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HomeMy WebLinkAbout45-79 RESOLUTION.T • I i RESOLUTION NO. 45-19 A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH YOUNG, HADAWAWI & DESHAZO, AND HALEY -POWERS ARCHITECTS FOR PREPARATIONS OF FINAL PLANS ,FOR A PARKING GARAGE TO BE LOCATED ADJACENT TO THE PROPOSED CONTINUING EDUCATION CENTER. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: That the Mayor and City Clerk are hereby authorized and directed to execute an agreement with Young, Hadawawi & DeShazo, and Haley -Powers Architects for preparation of the final plans for construction of a parking garage adjacent to the proposed Continuing Education Center. A copy of the agreement authorized for execution hereby is attached hereto, marked "Exhibit A" and made a part hereof. PASSED AND APPROVED this SP— day of 1979. vtdct..'n 'tet▪ .a. ATTESTA"r‘ 7:zr . ... :a 4.6 •• 4. 41'• 47 ▪ L“ W ki*C)Let LERK -"."•••••••:••••••e` APPROVED: .„\ chIASkVit% MAYOR MICROFILM DATE AUG 7 1979 REEL • .; AGREEMENT BETWEEN OWNER AND ENGINEER FOR PROFESSIONAL SERVICES Part I. PARTIES AND PROJECT THIS AGREEMENT is made on the 22nd Day of June in the year 197ibetween THE CITY OF FAYETTEVILLE, ARKANSAS the Owner and YOUNG HADAWI DeSHAZO INC. the Engineer, for the following Project: a parking structure the size of which was determined in the parking demand and financial feasibility study, located on a part of Block No. 15 on the original plat of the City of Fayetteville, Arkansas. The Owner and the Engineer agree as follows: k‘ Page of ACEC Owner -Engineer Agreement, Document No. 4 © THE AMERICAN CONSULTING ENGINEERS COUNCIL 1155 15th Street, N.W., Washington, D.C. 20005 • Part 11. ENGINEERING CHARGES: PERCENTAGE OF CONSTRUCTION COST A. In accordance with the Terms and Conditions of this Agreement, the ENGINEER shall provide professional services for which the OWNER shall compensate the ENGINEER as follows: A.1 Basic Services—As defined in Paragraph 1.1, on the basis of five 001 nt seven percent (less $15 000 00 in accordance with MD letter dated September 6, 1978) ( 5,7 oh) of the Construction Cost as defined in Article 7. A.2 Additional Services—As defined in Paragranh 1.2, as follows: A.2.1 Principals'.time at the rate of fifty dollars per hour dollars ($ 50.00 ) OXXXXXXMAIKAWMaXXXXXXXXXXXXXXXXXXXXX For the purposes of this Agreement, the Principles are identified as Ben W. Young, Habil Hadawi, John J. DeShazo, Jr., Newton L. Hailey, Jr. and David L Powers A.2.2 Employees' time (other than Principals') at a multiple of three times the employees' Direct Personnel Expense as defined in Article 3. ( 3 0 ) C A.2.3 Cost of services of other professional consultants at a multiple of one poi nt one five ( 1.15) times the amount billed to the ENGINEER by the professional consultants for such services. A.2.4 Reimbursable expenses - as defined in Article 4 at a multiple of one point one five (1.15). NkAmi4kijoe<anwk-xkX0CM400:00(Xkili9OAMOCCO3XXstX1X>MAIMFUPIXONIXE4XX3XXIMMXPAreAKXIISIXVIY000WNIMMX dollars ($ ), which shall be credited to the OWNER's account. lotxrflephttaxacAttxteCtoctefixotkboxVidxtotxtitionacxot1Optitix(xxxxx>ox A.5 PaymentsThoXIXXf0.0aX5agaadMOXXX shall be made monthly in proportion to services performed so that compensation at the completion of each Phase shall equal the following percentages of total basic compensation: Schcmatic Design Phase 20 070 35 Design Development Phase Construction Contract Documents Phase 80 Bidding or Negotiating Phase 85e0 Construction Phase 100 Page of II 0 t Part III. TERMS AND CONDITIONS Article 1. ENGINEER'S SERVICES 1.1 Basic Services—The Engineer agrees to perform professional services in connection with the Project, as set forth below and contained within this Agreement: 1.1.1 Assistance to the owner and subsequent contractor in the interpretation of plans and specifications prepared by the engineer. 1.1.2 Parking design to include: 1.1.2.a Parking and revenue controls system design 1.1.2.b Security system recommendation ' 1.1.2.c Graphics design recommendation 1.1.2.d Striping plan 1.1.2.e Recommend operation and management procedures 1.1.3 All reproduction costs for information exchange and for design needs during the design phase of the project. Litt, "ZIAi• DI \ .74565 uk.;tiGI 1.1.4 Expenses concerned withhee development of construction documents and specifications, including telephone, travel, lodging, sustenande-- and conferences with the owner as are indicated or necessary. 