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DJ Construction is not responsible for unforeseen circumstances, which may arise above or below grade during construction including the handling or removing any hazardous materials (see Alternates #9, #10 and #11). The alternate prices presented below are good for 15 days, but prompt decisions and selections are critical due to the overall completion date of May 15Y, 2012. DJ understands that either the City or ACS may pay for certain options, or the cost of certain items may be shared in some manner. We are fine with that arrangement and will process the paperwork accordingly. At this point we simply need authorization. Progress Payments will be due monthly. Invoices will be prepared by the 25th of each month for work actually completed and materials stored on site or in insured warehouses. Payments will be due by the 5th of the following month. ALTERNATES ALTERNATE #1— REMOVE TWO PAINT BOOTHS Demolish and remove from site, two automotive paint booths located on the second floor of the existing building. Alternate #1 Add: $2,800.00 ALTERNATE #2 — REMOVE HEATING UNIT Disconnect and remove from site, one large heating unit located above the upper portion of the ramp to the second floor. Alternate #2 Add: $600.00 ALTERNATE #3 — DEMOLISH LOWER THREE BAYS OF EXISTING RAMP We propose to demolish and remove the lower three bays of the existing ramp. This will allow the area (approximately) 1,450 sq. ft. to be utilized as first floor space either now if desired by ACS or in the future as one possible means to access the second floor. The remaining two bays of the ramp are high enough to not affect the floor plan of the first floor, and could always be built over level with the second floor if a future user of the building so desires. The gap left by the demolition will be filled with metal floor joists and deck to secure the first floor area and prevent air infiltration from the unfinished second floor. • Note: The raised section of the second floor that is located mostly over the second and third bays of the ramp (from the bottom, between column lines 7 and 5) will remain. This floor is about 3' above the second floor, but could provide ancillary space (mechanical, IT, storage) for future second floor development. Due to the way this raised section of floor is constructed, it will be nearly impossible to remove it without damaging the exterior wall of the building. A revised concept for a possible future elevator and stairway to the second floor has been created that does not require the removal of this raised floor section. DJ Construction Co., Inc. City of South Bend & ACS — VA Clinic — Gates Building 5/3/2012 Page 2