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1. <br />2. <br />3. <br />4. <br />5. <br />8. <br />8. <br />PROVISIONS OF THE AUTHORIZATION FOR PROFESSIONAL SERVICES <br />(Public Agency Client) <br />AUTHORIZATION TO PROCEED <br />Signing this Agreement shall be construed as <br />authorization by CLIENT for Cobb, Fendley & <br />Associates, Inc. (CobbFendley) to proceed with the <br />services, unless otherwise provided for in this <br />agreement. <br />INTERPRETATION OF FEES <br />Unless specified as hourly, the fees shown herein are <br />considered lump sum amounts. <br />DIRECT PERSONNEL EXPENSE <br />Direct Labor Costs means salaries and wages paid to <br />CobbFendley's employees plus payroll related costs <br />and benefits such as payroll taxes, worker's <br />compensation, health and retirement benefits, <br />bonuses, sick leave, vacation, and holiday pay <br />applicable hereto. <br />DIRECT EXPENSES <br />CobbFendley's direct expenses shall be those costs <br />incurred on or directory for the CLIENT'S project, <br />including but not limited to necessary transportation <br />costs including mileage at the current IRS rate, meals <br />and lodging, laboratory tests and analyses, and printing <br />and binding charges. These direct expenses shall be <br />billed in accordance with the attached rate schedule. <br />OUTSIDE SERIVICES <br />When technical or professional services are furnished <br />by an outside source, when approved by the CLIENT, <br />an additional amount shall be added to the cost of <br />these services by CobbFendley to cover its <br />administrative costs, as provided in this Agreement. <br />COST PROJECTIONS <br />If included in CobbFendley's scope of services, <br />opinions or estimates of probable construction costs <br />are prepared on the basis of CobbFendley's experience <br />and qualifications and represent CobbFendley's <br />judgment as a professional generally familiar with the <br />industry. However, since CobbFendley has no control <br />over the cost of labor, materials, equipment or services <br />furnished by others, over contractor's methods of <br />determining prices, or over competitive bidding or <br />market conditions, CobbFendley cannot and does not <br />guarantee, represent or warrant that proposals, bids, or <br />the actual construction cost will not vary from <br />CobbFendley's opinions or estimates of probable <br />construction cost. <br />PROFESSIONAL STANDARDS <br />CobbFendley agrees to perform its services in <br />accordance with the standard of professional care used <br />by other practicing professional engineers of ordinary <br />prudence in the same field of engineering and <br />performing the same type of work in CLIENT'S <br />community under the same or similar circumstances. <br />CobbFendley makes no other warranty, expressed or <br />implied. <br />TERMINATION <br />Either CLIENT or Cobb Fendley may terminate this <br />Agreement by giving 30 days written notice to the other <br />party. In such event, CLIENT shall forthwith pay <br />CobbFendley in full for all services previously <br />authorized and performed prior to effective date of <br />termination. If no notice of termination is given, <br />relationships and obligations created by this Agreement <br />shall be terminated upon completion of all applicable <br />requirements of this Agreement. Failure by Client to <br />make payments when due shall be cause for <br />suspension of services or, ultimately, termination, <br />unless and until CobbFendley has been paid in full all <br />amounts due for services, expenses and other related <br />charges, including interest on past due amounts. <br />9. REUSE OF DOCUMENTS <br />Any reuse by the client or others of documents or plans <br />that result from CobbFendley's services under this <br />agreement shall be at the client's or other's sole risk <br />without liability to Cobb Fendley. <br />10. INDEMNIFICATION <br />To the fullest extent permitted by law, CobbFendley <br />shall indemnify and hold harmless the CLIENT and <br />OWNER and their respective officers and employees <br />from and against all claims, actions, proceedings, <br />liabilities, losses, damages, costs and expenses, <br />including reasonable legal fees, which the CLIENT and <br />OWNER and their respective officers and employees <br />may sustain to the extent or degree on a comparative <br />basis of fault arising from the negligent acts, errors or <br />omissions of CobbFendley, its officers, employees or <br />subconsultants, arising from the services provided <br />herein. <br />11. LIMITATION OF LIABILITY <br />THE LIABILITY OF COBB FENDLEY TO THE CLIENT SHALL <br />BE LIMITED TO SERVICES PERFORMED SOLEY BY <br />COBBFENDLEY. THE LIABILITY OF COBB FENDLEY TO THE <br />CLIENT FOR ANY CAUSE OR COMBINATION OF CAUSES IS, <br />IN THE AGGREGATE, LIMITED TO AN AMOUNT NO GREATER <br />THAN THE FEE EARNED UNDER THIS AGREEMENT. <br />COBBFENDLEY IS NOT RESPONSIBLE FOR ANY <br />CONSEQUENTIAL DAMAGES THAT MAY BE SUSTAINED BY <br />THE CLIENT OR THE CLIENT'S AGENTS. <br />12. MEDIATION <br />In the event that any dispute shall arise between Client <br />and CobbFendley regarding the parties rights or <br />obligations under this Agreement, the parties shall, as <br />a condition precedent to taking any action against one <br />another make a good faith effort to resolve such <br />disagreements by negotiation and/or non -binding <br />mediation. <br />13. LEGAL EXPENSES <br />In the event that legal action is brought by CLIENT or <br />CobbFendley against the other party to enforce any of <br />the obligations hereunder or arising out of any dispute <br />concerning the terms and conditions hereby created, <br />the losing party shall pay the prevailing party such <br />reasonable amounts for fees, costs and expenses as <br />may be set by the court. <br />14. PAYMENT TO COBBFENDLEY <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 <br />the rate of 1.5% per month may be charged on all past - <br />due amounts, unless not permitted by law, in which <br />case, interest will be charged at the highest amount <br />permitted by law. Pending resolution of any dispute <br />concerning any portion of any invoice submitted by <br />CobbFendley, all undisputed portions shall be paid in <br />accordance with this paragraph. If payment is not <br />received within 45 days from date of invoice, <br />CobbFendley retains the right to cease further work on <br />the project until such time that the overdue invoices are <br />paid. CobbFendley also retains the right to withhold <br />final approved plans and other deliverables until all <br />overdue invoices are paid. <br />D:\DOCS\PROPOSALS\SMALL PROPOSALS\2009\LA PORTE MCCABE SEWER\PROPOSAL.DOC <br />