Approval of Amendment to Krieger Klatt - City of Royal Oak

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Office of Economic Development 211 South Williams Street Royal Oak, MI 48067 Approval of Amendment to Krieger Klatt Professional Services Contract March 31, 2020 The Honorable Mayor Fournier and Members of the City Commission: On January 8, 2018, the city commission approved a contract with Krieger Klatt Architects (KKA) in the amount of $585,000.00 to perform design services for the new Royal Oak City Hall. As certain design elements have evolved, KKA has performed additional services outside of its original scope of work at the city’s request (Attachment 1). The two largest deviations from the original scope, totaling $39,300.00 in added design and engineering fees, were 1) including a basement in the city hall design documents and 2) changing the heating, ventilation and air-conditioning system from geothermal to a conventional rooftop system. As the city commission was previously informed, site well testing determined that geothermal was not an option for the civic center site, and a basement was excluded due to budgetary reasons. The remaining deviations from the original scope are as follows: 1. Modification of first floor counter design ($2,850.00) 2. Addition of wayfinding and life safety signage ($1,600.00) 3. Additional low voltage design associated with the building’s technology design ($6,250.00) 4. Demolition design of existing city hall and police station, plus reimbursables ($9,600.00) (compare to the $48,900.00 estimate prepared by police station architect Partners in Architecture as seen in Attachment 2) The total of this additional cost of work is $59,600.00. This amount is offset by $15,082.00 in credits owed to the city from KKA for omissions in its original design documents. Thus, the total cost of this additional work is $44,518.00. Attachment 3 identifies all the changes associated with KKA’s Architect/Engineer omissions, and KKA’s additional service requests for this work can be found in Attachments 4-6. When setting the professional fees budget for the city hall project, Plante Moran CRESA, the city’s owner’s representative, allocated $30,000 for potential out-of-scope design services. City staff recommends that $14,518.00 from the owner’s contingency on the civic center project be used to fill the remaining gap. This will leave $572,406.00 remaining in the owner’s contingency on the project. The following resolution is recommended for approval: Be it resolved, the city commission hereby approves amending the professional services contract with Krieger Klatt Architects in the amount of $44,518.00 and directs city staff to increase its purchase order with Krieger Klatt Architects by this amount; and

Transcript of Approval of Amendment to Krieger Klatt - City of Royal Oak

Office of Economic Development 211 South Williams Street

Royal Oak, MI 48067

Approval of Amendment to Krieger Klatt

Professional Services Contract March 31, 2020 The Honorable Mayor Fournier and Members of the City Commission: On January 8, 2018, the city commission approved a contract with Krieger Klatt Architects (KKA) in the amount of $585,000.00 to perform design services for the new Royal Oak City Hall. As certain design elements have evolved, KKA has performed additional services outside of its original scope of work at the city’s request (Attachment 1). The two largest deviations from the original scope, totaling $39,300.00 in added design and engineering fees, were 1) including a basement in the city hall design documents and 2) changing the heating, ventilation and air-conditioning system from geothermal to a conventional rooftop system. As the city commission was previously informed, site well testing determined that geothermal was not an option for the civic center site, and a basement was excluded due to budgetary reasons. The remaining deviations from the original scope are as follows:

1. Modification of first floor counter design ($2,850.00) 2. Addition of wayfinding and life safety signage ($1,600.00) 3. Additional low voltage design associated with the building’s technology design

($6,250.00) 4. Demolition design of existing city hall and police station, plus reimbursables ($9,600.00)

(compare to the $48,900.00 estimate prepared by police station architect Partners in Architecture as seen in Attachment 2)