1.1.5 Investigate various structural systems for the project during the schematic and preliminary phase giving due consideration to con- struction economy and functional design. I Page of • 1 • Part III. TERMS AND CONDITIONS Article 1. ENGINEER'S SERVICES 1.1 Basic Services The ENGINEER agrees to perform professional services in connection with the Project, including normal iffNia* struc- tural, mechanical and electrical services and normal architec- tural services related thereto, as set forth below and contained within this Agreement: 1.1.2 Schematic Design Phase During the Schematic Design Phase the ENGINEER shall: 1.1.2.1 Consult with the OWNER to ascertain the OWNER's requirements for the Project. 1.1.2.2 Advise the OWNER as to the necessity of his ob- taining additional services such as described within Article I, paragraph 1.2 "Additional Services" and if authorized by the OWNER, shall provide, Or assist him in procuring such 'additional services. 1.1.2.3 Prepare a preliminary engineering study and report, which will consist of schematic design documents and reports of studies as necessary for review and written approval by the OWNER. 1.1.2.4 Prepare a statement of the ENGINEER's Opinion of the Construction Cost based upon the preliminary designs developed under this Phase. 1.1.2.5 Furnish Si X ( 6 ) copies of the Schematic Design Documents for the OWNER's review and approval. 1.1.3 Design Development Phase Upon receipt of the OWNER's written authorization to pro- ceed with the Design Development Phase, the ENGINEER shall: 1.1.3.1 Advise the OWNER as to the necessity of his ob- taining further additional services and if authorized by the OWNER, shall provide, or assist him in procuring such ser- vices. 1.1.3.2 Prepare from the approved Schematic Design Studies, for approval by the OWNER, the Design Develop- ment Documents consisting of design criteria, drawings and outline specifications to develop and establish the scope of the Project. 1.1.3.3 Prepare a statement of the ENGINEER's Opinion of the Construction Cost for the Project based upon designs established to this point. 1.1.3.4 Furnish Si X ( 6 ) copies of the Design De- velopment Documents for the OWNER's review and approval. 1.1.4 Construction Contract Documents Phase Upon receipt of the OWNER's written authorization to pro- ceed with the Construction Contract Documents Phase, the ENGINEER shall: 1.1.4.1 Prepare the required Contract forms including pro- posal forms and notice to bidders, drawings, technical specifications and other documents as required to complete the Construction Contract Documents.. 1.1.4.2 Furnish to the OWNER engineering data and docu- ments so that the OWNER may secure approval from governmental authorities having jurisdiction over the Project. 1.1.4.3 Advise the OWNER of any adjustments to previous ENGINEER's Opinion of the Construction Cost when changes in requirements, general market conditions or other conditions so warrant. 1.1.4.4 At the OWNER's request, assist the OWNER's legal counsel in connection with his review of the Construc- tion Contract Documents for their legally related aspects. 1.1.4.5 Furnish sepi a copies of the Construction Contract Documents for the OWNER's review and approval. 1.1.5 Bidding or Negotiating Phase Upon receipt of the OWNER's written approval of the Con- struction Contract Documents Phase and latest Opinion of the Construction Cost and written authorization to proceed with the Bidding or Negotiating Phase, the ENGINEER shall: 1.1.5.1 Assist the OWNER in obtaining bids or negotiating bid proposals, in analyzing bids and proposals, and in awarding the Construction Contract 1.1.6 Construction Phase Upon award of any Construction Contract based upon the Construction Contract Documents compiled by the ENGI- NEER, the Construction Phase of this Agreement shall com- mence and the ENGINEER shall: 1.1.6.1 Act as the OWNER s representative with duties and responsibilities and limitations of authority as described in the General Conditions to the Construction Contract. The OWNER shall not modify the Construction Contract Documents without the written consent of the ENGINEER. 1.1.6.2 Advise and consult with the OWNER during the Construction Phase and the ENGINEER shall issue the OWNER's authorized instructions to theCantractor. 