CONSTRUCTION PROGRESS REPORT NO.

SUMMER PLACE PHASE 1

CRESECENT CITY, CALIFORNIA

Date Issued: December 19, 2011

Project No. 1134

Prepared For:

CLIENT
December 19, 2011

CLIENT

Re: Summer Place Phase 1

Crescent City, California

ENGINEER Project No. 1134

Dear Mr. Client:

Submitted herewith is one electronic copy of our current Construction Progress Report for the
above referenced project.

If you have any questions or should you require any additional information, please contact
this office.

Very truly yours,

Engineer

President

Cc:

Construction Progress Report 2 Client

Project No. 1134 Summer Place Phase 1
 LOCATION MAPS

Subject Site

Subject Site

Construction Progress Report 3 Client

Project No. 1134 Summer Place Phase 1
GENERAL INFORMATION

Report By: Engineer

Date: December 19, 2011

Project Name: Summer Place Phase 1

Summer Lane
Project Address:
Crescent City, California
Report Number: 1

Observation Date: Decemeber 7, 2011

Attendees: Engineer
Jim Rueben – Contractor

Application for Payment Number: 2

Date: October 27, 2011

Period To: October 25, 2011

Construction Commenced: August 15, 2011 (approximate)

Note:

The Architect of Record has signed our copy of the Application for Payment. Signature
by the Architect of Record on the first page of the Application includes certification that
based on onsite observations the quality of work is in accordance with the Contract
Documents.

Construction Progress Report 4 Client

Project No. 1134 Summer Place Phase 1
PROJECT DATA

Project Name: Summer Place Phase 1

Project Location: Summer Lane

Crescent City, California

Owner: Owner
3 Sylvie Way
Woodland, CA 95973

Architect: Keith Architect

160 25th Street
Fresno, CA 94304

Structural Engineer: Keith Architect

160 25th Street
Fresno, CA 94304

Mechanical/Electrical Engineer: Keith Architect

160 25th Street
Fresno, CA 94304

Civil Engineer: Consulting

30 Natomas Street
Fresno, CA 95630
 
General Contractor: Owner
3 Sylvie Way
Woodland, CA 95973

Construction Progress Report 5 Client

Project No. 1134 Summer Place Phase 1
BUDGET SUMMARY

1. Application for Payment No. 2 is attached within our report Appendix.

Contractor's Consultant's
Application Recommendation

a. Contract Sum 7,790,160.00 7,790,160.00 (4b)

b. Change Orders 0.00 0.00 (7)

c. Revised Contract Amount 7,790,160.00 7,790,160.00

d. Total Completed to Date 1,337,533.00 1,337,533.00 (4e)

e. Value of Stored Materials this Period 0.00 0.00 (6)

f. Total Completed to Date and Stored Materials 1,337,533.00 1,337,533.00

g. Retainage to Date 133,753.00 133,753.00 (4a)

h. Total Completed to Date Less Retainage 1,203,780.00 1,203,780.00

i. Previous Certificates of Payment 0.00 0.00 (4c)

j. Current Payment Due 1,203,780.00 1,203,780.00

k. Balance to Complete (Including Retainage) 6,586,380.00 6,586,380.00

l. % Contract to Date 17.20% 17.20%

Construction Progress Report 6 Client

Project No. 1134 Summer Place Phase 1
2. a. Potential Overruns: None at this time.

b. Value of Potential Change Orders: None at this time.

c. Total Estimated Additional Funds Required: None at this time.

3. a. Original Owner’s Contingency: Unknown (see 4d).

b. Remaining Owner’s Contingency: Unknown (See 4d).

c. Original Contractors Contingency: $370,960 (See 4e).

d. Remaining Contractor’s Contingency: $370,960 (See 4e).

