James W. Turner Construction, Ltd.
Internal Project Accounting
Project   2026 Emergency Snow & Ice Removal
Client   City of Baltimore — DPW
Report Date   June 12, 2026
Project Profit & Loss Statement

Baltimore DPW Snow Emergency Response

Operations February 1–12, 2026 · Settlement window closing
Basis of Presentation. Revenue is taken from the QuickBooks invoice register supplied by C. Zak-Knepper on June 10, 2026 (Baltimore_QB_files_as_of_061026). Direct costs are taken from the same QuickBooks job-costing snapshot covering both the "Bal JPS" job class ($19,044.11 in directly billed CC items) and the "Coastline" cost ledger ($12,182,970.98 in sub-insured labor, travel, and miscellaneous job costs). All two City of Baltimore invoices have been collected in full following the April 28, 2026 credit-memo true-up. Allocated corporate overhead, executive time, insurance, bonding, and corporate G&A are excluded; see Note 4.

Executive Summary

Revenue Earned
$18,023,685
2 invoices, 100% collected
Job-Costed Direct Costs
$12,202,015
Coastline $12.18M + Bal JPS $19K¹
Gross Profit, Pre-Overhead
$5,821,669
32.3% gross margin²
Pending Invoices
($40,946)
Castlerock Resources INV-1082157
On Hold (5/22/26)
($197,822)
Final Settlement wire — pending
Net Cash Receipts
$18,023,685
All city payments cleared

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.

Contract Position

DocumentDateDescriptionAmount
Original Emergency AgreementJan 31, 2026JWTC ↔ Baltimore DPW — Time & MaterialsOpen T&M
Amendment 1Feb 5, 2026Field rate revisions
Amendment 2Feb 2026Scope and equipment count true-up
JWTC ↔ Indy A-Team MSAFeb 12, 2026Prime sub MSA with Personal Guaranty (R. Hughes-Grund)Prime sub agreement
Direct Payment Agreement (DPA)Mar 26, 2026JWTC pays subtiers directly, bypassing IndyBypass channel
DPA Addendum — Final SettlementApr 29, 2026+Subtier global-aggregate settlement templateClose-out vehicle
Total Contract Revenue Recognized$18,023,684.50

Schedule of Revenue

Invoice Date Description Amount Payment Ref Status
City of Baltimore — Department of Public Works
Inv2/1-4/2602/28/26Snow & ice removal, work performed 2/1 – 2/4 (685 ticket rows)$1,848,922.50City of Baltimore
In2/4-12/2603/31/26Final invoice — work performed 2/4 – 2/12 (demobilization included)16,174,765.00City of Baltimore
CM In2/4-12/2604/28/26Credit memo — true-up to actual payment received(3.00)Adjustment
Total Revenue Earned & Collected$18,023,684.50

Schedule of Direct Costs — per QuickBooks Job-Cost Snapshot

Cost Category Class / Account Amount % of Costs
Subcontractor Labor (Insured) — Sub Insured LaborCoastline ledger$12,154,331.8099.61%
Direct CC charges — HD Worxs, EquipmentShare, Airbnb, Tushee's, postageBal JPS¹19,044.110.16%
Other Construction Costs (travel reimbursements 3/6/26)Coastline ledger14,273.660.12%
OCC — Labor 1099 (foremen $550/day, P. Haygood)Coastline ledger6,600.000.05%
Travel — L. Baumgardner (5 days in field)Coastline ledger3,852.460.03%
Travel — N. SobrinoCoastline ledger1,357.630.01%
Subcontractor (Insured) — Tushee's portable toilets (May)Coastline ledger667.800.01%
Cost of Materials & Supplies — Freedom Fence & DeckCoastline ledger666.670.01%
Travel — C. Delano (lodging + fuel)Coastline ledger676.070.01%
Misc / Other Construction (Staples copies + scans)Coastline ledger392.130.00%
Meals & Entertainment (WholeFoods, Chiu's Sushi)Coastline ledger104.800.00%
Auto and Truck Expenses (CARFAX)Coastline ledger47.960.00%
Total Direct Project Costs (Job-Costed)$12,202,015.09100.0%

