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HomeMy WebLinkAboutContractAGREEMENT FOR PROFESSIONAL SERVICES THIS AGREEMENT, dated for reference purposes only as October 19, 2021, is by and between the City of Renton (the “City”), a Washington municipal corporation, and Johnson Architects (“Consultant”), a Washington Corporation. The City and the Consultant are referred to collectively in this Agreement as the “Parties.” Once fully executed by the Parties, this Agreement is effective as of the last date signed by both parties. 1. Scope of Work: Consultant agrees to provide professional services as specified in Exhibit A, which is attached and incorporated herein and may hereinafter be referred to as the “Work.” 2. Changes in Scope of Work: The City, without invalidating this Agreement, may order changes to the Workconsisting of additions, deletions or modifications.Any such changes to the Work shall be ordered by the City in writing and the Compensation shall be equitably adjusted consistent with the rates set forth inExhibitAor as otherwise mutually agreed by the Parties. 3. Time of Performance: Consultant shall commence performance of the Agreement upon execution of this Agreement. All Work shall be performed by no later than July 31, 2022. 4. Compensation: A. Amount. Total compensation to Consultant for Work provided pursuant to this Agreement shall not exceed $63,540, plus any applicable state and local sales taxes. Compensation shall be paid based upon Work actually performed according to the rate(s) or amounts specified in Exhibit A. The Consultant agrees that any hourly or flat rate charged by it for its Work shall remain locked at the negotiated rate(s) unless otherwise agreed to in writing or provided in Exhibit A. Except as specifically provided herein, the Consultant shall be solely responsible for payment of any taxes imposed as a result of the performance and payment of this Agreement. B. Method of Payment. On a monthly or no less than quarterly basis during any quarter in which Workisperformed, the Consultant shall submit a voucher or invoice in aform specified by the City, including a description of what Work has been performed, the name of the personnel performing such Work, and any hourly labor charge rate for such personnel. The Consultant shall also submit a final bill upon completion of all Work. Payment shall be made by the City for Work performed within thirty (30)        CAG-22-071 PAGE 2 OF 10 calendar days after receipt and approval by the appropriate City representative of the voucher or invoice. If the Consultant’s performance does not meet the requirements of this Agreement, the Consultant will correct or modify its performance to comply with the Agreement. The City may withhold payment for work that does not meet the requirements of this Agreement. C. Effect of Payment. Payment for any part of the Work shall not constitute a waiver by the City of any remedies it may have against the Consultant for failure of the Consultant to perform the Work or for any breach of this Agreement by the Consultant. D. Non-Appropriation of Funds. If sufficient funds are not appropriated or allocated for payment under this Agreement for any future fiscal period, the City shall not be obligated to make payments for Work or amounts incurred after the end of the current fiscal period, and this Agreement will terminate upon the completion of all remaining Work for which funds are allocated. No penalty or expense shall accrue to the City in the event this provision applies. 5. Termination: A. The City reserves the right to terminate this Agreement at any time, with or without cause by giving ten(10) calendar days’ notice to the Consultant in writing. In the event of such termination or suspension, all finished or unfinished documents, data, studies, worksheets, models and reports, or other material prepared by the Consultant pursuant to this Agreement shall be submitted to the City, if any are required as part of the Work. B. In the event this Agreement is terminated by the City, the Consultant shall be entitled to payment for all hours worked to the effective date of termination, less all payments previously made. If the Agreement is terminated by the Cityafter partial performance of Work for which the agreed compensation is a fixed fee, the City shall pay the Consultant an equitable share of the fixed fee. This provision shall not prevent the City from seeking any legal remedies it may have for the violation or nonperformance of any of the provisions of this Agreement and such charges due to the City shall be deducted from the final payment due the Consultant. No payment shall be made by the City for any expenses incurred or work done following the effective date of termination unless authorized in advance in writing by the City. 6. Warranties And Right To Use Work Product: Consultant represents and warrants that Consultant will perform all Work identified in this Agreement in a professional and workmanlike manner and in accordance with all reasonable and professional standards and laws. Compliance with professional standards includes, as applicable, performing the Work in compliance with applicable City standards or guidelines (e.g. design criteria and        PAGE 3 OF 10 Standard Plans for Road, Bridgeand Municipal Construction). Professional engineers shall certify engineering plans, specifications, plats, and reports, as applicable, pursuant to RCW 18.43.070. Consultant further represents and warrants that all final work product created for and delivered to the City pursuant to this Agreement shall be the original work of the Consultant and free from any intellectual property encumbrance which would restrict the City from using the work product. Consultant grants to the City a non- exclusive, perpetual right and license to use, reproduce, distribute, adapt, modify, and display all final work product produced pursuant to this Agreement. The City’s or other’s adaptation, modification or use of the final work products other than for the purposes of this Agreement shall be without liability to the Consultant. The provisions of this section shall survive the expiration or termination of this Agreement. 