Feasibility Road Constr

KA'U-ANDRADE CONTRACTING, INC. P.O. BOX 74

NAALEHU, HI 96772 PHONE: 929-7106 FAX: 929-7322

May 18, 2009

____________________________________________________________

TO: Rod Conklin, Manager, Pahoehoe 2, LLC

FROM: Wally Andrade, President, Ka’u-Andrade Contracting, Inc.

RE: Road Construction Quote for the 10-lot Kona Lani Subdivision ____________________________________________________________

SCOPE OF WORK

1) Mobilize and demobilize all equipment used on the job $ 10,640 2) Main Access Road (1,250' long x 32' wide; 16' wide paved road; two 8' shoulders) a) Mass excavation $ 80,640 b) Grade and compact (subgrade) 21,700 c) Water drainage (5 drywells [8' deep] @ $12,550 each) 62,750 d) Purchase base course (2,100 tons @ $17 per ton) 35,700 e) Trucking base course to job site 19,740 f) Place and compact base course 22,400 g) A.C. paving of road (740 square yards, 2” thick) + 29,000

Subtotal: (tax included) $ 271,930 3) Flag Lot Road (6,000' long x 20' wide; 12' wide gravel road; two 4' shoulders) a) Mass excavation $ 44,800 b) Purchase base course (3,600 tons @ $17 per ton) 65,000 c) Trucking base course to job site 35,000 d) Place and compact base course + 53,850

Subtotal: (tax included) $ 198,650 4) House pads (100' long x 50' wide) a) Subgrade, excavate & compact (10 pads @ $7,705 per pad) $ 77,050

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May 18, 2009 Road Construction Quote Page two

____________________________________________________________

TO: Rod Conklin, Manager, Pahoehoe 2, LLC

FROM: Wally Andrade, President, Ka’u-Andrade Contracting, Inc.

RE: Road Construction Quote for the 10-lot Kona Lani Subdivision ____________________________________________________________ 5) Driveways (each driveway: 100' long x 16' wide) a) Subgrade, excavate & compact (10 driveways @ $4,335 each) $ 43,350 6) Waterline (1,250 feet long; 8" diameter) a) Dig a trench (30" deep), insert a cushion (3/4" thick), lay the pipe, cover with dirt and compact. Doc tile line (1,250 linear feet @ $90 per linear foot) $ 112,500 7) Electrical concrete jacket (1,250 feet long) a) Dig a trench, insert the concrete jacket (with twine for pulling a hot line) and pads (for two transformers). Concrete jacket (1,250 linear feet @ $150 per linear foot) $ 187,500 8) Land preparation (for a 15-acre grove of Kona coffee trees) a) Clear, grub, excavate & compact (15 acres @ $6,500 per acre) + 97,500 Subtotal (page 2) $ 440,850 Subtotal (page 1) + 558,270 TOTAL (tax included) $ 999,120

Not included: 1. All necessary permits. 2. Any concrete work. (Will prep and base only) 3. All layouts. 4. Soils and compaction testing. 5. Dust control. * Note: All prices above are based on preliminary engineering plans. Prices are subject to change when permanent plans are given.

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