Wolfe Constructions 121 Fifteenth Street Melbourne 200430 88880000 http: // www. Wolfecon. com Date: October 3, 2009 TO: Thomas S. Wolfe, President From: Jack Evans, Project Manager Subject: Progress on Hillcrest Apartments for September Construction on the Hillcrest Apartment complex began on August 17 and fell behind schedule almost immediately because of the heavy rains that month. Current Status We have not been able to make up the time that we lost in August because of the continuing rain in September. Close supervision and some overtime have prevented us from falling farther behind. We are currently 18 days behind schedule, assuming crew size remains the same and overtime is limited to emergencies only. The foundation for the entire complex is complete. Framing on the 14# townhouse and the gym is complete, and the framers will begin work on the two-bedroom units on Monday, October 6. The electrical and plumbing subcontractors will also begin work on Monday. Expected Progress If the weather holds through the rest of this month, I expect to be finished with framing, roofing, and siding by mid-November. That will allow us to begin work on the interiors before the winter rains begin. One possible problem is the shortage of electricians. Our subcontractor has not been willing to consider providing an additional 5 workers to help us make up for some of the time we have lost. Delays on the electrical, will, of course, delay the finish work. Nevertheless, when we move indoors, we should be able to reduce the total crew by more than 50 percent and begin using the framers and roofers on other projects. What is the main reason for the delay of the construction on Hillcrest Apartments?