Laserfiche WebLink
r � r <br />I <br />ASPHALT PAVING • ENGINEERING CONTRACTORS <br />LIC. A-782908 <br />August 7, 2023 <br />Lonerock, Inc <br />70 Domani <br />Irvine, CA 92618 <br />RE: Warner Ave Improvements — #14-6802 - Santa Ana — Letter-001.0 <br />Dear Nikola, <br />Since the bid of this contract in February 2021, there have been several unforeseen cost escalations <br />affecting the construction industry, specifically the cost of trucking and raw materials. The price escalation <br />for trucking is a direct result of the decrease in available trucks due to the stringent legislation passed, an <br />increase in demand and the rise in gas prices (Petroleum products). Furthermore, asphalt prices were solely <br />affected by the increasing costs in virgin materials such as oil and aggregate. <br />Below is a summary to quantify the increase of $402,560.00. <br />Price Escalations: <br />o Trucking (Per Hour) = $63,032.50 <br />■ Time of Bid Feburary 2021= $97.50 <br />■ Actual Price Through July 2023 = $165.00 <br />■ Actual Increase = T69% <br />a Asphalt Material = $243,512.50 <br />■ Time of Bid February 2021 = $47.00 <br />• Actual Price Through July 2023 = $87.25 <br />■ Actual Increase = t85.6% <br />a ARHM Material = $96,015.00 <br />■ Time of Bid February 2021 = $58.00 <br />■ Actual Price Through July 2023 = $101.25 <br />• Actual Increase = t74.6% <br />As shown on the above summary, the increases amount to 85.6% for conventional asphalt, 74.6% for the <br />ARHM asphalt, and 69% for the trucking. With the current state of the construction market, RJ Noble is <br />unable to preform the work at the original quoted price. Due to the unforeseen increases, RJ Noble is <br />requesting an additional $402,560.00 to proceed with the work. <br />Project Manager <br />ORANGE: 15505 E. LINCOLN AVE • PA.BOX 620 . ORANGE, CALIFORNIA 92856-6620 • (714) 637-1550 • FAX (714) 921-3347 <br />