The total of this additional cost of work is $59,600.00. This amount is offset by $15,082.00 in credits owed to the city from KKA for omissions in its original design documents. Thus, the total cost of this additional work is $44,518.00. Attachment 3 identifies all the changes associated with KKA’s Architect/Engineer omissions, and KKA’s additional service requests for this work can be found in Attachments 4-6. When setting the professional fees budget for the city hall project, Plante Moran CRESA, the city’s owner’s representative, allocated $30,000 for potential out-of-scope design services. City staff recommends that $14,518.00 from the owner’s contingency on the civic center project be used to fill the remaining gap. This will leave $572,406.00 remaining in the owner’s contingency on the project. The following resolution is recommended for approval:

Be it resolved, the city commission hereby approves amending the professional services contract with Krieger Klatt Architects in the amount of $44,518.00 and directs city staff to increase its purchase order with Krieger Klatt Architects by this amount; and

Be it further resolved, city staff is authorized to sign any documents memorializing these amendments to the Krieger Klatt Architects contract.

Respectfully submitted, Todd E. Fenton Economic Development Manager

Approved,

David W. Gillam Interim City Manager and City Attorney

6 Attachments

  March 20, 2019   Mr. Todd Fenton  Director of Economic Development  City of Royal Oak 211 S. Williams Street Royal Oak, MI  48067    RE:  Royal Oak – City Hall Project         Design Team – Additional Services Request   Dear Mr. Fenton:  This letter transmits an update from Plante Moran Cresa (PMC) as it relates to the assignment to assist and advise the City of Royal Oak (CRO) in its selection of an Architectural firm for the CRO City Hall project (the Project). This update represents the mutual efforts of PMC, Krieger Klatt Architects (KKA) and CRO administration (the Project Team)  to present a  framework  to  identify, evaluate and  recommend change orders  to be  incorporated  into  the design contract on this Project.  Krieger Klatt Architects was awarded a contract  in  the amount of $585,000, plus  reimbursables,  to perform  the design  services  on  the  Project. During  the  process  of  completing  the design,  KKA  performed  additional  design services at the request of CRO. These additional services are outside of the original scope of work included in their contract. This  letter  identifies  the extra work  that was performed,  the cost of  the work and  the  funding source.  The following items are included in the recommendation:  

1) Include a basement in the City Hall design documents      Add        $39,300.00 2) Change HVAC system from Geothermal to conventional rooftop system   Included in above 3) CRO modify Customer Counters             Add         $  2,850.00 4) Add Way Finding & Life Safety Signage          Add         $  1,600.00 5) Additional Low Voltage design associated with Technology design    Add         $  6,250.00 6) Demolition design of existing City Hall and Police Station      Add         $  8,350.00 

a. Reimbursables for CH/PS Demolition Design       Add         $  1,250.00 7) Minus Architect’s Standard of Care           Deduct ($15,082.00)   

Design Amendment Total                              $44,518.00  This amount is to be funded as follows:  

1) $30,000 from the projected Professional Fees of $1,204,929                $30,000.00 2) Owner Contingency on the Project                      $14,518.00 

Funding Total Amount                        $44,518.00    There is $586,924 in the Owner’s Contingency remaining on the ROCC on the projects.  With $14,518 being funded from contingency this will leave $572,406 remaining.  Attached is a copy of KKA’s ASR dated August 23, 2018, amended to $39,300.00, KKA’s ASR dated October 11, 2019 and KKA’s proposal for design of the existing City Hall/Police Station demolition, dated March 20, 2020, for reference.  Also attached is a copy of Partners in Architecture’s proposal for the design of the existing City Hall/Police Station demolition, for $48,900.   

