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PROVISIONS OF THE AUTHORIZATION FOR PROFESSIONAL SERVICES <br />1. AUTHORIZATION TO PROCEED <br />Signing this Agreement shall be construed as authorization <br />by CITY for Cobb, Fendley & Associates, Inc. (Cobb <br />Fendley) to proceed with the services, unless otherwise <br />provided for in this agreement. <br />2. INTERPRETATION OF FEES <br />Unless specified as hourly, the fees shown herein are <br />considered lump sum amounts. <br />3. DIRECT PERSONNEL EXPENSE <br />Direct Labor Costs means salaries and wages paid to Cobb <br />Fendley's employees plus payroll related costs and benefits <br />such as payroll taxes, worker's compensation, health and <br />retirement benefits, bonuses, sick leave, vacation, and <br />holiday pay applicable hereto. <br />4. DIRECT EXPENSES <br />5. <br />6. <br />8. <br />9. <br />10. <br />CobbFendley's direct expenses shall be those costs <br />incurred on or directory for the CITY'S project, including but <br />not limited to necessary transportation costs including <br />mileage at the current IRS rate, meals and lodging, <br />laboratory tests and analyses, and printing and binding <br />charges. These direct expenses shall be billed in <br />accordance with the attached rate schedule, or at actual <br />cost plus a 10% administrative fee. <br />OUTSIDE SERIVICES <br />When technical or professional services are furnished, with <br />approval by the CITY, by an outside source; an additional <br />10% administrative fee shall be added to the cost of these <br />services by CobbFendley to cover CobbFendley's <br />administrative costs. <br />COST PROJECTIONS <br />Any cost projections by CobbFendley will be on a basis of <br />experience and judgment, but since it has no control over <br />market conditions or bidding procedures, Cobb Fendley <br />cannot warrant that bids or ultimate construction costs will <br />not vary from these cost projections. <br />PROFESSIONAL STANDARDS <br />CobbFendley will be responsible, to the level of <br />competency presently maintained by other practicing <br />professionals providing the same type of services in CITY'S <br />community, for the professional and technical soundness, <br />accuracy, and adequacy of all design, drawings, <br />specifications, and other services and materials furnished <br />under this Agreement. Cobb Fendley makes no other <br />warrant, expressed or implied. <br />TERMINATION <br />Either CITY or CobbFendley may terminate this Agreement <br />by giving 30 days written notice to the other party. In such <br />event, CITY shall forthwith pay Cobb Fendley in full for all <br />services previously authorized and performed prior to <br />effective date of termination. If no notice of termination is <br />given, relationships and obligations created by this <br />Agreement shall be terminated upon completion of all <br />applicable requirements of this Agreement. <br />OWNERSHIP OF DOCUMENTS <br />CobbFendley retains the ownership of all drawings, <br />documents, specifications, exhibits and reports produced <br />by Cobb Fendley. Copies of these documents will be made <br />available to the CITY upon request. <br />INDEMNIFICATION <br />To the fullest extent permitted by law, CobbFendley shall <br />indemnify and hold harmless the CITY and OWNER and <br />their respective officers and employees from and against all <br />claims, actions, proceedings, liabilities, losses, damages, <br />costs and expenses, including reasonable legal fees, which <br />the CITY and OWNER and their respective officers and <br />employees may sustain to the extent or degree on a <br />comparative basis of fault arising from the negligent acts, <br />errors or omissions of CobbFendley, its officers, employees <br />or subconsultants, arising from the services provided <br />herein. <br />To the fullest extent permitted by law, the CITY shall <br />indemnify and hold harmless CobbFendley and its <br />respective officers, employees and subconsultants from <br />and against all claims, actions, proceedings, liabilities, <br />losses, damages, costs and expenses, including <br />reasonable legal fees, which CobbFendley and its <br />respective officers, employees or subconsultants may <br />sustain to the extent or degree on a comparative basis of <br />fault arising from the negligent acts, errors or omissions of <br />the CITY. <br />11. LIMITATION OF LIABILITY <br />THE LIABILITY OF COBB FENDLEY TO THE CITY SHALL BE <br />LIMITED TO SERVICES PERFORMED SOLELY BY COBBFENDLEY. <br />THE LIABILITY OF COBB FENDLEY TO THE CITY FOR ANY <br />CAUSE OR COMBINATION OF CAUSES IS, IN THE AGGREGATE, <br />LIMITED TO AN AMOUNT NO GREATER THAN THE FEE EARNED <br />UNDER THIS AGREEMENT. <br />COBBFENDLEY IS NOT RESPONSIBLE FOR ANY <br />CONSEQUENTIAL DAMAGES THAT MAY BE SUSTAINED BY THE <br />CITY OR THE CITY'S AGENTS. <br />12. MEDIATION <br />If all claims, counterclaims, disputes and other matters in <br />questions between the CITY and CobbFendley arising out <br />of or relating to this Agreement or the breach thereof <br />cannot be settled through direct discussion, the parties <br />hereto agree to first endeavor to settle the dispute in an <br />amicable manner by nonbinding mediation under the <br />Construction Industry Mediation Rules of American <br />Arbitration Association, before having recourse to <br />arbitration or any other judicial forum. <br />13. LEGAL EXPENSES <br />In the event that legal action is brought by CITY or Cobb <br />Fendley against the other party to enforce any of the <br />obligations hereunder or arising out of any dispute <br />concerning the terms and conditions hereby created, the <br />losing party shall pay the prevailing party such reasonable <br />amounts for fees, costs and expenses as may be set by the <br />court. <br />14. PAYMENT TO COBB FENDLEY <br />Monthly invoices will be issued by CobbFendley for all <br />services performed under the terms of this agreement. <br />Invoices are due and payable upon receipt. Interest at the <br />rate of 1.5% per month may be charged on all past -due <br />amounts, unless not permitted by law, in which case, <br />interest will be charged at the highest amount permitted by <br />law. <br />If CITY is not the OWNER, CITY agrees to pay Cobb <br />Fendley within 10 working days of receipt of payment from <br />OWNER. <br />15. ADDITIONAL SERVICES <br />Any services not included in the Scope of Services in this <br />proposal shall be provided by CobbFendley, when <br />specifically authorized in writing by the CITY, on a per diem <br />and expense basis in accordance with the attached Rate <br />Schedule. A copy of our "Supplement to Original <br />Agreement' is attached. <br />C:\Users\hlyle\Documents\_PROJECTS\La Porte Fairmont Park\Fairmont Park Proposal.doc <br />