Terms and Conditions

STANDARD TERMS AND CONDITIONS FOR ARCHITECTURAL SERVICES

RSB Architects, PC Client(s) Initials Page 1 of 2

1.ENTIRE AGREEMENT

This Agreement is the offer of  RSB Architects, PC (herein referred to as “the Architect”), to perform the consulting services described in the attached Scope of Services. Acceptance by the Client is strictly limited to the attached Proposal and these Terms and Conditions for Architectural Services, which when acknowledged in writing, is authorization to proceed.

The Client is defined as the person or business entity signing the Agreement authorizing the Architect to proceed. This Agreement supercedes all prior written proposals and/or negotiations not referenced herein between the parties and is expressly conditioned upon the Client’s agreement of the Terms and Conditions hereof. This Agreement may only be modified in writing executed by both parties.

2.SERVICES TO BE PERFORMED

The services to be performed are described in the preceding Scope of Services. Unless otherwise specified in the Scope of Services or the Terms and Conditions, the Architect shall furnish all technical and professional services, including labor, materials, supplies, equipment, transportation and supervision to perform all tasks listed in the Scope of Services and in accordance with the target schedule.

3.COMPENSATION FEE

The attached Proposal describes the tasks, phases and compensation terms. Terms of Payment. Invoices shall be submitted upon completion of a phase or monthly based on percentage complete at that time. Payments are due upon the Client’s receipt of invoice. Amounts that are unpaid thirty (30) days after the invoice date shall bear interest at the rate of one and one-half percent (1-1/2%) per month. A minimum finance charge of $10.00 shall be assessed on all overdue payments.

Payments Withheld. No deductions shall be made from the Architect’s compensation on account of penalty, liquidated damages or other sums withheld from payments to the contractor(s), or on account of the costs of changes in the contractor’s services other than those which the Architect is adjudged to be liable.

Suspension. If any payment is more than thirty (30) days past due, the Architect may, after giving seven (7) days written notice to the Client, suspend services under this Agreement until the Architect is paid in full all amounts due for services, expenses, and other charges. Additionally, in the event of suspension, the Client shall waive all rights, claims, etc. which it might otherwise have against the Architect as a direct or indirect result of such suspension.

4.ADDITIONAL SERVICES

All Additional Services shall be approved by the Client and the Architect in writing prior to proceeding. The following are Additional Services that are not specified above and are considered beyond the basic Scope of Services.

Master Planning. The Architect may assist the Client in developing and preparing a long term Master Plan. All work associated with the Master Plan, including all preliminary design work, shall be considered an Additional Service.

Construction Management Services. The Architect may assist the client in estimating the cost of construction, scheduling the work of the contractors and managing the construction process. Construction Management Services shall be considered Additional Services.

Redesign to meet Project Budget Costs. The Client is responsible to establish Project Budget Costs and obtain required cost estimates. If the Architect is not contracted to provide cost estimating services, the Architect shall not be liable to redesign to meet the project budget costs. If redesign is required due to revised or miscalculated project budget costs furnished by a party other than the Architect, the time required shall be considered Additional Services.

Public Hearings / Municipal Filings. In the event a Public Hearing is required for a municipal agency (Zoning Board of Appeals, Planning Board, Architectural Review Board, etc.), the Architect shall invoice the Client on an hourly basis for both the preparation and time spent at the meeting. The Architect shall not be required to file drawings with the Building Department or pay any municipal fees.

Interior Design Services. The Architect may assist the Client in the selection of plumbing fixtures, plumbing fittings, hardware, appliances, kitchen cabinets, decorative lighting, tile, stone slabs, furniture, fabric, carpets, paint colors, artwork, accessories, etc. Interior Design Services shall be considered Additional Services.

Built-in Woodwork. The Architect may design built-in woodwork, such as bookshelves, audio/video cabinets, window seats, computer workstations, etc. The design of such built-in woodwork shall be considered Additional Services.

Purchasing through the Office of the Architect. Products and materials such as plumbing fixtures, plumbing fittings, hardware, appliances, kitchen cabinets, decorative lighting, tile, stone slabs, furniture, fabric, carpets, paint colors, artwork, accessories, etc., may be purchased through the office of the Architect. The full trade discount, as applicable, shall be forwarded to the Client. A coordination and handling fee of twenty percent (20%) shall be applied to the cost of all items purchased through the office of the Architect.

