I am writing in response to the article in the January 8, 2007, issue which alleged that subcontractors were not being paid after the termination of the contract to build the Galena Creek Bridge, part of the Interstate 580 freeway extension between Reno and Carson City. Since Edward Kraemer & Sons Inc. (EKS) was not contacted for a response, we would like the opportunity to provide you with the additional details that were precluded from your article.EKS has made every effort to work with subcontractors on getting billing issues resolved. EKS reserved rights in the termination agreement for resolution of some of the subcontractors quantity issues. EKS has worked with all the subcontractors and the Nevada Department of Transportation to resolve any payment issues and settled on amicable agreements for a majority of them. As explained by Scott McGruder (NDOT) in your article, EKS is required by the termination agreement to resolve all payment issues with subs before the contract can be closed out and our bid bond released. EKS subcontracts are specific that the subcontractors will be paid only the quantities that are paid by NDOT. Without qualification, EKS has paid all subcontractors the quantities that were paid by NDOT.Reno Iron Works (RIW) is one of the subcontractors that had rights reserved, by the termination agreement, to resolve quantity issues. RIW has on numerous occasions returned their payment vouchers to EKS claiming that they are underpaid by a significant amount, but RIW has never provided any documentation to Kraemer to prove these allegations. In accordance with its subcontract with EKS, Reno has been paid for all quantities that were paid by NDOT.EKS has been trying since November 2005 to resolve RIWs payment issues. We have held meetings and written numerous letters requesting that RIW provide the required information to EKS, with little or no response. Kraemer has even gone through RIWs billings and provided a detail analysis showing that RIW has actually been paid in excess of their billings. Quite simply, RIW has failed to provide the simple calculations and backup documentation needed to show NDOT and EKS where, exactly, the paid to date quantities are in error.Edward Kraemer & Sons Inc. has made every effort to try resolving subcontractor payment issues for this project and has not, as you put it, left subcontractors on the short end of the payment stick. EKS has attempted to address all of the subcontractor issues and, given those efforts, EKS is proceeding in good faith with the close out of this contract with NDOT.Timothy J. MaloneyRegional managerEdward Kraemer & Sons Inc.
