ALP 18

3
4-+ MATERIALS PRICE INCREASES AND SHORTAGES: While fuel prices remain
volatile, the activities impacted by rising fuel costs have been substantially completed.
Steel prices appear to be declining, cement supplies have stabilized, and plastic pipe
appears to be fairly stable.
H FUNDING: The funding level will continue to be worthy of concern. The
magnitude of this risk has been reduced by the completion successful start of the first fill,
and recent contract awards. However, this situation has considerable risks associated
with the unknown outcome of the remaining construction activities. If the outcome of the
remaining construction work is negative or if further budget cuts occur, they could
seriously impact the Project schedule and therefore the cost of the Project. Costs related
to transfer items and other identi ied issues need to be prepared and evaluated.
T PROJECT SCHEDULE: The overall Project Schedule is being impacted. Project
float has been reduced, due to hydrology related issues that are beyond our control A
new Contracting Officer has been assigned to the Project and is has
transitioned into the role. The resolution of issues associated with pump related issues
and several of the auxiliary mechanical systems at the pumping plant may result in future
delays to the pumping schedule.