The project earned $18,023,685 in revenue against $12,202,015 in direct costs per the QuickBooks job-cost snapshot, producing a gross profit of $5,821,669 (32.3% margin) before any allocation of corporate overhead, executive time, insurance, or bonding. Operations were complete on February 12, 2026 after eleven days of around-the-clock snow and ice removal across the City of Baltimore. The project entered post-ops reconciliation in March 2026 with the Direct Payment Agreement (DPA) executed March 26, 2026 to bypass the prime sub (Indy A-Team Services, LLC) for sub-tier settlements. Fifteen Final Settlement Addendum wires were issued between May 4 and May 22, 2026 totaling $2,011,930 ($1,814,108 paid plus $197,822 on hold pending final waiver). Castlerock Resources Invoice 1082157 ($40,945.71, leased-employee services) was received June 12, 2026 and is awaiting scope confirmation prior to payment.
| Document | Date | Description | Amount |
|---|---|---|---|
| Original Emergency Agreement | Jan 31, 2026 | JWTC ↔ Baltimore DPW — Time & Materials | Open T&M |
| Amendment 1 | Feb 5, 2026 | Field rate revisions | — |
| Amendment 2 | Feb 2026 | Scope and equipment count true-up | — |
| JWTC ↔ Indy A-Team MSA | Feb 12, 2026 | Prime sub MSA with Personal Guaranty (R. Hughes-Grund) | Prime sub agreement |
| Direct Payment Agreement (DPA) | Mar 26, 2026 | JWTC pays subtiers directly, bypassing Indy | Bypass channel |
| DPA Addendum — Final Settlement | Apr 29, 2026+ | Subtier global-aggregate settlement template | Close-out vehicle |
| Total Contract Revenue Recognized | $18,023,684.50 | ||
| Invoice | Date | Description | Amount | Payment Ref | Status |
|---|---|---|---|---|---|
| City of Baltimore — Department of Public Works | |||||
| Inv2/1-4/26 | 02/28/26 | Snow & ice removal, work performed 2/1 – 2/4 (685 ticket rows) | $1,848,922.50 | City of Baltimore | Paid |
| In2/4-12/26 | 03/31/26 | Final invoice — work performed 2/4 – 2/12 (demobilization included) | 16,174,765.00 | City of Baltimore | Paid |
| CM In2/4-12/26 | 04/28/26 | Credit memo — true-up to actual payment received | (3.00) | Adjustment | Applied |
| Total Revenue Earned & Collected | $18,023,684.50 | All Paid | |||
| Cost Category | Class / Account | Amount | % of Costs |
|---|---|---|---|
| Subcontractor Labor (Insured) — Sub Insured Labor | Coastline ledger | $12,154,331.80 | 99.61% |
| Direct CC charges — HD Worxs, EquipmentShare, Airbnb, Tushee's, postage | Bal JPS¹ | 19,044.11 | 0.16% |
| Other Construction Costs (travel reimbursements 3/6/26) | Coastline ledger | 14,273.66 | 0.12% |
| OCC — Labor 1099 (foremen $550/day, P. Haygood) | Coastline ledger | 6,600.00 | 0.05% |
| Travel — L. Baumgardner (5 days in field) | Coastline ledger | 3,852.46 | 0.03% |
| Travel — N. Sobrino | Coastline ledger | 1,357.63 | 0.01% |
| Subcontractor (Insured) — Tushee's portable toilets (May) | Coastline ledger | 667.80 | 0.01% |
| Cost of Materials & Supplies — Freedom Fence & Deck | Coastline ledger | 666.67 | 0.01% |
| Travel — C. Delano (lodging + fuel) | Coastline ledger | 676.07 | 0.01% |
| Misc / Other Construction (Staples copies + scans) | Coastline ledger | 392.13 | 0.00% |