1.1.6.3 Make periodic visits to the site of the construction to observe the progress and quality of the construction work and to determine, in general, if the results of the construction work are in accordance with the Drawings and the Specifica- tions. On the basis of his on-site observations as an ENGINEER, he shall endeavor to guard the OWNER against apparent defects and deficiencies in the permanent work constructed by the Contractor but does not guarantee the performance of the Contractor. The ENGINEER shall not be required to make exhaustive or continuous on-site ob- servations to check the quality or quantity of the construc- tion work. The ENGINEER is not responsible for construc- tion means, methods, techniques, sequences or procedures, time of performance, programs, or for any safety precau- tions in connection with the construction work. The ENGINEER is not responsible for the Contractor's failure to execute the work in accordance with the Construction Con- tract. 1.1.6.4 Review the Contractor's request for progressive payment, and based upon said on-site observation, advise the OWNER as to the ENGINEER's opinion of the extent of the work completed in accordance with the terms of the Construc- tion Contract as of the date of the Contractor's payment request and issue, for processing by the OWNER, a Certifi- cate for Payment in the amount owed the Contractor. The issuance of Certificates for Payment shall constitute a declar- ation by the ENGINEER to the OWNER, based upon said on-site observations, review and data accompanying the request for payment, that the Contractor's work has pro - 11 of gressed to the point indicated; that to the best of the ENG1- NEER's knowledge, information and belief, the quality of the Contractor's work is in accordance with the Construction Contract Documents (subject to subsequent tests and review required by the Construction Contract Documents, to correc- tion of minor deviations from the Construction Contract Documents and to qualifications stated in the Certificate for Payment); and that the Contractor is entitled to the amount stated. The issuing of the Certificate for Payment by the ENGINEER shall not represent that he has made any investi- gation to determine the uses made by the Contractor of sums paid to the Contractor. 1.1.6.5 Make recommendations to the OWNER on all claims relating to the execution and progress of the construc- tion work. The ENGINEER's decisions in matters.relating to the ENGINEER's design shall be final. 1.1.6.6 Notify the OWNER of permanent work which does not conform to the result required in the Construction Contract, prepare a written report describing any apparent non -conforming permanent work and make recommenda- tions to the OWNER for its correction and, at the request of the OWNER, have recommendations implemented by the Contractor. 1.1.6.7 Review shop drawings, samples, and other submit- tals of the Contractor only for general conformance to the design concept of the Project and for general compliance with the Construction Contract. 1.1.6.8 Prepare Change Orders for the OWNER's approval. 1.1.6.9 Conduct a construction progress review related to the Contractor's date of completion; receive written guarantees and related data assembled by the Contractor; and issue to the OWNER a Certificate of Final Payment. 1.1.6.10 The ENGINEER shall not be responsible for the defects or omissions in the work result of the Contractors, or any Subcontractors, or any of the Contractor's or Subcon- tractor's employees, or that of any other persons or entities responsible for performing any of the work result as con- tained in the Construction Contract. 1.1.6.11 see below 1.2 Additional Services If authorized in writing by the OWNER, the ENGINEER agrees to furnish or obtain from others, additional profes- sional services in connection with the Project, as set forth below and contained within this Agreement: 1.2.1 Preparation of applications and supporting docu- ments for govenment grants, loans or advances. 1.2.2 Making drawings from field measurements of existing construction when required for planning additions or altera- tions thereto. 1.2.3 Services due to changes in the scope of the Project or its design, including but not limited to, changes in size, com- plexity, schedule or character of construction. 