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.' ,. I 5.5 He shall arrange and pay for such legal, auditing, and insurance counselling services as may be required for the Proje:ct. 5.6 If the Owner observes or otherwise becomes aware of any defect in the Project, he shall give prompt written notice thereof to the Architect. ARTICLE 6. PROJECT CONSTRUCTION COST 'J 6.1 Proj.ect Construction Cost as here.in referred to means the total cost of all work designed or specified by the Architect, but does not include any payments made to the Architect or consultants. 6.2 Project Construction Cost shall be based upon one of the following sources with precedence in the order listed: 6.2.1 Lowest acceptable bona fide Contractor's proposal received for any or all portions of the Project. 6.2.2 Semi-Detailed or Detailed Estimate of Project Con- struction Cost as defined in paragraph 6.4 below. 6.2.3 The Architect's latest Statement of Probable Project Construction Cost based on current area, volume or other unit costs. 6.3 When labor or material is furnished by the Owner, the Project Construction Cost shall include such labor and material at CUrrent market COst. 6.4 If a fixed limit of Project Construction Cost is stated herein, or if otherwise authorized by the Owner, Estimates of the Probable Project Construction Cost prepared in Semi-Detailed or Detailed form by an experienced estimator will be secured by the Architect during the Design Developw ment or Construction Documents Phase. 6.5 If the Statement of Probable Project Construction Cost, or the Semi-Detailed or Detailed Cost Estimate, or the lowest bona fJde proposal is in excess of any limit stated herein, the Owner shall give written approval of an increase in the nmit, or he shall cooperate in revising the project scope or quality, or both, to reduce the cost as required_ 6.6 Since the Architect has no control over the cost of labor and materials, or competitive bidding, he does not guarantee the accuracy of any Statements of Probable Con- struction Cost, or any Semi-Detailed or Detailed Cost Esti- mates. ARTICLE 7. OIRECT & REIMJlURSABLE EXPENSE . 7.1 Direct Personnel Expense includes that of principals and employees engaged on the Project including architects, engineers, designers, job captains, draftsmen, specification writers, typists and Project Representatives, in consultation, research, designing, producing draWing, specifications and other documents pertaining to the Project, and services dur- ing construction at the Project site. 7.2 Reimbursable Expense includes actual expenditures made by the Architect in the interest of. the Project for the following incidental expenses: 7.2.1 Expense of transportation and living of principals and eID;ployees when traveling in connection with the Project; long dIstance calls and telegrams; reproduction of draWings and specifications, exclUding copies for Architect's office use and dupHcate sets at each phase fDr the Owner's review and approval; and fees paid for securing approval of authorities having jurisdiction over the Project. 7.2.2 .If authorized in advance by the Owner, the expense of Project Representative, overtime work requiring higher than regular rates, perspecth'es or models for the Owner's Use. 7.2.3 If their employment is authorized in advance by the Owner~ fees of special consultants, for other than the normal structural, mechanical and electrical engineering services. ARTICLE 8. PAYMENTS TO THE ARCHITECT 8.1 Payments on account of the Architect's basic services shan be as follows: 8.1.1 ~~ ...;111 ,.1 . t'~;u ': t'~J ' t [j r- ~v l f tl. M l);'!R.1B.ti: L[ t':'1'_ v_ .1 ,.r~J ' I .l' ~ t nllu i tla "~H2 lint, in tftl! IM- - R 'i.:lIRiRt "'if tJ;- ~ 8.1.2 ~Payments shall be made montWy in pro- portion to services performed to increase the compensation for basic services to the following percentages at the com~ pletton of each phase of the work: Schematic Design Phase 15% Design Development Phase 35% Construction Documents Phase 75% Receipt of Bids 80% Construction Phase 100% 8.2 Payments for Additional Services of the Architect as defined in Article 4 above, and for Reimbursable Expense as defined in Article 7.2, shaH be made monthly upon pres- entation of Architect's detailed invoice. 8.3 No deduction shall be made from the Architect's com. pensation on account of penalty, liquidated damages, or other sums withheld from payments to contractors. 8,4 If any work designed or speCified by the Architect during any phase of service is abandoned or suspended in whole or in part, the. Architect is to be paid for the service performed on account of it prior to receipt of written notice from the Owner of such abandonment or suspension, togeth. er with. l'eimbur:;ements then due and any terminal expense resulting from abandonment Or suspension for more than three months, ARTICLE 9. ARCHITECT'S ACCOUNTING RECORDS Records of the Architect's Direct Personnel, Consultant, and Reimbursable Expense pertaining, to this Project and records of accounts between the Owner and Contractor shall be kept on a generally recognized accounting basis and shall be avail- able to the Owner or bis authorized representative at mu- tually convenient times. ARTICLE 16. TERMINATION OF AGREEMENT This Agreement may be terminated by either party upon seven day's written notice should the other party fail sub- stantially to perform in accordance with its terms through no fault of the other. In the event of termination, due to the fault of others than the Architect, the Architect shall be paid for services performed to termination date, including reimbursements then due! plus terminal expense. ARTICLE 11. OWNERSIDP OF DOCUMENTS Dnlwings and Specifications as instruments of service are the property of the Architect whether the Project for which they are made be executed 01' not. They are not to be used on other projects except by agreement in writing. ARTICLE 12. SUCCESSORS ANn ASSIGNS The Owner and the Architect each binds himself, his part- ners, successors, assigns and legal representatives to the other party to this Agreement and to the partners, sUCcessors, assigns and legal representatives of such other party in respect of all covenants of this Agreement. Neither the Owner nor the Architect shall assign, sublet or transfer his interesl in this Agreement without the written consent of the other_ ARTICLE 13. ARJlITRATION Arbitration of all questions in dispute under this Agreement shall be at the choice of either party and shall be in accord~ ance with the provisions, then obtaining, of the Standard Form of Arbitration Procedure of The American Institute of Architects. This Agreement shall be specifically enforcew able under the prevailing arbitration law and judgment upon the award rendered may be entered in the court of the forum, state or federal, having jurisdiction. The de- cisions of the arbitrators shaU be a condition precedent to the right of any legal action. OWNER-ARCHITECT AGREEMENT FOUR PAGES PAGE 3 ALA DOC. B-131 SEPT. 1963 ED.