| Meals & Entertainment (WholeFoods, Chiu's Sushi) | Coastline ledger | 104.80 | 0.00% |
| Auto and Truck Expenses (CARFAX) | Coastline ledger | 47.96 | 0.00% |
| Total Direct Project Costs (Job-Costed) | $12,202,015.09 | 100.0% | |
| Month | Coastline | Primary activity |
|---|---|---|
| February 2026 | $7,062,472.78 | Initial sub payrolls (PR1/2/3), travel, equipment, AI/consulting |
| March 2026 | 2,926,410.97 | Direct subtier wave $2.67M (3/27/26) plus reconciliation work |
| April 2026 | 81,048.53 | $50K Indy advance (4/10), $25K (4/3), $5K Leslie reconciliation (4/24), CC misc |
| May 2026 | 2,113,038.70 | DPA Final Settlement Addendum wave (15 wires) |
| Total Coastline Ledger | $12,182,970.98 | Plus Bal JPS CC items $19,044.11 = $12,202,015.09 |
| Contract Revenue Earned | $18,023,684.50 |
| Less: Subcontractor Labor (Sub Insured Labor) | (12,154,331.80) |
| Less: Direct CC charges (Bal JPS) | (19,044.11) |
| Less: Other Construction Costs | (14,273.66) |
| Less: OCC — Labor 1099 (foremen) | (6,600.00) |
| Less: Internal travel (Lindsey + Nick + Cristian) | (5,886.16) |
| Less: All other (materials, meals, fuel, misc, CARFAX) | (1,879.36) |
| Total Direct Costs (Job-Costed) | (12,202,015.09) |
| Gross Profit, Pre-Overhead | $5,821,669.41 |
| Gross margin percentage | 32.3% |
| Note: This statement is presented pre-overhead. A standard JWTC corporate allocation (G&A, executive time, insurance, bonding) is estimated at $150,000 – $300,000. Additionally, Phase One Consulting (B. Benoit / AI operations services) Mar–Jun true-up invoice is pending and not yet booked. | |
Cumulative payment flow to 14 sub-tier subcontractors (plus B. Cochran supervision) across three channels: (a) Indy A-Team payments to its subtiers from Feb–Apr 2026; (b) JWTC direct payments to subtiers in the March 27 – April 24, 2026 wave totaling $2,666,840; (c) JWTC Final Settlement Addendum payments in May 2026 totaling $1,814,108 plus $197,822 on hold.
| Sub-Tier | Paid by Indy | JWTC Direct (Mar) | DPA Addendum (May) | Total to Sub |
|---|---|---|---|---|
| Debris Pro | $1,427,211 | $400,000 | ~$220K | ~$2,047K |
| Stihlwater | 786,761 | 600,000 | ~$626K | ~$2,013K |
| Local Buckets | 702,819 | 500,000 | ~$265K | ~$1,468K |
| Total Disaster Services (TDS) | 542,052 | 237,440 | ~$120K | ~$899K |
| Western Excavation | — | 375,000 | ~$191K | ~$566K |
| The Clawguy LLC | 414,405 | 125,000 | HOLD $197,822 | In dispute |
| TDR Disaster Recovery | 154,158 | 200,000 | — (overpaid)³ | $354K |
| Slave Driver | 168,021 | 25,000 | ~$99K | ~$292K |
| PrimeCoat (incl. Seitz / Harper) | 135,476 | — | ~$98K | ~$233K |
| Midwest Industrial Contractors | 93,204 | 50,000 | ~$19K | ~$162K |
| Groundkeeper | 28,422 | 40,000 | 21,191 | ~$90K |
| BMB Group | — | 50,000 | ~$19K | ~$69K |
| Musick Trucking | 29,484 | 20,000 | 18,148 | ~$67K |
| Blackwater Fleet (S. Darby) | — | 40,000 | 14,040 | $54K |
| Beverly Cochran (supervision) | — | 4,400 | 775 | $5,175 |
| Totals | $4,481,213 | $2,666,840 | $1,814,108 | $8,962,161 |
Plus $197,821.60 on hold pending Clawguy final waiver (5/22/26) and an estimated $522,501.67 in retainage held by Indy A-Team from sub-tiers but not released — JWTC has no liability for the latter per the Final Settlement Addendum.