1.2.4 Revising studies, reports, design documents, drawings or specifications which have previously been approved by the OWNER, or when such revisions are due to causes beyond the control of the ENGINEER. 1.2.5 Preparation of design documents for alternate bids or for out -of -sequence work requested by the OWNER. 1.2.6 Preparation of detailed renderings, exhibits or scale models for the Project. during the Construction Phase. 1.1.6.11 Making a review of the project prior to expiration of the guarantee period and reporting observed discrepancies under guarantees provided by tne construction contract. ?Pgie scc it 1.2.7 Providing special analysis of the OWNER's needs such as owning and operating analysis, OWNER's operating and maintenance manuals, OWNER's special operating draw- ings or charts, and any other similar analysis. 1.2.8 Providing planning surveys, site evaluations and com- parative studies of prospective sites. 1.2,9 Providing any type of field surveys for design pur- poses, "stake out" of the location of the work, and any other special field surveys. 1.2.10 Furnishing additional copies of reports and addi- tional prints of Drawings and Specifications in excess of those stipulated in the Agreement. 1.2.11 Investigations involving detailed consideration of operations, maintenance and overhead expenses; the prepara- tion Of rate schedules, earnings and expense statements, feasi- bility studies, appraisals and valuations; detailed quantity surveys of material and labor; and material audits or inven- tories required by the OWNER. 1.2.12 Additional services when the Project involves more than one Construction Contract, or separate equipment contracts. 1.2.13 Preparing special Change Orders when requested by the OWNER which are not within the scope of Article 1, "ENGINEER'S SERVICES," paragraph 1.1.6.8. 144t4cxkkakienixixxinxiMealoiexixixitxxxxvtoatimo5 timogansomOsackmIxixtorximootxtxx94<kgenowkx itaWItrittc*X MX 21$141V)061Mic101410:4514-X XXX xx 1.2.15 Preparing a set of reproducible record drawings conforming to construction records provided to the ENGINEER, made by the Contractor during the construction process. 1.2.16 Additional or extended services during construction made necessary by (I) work damaged by fire or other cause during construction, (2) defective or incomplete work of the Contractor, (3) prolongation of the initial Construction Contract time beyond the contract time, (4) acceleration of the work schedule involving services beyond established office working hours, and (5) the Contractor's default under Construction Contract due to delinquency or insolvency. 1.2.17 Providing assistance in the initial start-up, testing, adjusting or balancing, or operation of equipment or systems, or training personnel for operation or maintenance of equip- ment or system. 1.2.18 Providing design services relating to future facilities, systems and equipment which are not intended to be con- structed or operated as a part of the Project. 1.2.19 Providing services as an expert witness for the OWNER in connection with litigation or other proceedings involving the Project. at ordinary Additional Service rates set under Part 11 - "Engineering OMIT 1.2.20 Providing other services not otherwise provided for in this Agreement, including services normally furnished by the OWNER as described in Article 2, "OWNER'S RESPON- SIBILITIES." 1.2.21 Providing Resident Project Representative services to give the OWNER more extensive on-site representation Article 2. OWNER'S RESPONSIBILITIES The OWNER shall: 2.1 Provide to the ENGINEER all criteria, design and con- struction standards and full information as to the OWNER's requirements for the Project. 2.2 Designate in writing a person authorized to act as the OWNER S representative. The OWNER or his representative shall receive and examine documents submitted by the ENGINEER, interpret and define the OWNER's policies and render decisions and authorizations in writing promptly to prevent unreasonable delay in the progress of the ENGINEER's services. 2.3 Furnish to the ENGINEER a complete land survey of the Project site •which shall include but not be limited to service and utilities locations with depths and invert grades, easements, rights-of-way, contours, grades, streets, alleys, pavements, adjoining property, encroachments, zoning and deed restrictions, existing buildings, improvements and tree locations. 