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All Temperatures Controlled, Inc., Issue No. 5 |
November 2002
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The Contractors Critic
All Temperatures Controlled, Inc
Reporting on Safety, Productivity, and Honesty in the Construction Industry.
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Job Problems, Non Compliance & Litigation
MANY PROBLEMS FOR ALL
TEMPERATURES
CONTROLLED ON PIERCE COLLEGE JOB
All Temperatures
Controlled was a general contractor for a large construction job at Pierce
College in the Los Angeles area during 2000. During this time, Pierce College
construction inspectors uncovered many instances where All Temperatures
Controlled and its subcontractors did not comply with their construction
contract for their work on this job. Inspectors noted that among other problems,
All Temperatures Controlled attempted to conceal the fact that they were
installing rusted light fixtures by painting over the rust and installing the
equipment even after being warned to set the rusted equipment aside for
inspection. In other instances, All Temperatures Controlled did not use the
correct fasteners for installing lighting fixtures.
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EXTRA REVENUES FOR ALL TEMPERATURES
CONTROLLED FROM PIERCE COLLEGE CHANGE ORDERS
Another source of
additional revenue for All Temperatures Controlled on the Pierce College job was
from change orders. For instance, All Temperatures Controlled’s billings to the
Community College district on May 15, 2000 reflect that change orders had driven
up the cost of the job by $35,529. One year later, All Temperatures Controlled’s
May 1, 2001 billing showed that skyrocketing change orders over the last year
alone totaled over $1,070,740! This increase of $1 million in change orders was
on a job that was estimated at only $5.2 million. Change orders ratcheted up the
job costs by about 20 percent!
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BIG PROFITS FOR ALL TEMPERATURES CONTROLLED DUE TO MASSIVE
MARK-UPS FOR ITS LABOR READY WORK FORCE ON THE LOS ANGELES COMMUNITY COLLEGE
JOBS
| Although All
Temperatures Controlled has frequently advertised their highly trained and
experienced workers, on occasion All Temperatures Controlled has simply ordered
workers from the temporary service known as Labor Ready. This has caused
problems for All Temperatures Controlled, including two lawsuits
filed in Los Angeles against them. Labor Ready has a sordid record and has sued
– and been sued by scores of its own customers and employees.
Why then, would All Temperatures Controlled use Labor Ready workers? Some of
the answers to this question came to light when the Contractor’s Critic obtained
correspondence and billing between All Temperatures Controlled and the Community
College District under the Public Record Act.
All Temperatures Controlled’s attorney, for instance, wrote a July 10, 2001
letter to the Community College about its use of Labor Ready workers and
admitted that they paid those workers only $14.94 an hour. However, contrast
that paltry sum with the labor rates under which they billed the Community
College – at rates as high as $60 an hour! In other words, they made a 400
percent profit on the workers’ labor. | | | | | | | | |
