Project Goals: Based on our discussions with you, we understand the current project goals and scope to be as follows:
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1 NOTE: THIS SAMPLE AGREEMENT HAS BEEN PROVIDED FOR THE PURPOSES OF DISCUSSION ONLY. THIS IS NOT A CONTRACT AND HAS NOT BEEN REVIEWED BY LEGAL PROFESSIONALS. ANY USE OF THE LANGUAGE CONTAINED IN THIS DOCUMENT IS AT THE SOLE RISK OF THE USER. IT IS RECOMMENDED THAT ALL CONTRACTS BE REVIEWED BY LEGAL PROFESSIONALS. NOTE: ITEMS INDICATED IN RED BELOW ARE GENERIC OR SPECIFIC TO A PARTICULAR JOB AND AND WOULD NORMALLY BE REPLACED WITH INFORMATION RELATED TO THE PROJECT DATE CLIENT ADDRESS 1 ADDRESS 2 PHONE Re: Proposed remodel at ADDRESS Dear CLIENT; As requested we have prepared this proposal outlining our services and fees for your proposed renovation of PROJECT LOCATION. The property consists of an apartment building with seven units. For the purposes of this document it is understood that the term Client refers to yourself and Designer refers to INSERT DESIGNER S NAME. Project Goals: Based on our discussions with you, we understand the current project goals and scope to be as follows: 1) The kitchens and bathrooms of all seven apartment units are to be renovated, including the possibility of removing or creating openings in walls between the kitchens and living rooms. 2) New exterior lighting is to be provided, the facades are to be cleaned up (new paint, removing conduit etc.) and a new sidewalk and fence are to be provided. Proposed Work Covered by this Proposal: The following work will be completed by the Designer: 1) Design of the items identified in the Project Goals section of this proposal. This work will be sequenced and integrated with the work of the consulting engineers as follows: a) Site Documentation: The Designer will undertake measurement and documentation activities of the existing buildings as necessary to inform their design activities. This will include the production of base drawings for the use of the Client s Structural Engineer.
2 b) Kitchen and Bathroom Design: The Designer will prepare one design for each kitchen and bath. This will include plans, elevations, lighting plans, material selection, and fixture and appliance selection. However, it is an understanding of this proposal that the same materials, fixtures and appliances will be used in each apartment. c) Permit Documents and Plan Check: based on the Client s approval of the Kitchen and Bathroom Design this phase will provide documentation of the design intent as required to secure city approvals to permit construction. Complete construction details typical of a Construction Drawing package will not be included. d) Bidding & Negotiation Services: the Designer will assist the owner in the review of competitive bids or negotiated proposals for the execution of the work by a licensed general contractor. e) Construction Observation: the Designer will make visits to the job-site during construction to observe the contractor s progress and answer questions related to the Construction Documents. Exclusions: All design and consulting services not explicitly included above is excluded from this proposal, and is assumed to be the responsibility of the Client or may be performed as an Additional Service on an hourly basis in accordance with the attached hourly rate sheet or under a separate proposal. Normal reimbursable expenses are listed separately below. The following is also excluded from this proposal: NOTE: THESE SHOULD BE EVALUATED FOR APPLICABILITY. ADDITIONAL ITEMS SHOULD BE EXCLUDED AS APPROPRIATE 1) It is an assumption of this proposal that the Project Goals will be achieved within the property s entitlements and that special submittals, such as for variances, remediation of existing structures that are not in compliance with code requirements, etc., will not be required. Work related to such submittals, should they be required, is excluded from this proposal. 2) It is an assumption of this proposal that Structural Engineering services will be retained separately by the Client. 3) It is an assumption of this proposal that work related to Mechanical, Electrical and Plumbing trades will be executed on a design/build basis by licensed contractors and that design and permits for this work will be obtained separately by said contractors. In addition, since the professional consulting services of structural, mechanical, electrical, plumbing and civil engineers are not included within this proposal, the Client should understand that the inclusion and coordination of such professionals advice at subsequent stages of the design process may necessitate adjustments to the design. 4) Work related to re-design of elements resulting from Client-requested changes after Client s approval of the design documents at each phase is excluded from this proposal, but may be performed on an Additional-Services basis as outlined below. 5) Preparation and furnishing of a soils report or land survey for the property.