Attachment 1

Mr. Todd Fenton  March 20, 2020 City of Royal Oak  Page 2 

 The Owner’s Representative, CRO Administration and Architect have reviewed these proposals and find them reasonable.   I recommend these changes for approval by the CRO Commission.     The Team  is available at the City and Commission’s convenience to answer any questions regarding the contract amendment.  Sincerely,  PLANTE MORAN CRESA 

              Chris Becker Senior Vice President  Enclosures:   Krieger Klatt Architects – ASR dated August 23, 2018     Krieger Klatt Architects – ASR dated October 11, 2019 

Krieger Klatt Architects – Proposal dated March 20, 2020 Partners in Architecture – Proposal dated March 12, 2020 

   

CC:  Dave Gillam – Royal Oak City Attorney   Jason Krieger – Krieger Klatt Architects   Greg VanKirk – Plante Moran Cresa – Partner 

Attachment 1

Chris Becker Project Manager

Plante Moran Cresa, LLC 27400 Northwestern Highway

Southfield, MI 48076

March 12, 2020

RE: City of Royal Oak City Hall and Police Department

A/E Proposal for Demolition of Attached City Hall and Police Buildings.

Mr. Becker:

PIA would like to thank you for the continued opportunity to work with the City of

Royal Oak and your team to implement the demolition of the existing City Hall

building at 211 S Williams Street and the existing Police Department Building at 221

E 3rd Street. As requested, we have assembled this proposal letter to continue our

services for the City to demolish the existing buildings to make way for a new park

development which is currently being designed by another group.

Our services will include demolition drawings and specification documents, bidding

and construction administration tasks, all of which are outlined in detail below.

We have developed a schedule that recognizes the work to happen this year with

bidding drawings needing to be completed within one month of written authorization

for our team to begin.

TASK ONE – Documentation Phase:

This phase will involve:

Documentation phase includes meetings with the City Team and

Construction Manager to understand logistical items as well as what the

site is expected to look like with demolition work completed.

Development and completion of all necessary drawings and specifications

necessary for bidding and demolition including Mechanical and Electrical

Engineering.

Development of a project manual, drawings and specifications for

competitive bidding.

Site drawings will utilize latest survey/engineering drawings by Nowak and

Fraus.

Submission of construction documents to authorities having jurisdiction for

plan review and approval.

Civil engineering component will include removal of underground existing

on-site pavement and private utilities. Proposed timeline & fee anticipates

providing a generally clean and level earth surface with imported fill.

Hazardous materials assessment and abatement is assumed to be handled

by owner’s abatement contractor. The proposal timeline and fees does not

currently include any effort for hazardous materials associated work.

Attachment 2

City of Royal Oak – Proposal for A/E Services March 12, 2020

Page 2 of 3

Existing tower structure, associated components and shelter buildings(s) is

assumed to be addressed by communications company/contractor and is

not part of the proposal.

TASK TWO – Bidding and Award Phase:

This phase involves:

Administration of pre-bid walkthrough of buildings with contractor.

Development of an advertisement for bids is by CM.

Administration and coordination of the bid process is by CM

Attendance at contractor pre-bid meetings.

Review contractor questions / inquiries during bidding and issuance of

addenda (if required).

Bid tabulation by CM.

Participate in Contractor interviews to determine “lowest responsible

bidder”.

TASK THREE - Construction Administration Phase:

This phase involves:

Attendance at construction progress meetings

Clarification of construction documents as necessary.

Review and certification of contractor monthly payment requests.

Generation of project punch list at substantial completion and follow up.

Issuance of certificate of substantial completion.

Consultants:

We have included the following consultants on our team for demolition, which are

included in our proposed fee.

Mechanical and Electrical Engineer:

MA Engineering

400 S. Old Woodward Ave, #100, Birmingham, MI 48009

(248) 258-1610

Civil Engineer:

Project Control Engineering

2420 Pointe Tremble Rd., Algonac, MI 48001

(810) 794-1931

Compensation:

For this project, we propose a fixed fee for our efforts, which will include all necessary

Architecture (documentation, and administration) and Engineering (civil, mechanical

and electrical) services for a complete project.

Attachment 2

City of Royal Oak – Proposal for A/E Services March 12, 2020

Page 3 of 3

Our proposed A/E fee is as follows:

Task One: $ 31,500

Task Two: $ 2,500

Task Three: $ 15,000

TOTAL: $ 48,900

Reimbursables:

Reimbursable expenses are in addition to the A/E fee quoted above. We anticipate

reimbursables to include the following: mileage (per current IRS rates) and

jurisdictional plan review printing. These charges are marked up 10%. Plan review

fees / deposits will be presented to Owner for direct payment. We estimate our

reimbursable expenses to be $500.

