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<br />The DMG has withheld payment as a punitive action agaurst CWL, not because of a good faith <br />dispute. After CWL refused to use the topsoil in 2 stockpiles that w~erenY identified in the <br />contract to be placed under the lump sum topsoiling prices Task #4, Task #7, Task #9, and <br />Task #l3, DMG stopped paying promptly. <br />DMG has paid all invoices promptly. All were paid within 45 days of when DMG received <br />Wem. The attached Table of Dates Pertaining to Invoices shows that all bills have been <br />processed in a timely manner. This information was obtained from Division accounting files <br />and from COFRS, the State online accounting system. <br />DMG did not withhold payment as punitive action against CWL All amounts denied in <br />irnoices were not paid because: the contractor billed before items were complete, or for a <br />higher percentage of the bid item than was actually complete; the contractor billed for <br />retainage before the State could legally release retainage; or, the CONTRACTOR billed <br />additional charges for work that was included in other bid items. Please refer to the <br />Summary of Billed Amourus Not Approved for Payment. <br />The DMG representatives tried to ccen;e CWL into using this topsoil by making up baseless <br />claims about wasted topsoils and areas where topsoil was covered with overburden. <br />DMG asserts that the CONTRACTOR wasted topsoil. Please see DMG's response under <br />#3 of OWNERS CLAIMS AGAINST THE CONTRACTOR. <br />Mr. McArdle also threatened to go back upon CWL's perfomtance bond if CWL did not <br />comply. <br />Bonding companies routinely send Bond Status Inquires to DMG during the course of the <br />project and after the project is complete. DMG routinely responds to these inquiries as a <br />courtesy to the bonding companies. These inquires always include a questions about the <br />contractor's performance of the work. To this date, DMG has not responded to any of these <br />inquires because an account of the problems related to the job could result in repercussions <br />to Mr. Mease. Mr, McArdle was stating the truth when he reminded the CONTRACTOR <br />that the performance bond is available to the OWNER if the CONTRACTOR does not <br />perform on the job. <br />While these coercive actions were ongoing CWL has been without the use of its money. <br />As stated above, DMG has paid all amounts properly due on all invoices in a timely <br />manner. <br />20 <br />