3 6) Design of shoring, landscaping elements, and other site work other than explicitly included above. 7) Design of abatement or mitigation measures for hazardous materials, including but not limited to asbestos and methane. 8) Cost estimating services. The Client acknowledges that any site documentation activities performed as part of the work outlined in this proposal will not be comprehensive and are not certified for their accuracy or completeness. Since no drawings of existing built conditions, property boundaries, soils report, etc. are currently known to be available, the Designer will make reasonable assumptions regarding these conditions, including using permit documents on record with the City of Santa Monica as the basis for the work. Reimbursable Expenses: The following normal reimbursable expenses shall be billed to the Client at 1.1 times their actual cost: 1) Models and renderings 2) printing/copying expenses 3) parking fees 4) courier/overnight/and mailing services 5) permit fees Any other non-standard reimbursable expenses encountered during the execution of this scope of work will be identified for authorization by the Client and will not constitute a reimbursable expense unless approved by the Client. The proposed fixed fee for the work described above is $XXXXX (plus Hourly fees as noted below). These fees are distributed among the work of the proposal as follows: Activity Documentation of existing conditions Kitchen and Bathroom Design: five units at $XXXX each unit New exterior improvements and site drainage Plan Check documentation, submittal and approvals Bidding/Construction Observation Total Fee $XXXX $XXXX $XXXX Hourly* Hourly $XXXXX (plus hourly) *As it is not possible to predict the quantity and type of corrections that may be required, we propose to perform this portion of the work on an hourly basis per the attached hourly rate sheet. The Client shall make an initial payment (retainer) of $XXXX upon acceptance of this proposal. This retainer shall be held by the Designer and applied against the final invoice. Invoices shall be submitted by the Designer monthly or upon completion of milestones as appropriate, are due upon presentation and
4 shall be considered Past Due if not paid within 30 calendar days of the date on which the invoice is rendered. If payment is not received by the Designer within 90 calendar days of the date on which the invoice is rendered, the Client shall pay as interest an additional charge of 1.5% (or the maximum allowable by law, whichever is lower) of the Past Due amount per month. Payment thereafter shall first be applied to accrued interest and then to the unpaid principal. In the event legal action is necessary to enforce the terms of this agreement, the prevailing party in such action shall be entitled to collect from the other party any judgment or settlement sums due, reasonable attorney s fees, court costs and expenses. However, the Designer s total liability shall be limited in accordance with the Limitation of Liability clause of this proposal. Additional Services: Based on authorization from the Client, services in addition to those indicated in this proposal will be billed either in accordance with the attached hourly rates sheet, or under a separate proposal. Proposed Schedule: We will commence providing services on or about XX/XX/XX, pending the Client s timely execution of this proposal. The Client acknowledges that the timely performance of the Designer s work is contingent upon timely responses and execution of work by the Client and their consultants. Limitation of Liability: To the maximum extent permitted by law, the Client agrees that neither the Architect, the Architect s consultants, nor their agents or employees shall be jointly, severally, or individually liable to the Client in excess of the compensation to be paid pursuant to this agreement or ten thousand dollars ($10, ), whichever is greater, by reason of any act or omission, including but not limited to negligence, professional errors or omissions, strict liability, breach of contract or warranty. The Client acknowledges that the accuracy and completeness of the Architect s services is dependent on the accuracy and completeness of the information and direction given us by the Client. The Client agrees, to the fullest extent permitted by law, to indemnify and hold the Architect harmless from any damage, liability or cost (including reasonable attorneys fees and costs of defense) to the extent caused by the Client s negligent acts, errors or omissions and those of his or her contractors, subcontractors or consultants or anyone for whom the Client is legally liable, and arising from the project that is the subject of this agreement. The Architect is not obligated to indemnify the Client in any manner whatsoever for the Client s own negligence. Termination: It is understood that either the Client or Designer may terminate this agreement at any time for cause upon giving the other party (10) calendar days prior written notice, provided that such termination shall not be effective if the cause for the termination is cured within such ten day period. Further, Client shall have the right to terminate at any time for convenience. The Client shall within (14) calendar days of termination make final payment for all services rendered and all costs incurred up to the date of termination, in accordance with the compensation provisions of this proposal.
5 If this proposal proves acceptable to you, please sign below and return it to us. We will utilize this as a basis of proceeding with our work. Thanks again for the opportunity to present this proposal to you, and we look forward to speaking with you soon and addressing any questions you may have. Best Regards, DESIGNER S SIGNATURE I accept the proposal as outlined above, and authorize DESIGNER to proceed with the work outlined above. Client Signature Client Name (Printed) Date
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