Assumptions:

Our proposal is based establishment of an amendment to our current AIA Agreement

between Owner and Architect”, with mutually agreeable modifications.

We truly appreciate the opportunity to work with you and the entire City of Royal Oak

team on this project. If you have any questions or require any additional information,

please do not hesitate to contact me. Again, thank you. Please sign and return a

copy of this proposal to me signifying your acceptance or provide a contract

amendment for review and acceptance. Sincerely, Accepted By: PARTNERS in Architecture, PLC Signature Darren R. McKenna, RA Project Manager Cc: D. Gassen Name File Ref: 20-000; NPD Enclosure Date

Attachment 2

City of Royal OakCity Hall

CRO PCO Log

Line # PCO # CO# Description Submitted Amount Pending Amount Approved

Amount

Reason for Change Funding Source Comments

1 001 001 Bulletin #2 - HVAC $ 4,616.00 $ - $ 4,616.00 A/E Omission Costs Owner Contingency Approved

2 005 001 Bulletin #4 - Waterproofing $ 3,552.00 $ - $ 3,552.00 General Conditions CM Contingency Added joints in Precast

3 006 001 Bulletin #7 - Electrical Generator changes $ 2,191.00 $ - $ 2,191.00 Regulatory Owner Contingency Approved

4 007 001 Bulletin #5 - Electrical changes $ 11,984.00 $ - $ 11,984.00 Owner Change Owner Contingency Approved

5 012 001 Bulletin #3 - Finish Carpentry added work $ 4,276.00 $ - $ 4,276.00 A/E Omission Costs Owner Contingency Approved

6 020 001 RFI #73 - Quad Floor Box change $ 741.53 $ - $ 741.53 Owner Change Owner Contingency Approved 7 008 002 Remove bond cost from Electrical, Masonry and Steel contractors $ (19,912.00) $ - $ (19,912.00) General Conditions Owner Contingency Approved 8 009 002 Site Lighting - covered in Connectivity $ (19,366.00) $ - $ (19,366.00) General Conditions Owner Contingency Approved 9 026 002 Delete Fire Dampers per A/E $ (580.00) $ - $ (580.00) Field Condition Owner Contingency Approved

10 010 003 Winter Conditions - Allowance Usage $ - $ - $ - Field Condition CM Contingency Approved 11 017 003 CM Contingency usage - Cut steel plate at East & West Entrances $ - $ - $ - Field Condition CM Contingency Approved 12 018 003 CM Contingency Usage - Poor soil conditions $ - $ - $ - Field Condition CM Contingency Approved

13 027 003 CM Contingency - RFI #103 - Added Galvanized Angles $ - $ - $ - Field Condition CM Contingency Approved

14 028 003 CM Contingency - Generator Framing $ - $ - $ - Field Condition CM Contingency Approved 15 003 004 Bulletin #3 - Roofing, Metal Panels, Glazing $ 20,502.00 $ - $20,502.00 A/E Omission Costs Owner Contingency Approved 16 004 004 Bulletin #3 - Concrete, Doors & Hardware $ 33,337.00 $ - $ 33,337.00 General Conditions CM Contingency CM Contingency 17 011 004 Bulletin #3 - Concrete changes $ 18,857.00 $ - $18,857.00 A/E Omission Costs Owner Contingency Approved 18 019 004 Bulletin #8 - Steel changes $ 4,789.72 $ - $ 4,789.72 Owner Change Owner Contingency Added Basement 19 029 004 Bulletin #10 - Carpentry $ 11,938.00 $ - $ 11,938.00 Owner Change Owner Contingency Approved 20 015 005 Bulletin #3 - Masonry changes $ 52,963.85 $ - $52,963.85 A/E Omission Costs Owner Contingency Approved 21 016 005 Bulletin #4 - Masonry changes $ 40,430.25 $ - $40,430.25 A/E Omission Costs Owner Contingency Approved 22 023 005 Bulletin #9 - Mechanical $ 1,969.00 $ - $ 1,969.00 Owner Change Owner Contingency Approved 23 025 005 Bulletin #9 - Millwork $ 1,785.00 $ - $ 1,785.00 Owner Change Owner Contingency Approved 24 021 006 Fiber Conduits runs inside building $ 25,118.31 $ - $ 25,118.31 Owner Change Owner Contingency Approved 25 013 007 Bulletin #3 - Steel changes $ 48,487.00 $ - $48,487.00 A/E Omission Costs Owner Contingency Approved 26 022 007 Bulletin #9 - Electrical $ 4,238.60 $ - $ 4,238.60 Owner Change Owner Contingency Approved

