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Tim Houle <br /> From: Nancy Malecha <nmalecha@pequotlakes-mn.gov> <br /> Sent: Friday, May 22, 2020 2:33 PM <br /> To: Brian Bankers; Ryan Cross <br /> Cc: Tim Houle; Doug Archer;Jason Gorr; Heather Helmbrecht;Aaron Foss <br /> Subject: RE:Maintenance Facility Final Payment Documentation Needed ASAP <br /> Brian, <br /> This issue will be placed on the lune 2"d City Council agenda for their direction. <br /> Thanks, <br /> Nancy Malecl�a <br /> City Administrator <br /> Gty of <br /> Pequot <br /> Lakes� <br /> 4638 Main Street <br /> Pequot Lakes, MN 56472 <br /> Phone: (218)568-2352 <br /> Fax: (218)568-5860 <br /> Office Hours: 8:00 a.m. —4:00 p.m. <br /> nmalecha(a�peQuotlakes-mn.qov <br /> www.pequotlakes-m n.qov <br /> This institution is an equal opportunity provider and employer. <br /> From: Brian Bankers [mailto:BBankers@bciconstruction.us] <br /> Sent: Friday, May 22,2020 5:29 AM <br /> To: Nancy Malecha<nmalecha@pequotlakes-mn.gov>; Ryan Cross<RCross@bciconstruction.us> <br /> Cc:Tim Houle(tim.m.houle@widseth.com)<tim.m.houle@widseth.com>; Doug Archer(Doug.Archer@widseth.com) <br /> <Doug.Archer@widseth.com>;Jason Gorr<jgorr@pequotlakes-mn.gov>; Heather Helmbrecht <br /> <HHelmbrecht@bciconstruction.us>;Aaron Foss<AFoss@bciconstruction.us> <br /> Subject: RE: Maintenance Facility Final Payment Documentation Needed ASAP <br /> Nancy, <br /> I apologize that we are at the same impasse with the"change order" for the liquidated damages. I have <br /> stated through this entire process that is not something we will be accepting. Per <br /> MN State Statute 336.2-718 Liquidation or Limitation of Damages;Deposits <br /> (1) Damages for breach by either party may be liquidated in the agreement but only at an amount <br /> which is reasonable in the light of the anticipared or actual harm caused by the breach, the <br /> difficulties of proof of loss, and the inconvenience or nonfeasibility of otherwise obtaining an <br /> adequate remedy. A term fixing unreasonably large liquidated damages is void as a penalty. <br /> We have had multiple conversations regarding this and the date of"substantial completion". The <br /> documentation supports the inspections of the life safety systems in place for the owner to begin moving in <br /> before the date of substantial completion. Ryan sign the document in good faith in regards to the fact the <br /> i <br />