7. Record Maintenance: The Consultant shall maintain accounts and records, which properly reflect all direct and indirect costs expended and Work provided in the performance of this Agreement and retain such records for as long as may be required by applicable Washington State records retention laws, but in any event no less than six years after the termination of this Agreement. The Consultant agrees to provide access to and copies of any records related to this Agreement as required by the City to audit expenditures and charges and/or to comply with the Washington State Public Records Act (Chapter 42.56 RCW). The provisions of this section shall survive the expiration or termination of this Agreement. 8. Public Records Compliance: To the full extent the City determines necessary to comply with the Washington State Public Records Act, Consultant shall make a due diligent search of all records in its possession or control relating to this Agreement and the Work, including, but not limited to, e-mail, correspondence, notes, saved telephone messages, recordings, photos, or drawings and provide them to the City for production. In the event Consultant believes said records need to be protected from disclosure, it may, at Consultant’s own expense, seek judicial protection. Consultant shall indemnify, defend, and hold harmless the City for all costs, including attorneys’ fees, attendant to any claim or litigation related to a Public Records Act request for which Consultant has responsive records and for which Consultant has withheld records or information contained therein, or not provided them to the City in a timely manner. Consultant shall produce for distribution any and all records responsive to the Public Records Act request in a timely manner, unless those records are protected by court order. The provisions of this section shall survive the expiration or termination of this Agreement. 9. Independent Contractor Relationship: A. The Consultant is retained by the City only for the purposes and to the extent set forth in this Agreement. The nature of the relationship between the Consultant and the City during the period of the Work shall be that of an independent contractor, not employee. The Consultant, not the City, shall have the power to control and direct the        PAGE 4 OF 10 details, manner or means of Work. Specifically, but not by means of limitation, the Consultant shall have no obligation to work any particular hours or particular schedule, unless otherwise indicated in the Scope of Work or where scheduling of attendance or performance is mutually arranged due to the nature of the Work. Consultant shall retain the right to designate the means of performing the Work covered by this agreement, and the Consultant shall be entitled to employ other workers at such compensation and such other conditions as it may deem proper, provided, however, that any contract so made by the Consultant is to be paid by it alone, and that employing such workers, it is acting individually and not as an agent for the City. B. The City shall not be responsible for withholding or otherwise deducting federal income tax or Social Security or contributing to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to Consultant or any employee of the Consultant. C. If the Consultant is a sole proprietorship or if this Agreement is with an individual, the Consultant agrees to notify the City and complete any required form if the Consultant retired under a State of Washington retirement system and agrees to indemnify any losses the City may sustain through the Consultant’s failure to do so. 10. Hold Harmless: The Consultant agrees to release, indemnify, defend, and hold harmless the City, elected officials, employees, officers, representatives, and volunteers from any and all claims, demands, actions, suits, causes of action, arbitrations, mediations, proceedings, judgments, awards, injuries, damages, liabilities, taxes, losses, fines, fees, penalties, expenses, attorney’s or attorneys’ fees, costs, and/or litigation expenses to or by any and all persons or entities, arising from, resulting from, or related to the negligent acts, errors or omissions of the Consultant in its performance of this Agreement or a breach of this Agreement by Consultant, except for that portion of the claims caused by the City’s sole negligence. Should a court of competent jurisdiction determine that this agreement is subject to RCW 4.24.115, (Validity of agreement to indemnify against liability for negligence relative to construction, alteration, improvement, etc., of structure or improvement attached to real estate…) then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Consultant and the City, its officers, officials, employees and volunteers, Consultant’s liability shall be only to the extent of Consultant’s negligence. It is further specifically and expressly understood that the indemnification provided in this Agreement constitute Consultant’s waiver of immunity under the Industrial Insurance Act, RCW Title 51, solely for the purposes of this indemnification. The Parties        PAGE 5 OF 10 have mutually negotiated and agreed to this waiver. The provisions of this section shall survive the expiration or termination of this Agreement. 