4. Comments:
a. Retainage is being held at 10% for all trades.
b. The contract amount was obtained from the current application for payment and
should be verified with Bank records.
c. Application for Payment 1 was not provided. Based on Application No. 2, previous
payment is not reflected; therefore work in place was not invoiced. This should be
verified with Bank records.
d. A Development Budget was not provided this period; therefore, the Owner’s
Contingency amounts could not be verified. According to Owner, a complete draw
package will be provided in January, 2012.
e. The Contractors Contingency amount is shown on the Application for Payment.
Contingency remains unused.
f. Soft Costs were not submitted with the current draw, but will reportedly be included
with the January, 2012 draw package.
g. Based upon onsite observations and review of the current Application for Payment
and supporting documentation supplied by the Borrower, and excluding Pending
Change Order issues, it is our opinion the balance to complete amount (including
Retainage) as contained on the Application for Payment, is adequate for project
completion at this time.

Construction Progress Report 7 Client

Project No. 1134 Summer Place Phase 1
5. Lien Waivers: No Lien waivers were provided this period at there have been no fundings
to date.

6. Stored Material: No stored material funding was requested this period.

7. Change Orders: No change orders have been submitted or reported.

Construction Progress Report 8 Client

Project No. 1134 Summer Place Phase 1
CONSTRUCTION SUMMARY
The subject project is Phase I of a three phase development of an apartment complex located
in Del Norte County, California, near Crescent City. Phase I includes construction of 56
apartment units in 7, eight-plex buildings, a separate manager’s unit located above a
community building, and a garage/workshop on 155,232 square feet of a 441,530 square foot
site. Total gross building area for this phase is calculated as approximately 62,672 square
feet. The unit mix includes 32 two-bedroom units with 902 square feet, 16 three-bedroom
units with 1,136 square feet, eight four-bedroom units with 1,336 square feet, and a manager’s
three-bedroom unit with 1.336 square feet. The Community Building is listed at 3,300 square
feet and the Maintenance/ Garage Building is listed with 308 square feet.
Building materials utilize concrete slab-on-grade first floors; conventional wood framed
walls, second floors, ceilings, and roof truss structures; Hardie Plank siding, Hardie Shingle
siding, Hardie Trim, stucco soffits and wall finishes around patios and second floor decks.
Windows are specified to be dual glazed vinyl with low-e glass with an average U-factor of
0.33; and an average SHGC of 0.29. The roof is to be composition shingle with high wind
exposure installation.
Plans submitted indicate the property, which consists of a vacant parcel with a total area of
approximately 10.14 acres or about 441,530 square feet, will be partially developed by Phase
I. The site is relatively rectangular in shape; and has no frontage along any street.
Undeveloped areas surround the site on three sides, and a partially developed residential
project adjoins the site to the east. An off-site access street is proposed from the southeast
corner of the site and extending about 600 feet to the east to intersect Summer Lane.
Site development includes earthwork and excavation, fine grading, utility installations,
curbing and walkway installations, paving and striping, landscaping, CMU property line
walls, and wood enclosure fencing. Utility connections are proposed to connect to existing
underground branch locations on the eastern property line. On-grade parking is proposed for
120 vehicles, with six spaces designated for the disabled. The proposed development will
include a tot lot and an older children’s playground in this first phase of the development. A
basketball court is proposed in Phase II of the project. Landscaping at this time appears to be
minimal, with most areas designated as “Lawn”.
Off-site work includes a new asphalt pavement access street, concrete curb and gutter and
concrete sidewalk from the edge of the site to Summer Street with street signage and street
lighting as required. Additional work at Summer Street includes new curbs and curb ramps,
street lighting, signage, and associated repairs to asphalt pavement.
The following is a brief description of the observed work in place and stored materials by
Application for Payment line item:

Construction Progress Report 9 Client

Project No. 1134 Summer Place Phase 1
General Requirements/Prevailing Wages/General Overhead/Builders Profit/Insurance

The General Conditions line item provides for the general project overhead costs such as
mobilization, insurance, supervision, security, and temporary protection. This line item
should generally track the project completion percentage. The current Application includes a
request for 18%, which is slightly higher than the overall completion percentage of 17%.
General Contractor Overhead and Fee were also requested at 18%, which is slightly higher
than the overall project completion percentage.