3D Modeling. The Architect may develop and prepare a three dimensional computer model and/or physical scale model of the proposed project for the Client. All 3D modeling shall be considered Additional Services. Engineering. Based upon the particular needs of the Client, engineering services may be required for heating, air conditioning, electrical, plumbing, structural calculations, site planning, grading, septic systems and/or fire suppression.

Engineering services are not included in this Agreement unless stated otherwise in the Scope of Services. If Engineering Services are incorporated into the Scope of Services, and it has been determined that the Engineer (or consultant) has made an error or omission, the Client shall seek legal remedy from the Engineer (or consultant) directly, without participation by the Architect, unless stated otherwise in the Scope of Services.

Coordination of Consultants’ and/or Client’s Work. Any coordination of Work performed directly by the Client or work performed by consultants hired by the Client, including but not limited to structural engineers, mechanical engineers, kitchen designers, landscape designers, interior design consultants, audio/video consultants, lighting designers, etc., shall be considered Additional Services. Fees for Additional Services. The Architect may provide Additional Services beyond those listed in the Scope of Services by a negotiated sum or on an hourly basis.

The Architect’s hourly rates are as follows: Principal / Architect / Designer $00 per hour Project Manager / Construction Mgr. $00 per hour Project Staff / Draftsperson $00 per hour Clerical Staff $00 per hour Hourly rates specified above are valid for one (1) year from the date listed on the Scope of Services and shall be increased five percent (5%) on the first day of the subsequent year to reflect market conditions, employee benefits and salary compensation.

Reimbursable Expenses. Reimbursable expenses shall include, but not be limited to, consultants’ fees, printing, reproductions, bulk copying, photographic services, long distance telephone calls, postage, shipping, delivery, long distance travel expenses, lodging, meals and/or other project related out-of-pocket expenses. Items shall be reimbursed to the Architect at cost plus ten percent (10%), unless a specific cost is listed below: Large format prints (24”x36”) $0.00 each Plots (24”x36”) $0.00 each Travel mileage rate (2011) $0.00 per mile

5.CLIENT’S RESPONSIBILITIES

Project Budget. The Client shall establish a budget with reasonable contingencies that meets the project requirements. The project budget shall be established by the Client prior to the Architect proceeding with the Scope of Services.

Base Building Drawings and/or Surveys. Unless otherwise specified, Base Building Drawings and/or Surveys are not included in the Scope of Services. The Architect shall assume that the Base Building Drawings and Surveys, if required, shall be readily available. The Architect assumes all information on these documents is accurate and is not responsible for any information completed by others.

Project Representative. The Client shall appoint and authorize a Project Representative to answer field questions and make timely decisions (within five (5) business days). The Architect assumes that the Client shall be the Project Representative unless the Client notifies the Architect, in writing, that another Project Representative has been appointed. If the Client replaces or selects a new Project Representative, any time spent by the Architect to bring the new Project Representative current shall represent Additional

Services. Cost Estimates. If the Architect is not contracted to provide cost estimating services, the Client shall employ a contractor or construction cost estimating consultant to provide cost estimating services. The Architect and its consultants do not warranty, guarantee or certify the construction cost for the project or any part of the project.

RSB Architects, PC Client(s) Initials Page 2 of 2

Selection  of  Qualified  Contractor(s).  If  the  Architect  is  not  contracted  to  provide  Construction  Management  Services,  the  Client  shall  select  a  qualified  contractor(s)  with  a  minimum  of  three  (3)  years  of  construction  experience  in  work  similar  in  nature  to  the  Project  Description  located  in  the  immediate  vicinity. 

The  contractor  shall  provide  a  minimum  of  three  (3)  references  as  mutually agreed upon by the Client and the Architect. Consultants.  The  Client  shall  furnish  the  services  of  consultants  when  such  services are requested by the Architect and are reasonably required by the Scope of Services.

