Proposal No. P2009.G.

0133
November 7, 2009

Mr. and Mrs. den Hartog

2953 Miles Dr.
Santa Clara, CA 95051

Subject: Proposed Foundation Repair

2953 Miles Dr.
Santa Clara, California
COST PROPOSAL FOR GEOTECHNICAL INVESTIGATION

Dear Mr. and Mrs. Den Hartog:

At your request, we are pleased to submit herein our cost proposal for conducting a geotechnical
investigation for the subject project.

The proposed project is understood to consist of foundation repair of an existing two-story wood-
framed building at the subject site.

The site is located on a flat portion of City of Santa Clara. The entire site is one parcel (APN:
290-25-056). The site is bounded by Miles Drive to the north and other existing residences to the
west, to the south and to the east. There are several trees at the site.

Topographically, the entire site is located on a flat lot. We plan to drill in the landscape area and
backyard which are accessible with a truck-mounted and minute-man drill rigs, respectively.
Based on our review of geology hazard map prepared by the County of Santa Clara, the site is
located within the Liquefaction Study Zone.

Scope of Services

The purpose of our geotechnical investigation is to:

i) determine the general geologic and seismic conditions of the site;
ii) determine the nature and sequence of the subsurface materials; and
iii) provide recommendations for foundations and drainage.

Our investigation will involve the following tasks:

a) A reconnaissance of the site by the Soil Engineer.
b) Assessment for seismic conditions in accordance with 2007 California Building Code
(CBC).

c) Drilling and sampling of the on site subsurface materials. Four borings to maximum
depths ranging from 3 to 50 feet (or drilling refusal whichever is less) are proposed. We
 will mark the site for underground Services Alert (USA) and USA will be contacted to
assist in locating utilities. The holes will be backfilled with grouts. The soil cuttings
will be spread on site near each borings.
d) Geotechnical laboratory testing program.
e) Engineering analysis of all data obtained.
f) Preparation of a written report summarizing our findings. Conclusions and
recommendations for earthwork, foundation and drainage for the proposed project.

We estimate our costs for performing the above work to be $2,853 as itemized below.

Task Item Cost

USA Marking and coordination $ 100.00
Drill Rig $ 1,150.00
Engineering Supervision $ 520.00
Laboratory Testing $ 400.00
Analysis and Reporting $ 1,000.00
First Time Client Discount 10% $ 317.00
Total $ 2,853.00

If we can schedule our field work at a time that coincides with another field work, we will give
you a credit of $153, which reduces the total cost to $2,700.

If significant non-uniformity of subsurface conditions is encountered some additional subsurface

work may be needed. This will be evaluated immediately after the borings are completed.

We assumed that no concrete coring is required. We can provide the services of a private utility
locator to clear our proposed boring locations at the time of drilling. If this option is not taken,
we will rely on the Underground Service Alert and the property owner to locate existing utilities
in the vicinity of our boring locations. GEC is not responsible for any damage to utility or
irrigation lines due to drilling activities. The charge for this option is $300.

GeoEngineering Consultants (GEC) requires that a retainer of $1,500, be paid prior to the
fieldwork commencing to cover the cost of outside services which are requesting up front
payment of services.

The drilling investigation can commence within three days of your authorization to proceed and
receive of retainer, depending on rig availability and weather. Our written report will be
transmitted within one week from the start of fieldwork. If required, preliminary results could be
made available within two to three days after completion of fieldwork. We will coordinate our
services with all professionals involved with the project in order that information may be
furnished promptly and in a timely manner.
LIMITATIONS
The following terms apply if no formal contract between GEC and you is prepared. If a formal
contract between you and GEC is prepared then those terms will supersede the following terms.

GEC will perform its services in a manner consistent with the standard of care and skill
ordinarily exercised by members of the profession practicing under similar conditions in the
geographic vicinity and at the time the services will be performed. Therefore, no warranty or
guarantee, expressed or implied, is part of the services offered by this proposal, nor does it create
any fiduciary responsibility to GEC, its officers and directors and employees. Client recognizes
and understands that professional opinions relating to geotechnical (and geologic conditions if
geologic services are expressly included in the scope of services) are based on limited data and
that actual conditions may vary from those encountered at the times and locations where the data
are obtained, despite the use of due professional care.

The liability of GEC, its employees, officers, directors, engineers, technicians and agents
(collectively referred to as GEC), for Client’s claims of loss, injury, death, damage or expense,
including, without limitation, Client’s claims for contribution and indemnity, express or implied,
with respect to any claims related to any services provided by GEC pursuant to this Agreement
shall not exceed in the aggregate the lesser of the cost of the services or the sum of five thousand
dollars for claims arising out of claims of professional negligence, including errors, omissions, or
other professional acts, and including unintentional breach of contract. Further, Client expressly
waives any claims against GEC for, lost profits, consequential damages or liabilities for
reduction in property value. Client has the option to purchase a higher level of insurance
coverage. Upon request with the additional limits desired, GEC will provide a quote for that
coverage.

GEC’s work shall not include determining, supervising, or implementing the means, methods,
techniques, or procedures of construction. GEC shall not be responsible for evaluating, reporting
or affecting job conditions concerning health, safety or welfare, except for its own employees.
Contractor, owners, subcontractors and suppliers have the responsibility to adhere to all contract
documents regardless whether GEC employees are on or off the job at any particular point in
time

The Consultant agrees, to the fullest extent permitted by law, to indemnify and hold harmless the
Owner and Owner's Property Manager (collectively, Client) against all damages, liabilities or
costs, including reasonable attorneys' fees and defense costs, to the extent caused by the
Consultant's negligent performance of professional services under this Agreement and that of its
subconsultants or anyone for whom the Consultant is legally liable.

The Client agrees, to the fullest extent permitted by law, to indemnify and hold harmless the
Consultant, its officers, directors, employees and subconsultants (collectively, Consultant)
against all damages, liabilities or costs, including reasonable attorneys' fees and defense costs, to
the extent caused by the Client's negligent acts in connection with the Project and the acts of its
contractors, subcontractors or consultants or anyone for whom the Client is legally liable.
Neither the Client nor the Consultant shall be obligated to indemnify the other party in any
manner whatsoever for the other party's own negligence.
This proposal includes a not to exceed restriction based on the anticipated scope of work. If the
scope of work changes due to site conditions or change in project type, Client understands that a
new scope of work will result and GEC shall not continue working on the project once the
budget limit is reached unless and until Client has approved a new scope and budget acceptable
to GEC.

Client acknowledges that GEC can provide testing for sulfates on any project involving soil
issues. Client understands that any concrete specifications for building foundations should be
determined after conducting appropriate sulfate testing.

Client understands and accepts that any geotechnical and/or geologic reports or opinion letters
issued by GEC are time dated and cannot be relied on if more than 2 years has passed since date
of issuance, unless there is a written up-date issued by GEC.

Client understands and agrees that any opinions, recommendations, engineering or other work
product by GEC rendered on behalf of Client is limited solely to Client with respect to use and/or
reliance, unless there is a written permission from GEC to broaden the scope of use and/or
reliance for the benefit of a third party.

The decision whether or not to allow broader use or reliance rests solely within the discretion of
GEC.

Should this proposal meet with your approval, please sign one copy and return it as your
authorization to do the work.

We appreciate the opportunity of proposing our services to you and look forward to working
with you on this project. Should there be any questions or should you require any additional
information, please contact our office at your convenience.

Very truly yours,

GEC

Kamran Ghiassi, P.E., G.E.

Principal

CLIENT: _________________________________ DATE: _________________

Optional Private Utility Clearance Initials: ________________