Site Work

The site conditions are predominately moist due to sporadic precipitation; however, access in
and around the site and productivity appears relatively unaffected.
The main entrance road is graded with stone base in place. Curb and gutter is mostly
complete with exception of approximate 50’ sections that tie into Summer Lane. Sidewalk is
poured at approximately 75% of the south side of the access road. Storm drain and drain
inlets are installed. On site access roads and parking areas are rough graded. Curb and gutter
forming and pouring is in progress on the north side of the property heading south. Grading
around the buildings will require fine grading in preparation for hardscape and landscaping.
Underground sanitary and storm sewer lines were tied into the City with all building lateral
ties complete. The water main is tied into the City, on site saddle valves, backflows and
lateral feeds are stubbed to the buildings. The gas main is tied into the City and lateral stubs
to each building complete. Electrical vaults are set and conduits are mostly installed and
stubbed into each building. Wet utilities are signed off by the City and dry utilities will
reportedly be signed off December 7.

Concrete

Building foundations and slabs are poured.

Finish Carpentry

No work has been done to date.

Carpentry and Siding

Rough framing is complete at all buildings. Siding is scheduled to complete at Building A

within the next few days.

Roof and Insulation

Roofing is complete at Buildings B, D, E, F, G and H. Roofing at Building A and C is

scheduled to be complete within the next few days.

Doors and Hardware

Construction Progress Report 10 Client

Project No. 1134 Summer Place Phase 1
Exterior doors and frames are installed at all buildings.

Windows and Window Coverings

Exterior windows are installed at all buildings.

Finishes and Sheetrock

No work has been done to date.

Finishes and Paint

No work has been done to date.

Finishes Flooring

No work has been done to date.

Fire/Sprinkler Alarm

Fire sprinkler installation is complete at Buildings H and G, and in progress on the first floor
of F.

Specialty

No work has been done to date.

Equipment

No work has been done to date.

Cabinets and Countertops

No work has been done to date.

Mechanical Plumbing

Plumbing waste and vent lines are mostly complete in all buildings. Water lines are complete
on the first floor of all buildings and in progress on the second floors. Gas lines are mostly
complete at all buildings. Tub enclosures are staged in all units and being set in Building H.

Mechanical HVAC

Vent line stub outs and condenser line sets are complete at all buildings.

Electrical
Rough electrical is in progress and in various stages of completion at Buildings A, B and C.
Work includes box mounting, wiring, and service panel installation.

Construction Progress Report 11 Client

Project No. 1134 Summer Place Phase 1
CONSTRUCTION STATUS

Quality of Construction:

a. Status: Appears adequate and within industry standards

b. Construction Defects: None observed

Site Protection Methods:

a. The site is reportedly locked during non-working hours. A motorhome trailer is

located on site and is being used by a day laborer for off-hours site security.

Permits: There are eight building permits issued for the project—Buildings A, B, C, D, E,
F, G and H. All are dated 6/02/2011. See copies in Appendix.

Certificate of Occupancy Status: None at this time.

Comments: None at this time

Material Testing: Not applicable this period.

Construction Progress Report 12 Client

Project No. 1134 Summer Place Phase 1
SCHEDULE SUMMARY

Contract Completion Date: September 16, 2012

Consultant's Estimated Completion Date: June-July 2012

Contractor's Estimated Completion Date: May-June 2012

Total Overall % of Work including this Application: 17.2%

Scheduled Overall % of Work for this Application: 6.0%

Reason for Delay: N/A

Comments:
a. The Notice to Proceed, dated September 16, 2011, was provided. See copy in the
Appendix.
b. A schedule dated July 12, 2011 was submitted in preparation of the Plan and Cost
review. See copy in the Appendix.
c. A Progress Chart is provided that represents the percentage of completion as it relates
to the required, scheduled and actual completion dates. See chart in the Appendix.
d. Based on the progress observed, it appears that the project will be complete sooner than
originally represented. According to the site Superintendent, a projected completion
date of May-June is what they are targeting.
Manpower Adequacy by Trade:
Adequate work was observed on site. Trades present during the time of inspection include
concrete, mechanical, electrical, plumbing, and roofing.

Construction Progress Report 13 Client

Project No. 1134 Summer Place Phase 1
CONSULTANT CERTIFICATION

In our opinion, the Application for Payment validly represents the value of work completed to
date and stored materials (see Appendix). The current Application for Payment requests funds
in the amount of $1,203,780. We recommend disbursement of $1,203,780 if the bank agrees
with our comments.