Cost Timing — by Month

MonthCoastlinePrimary activity
February 2026$7,062,472.78Initial sub payrolls (PR1/2/3), travel, equipment, AI/consulting
March 20262,926,410.97Direct subtier wave $2.67M (3/27/26) plus reconciliation work
April 202681,048.53$50K Indy advance (4/10), $25K (4/3), $5K Leslie reconciliation (4/24), CC misc
May 20262,113,038.70DPA Final Settlement Addendum wave (15 wires)
Total Coastline Ledger$12,182,970.98Plus Bal JPS CC items $19,044.11 = $12,202,015.09

Statement of Operations

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 percentage32.3%
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.

Sub-Tier Payment Flow

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
Stihlwater786,761600,000~$626K~$2,013K
Local Buckets702,819500,000~$265K~$1,468K
Total Disaster Services (TDS)542,052237,440~$120K~$899K
Western Excavation375,000~$191K~$566K
The Clawguy LLC414,405125,000HOLD $197,822In dispute
TDR Disaster Recovery154,158200,000— (overpaid)³$354K
Slave Driver168,02125,000~$99K~$292K
PrimeCoat (incl. Seitz / Harper)135,476~$98K~$233K
Midwest Industrial Contractors93,20450,000~$19K~$162K
Groundkeeper28,42240,00021,191~$90K
BMB Group50,000~$19K~$69K
Musick Trucking29,48420,00018,148~$67K
Blackwater Fleet (S. Darby)40,00014,040$54K
Beverly Cochran (supervision)4,400775$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.

Final Settlement Wire Crosswalk

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).

DateACH ReferenceAmountMost-Likely Sub-TierStatus
Confirmed matches
05/04/26ACH17114596$14,040.00Blackwater Fleet (Sam Darby)
05/08/26ACH1713405521,190.50Groundkeeper
05/08/26ACH17134055294,379.40Stihlwater (signed $294,022.72; variance +$356.68)
05/13/26ACH172823099,148.00Musick Trucking
Best-fit — pending confirmation by C. Zak-Knepper
05/05/26ACH17125532391,599.00Western Excavation combined (signed base $191,600 + ~$200K demob?)Verify
05/05/26ACH17125532331,721.00Stihlwater top-up (sheet $341,866; -$10,145 variance)Verify
05/08/26ACH1713405519,020.00BMB Group partial (signed $69,060)Verify
05/08/26ACH17134055219,874.00Debris Pro partial (sheet $231,352; -$11,478)Verify
05/08/26ACH1721835219,510.20PrimeCoat or BMB GroupVerify
05/08/26ACH17204909120,330.00Midwest Industrial Contractors + adjustmentVerify
05/08/26ACH17134055100,000.00Demobilization (bulk, not subtier-attributed)Verify
05/08/26ACH17134055774.80"Difference from Final Payment Waiver" (memo: get with CZK)Verify
05/11/26ACH1723497198,934.30PrimeCoat or Slave DriverVerify
05/15/26ACH173525529,000.00Musick (secondary) or Beverly CochranVerify
05/19/26ACH17397626265,362.00Local Buckets (sheet $243,605; +$21,757)Verify
05/22/26HOLD197,821.60Likely Clawguy LLC ($194,079 disputed signed) — final waiver pendingOn Hold
Total Final Settlement Addendum Disbursements$2,011,930.00

Indy A-Team Retainage Forensic

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-TierRetainage Held by Indy
Debris Pro$164,527.00
Stihlwater84,444.00
Local Buckets78,346.00
Total Disaster Services (TDS)61,062.00
The Clawguy LLC51,704.00
Slave Driver18,648.00
TDR Disaster Recovery17,786.67
PrimeCoat Concrete (incl. Seitz / Harper)16,632.00
Midwest Industrial Contractors14,327.00
Musick Trucking4,228.00
Groundkeeper3,878.00
BMB Group3,696.00
Undefined / Unknown subtier3,223.00
Total Retainage Held by Indy A-Team$522,501.67