11. Gifts and Conflicts: The City’s Code of Ethics and Washington State law prohibit City employees from soliciting, accepting, or receiving any gift, gratuity or favor from any person, firm or corporation involved in a contract or transaction. To ensure compliance with the City’s Code of Ethics and state law, the Consultant shall not give a gift of any kind to City employees or officials. Consultant also confirms that Consultant does not have a business interest or a close family relationship with any City officer or employee who was, is, or will be involved in selecting the Consultant, negotiating or administering this Agreement, or evaluating the Consultant’s performance of the Work. 12. City of Renton Business License: Unless exempted by the Renton Municipal Code, t Consultant shall obtain a City of Renton Business License prior to performing any Work and maintain the business license in good standing throughout the term of this agreement with the City. Information regarding acquiring a city business license can be found at: https://www.rentonwa.gov/Tax Information regarding State business licensing requirements can be found at: https://dor.wa.gov/doing-business/register-my-business 13. Insurance: Consultant shall secure and maintain: A. Commercial general liability insurance in the minimum amounts of $1,000,000 for each occurrence/$2,000,000 aggregate for the Term of this Agreement. B. In the event that Work delivered pursuant to this Agreement either directly or indirectly involve or require Professional Services, Professional Liability, Errors and Omissions coverage shall be provided with minimum limits of $1,000,000 per occurrence. "Professional Services", for the purpose of this section, shall mean any Work provided by a licensed professional or Work that requires a professional standard of care. C. Workers’ compensation coverage, as required by the Industrial Insurance laws of the State of Washington, shall also be secured. D. Commercial Automobile Liability for owned, leased, hired or non-owned, leased, hired or non-owned, with minimum limits of $1,000,000 per occurrence combined single limit, if there will be any use of Consultant’s vehicles on the City’s Premises by or on behalf of the City, beyond normal commutes.        PAGE 6 OF 10 E. Consultant shall name the City as an Additional Insured on its commercial general liability policy on a non-contributory primary basis. The City’s insurance policies shall not be a source for payment of any Consultant liability, nor shall the maintenance of any insurance required by this Agreement be construed to limit the liability of Consultant to the coverage provided by such insurance or otherwise limit the City’s recourse to any remedy available at law or in equity. F. Subject to the City’s review and acceptance, a certificate of insurance showing the proper endorsements, shall be delivered to the City before performing the Work. G. Consultant shall provide the City with written notice of any policy cancellation, within two (2) business days of their receipt of such notice. 14. Delays: Consultant is not responsible for delays caused by factors beyond the Consultant’s reasonable control. When such delays beyond the Consultant’s reasonable controloccur, the City agrees the Consultant is not responsible for damages, nor shall the Consultant be deemed to be in default of the Agreement. 15. Successors and Assigns: Neither the City nor the Consultant shall assign, transfer or encumber any rights, duties or interests accruing from this Agreement without the written consent of the other. 16. Notices: Any notice required under this Agreement will be in writing, addressed to the appropriate party at the address which appears below (as modified in writing from time to time by such party), and given personally, by registered or certified mail, return receipt requested, by facsimile or by nationally recognized overnight courier service. Time period for notices shall be deemed to have commenced upon the date of receipt, EXCEPT facsimile delivery will be deemed to have commenced on the first business day following transmission. Email and telephone may be used for purposes of administering the Agreement, but should not be used to give any formal notice required by the Agreement. CITY OF RENTON William Adams 1055 South Grady Way Renton, WA 98057 Phone: (206) 775-6862 wadams@rentonwa.gov CONSULTANT Genevieve Theriault 100 NE Northlake Way, #200 Seattle, WA 98105 Phone: (206) 523-6150 gtheriault@johnstonarchitects.com 17. Discrimination Prohibited: Except to the extent permitted by a bona fide occupational qualification, the Consultant agrees as follows:        PAGE 7 OF 10 A. Consultant, and Consultant’s agents, employees, representatives, and volunteers with regard to the Work performed or to be performed under this Agreement, shall not discriminate on the basis of race, color, sex, religion, nationality, creed, marital status, sexual orientation or preference, age (except minimum age and retirement provisions), honorably discharged veteran or military status, or the presence of any sensory, mental or physical handicap, unless based upon a bona fide occupational qualification in relationship to hiring and employment, in employment or application for employment, the administration of the delivery of Work or any other benefits under this Agreement, or procurement of materials or supplies. B. The Consultant will take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, creed, color, national origin, sex, age, sexual orientation, physical, sensory or mental handicaps, or marital status. Such action shall include, but not be limited to the following employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training. C. If the Consultant fails to comply with any of this Agreement’s non-discrimination provisions, the City shall have the right, at its option, to cancel the Agreement in whole or in part. D. The Consultant is responsible to be aware of and in compliance with all federal, state and local laws and regulations that may affect the satisfactory completion of the project, which includes but is not limited to fair labor laws, worker's compensation, and Title VI of the Federal Civil Rights Act of 1964, and will comply with City of Renton Council Resolution Number 4085. 