Engineer’s involvement with this project is limited to a review of the contract documents as
contained in the List of Data Received portion of the Plan and Cost Review and subsequent
site visits concerning the project status during construction. The Plan and Cost Review does
not constitute a warranty by us or any of our agents, representatives or designees as to the
technical sufficiency of adequacy or safety of the structure or any of their component parts,
including, without limitation, fixtures, roofing, equipment or furnishings, nor shall such
reports or site observations constitute such a warranty as to the sub-soil conditions involved in
the project or any other physical condition or feature pertaining to the project. It should be
clearly understood that Engineer is not a project manager, project architect, or project
supervisor.

All acts, including any failure to act, relating to this project by any of our agents,
representatives or designees are performed solely for the benefit of the lending institution to
aid in their disbursement of funds from the construction loan and not for the benefit of any
other person, including without limitation, owner, contractor, purchasers, tenants or any other
parties. The certifications, endorsements and comments contained in this and future reports
concerning this project should be used with the above understanding and in no way imply that
the project has been built in accordance with contract documents. The responsibility of
quality control and adherence to contract documents is the responsibility of the project team.
It should be understood that Engineer is not part of the project team.

Material substitutions resulting from value engineering and changes to the materials and
systems within this project are not evaluated for adequacy or performance. In addition,
change order dollar amounts are not reviewed by this office for their appropriateness. This
office will not be reviewing test results for the project; however, test results will be discussed
with the contractor during site visits with comments contained in construction monitoring
reports.

In taking action on the Application for Payment, Engineer has relied upon the accuracy and
completeness of the information furnished by the Contractor and Borrower. We have made an
arithmetic verification of the documentation submitted. We have not made exhaustive
continuous onsite inspections.

This report is addressed to CLIENT only. This report has no other purpose and may not be
relied upon by any other person or entity without the written consent of Engineer.

Engineer

Construction Progress Report 14 Client

Project No. 1134 Summer Place Phase 1
_____________________
President

APPENDIX

Progress Chart
Application for Payment No. 2
Lien Waivers
Building Permits
Notice to Proceed
Site Plan
Project Schedule
Photographs

Construction Progress Report 15 Client

Project No. 1134 Summer Place Phase 1
PROGRESS CHART

Progress Chart
100%
90%
80%
Percent Complete

70%
60%
Required
50%
Actual
40%
Scheduled
30%
20%
10%
0%

Application for Payment Period To Percent Complete

No.

1 September 30, 2011 0.0%

2 October 31, 2011 17.2%

Construction Progress Report 16 Client

Project No. 1134 Summer Place Phase 1
PHOTOGRAPHS

1. Main entrance off of Summer Lane.

2. Storm drain inlet.

Construction Progress Report 17 Client

Project No. 1134 Summer Place Phase 1
 3. Curb, gutter and sidewalk at main entrance drive.

4. Building A (Community Center)

Construction Progress Report 18 Client

Project No. 1134 Summer Place Phase 1
 5. Stored lumber.

6. Underground electrical conduit installation.

Construction Progress Report 19 Client

Project No. 1134 Summer Place Phase 1
 7. Access road and placeing between buildings.

8. Electrical conduits and vault.

Construction Progress Report 20 Client

Project No. 1134 Summer Place Phase 1
 9. Water and gas stub to building.

10. Water main valves and backflow.

Construction Progress Report 21 Client

Project No. 1134 Summer Place Phase 1
 11. Fire hydrant and curb/gutter forms at Building E.

12. HVAC condenser lines and gas meter stubs.

Construction Progress Report 22 Client

Project No. 1134 Summer Place Phase 1
 13. Building B

14. Building H and G, and security trailer.

Construction Progress Report 23 Client

Project No. 1134 Summer Place Phase 1
 15. Interior unit electrical panel.

16. Interior lavatory waste and water lines.

Construction Progress Report 24 Client

Project No. 1134 Summer Place Phase 1
 17. Overhead water and sprinkler lines.

18. Tub enclosure.

Construction Progress Report 25 Client

Project No. 1134 Summer Place Phase 1