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I 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 /> 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 /> o Asphalt Material = $243,512.50 <br /> ■ Time of Bid February 2021 = $47.00 <br /> • Actual Price Through July 2023 = $87.25 <br /> • Actual Increase = 1185.6% <br /> o 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 /> S <br /> Project Manager <br /> ORANGE: 1 & - W �&4714) 921-3347 <br /> City Council 1 — / <br />