2.4 Furnish soils data including but not limited to reports, test borings, test pits, probines, subsurface exploration, soil bearing values, percolation tests, ground corrosion and resist- ivity tests, all with appropriate professional interpretation. 2.5 Furnish laboratory tests, air and water pollution tests, reports and inspections of samples, materials or other items required by law or by governmental authorities having juris- diction over this Project. 2.6 Provide legal, accounting, and insurance counseling services necessary for the Project, legal review of the Construction Contract Documents, and such auditing services as the OWNER may require to account for expenditures of sums paid to the Contractor. 2.7 Furnish permits and approvals from all governmental authorities having jurisdiction over this Project and from others as may be necessary for completion of the Project. 2.8 Furnish above services at the OWNER's expense and in such manner that the ENGINEER may rely upon them in the performance of his services under this Agreement. 2.9 Obtain bids or proposals from contractors for work relating to this Project and bear all costs relating thereto. 2.10 Protect and preserve all survey stakes and markers placed at he Project site prior to the assumption of this responsibility by the Contractor and bear all costs of replacing stakes or markers damaged or removed during said time interval. 2.11 Guarantee full and free access for the ENGINEER to enter upon all property required for the performance of the ENGINEER's services under this Agreement. 2.12 Give prompt written notice to the ENGINEER when- ever the OWNER observes or otherwise becomes aware of any defect in the Project or other event which may substantially affect the ENGINEER's performance of services under this Agreement. 2.13 Compensate the ENGINEER for services rendered 67), Page fr under this Agreement. • Article 3 DIRECT PERSONNEL EXPENSE Direct Personnel Expense is defined as the direct labor costs incurred by the ENGINEER directly attributable to the Project by the payment of the actual salaries and wages to the employees of the ENGINEER, but not including indirect payroll connected costs and other non -Project related costs. Article 4 REIMBURSABLE EXPENSES 4.1 Reimbursable Expenses ackirXeddilli084YOMIXIXSORD19TX tiOMMTINDIEWUrX1V44( Nttel1b4iK8erXiMiitrYcH include expenditures made by the ENGINEER, his employees or his consultants in the interest of the Project. Reimbursable Expenses include but are not limited to: 4.1.1 Expense of transportation, subsistence and lodging when traveling in connection with the Project. 4.1.2 Expense of long distance or toll telephone calls, tele- grams, messenger service, field office expenses, and fees paid for securing approval of authorities having jurisdiction over the Project. 4.1.3 Expense of all.reproduction, postage and handling of Drawings, Specifications, reports or other Project -related work product of the ENGINEER. 4.1.4 Expense of computer time including charges for proprietary programs. 4.1.5 When authorized in advance by the OWNER, expense of overtime work requiring higher than normal rates, and expense of preparing perspectives, renderings or models. Article 5 PAYMENTS TO THE ENGINEER 5.1 Progress payments shall be made in proportion to services rendered and as indicated within this Agreement and shall be due and owing within thirty days of the ENGINEER's submittal of his monthly statement. Past due amounts owed shall include a charge at the maximum legal rate of interest from the thirtieth day. 5.2 If the OWNER fails to make monthly payments due the ENGINEER, the ENGINEER may, after giving seven days written notice to OWNER, suspend services under this Agree- ment. 5.3 No deductions shall be made from the ENGINEER's compensation on account of penalty, liquidated damages or other sums withheld from payments to Contractors. 5.4 If the Project is delayed or if the ENGINEER's services for the Project are delayed or suspended for more than ttacc nine months for reasons beyond the ENGINEER's control, the ENGINEER may, after giving seven days written notice to the OWNER, terminate this Agreement and the OWNER shall compensate the ENGINEER in accordance with the termina- tion provision contained hereafter in this Agreement. 