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avoided delay - to the project. This has tangible benefits that we believe outweigh a cost <br />reduction. There are obvious impacts to stopping work such as a day for day delay in the <br />community benefits from the project, and the potential loss of agency review staff to other <br />assignments with new reviewers at project restart that provide a new perspective and <br />additional comments. There are also indirect impacts such as the increased exposure to <br />construction cost inflation which is not necessarily linear and has been unpredictable for the <br />past several years. As stated before, there is an additional cost to AECOM for carrying labor <br />cost during this time period. <br /> <br />We are currently working at risk as we address structures comments in order to meet review <br />timelines and preserve an aggressive schedule. Continuing to work provides real value as an <br />offset to our invoicing and reporting lapses. <br /> <br />To address the reporting lapses, we have instituted changes to provide predicable reporting <br />and invoicing. These include: <br /> <br />Assigning a highly experienced and well known project controls senior manager to the <br />project team – he is a key resource that already knows this project and has begun <br />working with the PM Team now. <br />Providing timely notifications of potential extra work to the City – we have already <br />provided updates and notifications to the PM Team within the last month for better <br />planning and mitigation opportunities. <br />Working with the PM Team staff to establish a schedule for invoicing of unbilled project <br />costs and getting back to a predicable frequency - this is a key step to resolving the <br />invoice and reporting issues that have occurred. <br />We have prepared the progress reports for the lapsed months and are ready to send to <br />along with the invoices – will be caught up with reporting and invoicing by September. <br /> <br />We believe these measures convey our continued commitment to the 84/101 Interchange <br />project, especially our ongoing continuation with the design work to preserve schedule. <br /> <br />Please let me know if you have any questions or would like to discuss further and thank you. <br /> <br />Greg Hefter, PE <br />Department Manager <br />Transportation, West Coast <br />c: (949) 285-6198 <br />greg.hefter@aecom.com <br /> <br />AECOM <br />999 Town & Country Road, Orange, California 92868 <br />www.aecom.com <br />