27 002 008 Bulletin #2 - Electrical $ 64,802.00 $ - $ 64,802.00 Owner Change Owner Contingency Approved - Technology

28 014 Bulletin #6 $ 5,329.00 $ - $ 5,329.00 A/E Omission Costs Owner Contingency 29 024 Bulletin #9 - Glazing $ 19,662.63 $ 19,662.63 Owner Change Owner Contingency 30 030 $ (10,656.00) $ (10,656.00) Owner Change 31 031 $ 17,118.00 $ 17,118.00 Owner Change 32 032 $ 5,997.00 $ 5,997.00 Owner Change 33 033 $ 1,252.00 $ 1,252.00 Owner Change 34 034 $ 1,615.00 $ 1,615.00 Owner Change 35 035 $ 1,278.00 $ 1,278.00 Owner Change 36 036 $ 8,854.00 $ 8,854.00 Owner Change 37 037 $ 3,283.00 $ 3,283.00 Owner Change 38 042 Bulletin #8 - Carpentry $ 10,927.00 $ 10,927.00 Owner Change 39 $ - $ - 40 $ - $ - 41 $ - $ - 42 $ - $ -

Print Date=3/22/2020File=CRO Change Order Log 3.18.2020 (01) Page 1 of 2

Intellectual Property ofPlante Moran CRESA

Attachment 3

City of Royal OakCity Hall

43 $ - $ - 44 $ - $ - 45 $ - $ -

$ - $ - $ -

$ 381,379.89 $ 59,330.63 $ 322,049.26 $ - $ - $ -

Projected Changes $ 182,187.23

TOTAL CHANGES (Approved and Pending) 381,379.89$

Owner Contingency Budget (September 2019 Commission) 328,570.00$ $ 145,883.70 Remaining Contingency on City Hall (52,809.89)$

2

Reason for Change Order Amount Percent Cost of the Work 9,008,840$

Owner Change 186,697$ 49.05% Standards of Care 1.50%

General Conditions (4,778)$ (1.26%) Threshold 135,132.60$

Regulatory 4,382$ 1.15% Current Change Amount 195,461.10$

Field Condition (1,160)$ (0.30%) Remaining Amount (60,328.50)$

Architect Issues 195,461$ 51.36% Arch Standard of Care Cost (15,082.13)$

Error -$ - %

Total Approved and Pending Change Orders to Date 380,602$ 100.00%

Total Costs of Approved Changes with Architect Issues 195,461$

ARCHITECT'S STANDARD OF CARECHANGE ORDER SUMMARY (Approved and Pending)

Print Date=3/22/2020File=CRO Change Order Log 3.18.2020 (01) Page 2 of 2

Intellectual Property ofPlante Moran CRESA

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Krieger Klatt Architects Inc. 2120 East 11 Mile Road Royal Oak MI 48067 P.248.414.9270 F.248.414.9275 www.kriegerklatt.com 1