18. Miscellaneous:The parties hereby acknowledge: A. The City is not responsible to train or provide training for Consultant. B. Consultant will not be reimbursed for job related expenses except to the extent specifically agreed within the attached exhibits. C. Consultant shall furnish all tools and/or materials necessary to perform the Work except to the extent specifically agreed within the attached exhibits. D. In the event special training, licensing, or certification is required for Consultant to provide Work he/she will acquire or maintain such at his/her own expense and, if Consultant employs, sub-contracts, or otherwise assigns the responsibility to perform the Work, said employee/sub-contractor/assignee will acquire and or maintain such training, licensing, or certification.        PAGE 8 OF 10 E. This is a non-exclusive agreement and Consultant is free to provide his/her Work to other entities, so long as there is no interruption or interference with the provision of Work called for in this Agreement. F. Consultant is responsible for his/her own insurance, including, but not limited to health insurance. G. Consultant is responsible for his/her own Worker’s Compensation coverage as well as that for any persons employed by the Consultant. 19. Other Provisions: A. Approval Authority. Each individual executing this Agreement on behalf of the City and Consultant represents and warrants that such individuals are duly authorized to execute and deliver this Agreement on behalf of the City or Consultant. B. General Administration and Management. The City’s project manager is William Adams. In providing Work, Consultant shall coordinate with the City’s contract manager or his/her designee. C. Amendment and Modification. This Agreement may be amended only by an instrument in writing, duly executed by both Parties. D. Conflicts. In the event of any inconsistencies between Consultant proposals and this Agreement, the terms of this Agreement shall prevail. Any exhibits/attachments to this Agreement are incorporated by reference only to the extent of the purpose for which they are referenced within this Agreement. To the extent a Consultant prepared exhibit conflicts with the terms in the body of this Agreement or contains terms that are extraneous to the purpose for which it is referenced, the terms in the body of this Agreement shall prevail and the extraneous terms shall not be incorporated herein. E. Governing Law. This Agreement shall be made in and shall be governed by and interpreted in accordance with the laws of the State of Washington and the City of Renton. Consultant and all of the Consultant’s employees shall perform the Work in accordance with all applicable federal, state, county and city laws, codes and ordinances. F. Joint Drafting Effort. This Agreement shall be considered for all purposes as prepared by the joint efforts of the Parties and shall not be construed against one party or the other as a result of the preparation, substitution, submission or other event of negotiation, drafting or execution.        PAGE 9 OF 10 G. Jurisdiction and Venue. Any lawsuit or legal action brought by any party to enforce or interpret this Agreement or any of its terms or covenants shall be brought in the King County Superior Court for the State of Washington at the Maleng Regional Justice Center in Kent, King County, Washington, or its replacement or successor. Consultant hereby expressly consents to the personal and exclusive jurisdiction and venue of such court even if Consultant is a foreign corporation not registered with the State of Washington. H. Severability. A court of competent jurisdiction’s determination that any provision or part of this Agreement is illegal or unenforceable shall not cancel or invalidate the remainder of this Agreement, which shall remain in full force and effect. I. Sole and Entire Agreement. This Agreement contains the entire agreement of the Parties and any representations or understandings, whether oral or written, not incorporated are excluded. J. Time is of the Essence. Time is of the essence of this Agreement and each and all of its provisions in which performance is a factor. Adherence to completion dates set forth in the description of the Work is essential to the Consultant’s performance of this Agreement. K. Third-Party Beneficiaries. Nothing in this Agreement is intended to, nor shall be construed to give any rights or benefits in the Agreement to anyone other than the Parties, and all duties and responsibilities undertaken pursuant to this Agreement will be for the sole and exclusive benefit of the Parties and no one else. L. Binding Effect. The Parties each bind themselves, their partners, 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 with respect to all covenants of the Agreement. M. Waivers. All waivers shall be in writing and signed by the waiving party. Either party’s failure to enforce any provision of this Agreement shall not be a waiver and shall not prevent either the City or Consultant from enforcing that provision or any other provision of this Agreement in the future. Waiver of breach of any provision of this Agreement shall not be deemed to be a waiver of any prior or subsequent breach unless it is expressly waived in writing. N. Counterparts. The Parties may execute this Agreement in any number of counterparts, each of which shall constitute an original, and all of which will together constitute this one Agreement.        