Fifteen wires totaling $2,011,930.00 issued between May 4 and May 22, 2026 under the Final Settlement Addendum to the Voluntary Direct Payment Agreement. Four wires reconcile to exact signed agreements; eleven remain to be confirmed against specific subtier settlement amounts (combined approximately $1.4M unmapped).
| Date | ACH Reference | Amount | Most-Likely Sub-Tier | Status |
|---|---|---|---|---|
| Confirmed matches | ||||
| 05/04/26 | ACH17114596 | $14,040.00 | Blackwater Fleet (Sam Darby) | Exact |
| 05/08/26 | ACH17134055 | 21,190.50 | Groundkeeper | Exact |
| 05/08/26 | ACH17134055 | 294,379.40 | Stihlwater (signed $294,022.72; variance +$356.68) | ~Match |
| 05/13/26 | ACH17282309 | 9,148.00 | Musick Trucking | Exact |
| Best-fit — pending confirmation by C. Zak-Knepper | ||||
| 05/05/26 | ACH17125532 | 391,599.00 | Western Excavation combined (signed base $191,600 + ~$200K demob?) | Verify |
| 05/05/26 | ACH17125532 | 331,721.00 | Stihlwater top-up (sheet $341,866; -$10,145 variance) | Verify |
| 05/08/26 | ACH17134055 | 19,020.00 | BMB Group partial (signed $69,060) | Verify |
| 05/08/26 | ACH17134055 | 219,874.00 | Debris Pro partial (sheet $231,352; -$11,478) | Verify |
| 05/08/26 | ACH17218352 | 19,510.20 | PrimeCoat or BMB Group | Verify |
| 05/08/26 | ACH17204909 | 120,330.00 | Midwest Industrial Contractors + adjustment | Verify |
| 05/08/26 | ACH17134055 | 100,000.00 | Demobilization (bulk, not subtier-attributed) | Verify |
| 05/08/26 | ACH17134055 | 774.80 | "Difference from Final Payment Waiver" (memo: get with CZK) | Verify |
| 05/11/26 | ACH17234971 | 98,934.30 | PrimeCoat or Slave Driver | Verify |
| 05/15/26 | ACH17352552 | 9,000.00 | Musick (secondary) or Beverly Cochran | Verify |
| 05/19/26 | ACH17397626 | 265,362.00 | Local Buckets (sheet $243,605; +$21,757) | Verify |
| 05/22/26 | HOLD | 197,821.60 | Likely Clawguy LLC ($194,079 disputed signed) — final waiver pending | On Hold |
| Total Final Settlement Addendum Disbursements | $2,011,930.00 | |||
Per Charlene Zak-Knepper's Subtier Comparison Summary as of 04-28-26 R1 (verified across nine sheets), Indy A-Team withheld 10% retainage from amounts paid to its subtiers and did not release such amounts. Total $522,501.67 across 13 subtiers. JWTC has no liability for this retainage per Final Settlement Addendum language: "Any retainage withheld by Indy A-Team is solely Indy A-Team's obligation to release." Subtiers' recourse is against Indy A-Team and the Personal Guaranty of Rachelle Hughes-Grund.
| Sub-Tier | Retainage Held by Indy |
|---|---|
| Debris Pro | $164,527.00 |
| Stihlwater | 84,444.00 |
| Local Buckets | 78,346.00 |
| Total Disaster Services (TDS) | 61,062.00 |
| The Clawguy LLC | 51,704.00 |
| Slave Driver | 18,648.00 |
| TDR Disaster Recovery | 17,786.67 |
| PrimeCoat Concrete (incl. Seitz / Harper) | 16,632.00 |
| Midwest Industrial Contractors | 14,327.00 |
| Musick Trucking | 4,228.00 |
| Groundkeeper | 3,878.00 |
| BMB Group | 3,696.00 |
| Undefined / Unknown subtier | 3,223.00 |
| Total Retainage Held by Indy A-Team | $522,501.67 |
| Project Phase | Contract Days | Days Executed | % Complete | Status |
|---|---|---|---|---|
| Active Ops (snow clearance, 24-hr operations) | 12 | 12 | 100.0% | Demobilized 2/12/26 |
| Demobilization | — | Complete | 100.0% | 2/12/26 |
| Post-ops reconciliation & settlement | — | ~120 days | ~95% | HOLD wire + Castlerock pending |
| Combined | 12 ops days | 12 + ~120 close-out | ~99% | One settlement window open |
1. "Bal JPS" vs. "Coastline" cost ledgers. The QuickBooks job-costing structure separates a small set of direct credit-card and job-class items ("Bal JPS" — $19,044.11) from the much larger sub-insured labor and settlement pool ("Coastline" — $12,182,970.98). The Bal JPS tab in isolation displays project margin of $18,004,640.39, which is an artifact of nuncategorized account structure rather than true profitability. The combined direct-cost figure of $12,202,015.09 is the proper basis for gross margin calculation. Verified no double-counting of HD Worxs, EquipmentShare, or Tushee's items across the two ledgers.