Standard Form of Agreement Between Owner and Architect

March 20, 2020 Owner: City of Royal Oak 203 S Troy St. Royal Oak, MI 48067 Address of Project: Royal Oak City Hall & Police Station (former structures) 211 S. Williams Street Royal Oak, MI 48067 Architect: Krieger Klatt Architects Inc. (KKA) 2120 East 11 Mile Road Royal Oak, MI 48067 Principal in Charge: Jason Krieger, AIA The scope of the project will be as follows: The Architect will provide demolition drawings for the existing City Hall and Police Station. The scope of work will include the following:

1. Draft the existing conditions based off City provided existing drawings. 2. Provide a site visit to verify the provided documents match the existing site conditions. 3. Field measure any spaces as required in order to properly document the spaces. 4. Attend a contractor walk-through (if requested) during the bid phase. 5. Create the demolition drawings and specs.

The Architect will also provide sign re-installation drawings for the City of Royal Oak City Hall and Police Station monument signs. The scope of work will include the following:

1. Monument sign installation drawings (plans, elevations and details) for two signs. 2. Coordinate the sign location with the City of Royal Oak. 3. Coordinate the sign location with the Civil Engineer (hired by the City of Royal Oak).

Clarifications:

It is understood that the scope of demolition within these documents are for the buildings only.

It is understood that the Civil Engineers will provide site demolition plans for utilities, pavement and other items that are outside of the extents of the building.

KKA will coordinate with Ownership regarding any items that are to be salvaged or saved.

All specifications will be located on the drawings.

KKA will discuss with Ownership if the basements are to be removed or partially demolished and buried. Any fill and/or compaction will be designed by others.

Soil reports, testing and compaction design will be performed by others and is not in this scope of work.

This proposal does not include any lighting or power to the monument signs.

Attachment 6

           

Krieger Klatt Architects Inc. 2120 East 11 Mile Road Royal Oak MI 48067 P.248.414.9270 F.248.414.9275 www.kriegerklatt.com 2

The Civil Engineers hired by the City will create and manage the site plan for the sign locations.

SECTION 1 – RESPONSIBILITIES OF EACH PARTY ARCHITECT’S RESPONSIBILITIES Generally, the Architect shall provide Architectural services for the Project as described in this Agreement in a manner consistent with locally accepted standards for professional skill and care. The Architect shall assist the Owner in determining consulting services required for the Project. For the purposes of this agreement, it is assumed that a Civil Engineer will be responsible for the demolition notes of all site items. It is also assumed that backfilling and excavation specifications will be provided by a Geotechnical or Civil Engineer. OWNER'S RESPONSIBILITIES The Owner shall provide full information about the objectives, schedule, constraints and existing conditions of the Project, and shall establish a budget that includes reasonable contingencies and meets the Project requirements. The Owner shall provide decisions and furnish required information as expeditiously as necessary for the orderly progress of the Project. The Architect shall be entitled to rely on the accuracy and completeness of the Owner's information. The Owner shall furnish consulting services not provided by the Architect, but required for the Project, such as surveying, which shall include property boundaries, topography, utilities, and wetlands information; geotechnical engineering; and environmental testing services. The Owner shall employ a Contractor, experienced in the type of Project to be constructed, to perform the construction work and to provide pricing information. SECTION 2 – BASIC SERVICES THAT ARE INCLUDED WITHIN THIS AGREEMENT DRAFT EXISTING CONDITIONS The Architect and the Architect’s Consultants shall field measure and draft the existing conditions of the proposed space. The field measurement will be adequate to provide demolition drawings and notes.

Notes:

1. Neither the Architect nor the Consultants are responsible for hidden items or items that they cannot reach, measure or document properly.

2. The Architects and Consultants will do their best to identify all structural and mechanical items in the building but demolition is not typically within their scope.

Deliverable items for this phase are as follows:

1. Floor plans 2. Foundation or lower level plans 3. Exterior elevations

DEMOLITION DOCUMENTS The Architect will prepare Demolition Documents for bidding and permits. The Architect will coordinate with the consultants to ensure a cohesive set of documents. Deliverable items for this phase will be as listed below.