PAGE 10 OF 10 IN WITNESS WHEREOF, the Parties have voluntarily entered into this Agreement as of the date last signed by the Parties below. CITY OF RENTON By:_____________________________ CONSULTANT By:____________________________ Armondo Pavone City of Renton Mayor Jack Chaffin AIA Partner _____________________________ Date _____________________________ Date Attest _____________________________ Jason A. Seth City Clerk Approved as to Legal Form By: __________________________ Alex Tuttle Senior Assistant City Attorney Contract Template Updated 5/21/2021 11/03/2021 ANTT __________________________________________________________________ haffifnnnnnnn AIAAAAAAAAAAA        3/16/2022 Approved by Alex Tuttle via 10/28/2021 email Johnston Architects | 100 Northeast Northlake Way | Seattle, Washington | 206.523.6150 William Adams, P.E. Civil Engineer Public Works Department Airport Division 616 W Perimeter Rd Unit A Renton, WA 98057 Date: September 28, 2021 Subject: Renton Airport BLDG 243 Reno Dear Willaim, Thank you for considering us for this project. Per our meeting on 9/202/2021 we understand the project involves the renovation of 243 West Perimeter Rd. to house the Renton Airport Administration offices currently residing in the base of the Control tower at 616 West Perimeter Rd. The project goals include keeping most of the floor plan intact but optimized to suit current needs. Finish upgrades throughout including polished conc. floors, paint, restroom finishes, and window coverings. Need to do update or relamp lighting as much as is economically feasible including potential ceiling upgrades and cleanup. We will engage a Structural Engineer to evaluate the current structure in regards to observed cracking in bearing walls and any minor changes caused by the renovation (adding door openings etc.). We were able to meet on site and visit the current offices. The building at 243 West Perimeter Rd. is approximately 3,400 SF. The approximate construction budget for this scope of work is $350,000. We understand the project to include the following: x Exterior work: o painting of the building o new or repaired deck outside of the lounge o new window glazing where required o minor landscape work adjacent to parking and at entry o ADA ramp to entry o Roofing and flashing restoration as necessary x Program: o Plan for 6 to 7 workstations. 5 will be for permanent employees, 2 for guests o 4 offices in existing rooms. The public facing office to have the guest workstations x Secure reception area with storage at the entry with adjacent pilot lounge. x IT room. x Restroom remodel: Convert the two back-to-back restrooms into an ADA restroom. x Review the potential to remodel the restroom in the director’s office including a shower. x Conference room: o Remodel & reconfigure the wet bar into a kitchenette. o Conference table to fit at least 10 people. o Potential to host 20-person classes. EXHIBIT A        Johnston Architects | 100 Northeast Northlake Way, Suite 200 | Seattle, WA | 206.523.6150 2 We understand the schedule to be approximately: Design 10/12/2021 to 1/4/2022 Permit 1/4/2022 to 4/4/2022 Bid: 3/4/2022 to 4/4/2022 Construction: 4/4/2022 to 7/4/2022 For this project, we propose the following phases and the estimated hours. Task Description: Hours Task 1 – Discovery Partner 8 @ $195 PA 40@ $135 Admin 2 @ $55 Reviewer 0 @ $135 $1,560 $5,400 $110 $0 Sub Total $7,070 Task 2 –Permit Partner 4@ $195 PA 40 @ $135 Admin 0 @ $55 Reviewer 4 @ $135 $780 $5,400 $0 $540 Sub Total $6,720 Task 3 – Documentation Partner 12 @ $195 PA 140 @ $135 Admin 0 @ $55 Reviewer 4 @ $135 $2,340 $18,900 $0 $540 Sub Total $21,780 Task 4 – Bidding Partner 4 @ $195 PA 24 @ $135 Admin 0 @ $55 Reviewer 0 @ $135 $780 $3,240 $0 $0 Sub Total $4,020 Task 5 – Construction Partner 8 @ $195 PA 60 @ $135 Admin 0 @ $55 Reviewer 0 @ $135 $1,560 $8,100 $0 $0 Sub Total $9,660 Architectural Total $49,250 Structural Total* $5,000 Cost Estimator Total* $4,290 Specification writer* $5,000 Grand Total $63,540 Individual proposals provided under separate cover. *Total’s shown are estimated values. Work will be billed per approved hourly rates. We are excited to be involved in the project and look forward to working with you. Please contact me if you have any questions or require further information or corrections to this proposal.        Johnston Architects | 100 Northeast Northlake Way, Suite 200 | Seattle, WA | 206.523.6150 3 Sincerely, Jack Chaffin, AIA Partner        2021 SCHEDULE OF CONDITIONS PAGE 1 OF 3 CLIENT INITIALS _________ This proposal is good for a period of 60 days after which Malsam Tsang Structural Engineering Corporation reserves the right to modify the proposal. The services and compensation of Malsam Tsang are based on the following: 1. SCOPE OF SERVICES As outlined in proposal letter. Services not set forth in the proposal letter are expressly excluded from Malsam Tsang’s Scope of Services. The description of services and fees set forth in the proposal letter is based on a mutually agreeable schedule, timely approvals by the Client, and clear communications. 