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General Provisions of Professional <br />Services Agreement <br />These General Provisions are intended to be used in conjunction with a letter -type Agreement <br />or a Request for Services between Widseth Smith Nolting & Assoc., Inc., a Minnesota <br />Corporation, hereinafter referred to as WIDSETH, and a CLIENT, wherein the CLIENT engages <br />WIDSETH to provide certain Architectural, and /or Engineering services on a Project. <br />As used herein, the term `this Agreement° refers to (1) the WIDSETH Proposal Letter which <br />becomes the Letter Agreement upon its acceptance by the Client, (2) these General Provisions <br />and (3) any attached Exhibits, as if they were part of one and the same document. With respect <br />to the order of precedence, any attached Exhibits shall govern over these General Provisions, <br />and the Letter Agreement shall govern over any attached Exhibits and these General <br />Provisions. These documents supersede all prior communications and constitute the entire <br />Agreement between the parties. Amendments to this Agreement must be in writing and signed <br />by both CLIENT and WIDSETH. <br />ARTICLE 1. PERIOD OF SERVICE <br />The term of this Agreement for the performance of services hereunder shall be as set forth in <br />the Letter Agreement. In this regard, any lump sum or estimated maximum payment amounts <br />set forth in the Letter Agreement have been established in anticipation of an orderly and <br />continuous progress of the Project in accordance with the schedule set forth in the Letter <br />Agreement or any Exhibits attached thereto. WIDSETH shall be entitled to an equitable <br />adjustment to its fee should there be an interruption of services, or amendment to the schedule. <br />ARTICLE 2. SCOPE OF SERVICES <br />The scope of services covered by this Agreement shall be as set forth in the Letter Agreement <br />or a Request for Services. Such scope of services shall be adequately described in order that <br />both the CLIENT and WIDSETH have an understanding of the expected work to be performed. <br />If WIDSETH is of the opinion that any work they have been directed to perform is beyond the <br />Scope of this Agreement, or that the level of effort required significantly exceeds that estimated <br />due to changed conditions and thereby constitutes extra work, they shall notify the CLIENT of <br />that fact. Extra work, additional compensation for same, and extension of time for completion <br />shall be covered by a revision to the Letter Agreement or Request for Services and entered into <br />by both parties. <br />ARTICLE 3. COMPENSATION TO WIDSETH <br />A. Compensation to WIDSETH for services described in this Agreement shall be on a Lump <br />Sum basis, Percentage of Construction, and /or Hourly Rate basis as designated in the Letter <br />Agreement and as hereinafter described. <br />1. A Lump Sum method of payment for WIDSETH's services shall apply to all or parts of a <br />work scope where WOSETH's tasks can be readily defined and /or where the level of <br />effort required to accomplish such tasks can be estimated with a reasonable degree of <br />accuracy. The CLIENT shall make monthly payments to WIDSETH within 30 days of <br />date of invoice based on an estimated percentage of completion of WIDSETH's services. <br />A Percentage of Construction or an Hourly Rate method of payment of WIDSETH's <br />services shall apply to all or parts of a work scope where WIDSETH's tasks cannot be <br />readily defined and /or where the level of effort required to accomplish such tasks cannot <br />be estimated with any reasonable degree of accuracy. Under an Hourly Rate method of <br />payment, WIDSETH shall be paid for the actual hours worked on the Project by <br />WIDSETH technical personnel times an hourly billing rate established for each <br />employee. Hourly billing rates shall include compensation for all salary costs, payroll <br />burden, general, and administrative overhead and professional fee. In a Percentage of <br />Construction method of payment, final compensation will be based on actual bids if the <br />project is bid and WIDSETH's estimate to the CLIENT if the project is not bid. A rate <br />schedule shall be furnished by WIDSETH to CLIENT upon which to base periodic <br />payments to WIDSETH. <br />3. In addition to the foregoing, WIDSETH shall be reimbursed for items and services as set <br />forth in the Letter Agreement or Fee Schedule and the following Direct Expenses when <br />incurred in the performance of the work: <br />(a) Travel and subsistence. <br />(b) Specialized computer services or programs. <br />(c) Outside professional and technical services with cost defined as the amount billed <br />WIDSETH. <br />(d) Identifiable reproduction and reprographic costs. <br />(e) Other expenses for items such as permit application fees, license fees, or other <br />additional items and services whether or not specifically identified in the Letter <br />Agreement or Fee Schedule. <br />4. The CLIENT shall make monthly payments to WIDSETH within 30 days of date of invoice <br />based on computations made in accordance with the above charges for services <br />provided and expenses incurred to date, accompanied by supporting evidence as <br />available. <br />B. The CLIENT will pay the balance W i DS E T H <br />stated on the invoice unless CLIENT <br />notifies WIDSETH in writing of the ARCHITECTS ■ ENGINEERS <br />particular item that is alleged to be SCIENTISTS • SURVEYORS <br />incorrect within 15 days from the date of <br />invoice, in which case, only the disputed <br />item will remain undue until resolved by the parties. All accounts unpaid after 30 days from <br />the date of original invoice shall be subject to a service charge of 1 % per month, or the <br />maximum amount authorized by law, whichever is