From: Richard Kahn >
To: "jeffrey E." <jeevacatio4egmail.com>
Subject: Fwd: Big N
Date: Fri, 25 Sep 2015 19:20:45 +0000
please advise
thank you
Richard Kahn
HBRK Associates Inc.
575 Lexington Avenue 4th Floor
New York. NY 10022
tel
fax
cell
Begin forwarded message:
From: gene kral
Subject: Big N
Date: September 25, 2015 at 3:14:41 PM EDT
To: Rich Kahn < >, Ann Rodriquez Mary
Kral
Reply-To: gene kral <
September 25, 2015
LSJ, LLC
Re: Big N
Dear Mr. Kahn,
After speaking with you this morning, I wanted to take the time to clarify a few things.
When the Big N came to our yard, there was no precise scope of work in place. Our
understanding from LSJ employees was to get the vessel back in service with the least
amount of work and money involved.
As we undertook the quoted projects there were inevitable small items needing repair that
became apparent.
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We have billed a total of $362,907.94. The additional billing that we have is less that 1% of
the total. At Anna's request -- when issuing our estimates we offered discounts in the amount
of $20,562.00. Discounts are equivalent to almost 6% of total billings. As far as Island
Rigging Invoices -- on July 16 we emailed Anna and explained that if Boscoe ordered any
additional parts from Island Rigging that they would be billed directly to LSJ. If you withhold
the final payment from Island Rigging, this will be coming out of our pocket as we told them to
bill you directly -- we didn't want to have to mark anything up to cover Gross Receipts.
When the vessel arrived we advised that LSJ hire a certified marine surveyor to inspect the
vessel and issue a report with all findings. This did not happen until work was 99% complete.
The vessel, not having been properly maintained, required many additional fittings, brackets,
clamps, etc. Some of these were not visible to naked eye until work was underway.
In regard to the engines, Subbase Drydock was not part of the process of ordering the
engines for Big N. You received long block engines, and many components had to be
switched over from the existing engines.
There were fundamental issues about rotation for components of the hydraulic system and
SBDD also advised LSJ about the steering pump that was not part of the quoted work. In
addition, the sending units were incorrect and the starter motor was inoperable.
And, as I mentioned on the phone this morning, we went above and beyond the work quoted
in many instances - bulkhead replacement, plate work and many additional fittings for the
water cooling system. We also installed shaft logs and repaired couplings that were not
quoted. The additional billing of $3k is time and material for additional work - but it is only a
fraction of the additional work that went into the vessel.
We appreciate your business, but we do feel that we have been more than fair in our dealing
and in our billing. We have been in business in this location for 34 years and we always
stand behind our work.
We await your response.
Thank you,
Gene Kral Sr.
Subbase Drydock, Inc.
Parcel 162. Subbase
St. TI
TEL:
FAX:
www.su ase ry oc coin
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