Open Items — Pending Confirmation by C. Zak-Knepper

Three items require resolution before close-out

  1. $197,821.60 HOLD wire (5/22/26) — identify recipient and release condition. Wire tagged "FINAL SETTLEMENT ADDENDUM" with Num field "HOLD." Most likely Clawguy LLC ($194,079 disputed signed amount), but could be Western Excavation ($192,060 calculated remaining) or Undefined subtier ($187,760). Resolution drives whether the $197K reverts to JWTC margin or releases to a subtier.
  2. DPA Addendum wire ↔ signed-agreement crosswalk — 11 wires, approximately $1.4M. Four wires reconcile to exact signed agreements (Blackwater, Groundkeeper, Stihlwater, Musick). Eleven wires combine base settlements with demobilization and adjustments, which is why amounts do not match the spreadsheet "Total Remaining" column cleanly. Need the wire-to-subtier mapping for clean close-out.
  3. Coastline → JPS COGS roll-up — accounting structural question. QuickBooks Bal JPS tab shows project margin of $18,004,640.39 — that nets revenue against only $19,044.11 of CC direct charges. If the $12,182,970.98 Coastline ledger is the actual COGS, the true margin is $5,821,669 (32.3%), not $18M. Confirm books reflect proper COGS structure before any external reporting.

Quantity & Scope Completion

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

Notes to the Statement

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).

Close-Out Items

  1. Identify $197,821.60 HOLD wire recipient and release condition. Most likely Clawguy LLC pending final lien-waiver execution. Owner: C. Zak-Knepper. Resolution affects whether the $197,822 reverts to JWTC margin or releases to subtier.
  2. Obtain DPA Addendum wire ↔ signed-agreement crosswalk (11 wires, ~$1.4M). Eleven of fifteen DPA wires need precise mapping to specific subtier settlement agreements. Required for clean close-out and lien-waiver matching. Owner: C. Zak-Knepper.
  3. Confirm Coastline → JPS COGS roll-up structure. QB JPS tab presentation overstates project margin by ~$12.18M absent the COGS roll-up. Must be addressed before any external reporting (insurance audit, banker, tax). Owner: JWTC Accounting.
  4. Recoup TDR Disaster Recovery overpayment ($77,618). March 27, 2026 direct wire exceeded TDR's final calculated remainder. Recoupment claim against Indy A-Team. Owner: C. Zak-Knepper.
  5. Confirm Castlerock INV-1082157 scope before paying $40,945.71. Leased employee services — work period and role for Amanda Barfield and Marla Matus not specified on invoice. Owner: vendor contact + JWTC Accounting.
  6. Set Phase One Consulting Mar–Jun rate for true-up invoice (~78 days). Includes $522K Indy retainage forensic finding, Final Settlement Agreement v2 / v3-SHORT / Addendum v2 drafting, KATZ communications analysis, daily close-out support. Owner: B. Benoit.
  7. Confirm backcharge recoupment. Stihlwater $13,230 (duplicate tickets paid to Indy); PrimeCoat $1,800 (duplicate ticket); Midwest $5,995.06 (vehicle damage at sub-sub Church's, flagged for 4/24/26 payment cycle). Status unknown. Owner: C. Zak-Knepper.
  8. Investigate Stihlwater and Musick double-payments in DPA wave. Stihlwater paid twice ($294,379 + $331,721 = $626,100 vs. signed $294,022.72). Musick paid twice ($9,148 + $9,000). Confirm intent — base + demob split, credit, or error. Owner: C. Zak-Knepper.
  9. Apply JWTC corporate overhead allocation. Agree allocation method (G&A, executive time, insurance, bonding) and book a closing journal entry to bring the statement to fully-burdened P&L. Estimate $150K – $300K. Owner: JWTC Accounting + B. Benoit.
  10. Portfolio-level reconciliation (Sarasota / F&P / Baltimore). Per C. Zak-Knepper's request, a separate three-project portfolio summary will follow, including equipment carrying costs and time allocation for Charlene, J.W., and Brian during the four-month reconciliation process.
Prepared by Internal Project Accounting For internal management use only · Not a financial audit
James W. Turner Construction, Ltd.
Baltimore DPW Snow Emergency · Updated Jun 12, 2026