2. HOURLY CHARGES FOR PERSONNEL Personnel will be charged at the following hourly rates: Marc Malsam $280 Jessica Moore $180 Enrique Islas $165 Ivan Tsang $280 Aiden Bernhardt $175 Kody Sanders $165 Scott Hufford $265 Nilea Edwards $175 Zach Shugart $165 Isaac Loebsack $255 Levi Gilbert $175 Dylan Steele $165 Warren Cent $250 Cooper Hjelm $175 Jesse Saunders $165 Russell Foisy $240 Johnson Jones $175 Dylan Edgington $140 Amanda Gehman $215 Quinn Mackenzie $175 TJ Hunt $140 Wes Isbell $215 Nate Moore $175 Robert Pack $135 Anthony Macklin $215 Blake Rassilyer $175 Contract Drafting $135 Ryan Gutierrez $180 Aaron Scott $175 Robert Clarke $130 Megan Isbell $180 Steven Winter $175 Jonathon Dunmyre $130 Joseph Marquez $180 The rates indicated above are in effect for the calendar year of the proposal. Billing rates are subject to increase effective January 1st next year. 3. REIMBURSABLE EXPENSES (a) Plotting of CAD/PDF drawings will be billed at $2.50 per half-size sheet and $5.00 per full-size sheet. (b) Delivery charges will be billed based on delivery distance and time. (c) Travel mileage to meetings and site visits will be billed at $1.50 per mile. (d) All other expenses and services not directly provided by Malsam Tsang will be charged at 1.15 x Cost. Reimbursable expense items are in addition to compensation and are not included in the fee unless specifically noted in the proposal. 4. BILLING Invoices will be issued monthly and are due within 30 days of issuance. All invoices not paid timely will accrue interest at a rate of 1.5% per month, compounded monthly, from the date of invoice issuance, with a minimum finance charge of $35.00 per month per invoice. If payment of the full amount of the invoice is not received within sixty (60) days of submission, Malsam Tsang shall have the right to suspend or terminate all work and preparation of drawings may be stopped, at the discretion of Malsam Tsang. Should this occur, Malsam Tsang shall not be considered in breach of contract or liable for damages or delays that may result. If the Client places the project on hold for sixty (60) days Malsam Tsang reserves the right to terminate the contract or negotiate additional fees to restart the project. 5. RIGHT OF FIRST OPPORTUNITY After construction of this project is completed, if Client plans on adding to the project, then to the extent permitted under applicable law, the Client shall contract in good faith with Malsam Tsang for any work associated with any additions to this project. 6. VERIFICATION OF EXISTING CONDITIONS | RELIANCE ON INFORMATION Inasmuch as the remodeling and/or rehabilitation of an existing building requires that certain assumptions be made regarding existing conditions, and because some of these assumptions cannot be verified without expending additional sums of money, or destroying otherwise adequate or serviceable portions of the building, the Client agrees that Malsam Tsang shall not be liable for any costs or damages incurred by any person or entity resulting from concealed conditions in the existing building. Malsam Tsang shall be entitled to rely on the accuracy and completeness of all testing, services, reports, data, drawings, and other information furnished by the Client or its other consultants and contractors. 7. CONTINGENCY RESERVE The Client and Malsam Tsang acknowledge that changes may be required because of possible omissions, ambiguities or inconsistencies in the project plans and specifications and, therefore, that the costs of the project as a result may exceed the construction contract sum negotiated between the Client and its contractor or, if Client intends to act as its own contractor, from Client’s anticipated project costs and the sum of its trade subcontracts. The Client agrees to establish a reasonable design contingency reserve (no less than 5% of anticipated construction costs), separate from any construction contingency, to pay for any such project costs. The Client further agrees not to make any claim against Malsam Tsang with respect to any payments made to any construction contractor(s) that fall within the limit of the design contingency reserve. 8. EXCLUSION OF CONSTRUCTION PHASE SERVICES Construction drawings are diagrammatic and do not purport to show all details or conditions of construction. To the extent the Client intends to act as its own general contractor on this project, in this Agreement, references to “Contractor” shall mean Client as it acts as the general contractor for this project and any subcontractors contracting directly with Client as general contractor. In such case, Client shall have the same responsibilities to Malsam Tsang as a contractor has to the Malsam Tsang as outlined in this agreement. Malsam Tsang normally provides clarifications and answers        2021 SCHEDULE OF CONDITIONS PAGE 2 OF 3 CLIENT INITIALS _________ questions raised by the contractor and others during construction phase services, which are a normal and customary part of the construction process. Malsam Tsang will not be responsible for costs, delays, or damages related to errors or conflicts which occur when caused or exacerbated by its exclusion from full participation in construction phase services. The Client agrees to the fullest extent permitted by law, to release, indemnify and hold Malsam Tsang and its officers, partners, agents, employees and subconsultants harmless from any and all claims, actions, causes of action, liabilities, expenses, damages, losses, and costs, including reasonable attorneys’ fees and costs of defense or in the enforcement of the obligations under this indemnity provision, arising or allegedly arising from or exacerbated by, exclusion from full or partial participation in Construction Phase Services, including but not limited to any issues that could have been remedied, or remedied in a less costly fashion, during the Construction Phase, unless solely caused by Consultant’s negligence. 