6.SCHEDULE

The Architect shall commence work on this project within twenty (20) business days   of   authorization   to   proceed.   Immediately   upon   commencement,   the   Architect  shall  prepare  a  mutually  acceptable  schedule  for  the  delivery  of  the  project. Professional  fees  developed  for  this  project  shall  be  based  on  this  schedule. 

Modifications,  such  as  accelerated  schedules,  project  delays  or  extensions,  which are not under the control of the Architect, are subject to an increase in the Architect’s compensation. If  through  no  fault  of  the  Architect,  the  Scope  of  Services  has  not  been  completed within twelve (12) months of the date first specified on the Letter of Agreement, compensation for the Architect’s services beyond that time shall be considered Additional Services.

7.OWNERSHIP OF DOCUMENTS

All documents   prepared   or   furnished   by   the   Architect   pursuant   to   this   Agreement  are  instruments  of  the  Architect’s  professional  service,  and  the  Architect  shall  retain  an  ownership  and  property  interest  therein.  The  Architect  grants  the  Client  a  license  to  use  instruments  of  the  Architect’s  professional  service for the purpose of constructing, occupying and maintaining this specific Project.  

Reuse   and/or   modification   of   any   such   documents,   without   the   Architect’s  written  permission,  shall  be  at  the  Client’s  sole  risk,  and  the  Client  agrees  to  indemnify  and  hold  the  Architect  harmless  from  all  claims,  damages  and  expenses,  including  attorney’s  fees,  arising  out  of  such  reuse  and/or  modification by the Client or by others acting through the Client.

Notice of Copyright. All ideas, designs, arrangements and/or plans indicated or represented by the Architect’s drawings will be created, evolved and developed for  use  on  this  specific  Project.  None  such  ideas,  designs,  arrangements  and/or  plans  shall  be  used  by  or  disclosed  to  any  purpose  whatsoever  without  the  written permission of the Architect.

8.PUBLICITY

The  Architect  and  its  consultants  shall  have  the  right  to  photograph  the  Project  and to use the photographs in the promotion of its professional service through publication,   advertising,   public   relations,   brochures,   websites,   or   other   marketing media.

9.INSURANCE, INDEMNITY AND LIMITATIONS

Insurance.  The  Architect  shall  maintain  Workman’s  Compensation,  General  Liability,  and  Professional  Liability  Insurance  throughout  the  period  of  this  Agreement. Certificates of insurance are available on request. The  expense  of  any  additional  insurance  coverage  or  increased  policy  limits  of  liability  beyond,  including  professional  liability  insurance,  requested  by  the  Client  in  excess  of  the  standard  coverage  of  the  Architect  and  its  consultants  shall be borne by the Client. The  Client  shall  require  the  contractor  to  name  the  Architect  as  an  Additional  Insured on the contractor insurance policy.

Limitation of Liability. For any damage on account or error, omission or other professional   negligence,   the   Architect’s   liability   shall   be   limited   to   the   Architect’s fee received under this Agreement. Waiver   of   Consequential   Damage.   The   Architect   and   the   Client   waive   consequential damage for claims, disputes and other matters in question arising out  of  or  relating  to  this  Agreement.  This  mutual  waiver  is  applicable,  without  limitation,  to  all  consequential  damages  due  to  either  party’s  termination  in  accordance with the provisions defining termination.

Hazardous   Substances.   The   Architect   shall   not   be   responsible   for   the   identification,  removal,  testing  and/or  certification  of  removal  relative  to  any  hazardous  substance  including,  but  not  be  limited  to,  PCB,  petroleum,  mold  infestation,  hazardous  waste,  asbestos,  lead,  and  any  other  similar  substances.  The  Architect  and  the  Client  acknowledge  that  the  Scope  of  Services  does  not include any items related to a Hazardous Environmental Condition.

Unforeseen,  Latent  or  Hidden  Conditions.  Unforeseen,  latent  or  hidden  conditions  may  not  be  readily  ascertainable  regardless  of  the  extent  of  the  investigation.  Such  conditions  may  impact  the  design  and  necessitate  extensive  revisions to the design. When architectural services are required to address these conditions, those services shall be deemed Additional Services.