Attachment 6

           

Krieger Klatt Architects Inc. 2120 East 11 Mile Road Royal Oak MI 48067 P.248.414.9270 F.248.414.9275 www.kriegerklatt.com 3

1. Demolition Floor plans 2. Roof plan 3. Reflected Ceiling and Lighting Plans 4. Exterior Demolition Elevations 5. Written specifications and demolition scope (on drawings)

CONSTRUCTION DOCUMENTS The Architect will prepare Construction Documents for the sign bases. The Construction documents will be for the new sign foundations. It is understood that the installer will handle all means and methods on how to transplant the sign. KKA is designing the foundations and connections to the foundations only. The locations of the signs will be shown on a site plan provided by others. Deliverable items for this phase will be as listed below.

1. Foundation Plan 2. Elevations 3. Sections and Details 4. Specifications

CONSTRUCTION ADMINISTRATION (IF REQUESTED) The Architect will perform construction administration services on behalf of the Owner during the construction phase of the project. These services include:

1. Responding to RFI’s 2. Reviewing pay requests 3. Job site walk-throughs as required

REIMBURSABLE EXPENSES Reimbursable Expenses shall be paid at a multiple of 1.15 times the actual cost incurred by the Architect. Reimbursable expenses may include, but are not necessarily limited, to the following:

1. Reproductions of drawings for in house review, submittals, public hearings, or permits 2. Submittal, Permit, or Application fees (not included in the contract estimate) 3. Shipping costs (Fed Ex) 4. Travel expenses (ticket, hotel, rental car, transportation, car mileage, etc.) incurred outside the

immediate Detroit Metropolitan area related to this project. Mileage reimbursement is the standard allowance as determined by the Internal Revenue Service.

SECTION 3 – PAYMENTS AND COMPENSATION TO THE ARCHITECT The Architect's Compensation for the base contracted services shall be: Draft Existing: $ 3,000.00 Demolition Drawings and CA: $ 4,000.00 Sign Foundation and installation design: $ 1,200.00 Reimbursable Expenses $ 150.00 (reproduction and shipping expenses only) Base Contract Fee: $ 8,350.00

Attachment 6

           

Krieger Klatt Architects Inc. 2120 East 11 Mile Road Royal Oak MI 48067 P.248.414.9270 F.248.414.9275 www.kriegerklatt.com 4

ADDITIONAL SERVICES AND FEES At the request of the Owner, the Architect shall provide Additional Services for compensation in addition to the base contract fee. Examples of such services may include providing or coordinating services of consultants not identified in Section 2; revisions due to changes in the scope, quality or budget; evaluating changes in the Work and Contractors' requests for substitutions of materials or systems; and services not completed within Six months of the date of this Agreement through no fault of the Architect. Upon recognizing the need to perform Additional Services, the Architect shall notify the Owner with reasonable promptness and explain the facts and circumstances giving rise to the need. The Architect shall not proceed to provide any Additional Services until the Architect receives the Owner's written authorization. SECTION 4 – PAYMENT TERMS AND RATES The Architect will bill monthly based upon the time completed for that phase. The Owner shall reimburse the Architect for expenses incurred in the interest of the Project, plus fifteen percent (15%). Payments are due and payable upon receipt of the Architect's monthly invoice. Amounts unpaid sixty (60) days after the invoice date shall bear interest from the date payment is due at the rate of ten percent (10 %). If the Architect has not received payment within ninety (90) days of the date of the invoice, the Architect may pause on the progress of the project until the account is made whole. HOURLY RATES Additional Services performed by the Architect outside the basic services will be performed on an hourly rate based on the schedule below: Associate 1: $70.00 Associate 2: $75.00 Associate 3: $80.00 Interior Design Associate $75.00 Interior Designer $95.00 Architectural Designer 1: $90.00 Architectural Designer 2: $100.00 Architectural Designer 3: $110.00 Senior Designer/PM 1: $110.00 Senior Designer/PM 2: $120.00 Senior Designer/PM 3: $150.00 Senior Designer/Dept Head: $150.00 Project Architect: $150.00 Principal: $180.00 Administration: $50.00 SECTION 5 - OTHER PROVISIONS USE OF DOCUMENTS Drawings, specifications and other documents prepared by the Architect are instruments of the Architect's service and are for the Owner's use solely with respect to this Project. The Architect shall retain all common