1 of____ • Article 6 GENERAL PROVISIONS 6.1 Ownership of Documents All Drawings, Specifications and other work product of the ENGINEER for this Project are instruments of service for this Project only and shall remain the property of the ENGINEER whether the Project is completed or not. Reuse of any of the instruments of service of the ENGINEER by the OWNER on extensions of this Project or on any other project without thc written permission of the ENGINEER shall be at the OWNER's risk and the OWNER agrees to defend, indem- nify and hold harmless the ENGINEER from all claims, damages, and expenses including attorneys' fees arising out of such unauthorized reuse of the ENGINEER's instruments of • service by the OWNER OR BY OTHERS ACTING THROUGH THE OWNER. Any reuse or adaptation of the ENGINEER's instruments of service occurring after the written agreement of the ENGINEER shall entitle the ENGINEER to further compensation in amounts to be agreed upon by the OWNER and the ENGINEER. • 6.2 Delegation of Duties Neither the OWNER nor the ENGINEER shall delegate his duties under this Agreement without the written consent of the other. 6.3 Termination This Agreement may be terminated by either party by seven days written notice in the event of substantial failure to per- form in accordance with the terms of this Agreement by the other party through no fault of the terminating party. If this Agreement is terminated, the ENGINEER shall be paid for services performed to the termination notice date including Reimbursable Expenses due plus Termination Expenses. Termination Expenses are defined as Reimbursable Expenses directly attributable to termination, plus 15% of the total compensation earned to the time of termination to account for ENGINEER's rescheduling adjustments, reassignment of personnel and related costs incurred due to termination. 6.4 Extent of Agreement This Agreement represents the entire and integrated agree- ment between the OWNER and the ENGINEER and super - cedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended Only by written instrument signed by both the OWNER and the ENGINEER. 6.5 Governing Law Unless otherwise specified within this Agreement, this Agree- ment shall be governed by the law of the placcotontxtscuol Cliek*W138MFOR State of Arkansas. 6.6 General 6.6.1 Should litigation or arbitration occur between the two parties relating to the provisions of this Agreement, all liti- gation or arbitration expenses, collection expenses, witness fees, court costs and attorneys fees incurred by the prevailing party shall be paid by the non -prevailing party to the pre- vailing party. 6.6.2 Neither party shall hold the other responsible for damages or delay in performance caused by acts of God, strikes, lockouts, accidents, or other events beyond the control of the other or the other's employees and agents. 6.6.3 In the event any provisions of this Agreement shall be held to be invalid and unenforceable, the remaining provis- ions shall be valid and binding upon the parties. One or more waivers by either party of any provision, term, condition or covenant shall not be construed by the other party as a waiver of a subsequent breach of the same by the other party. 6.6.4 The ENGINEER has not been retained or compen- sated to provide design and construction review services relating to the Contractor's safety precautions or to means, methods, techniques, sequences, or procedures required for the Contractor to perform his work but not relating to the final or completed structure; omitted services include but are not limited to shoring, scaffolding, underpinning, temporary retainment of excavations and any erection methods and temporary bracing. 6.6.5 The ENGINEER intends to render his services under this Agreement in accordance with generally accepted profes- sional practices for the intended use of the Project and makes no warranty either express or implied. 6.6.6 Any Opinion of the Construction Cost prepared by the ENGINEER represents his judgment as a design professional and is supplied for the general guidance of the OWNER. Since the ENGINEER has no control over the cost of labor and material, or over competitive bidding or market conditions, the ENGINEER does not guarantee the accuracy of such Opinions as compared to Contractor bids or actual cost to the OWNER. I Page .11._of • • S • . Article 7. SPECIAL PROVISIONS 7.1 Insurance and Indemnil). 