2. Revenue recognition. Revenue is recognized when invoiced to the City of Baltimore. Two principal invoices totaling $18,023,687.50 plus a -$3.00 credit memo on April 28, 2026 to true to actual payment. The final payment cleared in advance of the May 2026 sub-tier settlement wave, providing JWTC the cash basis to execute the Direct Payment Agreement structure.
3. TDR Disaster Recovery overpayment. Per C. Zak-Knepper's notes, the March 27, 2026 JWTC direct payment of $200,000 to TDR exceeded the calculated final remainder by $77,618. TDR claims a revised billing was sent to Indy A-Team with additional tickets; recoupment from Indy is pending. No corresponding DPA Addendum wire was issued to TDR in May. Statement reflects TDR as paid in full; any future recovery from Indy will be booked as a margin adjustment.
4. Excluded costs. This statement does not include allocated corporate G&A, executive time (J.W. Turner, C. Zak-Knepper, B. Benoit), insurance, bonding, or banking fees. A standard JWTC overhead allocation for a project of this duration and complexity is estimated at $150,000 – $300,000. Also excluded is the Phase One Consulting (B. Benoit / AI operations services) March–June 2026 true-up invoice — approximately 78 days of post-ops work covering retainage forensic analysis, Final Settlement Agreement v2 / v3-SHORT / Addendum v2 drafting, the KATZ communications analysis, and daily close-out coordination. The February 2026 portion ($11,002.69 = $6,248.45 AI compute + $4,754.24 travel) is already booked under "Project AI Data Services" / "Project Travel, Meals and Lodging" on 2/27/26 (ACH15881487).
5. Indy A-Team retainage — not a JWTC liability. The $522,501.67 in 10% retainage withheld by Indy A-Team from its subtiers is, per the Final Settlement Addendum, solely Indy A-Team's obligation to release. Sub-tiers' recourse is against Indy A-Team and the Personal Guaranty of Rachelle Hughes-Grund. JWTC's exposure has been ring-fenced by the DPA structure and the global-aggregate methodology adopted in the Final Settlement Addendum.
6. Pending invoice — Castlerock Resources INV-1082157. Received June 12, 2026 for leased employee services (Amanda Barfield & Marla Matus). $40,945.71, Net 15. The invoice does not specify the period of performance or the role of the leased employees on the Baltimore project. Scope confirmation requested prior to payment. If paid, this becomes a direct-cost addition that reduces gross profit to $5,780,724 (32.1% margin).
7. Source documents. QuickBooks "Bal JPS" + "Bal Costs (CC)" + "Bal Rev" tabs from Baltimore_QB_files_as_of_061026.xlsx (C. Zak-Knepper, 6/10/26); 0 SUBTIER COMPARISON SUMMARY as of 04-28-26 R1.xlsx (C. Zak-Knepper, nine sheets); JWTC Final Report — Baltimore Snow completed 4.17.26.xlsx (L. Schlegel, 3,151 row payment data); DPA_Baltimore_2026-03-26_Final.pdf; FINAL-SETTLEMENT-ADDENDUM-v2-SENT.docx (B. Benoit, 4/29/26); Baltimore-Reimbursement-Feb2026.pdf (Phase One Consulting, $11,002.69); Castlerock Resources INV-1082157 (6/11/26).