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Page 2 of 4 Scope of Work Change letters were sent to homeowners on July 17 to inform them of changes to their original Scope of Work. There are no outstanding homeowner issues resulting from these letters. Electrical Conditions — letters were sent out to homeowners on July 31 to inform them that work is required on their wiring or electrical systems prior to blowing in additional attic insulation. These issues are being dealt with on a case-by-case basis and will be resolved prior to the start of construction. Many of the homeowners have waived the installation of additional insulation because they do not have the time or the resources to do the work required prior to the Program insulating their attics. Project Delays — following are situations that have affected the project schedule: Anticipated time to generate RFIs was one week but it actually took more than a month for the majority of the RFIs and many were issued more recently due to manufacturer limitations. The number of revised RFIs was also not initially anticipated. HOLD on permits — the Building Department has asked that we hold the permits on two of the residences slotted for Phase I due to previous non-compliance with building codes, etc. Homeowners were sent certified letters asking them to contact the Building Department. CKSA has called the homeowners to inquire what their intentions are and they do intend to correct the non-compliant issues. They have not so they are being moved to Phase II, Window Manufacturer Delays — Classic Series used in the Intro Phase is being discontinued but the recommended replacement, the Tuscany Series, does not have any test reports to verify program compliance through Phase I. Manufacturer is extending production of the Classic Series until appropriate test results are available on the Tuscany Series. - Door Manufacturer Delays — Several door styles shown in the New Door Schedule cannot be manufactured in the STC 33 rating. Orders could not be placed until homeowners were notified and approved a replacement door style. Change Order No. 3: Due to delays listed above, G.E. Chen Construction has requested that the contract (agreement) time be extended for 132 days (from November 21 to March 31, 2008). This Change Order does not affect the contract (or agreement) amount and is currently being circulated for review and approval. Updated Schedule: • Partial shipments of the windows have been made. • Doors are scheduled to arrive in the warehouse in mid-November. • Materials Inspection is tentatively scheduled for Monday, November 19 and is dependent on prompt delivery from all manufacturers and vendors. Aircraft Noise Insulation Projects • Program Management 9 Administrative Services