7.1.1 Engineer's Insurance—The ENGINEER shall acquire and maintain statutory workmen's compensation insurance coverage, employer's liability, comprehensive general liability insurance coverage and professional liability insurance coverage. The limits and deductible applicable to both comprehensive general liability and professional liability shall be established under a separate agreement between the parties. 7.1.2 Contractor's Insurance—Prior to the commencement of the work, the OWNER shall require the Contractor and any Sub- contractors to submit evidence that he (they) have obtained for the period of the Construction Contract and the guarantee period comprehensive general liability insurance coverage (including completed operations coverage). This coverage shall provide for bodily injury and property damage arising directly or indirectly out of, or in connection with, the performance of the work under the Construction Contract, and have a limit of not less than $ 300,000 for all damages arising out of bodily injury, sickness or death of one person and an aggregate of $ 500,000 for damages arising out of bodily injury, sickness and death of two or more persons in any one occurrence. The property damage portion will provide for a limit of not less than $ 300,000 for all damages arising out of injury to or destruction of property of others arising directly or indirectly out of or in connection with the performance of the work under the Construction Contract and in any one occurrence including explosion, collapse and underground exposures. Included in such coverage will be contractual coverage sufficiently broad to insure the provision of paragraph 7.1.4 "Indemnity". The comprehensive general liability insurance will include as additional named insureds: the OWNER • the ENGINEER; and each of their officers, agents and employees. 7.1.3 Builders Risk "All Risk" Insurance—Before commencement of the work, the OWNER will require that the Contractor and any Subcontractors submit written evidence that he (they) have obtained for the period of the Construction Contract, Builders Risk "All Risk" Completed Value Insurance Coverage (including earthquake and flood) upon the entire Project which is the subject of the Construction Contract. Such insurance shall include as additional named insureds: the OWNER; the ENGINEER; and each of their officers, agents, employees and any other persons with an insurable interest as maybe designated by the OWNER. Such insurance may have a deductible clause but not to exceed $5,000, except that the earthquake deductible may be in accordance with generally accepted insurance practices in the locale where the coverage is issued. 7.1.4 Indemnity—The OWNER will require that any Contractor or Subcontractors performing work in connection with Drawings and Specifications produced under this Agreement to hold harmless, indemnify and defend, the OWNER and the ENGINEER, their consultants, and each of their officers, agents, and employees from any and all liability claims, losses or damage arising out of or alleged to arise from the Contractor's (or Subcontractor's) negligence in the performance of the work described in the Construction Contract Documents, but not including liability that may be due to the sole negligence of the OWNER, the ENGINEER, their consultants or their officers, agents and employees. 7.1.5 Young Hadawi DeShazo Inc., Consulting Engineers, Dallas, Texas will associate with Hailey -Powers, Architects, 200 West Center Street, Fayetteville, Arkansas for prosecution of the work and for the maintenance of the necessary local liaison with the City of Fayetteville and all interested parties. A Page 41- of • • 7.2 Construction Cost 7.2.1 Construction Cost, when used as the basis for determining the ENGINEER's compensation, shall be defined as the total cost to the OWNER or the ENGINEER's Opinion of the Construction Cost for all construction designed or specified by the ENGINEER including the costs of labor, materials, equipment and specified furnishings, and cost of management of construc- tion, but not including the ENGINEER's or other consultant's compensation and expenses, the cost of land, rights-of-way or easements, nor the OWNER's cost of legal, accounting, auditing or insurance counseling services, or interest and financing charges for the Project, nor other costs listed in Article 2 "OWNER'S RESPONSIBILITY." The Construction Cost shall be determined as follows with procedence in the order listed - 7.2.1.1 For completed construction the costs to the OWNER of all construction work performed. 