7n rn�w constiuction ai�d could bc c;�uscd by poor surface drainage, poor draining
Uackfill,a campron�ised�:arerproutin�maturial un thc oulside of the wall,water filled cells in the
block,ur jus[wci biock "i'hcsc walls sllould be dry prior to placement of�inishes m the b3sement area.
If these w��lls do not dry cut prior to tinishing the basefn�:nt furthcr cvaluation would be required to
deterniine th�caus�ot thr mc,isturc m�f�ratiug inta thc baument.
!n conclusio�i_ �t i; our opwiuu cha[ thc housc lound�ltiun��•all was sttp�rticially frpzen shortly aftc[
placement, howcv�r,ch��:,a�c�r�ty uC�i�c monar is�vcll bonded to the masonry units and is judgc:d to bc:
in sound co��ditio�� Thc suft arcas shuuld bc u�ck-point�d,that i5 to rcmovc unsound mortar and
rc;plaCc wiCh �'r�si� mo��tar. 8rau:�lntcn�c couJd fu�ther a�d �n thc installation of a crack monitor ar�d
locaun�and n�arkirn,thc�ocstlizcd disu��ssed mortsr 1'pr tuck-p0in[u��Tepairs.
n�Irup�U t\ep•.,tg:;y�lcrl�;l ll�t 1 b'7'n+l i
:�,i;'��n��
, .
May 9, 2002
Zvi Leibovich
Paragon Designers& Builders, Inc.
3550 Fairway Lane
Minnetonka, MN 55305
RE: Building project at 1520 Bohns Point Road, Orono, MN
it is with great regret that we write you this letter to end our relationship with Paragon. We have
spent four months on this project and made some nice progress, however the trust relationship
necessary between us has mutually degraded to the point where we cannot continue. We thank
you for your work thus far and wish to amicably work through the transition process to repair the
problems, certify the condition and bring the house to a point where another builder is able to
continue the project.
Since mid-January, I have brought to your attention the obviously inferior quality of the materials
used and the unacceptable quality of the work completed, only to have you disregard my
concerns. You repeatedly dismissed these claims and took no action until April when our
concerns forced us to consult several outside building inspectors, consultants and structural
engineers whom advised us as to the materiality of our concerns, particularly as it could relate to
the structural integrity of the foundation walls.
We have been more than understanding and trusted you to correct the problems, however our
discussions with you seem to debate the existence of any such problems instead of working to
resolve our concerns. Only after we retained outside consultants did you begin to replace wall
studs and investigate the garage stonework, both of which were in fact of inferior quality
materials and workmanship. Despite numerous requests over the past three months, as of the date
of this letter, the materials and workmanship of concern remain unfinished and in inadequate
condition to allow the project to move forward.
You and I spoke last week on Thursday, May 2°d regarding our intentions to terminate the
agreement and agreed to meet one week later to review the house and the repairs, which you
agreed verbally and in writing would be fmally be fixed and ready for our inspection on May 8`i'.
Upon our inspection today, the work remains unfinished and unsatisfactory to us and according to
a structural engineer retained by us, the condition of the foundation wall remains in question as to
whether or not we should proceed with the building of this house.
Therefore, pursuant to Section 14.2.1 of AIA Document A201-1997 (the "Agreement") between
us, we hereby give you notice of our intent to terminate such agreement. As previously agreed,
no further work has been authorized other than the completion of the soffit, the restoration of the
garage stonework and the supervised tuck pointing of the main house foundation wall.
During this unfortunate transition between contractors, I know that you and I will be able to work
together in a professional manner and resolve any issues in a fair and reasonable manner. Please
contact me at your earliest convenience to coordinate the scheduling of an outside masonry
engineer to supervise the tuck-pointing of the interior foundation walls and the other details
concerning the termination of our Agreement.
Kindest regards,
�
David& Jodi Dalvey
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