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.
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