10.STANDARD OF PRACTICE

Services performed by the Architect under this Agreement shall be conducted in a  manner  consistent  with  the  level  of  care  and  skill  ordinarily  exercised  by  members  of  their  respective  professions  practicing  in  the  same  locality  under  similar conditions. No  other  representation,  expressed  or  implied,  and  no  warranty  or  guarantee  is  included  or  intended  in  this  Agreement,  or  any  report,  opinion,  document,  or  otherwise.

11.DISPUTE RESOLUTION

Mediation  and  Arbitration.  It  is  mutually  agreed  that  the  terms  of  this  Agreement  shall  be  binding  upon  both  parties  and  their  successors,  executors,  administrators and assigns. Any  dispute  or  claim  arising  in  connection  with  this  Agreement  shall  be  submitted  to  Mediation  for  resolution  in  accordance  with  the  Construction  Industry Mediation Rules for the Nigerian Arbitration Association currently in effect.

If not resolved, then the dispute or claim shall be subject to Construction Industry Arbitration Rules of the American Arbitration Association currently in effect.  The  Mediation  and  Arbitration  shall  take  place  in  Our Country,  Nigeria.

12.MISCELLANEOUS PROVISIONS

Architect’s   Representative.   The   Architect   shall   identify   a   representative   authorized to act on behalf of the Architect with respect to the Project. Certification   of   the   Construction   Documents.   The   final   Construction   Documents  shall  be  reviewed  and  certified  by  the  Client  and  Architect  prior  to  contractor  bidding  and/or  municipal  review. 

Certification  by  the  Client  and  Architect  shall  indicate  that  the  Construction  Documents  meet  with  all  party’s  full approval. All revisions made to the Construction Documents subsequent to the certification shall be considered Additional Services.

Termination.  Either  party  may  elect  to  terminate  this  Agreement  with  not  less  than  seven  (7)  days  notice  should  either  party  fail  substantially  to  perform  in  accordance  with  the  terms  of  this  Agreement  through  no  fault  of  the  party  initiating the termination. The  Client  shall  hold  the  Architect  harmless  for  delays,  clarifications,  or  non-conformance with the Contract Documents if the Architect has been terminated prior to the Construction Administration portion or phase of the work.

Proposal Validity. This Proposal shall remain in effect for thirty (30) days from the Proposal Date. If not executed within this period of time, this Proposal may be deemed null and void by the Architect. Method and Means of Construction. The Architect and its consultants are not responsible  for  the  method,  means  or  sequencing  of  construction  unless  this  is  arranged contractually (in writing) executed by both parties.

Storage  of  Materials.  The  contractor  is  responsible  for  the  storage  and  proper  protection  of  materials.  Materials  shall  be  stored  in  an  area  that  is  adequately  ventilated  and  free  from  excessive  moisture  and  condensation  that  may  be  conducive to mold contamination.

13.DEFINITIONS

Construction Cost. Construction Cost shall be the total cost or, to the extent the Project  is  not  completed,  the  estimated  cost  to  the  Client  of  all  elements  of  the  Project designed, selected or specified by the Architect. Construction  Cost  shall  include  the  cost  at  current  market  rates  of  labor  and  materials furnished by the Client and equipment designed, specified, selected or specially  provided  for  by  the  Architect,  including  the  costs  of  management  or  supervision  of  construction  or  installation  provided  by  a  separate  construction  manager or contractor, plus a reasonable allowance for their overhead and profit.

In  addition,  a  reasonable  allowance  for  contingencies  shall  be  included  for  market  conditions  at  the  time  of  bidding  and  for  changes  in  the  Scope  of  Services. Construction  Cost  does  not  include  the  compensation  of  the  Architect  and  the  Architect’s consultants or any other costs that are the responsibility of the Client as provided in this Agreement.

Surveyed   Space.   Surveyed   Space   shall   be   all   the   space   surveyed   and   documented during an Existing Conditions Survey (ECS) as measured from the interior  surface  of  the  exterior  walls.  Surveyed  Space  shall  include  all  interior  space  including,  but  not  limited  to,  basements,  garages,  mechanical  rooms,  closets, storage rooms, covered porches, and similar space