Re: 10.27.06Report

RRCI CONSTRUCTORS LLC                                                      W. John Amerling

General Contractors, USVI                                                                                                                                 Chief Executive Officer                                  

Suite 700                                                                                                General Counsel

Nisky Center                                                                                                                                                          Phone: 340 777-9644

St. Thomas , USVI 00802                                                                                                                                      Fax:     340 777-9630

                                                                                                                                                                   &n bsp;            Email: jamerling@rrcaribbean.com   

MEMORANDUM

Privileged and Confidential

To:      Jeffrey Epstein

From:  John Amerling           

Re:      Weekly Progress Report                  

The following is brief summary of the material events of the past week:

·        A design team meeting was held on Wednesday October 25, 2006 in New York : the most significant developments of which were:

o       The CZM drawings for the Pool Expansion were reviewed; several changes were made and the documents were to be posted to the FTP website on Thursday.

o       A complete walk through of the house and library designs was conducted and many questions and issues were raised for further resolution.

o       A considerable amount of time was spent on defining the interfaces among the specialty contractors selected by Molyneux with the client’s approval and the balance of the team; there are many issues including shop drawings and coordination of deliveries and installation; RR is to work out a protocol..

o       The phasing plan was revised accordingly.

o       The schedule for production of CZM drawings for the combined complex on Friday for filing Monday; they will be overnighted Friday night.

o       A future design meeting  will be held in three weeks.

·        CZM filings for Phase I will be made Monday.

·        The Pond Bay estimate and contract has been released to Mr. Indyke.

·        Budgets for the Office will be released on Monday for client review and scheduling and budgeting for all Phase I activities have been initiated.

·        A barge has been located and negotiations are on going to procure it.

·        About two man weeks have been expended in the past week and we expect that the same out of effort will be expended over the next week.