9. CONSTRUCTION Client hereby expressly agrees that Malsam Tsang shall assume no responsibility for, control or right of control over any contractor, subcontractor or supplier, their agents, employees, or others for whom they may be liable in connection with the means, methods, techniques, sequences, procedures and equipment used or not used by such contractors, subcontractors, or suppliers in their performance of any phase of the work, for placing into operation any plant or equipment, or for any safety precautions or programs related to the Project. Responsibility and control for all such activities shall be solely and exclusively that of Client and such contractors, subcontractors, and suppliers. No acceptance or approval by Malsam Tsang of the work of contractors (or Client acting as its own general contractor), subcontractors, or suppliers, whether express or implied, shall relieve contractors (or Client acting as its own general contractor), subcontractors, or suppliers of their obligations to Client for the proper performance of their work. At the time construction commences, the Client agrees to require the contractor to name Malsam Tsang and the Client as additional insureds on all insurance carried during the project. If Client acts as its own general contractor, then it shall name Malsam Tsang as an additional insured on the insurance it carries during the project. Malsam Tsang shall not be required to make exhaustive, extensive, or continuous on site or off site inspections of the work. Malsam Tsang’s services to Client, during design and/or construction of the project, including the preparation of construction documents and drawings, shall not create or be the basis of any obligation or duty owed by Malsam Tsang or its subconsultants to any contractor or subcontractor or Client’s other consultants; and no contractor or subcontractor or Client’s other consultants shall be deemed a third party beneficiary of this Agreement or any contract or agreement between Malsam Tsang and Client. 10. CONDOMINIUMS The Client does not now foresee that the project will be converted into condominiums or involve a Homeowners Association. The Client acknowledges that the design of multi-family projects may be incompatible or inconsistent with design requirements for condominiums. The Client acknowledges that Malsam Tsang will not design this project for condominium ownership or involvement of a Homeowners Association, and acknowledges the risks to Malsam Tsang inherent in condominium projects and the disparity between the Malsam Tsang’s fee and Malsam Tsang’s potential liability for problems or alleged problems with such condominium or Homeowners Association projects. The Client understands that it does not have a license to use Malsam Tsang’s instruments of service to convert the project into a condominium project. The Client agrees that, if the Client decides to convert the project into condominiums or involve a Homeowners Association in the future and prior to the expiration of the applicable statute of repose, the Client will, to the fullest extent permitted by law, release, defend, indemnify and hold harmless Malsam Tsang and the Malsam Tsang’s officers, partners, agents, subconsultants and any of their employees from any and all claims, losses, damages and costs, including reasonable attorney’s fees and defense costs, arising or allegedly arising in any manner whatsoever due to the conversion to condominium ownership or the involvement of a Homeowners Association, except for the sole negligence or willful misconduct of Malsam Tsang. Furthermore, the Client agrees that the bylaws of the Homeowners Association established, should this project be converted into a condominium project, will contain a requirement that the Association will have performed the inspections recommended in the maintenance and inspection manual. The Owner further warrants that the bylaws will contain provisions requiring the Homeowners Association to have performed necessary maintenance when recommended as a result of these inspections or in accordance with the maintenance manual. The bylaws shall also contain an appropriate waiver and indemnity in favor of the Owner, the architect, Malsam Tsang, and its and their subconsultants, and the contractor if the maintenance recommendations are not performed. Finally, prior to use of Malsam Tsang’s instruments of service to convert the project into a condominium project, Client, or its assignee or successor in interest, in addition to any additional fees for services to change or modify the instruments of services, Client shall pay a condominium conversion fee to Malsam Tsang to obtain a license to use its instruments of service. Such fee shall be twenty percent (20%) of the amount set forth in the proposal and is due to the increased risks and insurance costs associated with condominium projects. A twenty percent (20%) fee shall also be applied to each invoice involving hourly charges for personnel. If the Client sells or otherwise transfers the project, Client agrees that any agreements with subsequent purchaser of the Project or assignee of this Agreement shall contain the limitations and indemnity provisions set forth in this Section 10. 11. DISPUTE RESOLUTION This Agreement shall be governed by and construed and enforced pursuant to the laws of the State of Washington, without regard to its conflict of laws principles. Client agrees that any appropriate state or federal district court located in Seattle, Washington shall have exclusive jurisdiction over any case, controversy, or dispute arising under or in connection with this agreement and shall be a proper forum in which to adjudicate such dispute. Client consents to such jurisdiction for all purposes (both personal and subject matter). Causes of action between the parties to this agreement pertaining to acts or failures to act shall be deemed to have accrued and the applicable statutes of limitation shall commence to run not later than either the date of substantial completion, as that term is defined in RCW 4.16.310, for acts or failures to act occurring prior to substantial completion, or the date of issuance of the final payment for acts or failures to act that occur after substantial completion; or, if this agreement is terminated, upon the date Malsam Tsang terminates services on the Project. 