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<br />5.5 He shall arrange and pay for such legal, auditing, and
<br />insurance counselling services as may be required for the
<br />Project.
<br />
<br />5.6 If the Owner observes or otherwise becomes aware of
<br />any defect in the Project, he shall give prompt written notice
<br />thereof to the Architect.
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<br />ARTICLE 6. PROJECT CONSTRUCTION COST
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<br />6.1 Project Construction Cost as herein referred to means
<br />the total cost of all work designed or specified by the
<br />Architect, but does not include any payments made to the
<br />Architect or consultants.
<br />6.2 Project Construction Cost shall be based upon one of
<br />the following sources with precedence in the order listed:
<br />6.2.1 Lowest acceptable bona fide Contractor's proposal
<br />received for any or all portions of the Project.
<br />6.2.2 Semi-Detailed or Detailed Estimate of Project Con-
<br />struction Cost as defined in paragraph 6.4 below.
<br />6.2.3 The Architect's latest Statement of Probable Project
<br />Construction Cost based on current area, volume or other
<br />unit costs.
<br />6.3 When labor or material is furnished by the Owner,
<br />the Project Construction Cost shall include such labor and
<br />material at current market co~i..
<br />6.4 If a fixed limit of Project Construction Cost is stated
<br />herein, or if otherwise authorized by the Owner, Estimates
<br />of the Probable Project Construction Cost prepared in
<br />Semi-Detailed or Detailed form by an experienced estimator
<br />will be secured by the Architect during the Design Develop-
<br />ment or Construction, Documents Phase.
<br />6.5 If the Statement of Probable Project Construction
<br />Cost, or the Semi-Detailed or Detailed Cost Estimate, or
<br />the lowest bona fide proposal is in excess of any limit stated
<br />herein, the Owner shall give written approval of an increase
<br />in the limit, or he shall cooperate in revising the project
<br />scope or quality, or both, to reduce the cost as required.
<br />6.6 Since the Architect has no control over the cost of
<br />labor and materials, or competitive bidding, he does not
<br />guarantee the accuracy of any Statements of Probable Con-
<br />struction Cost, or any Semi-Detailed or Detailed Cost Esti-
<br />males.
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<br />ARTICLE 7. DIRECT & REIMBURSABLE EXPENSE
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<br />7.1 Direct Personnel Expense includes that of principals
<br />and employees engaged on the Project including architects,
<br />engineers, designers, job captains, draftsmen, specification
<br />writers, typists and Project Representatives, in consultation,
<br />research, designing, producing drawing, specifications and
<br />other documents pertaining to the Project, and services dur-
<br />ing construction at the Project site.
<br />
<br />7.2 Reimbursable Expense includes actual expenditures
<br />made by the Architect in the interest of the Project for the
<br />following incidental expenses:
<br />7.2.1 Expense of transportation and living of principals
<br />and employees when traveling in connection with the ProJect;
<br />long distance calls and telegrams; reproduction of drawings
<br />and specifications, excluding copies for Architecfs office use
<br />and duplicate sets at each phase for the Owner's review and
<br />approval: and fees paid for securing approval of authorities
<br />having jurisdiction over the Project.
<br />7.2.2 If authorized in advance by the Owner, the expense
<br />of Project Representative, overtime work requiring higher
<br />than regular rates, perspectives or models for the Owner's
<br />use.
<br />7.2.3 If their employment is authorized in advance by the
<br />Owner, fees of special consultants, for other than the normal
<br />structural, mechanical and electrical engineet"ing services.
<br />
<br />ARTICLE 8. PAYMENTS TO THE ARCIDTECT
<br />
<br />8.1 Payments on account of the Architect's basic services
<br />shall be as follows:
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<br />8.1.2 ii Ln iJ ~ .Jfaymcnts shall be made monthly in pro-
<br />portion to services performed to increase the compensation
<br />~~~ti~~si~f~~~~e;h;oseth;f ft~~o~~~tpercentages at the com-
<br />
<br />Schematic Design Phase". 15%
<br />Design Development Phase 35%
<br />Construction Documents Phase 75%
<br />Receipt of Bids 80%
<br />Construction Phase 100%
<br />8.2 Payments for Additional Services of the Architect as
<br />defined in Article 4 above, and for Reimbursable Expense
<br />as defined in Article 7,2, shall be made monthly upon pres-
<br />entation of Architect's detailed invoice.
<br />8.3 No deduction shall be made from the Architect's com-
<br />pensation on account of penalty, liquidated damages, or
<br />other sums withheld from payments to contractors.
<br />8.4 If any work designed or specified by the Architect
<br />during any phase of service is abandoned or suspended in
<br />whole or in part, the Architect is to be paid for the service
<br />performed on account of it prior to receipt of written notice
<br />from the Owner of such abandonment or suspension, togeth.
<br />er with relmbuncments then due and any terminal expense
<br />resulting from abandonment or suspension for more than
<br />three months.
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<br />ARTICLF. 9. ARCHITECT'S ACCOUNTING RECORDS
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<br />Records of [he Architect's Direct Personnel, Consultant, and
<br />Reimbursable Expense pertaining to this Project and records
<br />of accounts between the Owner and Contractor shall be kept
<br />on a generally recognized accounting basis and shall be avail-
<br />able to the Owner or his authorized representative at mu-
<br />tually convenient times.
<br />
<br />ARTICLE 10. TERMINATION OF AGREEMENT
<br />
<br />This A greement may be terminated by either party upon
<br />seven day's written notice should the other party fail sub.
<br />stantially to perform in accordance with its terms through
<br />no fault of the other. In the event of termination, due to
<br />the fault of others than the Architect, the Architect shall be
<br />paid for services performed to termination date, including
<br />reimbllfsements then due, plus terminal expense.
<br />
<br />ARTICLE 11. OWNERSIDP OF DOCUMENTS
<br />
<br />Drawings and Specifications as instruments of service are
<br />the property of the Architect whether the Project for which
<br />they are made be executed or not. They are not to be used
<br />on other projects except by agreement in writing.
<br />
<br />ARTICLE 12. SUCCESSORS AND ASSIGNS
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<br />The Owner and the Architect each binds himself, his part-
<br />ners, successors, assigns and legal representatives to the other
<br />party to this Agreement and to the partners, successors,
<br />assigns and legal representatives of such other party in
<br />respect of all covenants of this Agreement. Neither the
<br />Owner ncr lhe Architecl shall assign, sublet or transfer his
<br />jnterest in this Agreement without the written consent of
<br />the other.
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<br />ARTICLE 13. ARBITRATION
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<br />Arbitration of all questions in dispute under this Agreement
<br />shall be at the choice of either party and shall be in accord~
<br />ance with the provisions, then obtaining, of the Standard
<br />Form of Arbitration Procedure of The American Institute
<br />of Architects. This Agreement shall be specifically enforce-
<br />able under the prevailing arbitratlon law and judgment
<br />upon the award rendered may be entered in the court of
<br />the forum, state or federal, having jurisdiction. The de-
<br />cisions of the arbitrators shall be a condition precedent to
<br />the right of any legal action.
<br />
<br />OWNER-ARCHITECT AGREEMENT
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<br />FOUR PAGES
<br />PAGE 3
<br />
<br />AlA DOC. B-l'31
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<br />SEP'I, 1963 ED,
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