7.2.1.2 For construction work not constructed, the lowest bona fide bid received from a qualified bidder. 7.2.1.3 For work for which bids are not received, ENGINEER's latest Opinion of the Construction Cost. 7.2.2 Labor furnished by the OWNER for the Project construction shall be included in the Construction Cost at current market rates including a reasonable allowance for overhead and profit. Material and equipment furnished by the OWNER for the Project shall be included in the Construction Cost at current market prices, F.O.B. Project site, except that used material and equipment shall be included as if purchased new for the Project. 7.2.3 When a fixed limit of Construction Cost is established as a condition of this Agreement, it shall be in writing signed by both OWNER and ENGINEER and shall include a ten percent bidding contingency, unless another amount is agreed upon in writing. When such fixed limit is established the ENGINEER shall be permitted to determine what materials, equipment, component systems, types of construction and alternative bid items are to be included in the Construction Contract Documents, and to make reasonable adjustments in the scope of the Project to bring it within the fixed limit. Acceptance by the OWNER of a revised Opinion of Construction Cost in excess of the fixed limit shall constitute a corresponding increase in the fixed limit of Construction Cost. 7.2.4 After completion of the Construction Contract Documents Phase, if the Bidding or Negotiating Phase does not commence within six months, any fixed limit of the Construction Cost shall be adjusted to reflect general construction industry price level increases occurring between the date of ENGINEER's submittal to the OWNER of the final Construction Contract Document and the date on which bids or proposals are sought. 7.2.5 If the lowest bona fide bid or the ENGINEER's Opinion of the Construction Cost exceeds such fixed limit of Construc- tion Cost (including the bidding contingency) established as a condition of this Agreement, the OWNER shall (1) give written approval for an increase in such fixed limit, (2) authorize re -bidding within a reasonable time, or (3) cooperate in revising the Project scope and quality as required to reduce the Construction Cost. In the case of (3) the ENGINEER, without additional charge, shall modify the Construction Contract Documents, as the ENGINEER deems necessary, to bring the Construction Cost within the fixed limit. The providing of this service once shall be the limit of the ENGINEER's responsibility in this regard, and having so performed this service the ENGINEER shall be entitled to his compensation in accordance with this Agreement. Page (f4" offl • 7.3 Resident Construction Review Services 7.3.1 If requested by the OWNER or recommended by the ENGINEER and approved in writing by the OWNER, the ENGINEER shall provide one or more full time Resident Project Representatives to assist the ENGINEER in order to render . more extensive representation at the Project site during the Construction Phase. Such Resident Construction Review Services shall be paid for by the OWNER as Additional Services as defined within this Agreement The limits of the authority, duties and responsibilities of a Resident Project Representative shall be described before such services begin by written instruments labeled Exhibit A, attached to, and made a part Of this Agreement. 7.3.2 By means of the more extensive on-site observations of the work in progress, the ENGINEER will endeavor to provide further protection for the OWNER .against defects and deficiencies in the Contractor's work, but the furnishing of such services shall not include construction review of the Contractor's construction means, methods, techniques, sequences or procedures, or of any safety precautions and programs in connection with the %%Fork, and the ENGINEER shall not be responsible for the Con- tractor's failure to carry out the work in accordance with the Construction Contract. rr, 1 Page ' 't of 0 • . • • This Agreement executed the day and year written at the beginning of the Agreement. OWNER: ENGINEER: • kTY 0 c- n\N ETTEN Lig pRv._ YOONG HABAilt DeSHAZO INC. t3\i ONIACL)--- 15z • Oki, \, thiL By, -Ben IA)?Young, P eyy dent 1\1\k‘1017_, 11 Page tk