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From Kirk and Lisa Johnson


									From Kirk and Lisa Johnson
For Dan, CDM of Minnesota, 612-210-1502                                 February 15, 2004

Dan, we would like to ensure we have reasonable expectations for finishing the work, the
cost, and the schedule. I'm also including suggested processes for ensuring we have a plan
to resolve issues, address changes, and resolving defects.

The reason why I'm putting this in writing and asking that you sign it is because my past
schedules, discussion in early January, and completion lists have not been fully effective.
My intent is to give us all a better peace of mind and try to have shared expectations.

In early January, we met at my house to discuss the cost, schedule, and scope and we had
agreement on all of them. But since then, I've heard from Lisa (twice) that you have issues,
so let's make sure we can get this right for the finishing stretch:

1) Scope of work to complete: Using the work list we agreed to in October (attached) and
   subsequent refinements of that, we expect all of that to be completed effectively.
2) Schedule: By March 20th, complete all the items on the work list except for the things
   that have been noted "to do in the spring." I propose May 15th to be the completion
   date for those spring things, which include finishing the exterior (remaining siding and
   staining, also soffit repair) and the remedy for the warped roof on the den and garage.
3) Cost: With my final payment of $5,000, and the extra electrical and plumbing that you
   requested in January, our payments to CDM will be $207,929. Please note that I've
   personally spent $62,251 on things such as cabinetry, hardware, doors, shed materials,
   slate, paint, etc. which I'm sure overlaps at least part of your initial estimate.
   Regardless, we had an agreement in October to finish the work for a specific price by
   November 5th. I hope this information gives you some positive news.

1) Status and issue review: Every Monday I'd like to discuss remaining items to ensure
   we are checking off the completed items on the work list satisfactorily. We can log any
   issues in the issue log (attached) so that we can resolve them effectively.
2) Change control: For any significant changes to the scope, the schedule, or the cost, we
   need to discuss and agree on these, in writing before we mutually approve the change. I
   attached a change control log as a suggested format.
3) Resolving defects: For any work that CDM or its contractors completed that is
   defective, I will prepare a defect report (attached) that outlines the problem and the
   impact so that you can define the remedy and the timeline. Unless we agree otherwise,
   I don't expect to personally fund any additional repairs due to omissions or defective
   work from CDM or its contractors. An example is the missing soffit vents and the
   resulting extensive ice dams on the roof: Going forward, this is something I would
   document and request your involvement to fix the problem and pay for it.

Kirk and Lisa Johnson         ___________________________          Date __________
Dan for CDM of MN             ___________________________          Date __________
Issue Log
Status   Description                   Desired Outcome           Resolution Plan
Open       Slate floor in basement     The "China Gold"          After getting counsel from a specialist at Rubble Tile, Lisa purchased special slate
           is partially obscured by    slate was selected for    cleaning materials at more than $70 and she will try to get this to work during the week
           grout. It looks dirty and   its color, so we want     of 2/16. If it does, then this issue will be closed at no material or labor charge to CDM.
           defective.                  the finished floor to
                                       look like the product     Rubble Tile has other ideas if this doesn't work. CDM should take responsibility for
                                       that we purchased.        fixing the floor as prescribed by the manufacturer and/or the supplier (Rubble Tile).
Proposed   Various concerns from       I recommend that you      CDM Profit: It's not my business, but you've brought it up enough times that maybe
           Dan, communicated to        close this issue and if   we should address. My payments for materials including interior doors, tile,
           Lisa on 2/13,               not, let me know what     appliances, cabinetry, paint, garage door, shed windows and doors, and hardware
           including:                  we need to do. My         exceed $60,000. My payments to CDM will be $207,929. My expectation is that this
                                       responses are on the      amount covered your work with sufficient profit. In October we addressed this.
           1) Only a $5,000            right.
              profit for CDM,                                    Changes: I'm not aware of any changes that I requested after middle July, and because
           2) Kirk's changes,          The reason why it's an    I made progress payments through August, it was my expectation that CDM's financial
           3) Kirk didn't grasp        issue to me is that you   needs were fully satisfied when we agreed on the final payment, remaining work, and
              what the project         have accused us of        completion date in October. At that time, November 5th was the date.
              entailed.                being unfair. In
           4) Kirk didn't want to      October I thought         My understanding of what the project entailed...Dan, please elaborate if we need to
              deal with CDM's          everything was good       address this, too. This is an alarming complaint for me as a homeowner to receive this
              receipts                 to go.                    from the contractor this late in the project.

                                       My desire is that we      Receipts: I only kept a receipt log for you until June 30th ($11,452.18). That is
                                       resolve this so that it   attached. I thought we were finishing soon after that (in August) at the time, and you
                                       doesn't keep coming       were buying things on your credit card that I didn't have records of, so it is true I didn't
                                       up again.                 keep an ongoing detailed log. But, I will create that for you if you bring your receipts
                                                                 to me. I didn't know that you had a problem with my recordkeeping until 2/13/04.
Change Log

(No open changes at this time.)

Status     Description            Impact                              Approval?
                                  (Impact to cost, schedule, scope,   (Both homeowner and contractor need to sign each item if
                                  and quality go here.)               approved.)

Defect Report

(No open defects at this time.)

Status     Description            Impact                              Resolution Plan
                                  (Impact to cost, schedule, scope,   (Describe tasks and procedures to remedy the defect. Both
                                  and quality go here.)               homeowner and contractor need to sign each item when this
                                                                      information is available.)

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