exv10w2






Exhibit 10.2




	 	 	 
	 

	 	1800 West Loop South     
	 

	 	Houston, TX 77027
	 

	 	T: 713 860 1500
	 

	 	D: 713 860 8129
	 

	 	F: 713 860 8128
	 

	 	www.ies-co.com










November 4, 2009




Mr. Ted M. Baker

Executive Vice President

Manhattan Torcon A Joint Venture

7600 Leesburg Pike, Ste 150 W

Falls Church, VA 22043




Re: USAMRIID Replacement Project; Job # 3239




Dear Mr. Baker:



In reference to the subcontract between Manhattan Torcon A Joint Venture (MTJV) and IES Commercial,
Inc. (IES) dated as of June 17, 2009 (the “Subcontract”), MTJV and IES have agreed to certain
arrangements to satisfy the bonding requirements for the above USAMRIID Replacement Project, as
previously set forth in Item 69 to Exhibit A of the Subcontract (“Item 69”). The terms of this
letter agreement supersede in all respects the provisions of Item 69, which shall be of no further
force and effect.



The penal sum of the bonds will be required in incremental values, each covering its own scope of
work. The first bond will be issued in the amount of $1,700,000 (and may be adjusted from time to
time pursuant to change orders) and will cover the following scope of work, with an expected
duration of 12 months: Temporary Power Service, Initial Submittals, Coordination Drawings,
Coordination Study, and Underground Installation.



The second bond will be provided in the amount of $58,726,000 (and may be adjusted from time to
time pursuant to change orders) and will cover the entire scope of work excluding the scope covered
in the first bond and excluding the Testing and Commissioning scope. The anticipated duration of
the scope of work covered by the second bond is 35 months. The second bond will be provided prior
to start of the scope of work covered by the bond, which is anticipated to be on or about July 1,
2010.



In addition, Integrated Electrical Services, Inc., parent company of its wholly owned subsidiary
IES Commercial, Inc., will provide a $5,000,000 Stand-by Letter of Credit to MTJV at time of
issuance of the first bond, to be released by MTJV at time of issuance of the second bond. It is
understood that the Letter of Credit is intended to serve as security against any damages sustained
by MTJV resulting from IES’s failure to provide the second bond or failure to complete the work.
The initial term of the Letter of Credit shall be one year. IES agrees to renew the Letter of
Credit for an additional period of six months, unless 1) IES has provided the second bond mentioned
above, or 2) MTJV notifies IES and the Issuing Bank of MTJV’s intention to allow the Letter of
Credit to expire.




 









 












At the discretion of MTJV, it may require a third bond to be provided in the amount of $720,000
(and may be adjusted from time to time pursuant to change orders) to cover the Testing and
Commissioning scope of work. The anticipated duration of the scope of work covered by the third
bond is 13 months. If MTJV requires the third bond, it will be provided prior to start of the
scope of work covered by the third bond.



To acknowledge your agreement with the bonding arrangement for the USAMRIID Project, please place
your signature below, and return an original to me at your earliest convenience. We look forward
to working with MTJV on this unique and challenging project.




Sincerely,




/s/ Suzanne J. Belk


 




Suzanne J. Belk

Treasurer and Vice President Sales Finance

Integrated Electrical Services, Inc.



and




Treasurer, IES Commercial, Inc.




Agreed and Accepted this 4th day of November, 2009 by:




	 	 	 	 	 
	Manhattan Torcon A Joint Venture

 	 	 
	By:  	/s/ Ted M. Baker
 	 	 
	 	Ted M. Baker 	 	 
	 	Executive Vice President