12. OWNERSHIP OF DOCUMENTS Drawings, specifications, and calculations prepared by Malsam Tsang for this project, including images and ideas expressed therein, are instruments of service and shall at all times remain the property of Malsam Tsang, whether the project is executed or not. Malsam Tsang shall retain all common law, statutory and other reserved rights to such instruments of service. Malsam Tsang grants a limited non-exclusive license allowing the Client the right to        2021 SCHEDULE OF CONDITIONS PAGE 3 OF 3 CLIENT INITIALS _________ use the instruments of service for this project, subject to payment by Client of all amounts due and owing in accordance with the terms of this agreement. Malsam Tsang grants no other rights or licenses or warranties hereunder, express or implied or otherwise, except as set forth in the preceding sentence. No instruments of services shall be modified or used for any other project or extensions of this project without agreement in writing from Malsam Tsang. The Client shall release, hold harmless and indemnify Malsam Tsang against all losses, damages, and costs arising out of any unauthorized use, alteration, or misuse of the instruments of service by the Client or its agents or assigns, not specifically authorized by Malsam Tsang in writing. 13. RISK ALLOCATION/LIMITATION OF LIABILITY The parties agree and understand that the provisions contained in this agreement, including without limitation the disclaimer of warranties and the limitations on liability, represent an agreed allocation of risk which Malsam Tsang is relying upon, and “but for” such agreed allocation of risk, Malsam Tsang could not have priced its services as described herein, as fees are based upon professional time and risk exposure. The Client recognizes and assumes the inherent risks connected with development and construction. Malsam Tsang’s liability shall be governed by a local and reasonable professional standard of care, not a “standard of perfection”. No warranty or other representation, either expressed or implied, is included or intended in the agreement, proposal or any other documents. The Client agrees that to the fullest extent permitted by law, the total, aggregate liability of Malsam Tsang to the Client, its assigns, or anyone claiming by or through Client, for any and all injuries, claims, losses, expenses, damages or claims expenses arising out of this agreement, services rendered to the Client, or from any cause or causes under any theory of law, shall be limited to (a) lesser of $250,000; or (b) the insurance then available to Malsam Tsang to fund any settlement, award or verdict. Such liabilities include but are not limited to design professional’s negligence, errors, omissions, strict liability, breach of contract, or breach of warranty. Client further agrees that, to the fullest extent permitted by law, no shareholder, officer, director, partner, principal, or employee of Malsam Tsang shall have personal liability under any provision of the agreement, or for any matter in connection with the professional services provided under the agreement. Regardless of the presence or absence of insurance coverage, Malsam Tsang shall not be liable for and Client waives and releases claims of loss or damage occasioned by delays beyond Malsam Tsang’s control, or for loss of earnings, or loss of use. Nor shall Malsam Tsang be liable for and Client waives and releases claims of any other incidental, consequential, indirect, special or punitive damages of any kind, or other financial loss arising out of or in connection with the professional services, whether based in contract, tort (including negligence) or any other theory, even if Malsam Tsang has been advised of the possibility of such damages. Notwithstanding any other provision contained within this agreement, nothing shall be construed as to void, vitiate or adversely affect any insurance coverages held by either party to this agreement. 14. TERMINATION This agreement may be terminated by either party upon seven (7) days written notice. In the event of termination by the Client that is not due to the fault of Malsam Tsang, Malsam Tsang shall be compensated for all services performed to the termination date, along with any costs associated with such termination. 15. ENTIRE AGREEMENT This agreement contains the entire agreement and understanding of the parties with respect to the entire subject matter hereof and any and all services provided by the Malsam Tsang in relation to the project, supersedes all prior discussions, negotiations, agreements, representations, inducements, and understandings, and there are no representations, inducements, promises or agreements, oral or otherwise, not embodied herein. In entering into this agreement, neither party has relied upon any statement, estimate, forecast, projection, representations, warranty, action, or agreement of the other party except for those expressly contained in this agreement. This agreement may be changed only by written amendment executed by both parties. There are no conditions precedent to the effectiveness of this agreement other than as stated herein, and there are no related collateral agreements existing between the parties that are not referenced herein.