less. WIDSETH shall be entitled to recover <br />all reasonable costs and disbursements, including reasonable attorneys fees, incurred in <br />connection with collecting amount owed by CLIENT. In addition, WIDSETH may, after giving <br />seven days written notice to the CLIENT, suspend services and withhold deliverables under <br />this Agreement until WIDSETH has been paid in full for all amounts then due for services, <br />expenses and charges. CLIENT agrees that WIDSETH shall not be responsible for any claim <br />for delay or other consequential damages arising from suspension of services hereunder. <br />Upon payment in full by Client and WIDSETH's resumption of services, the time for <br />performance of WIDSETH's services shall be equitably adjusted to account for the period of <br />suspension and other reasonable time necessary to resume performance. <br />ARTICLE 4. ABANDONMENT, CHANGE OF PLAN AND TERMINATION <br />Either Party has the right to terminate this Agreement upon seven days written notice. In <br />addition, the CLIENT may at any time, reduce the scope of this Agreement. Such reduction in <br />scope shall be set forth in a written notice from the CLIENT to WIDSETH. In the event of <br />unresolved dispute over change in scope or changed conditions, this Agreement may also be <br />terminated upon seven days written notice as provided above. <br />In the event of termination, and upon payment in full for all work performed and expenses <br />incurred to the date of termination, documents that are identified as deliverables under the <br />Letter Agreement whether finished or unfinished shall be made available by WIDSETH to the <br />CLIENT pursuant to Article 5, and there shall be no further payment obligation of the CLIENT <br />to WIDSETH under this Agreement except for payment of an amount for WIDSETH's <br />anticipated profit on the value of the services not performed by WIDSETH and computed in <br />accordance with the provisions of Article 3 and the Letter Agreement. <br />In the event of a reduction in scope of the Project work, WIDSETH shall be paid for the work <br />performed and expenses incurred on the Project work thus reduced and for any completed <br />and abandoned work, for which payment has not been made, computed in accordance with <br />the provisions of Article 3 and the Letter Agreement. <br />ARTICLE 5. DISPOSITION OF PLANS, REPORTS AND OTHER DATA <br />All reports, plans, specifications, field data and notes and other documents, including all <br />documents on electronic media, prepared by WIDSETH or its consultants are Instruments of <br />Service and shall remain the property of WIDSETH or its consultants, respectively. <br />WIDSETH and its subconsultants retain all common law, statutory and other reserved rights, <br />including, without limitation, copyright. WIDSETH and its subconsultants maintain the right to <br />determine if production will be made, and allowable format for production, of any electronic <br />media or data to CLIENT or any third -party. Upon payment in full of monies due pursuant to <br />the Agreement, WIDSETH shall make hard copies available to the CLIENT, of all documents <br />that are identified as deliverables under the Letter Agreement. If the documents have not <br />been finished (including, but not limited to, completion of final quality control), then WIDSETH <br />shall have no liability for any calms expenses or damages that may arise out of items that <br />could have been corrected during completion /quality control. Any Instruments of Service <br />provided are not intended or represented to be suitable for reuse by the CLIENT or others on <br />extensions of the Project or any other project. Any modification or reuse without written <br />verification or adaptation by WIDSETH for the specific purpose intended will be at CLIENT's <br />sole risk and without liability or legal exposure to WIDSETH. CLIENT shall indemnify, defend <br />and hold harmless WIDSETH from any and all suits or daims of third parties arising out of <br />use of unfinished documents, or modification or reuse of finished documents, which is not <br />specifically verified, adapted, or authorized in writing by WIDSETH. This indemnity shall <br />survive the termination of this Agreement. <br />Should WIDSETH choose to deliver to CLIENT documents in electronic form, CLIENT <br />acknowledges that differences may exist between any electronic files delivered and the <br />printed hard-copy. Copies of documents that may be relied upon by CLIENT are limited to <br />the printed hard -copes that are signed and /or sealed by WIDSETH. Files in electronic form <br />are only for convenience of CLIENT. Any conclusion or information obtained or derived from <br />such electronic documents will be at user's sole risk. CLIENT acknowledges that the useful <br />life of some forms of electronic media may be limited because of deterioration of the media or <br />obsolescence of the computer hardware and/or software systems. Therefore, WIDSETH <br />makes no representation that such media will be fully usable beyond 30 days from date of <br />delivery to CLIENT. <br />ARTICLE 6. CLIENT'S ACCEPTANCE BY PURCHASE ORDER OR OTHER MEANS <br />In lieu of or in addition to signing the acceptance blank on the Letter Agreement, the CLIENT <br />may accept this Agreement by permitting WIDSETH to commence work on the project or by <br />issuing a purchase order signed by a duly authorized representative. Such purchase order <br />shall incorporate by reference the terms and conditions of this Agreement. In the event of a <br />conflict between the terms and conditions of this Agreement and those contained in the <br />CLIENT's purchase order, the terms and conditions of this Agreement shall govern. <br />Notwithstanding any purchase order provisions to the contrary, no warrantees, express or <br />implied, are made by WIDSETH. <br />