121 Mount Vernon St, Boston, MA 02108, USA
Phone: +1617 242 2204 Fax: +1617 242 2205
July 9, 2021
John R. Lavigne, Jr., P.E., CFM
The H.L. Turner Group Inc.
Architects * Engineers = Building Scientists
27 Locke Road
Concord, New Hampshire 03301
Subject: Jackson Falls Hydroelectric Project
Change Order No. 2 — Delay delivery for one year
Hello John,
Mavel has been requested to estimate the cost of a delay in the shipment of goods for the Jackson Falls
Hydroelectric Project (“Jackson Falls HPP”) by one year and a related extension to the warranty.
The costs are categorized in four categories: fixed storage, fixed warranty extension, increased Field Services Costs
and possible transportation cost increases. The incremental costs are based on the following assumptions:
1. Customer has requested cost to delay the project by approximately one year.
- Mavel delivery would be postponed from August 14, 2021 to September 15, 2022
- Eaton delivery would be postponed from September 15, 2021 to November 15, 2022
2. Customer is requesting a one year extension on the warranty
- Current warranty expires 30 months after Ready to Ship.
- Ready to Ship notification was given June 30, 2021 and so expiration is December 30, 2023
- Customer has asked for warranty extension to December 15, 2024.
The incremental costs per category are detailed below.
Storage Costs:
- Storage of Equipment in CZ (turbine, generator, gearbox, HPU, GBLU) $49,000
- Storage and re-testing of Eaton equipment $11,500
Total Storage Costs: $60.500
Warranty Extension: $38,500
Field Service Rates (Estimate): 3% increase
Transportation: TBD?
- Transportation Cost Increase, if any, provided 30 days prior to transport
Note’: Mavel cannot estimate the transport cost one year from now. We know that overseas transport costs are
increasing but it is likely this might be temporary increase due to uncertain times (COVID). Mavel will document
the cost to ship now and if there is an increase next year will present the customer with the documentation.
Jackson Falls HPP Project No: 0-29029