Attachment 6

           

Krieger Klatt Architects Inc. 2120 East 11 Mile Road Royal Oak MI 48067 P.248.414.9270 F.248.414.9275 www.kriegerklatt.com 5

law, statutory and other reserved rights, including the copyright. Upon completion of the Project or termination of this Agreement, the Owner's right to use the instruments of service shall cease. When transmitting copyright-protected information for use on the Project, the transmitting party represents that it is either the copyright owner of the information, or has permission from the copyright owner to transmit the information for its use on the Project. TERMINATION, SUSPENSION OR ABANDONMENT In the event of termination, suspension or abandonment of the Project by the Owner, the Architect shall be compensated for services performed. The Owner's failure to make payments in accordance with this Agreement shall be considered substantial nonperformance and sufficient cause for the Architect to suspend or terminate services. Either the Architect or the Owner may terminate this Agreement after giving no less than seven days' written notice if the Project is suspended for more than 90 days, or if the other party substantially fails to perform in accordance with the terms of this Agreement. CONSTRUCTION PHASE (or demolition phase) The Architect shall not have control over, charge of, or responsibility for the construction means, methods, techniques, sequences or procedures, or for safety precautions and programs in connection with the construction work on any project, nor shall the Architect be responsible for the contractor’s failure to perform the construction work in accordance with the requirements of the plans and specifications prepared by Architect. The Architect shall not have control over or charge of, and shall not be responsible for, acts or omissions of the contractor or of any other persons or entities performing portions of the construction work. PROJECT INFORMATION The Architect shall be entitled to rely on the accuracy and completeness of services and information furnished by the Owner, including services and information provided by other design professionals or consultants directly to the Owner. These services and information include, but are not limited to, surveys, tests, reports, diagrams, drawings, legal information, and both budget and construction estimates. CONTRACTOR SUBMITTALS The Architect shall review the contractor’s submittals such as shop drawings, product data and samples, but only for the limited purpose of checking for conformance with information given and the design concept expressed in the plan and specifications issued by the Architect. Review of such submittals is not for the purpose of determining the accuracy and completeness of other information such as dimensions, quantities, and installation or performance of equipment or systems, which are the contractor’s responsibility. The Architect’s review shall not constitute approval of safety precautions or, unless otherwise specifically stated by the Architect, of any construction means, methods, techniques, sequences or procedures. The Architect’s approval of a specific item shall not indicate approval of an assembly of which the item is a component. WAIVER OF CONSEQUENTIAL DAMAGES The Architect and Owner waive consequential damages for claims, disputes or other matters in question arising out of or relating to this Agreement. This mutual waiver is applicable, without limitation, to all consequential damages due to either party’s termination of this Agreement. WAIVER OF SUBROGATION The Architect and Owner waive all rights against each other and any of their contractors, subcontractors, consultants, agents and employees, each of the other, for damages caused by fire or other causes of loss to the extent covered by property insurance obtained pursuant to a written contract or other property insurance applicable to the construction work. The Architect and Owner, as appropriate, shall require of their contractors, subcontractors, consultants, agents and employees, by appropriate agreements, written where legally required for validity, similar waivers each in favor of other parties enumerated herein. The policy shall provide such waivers of subrogation by endorsement or otherwise. A waiver of subrogation shall be effective as to a person or entity even though that person or entity would otherwise have a duty of

Attachment 6

           

Krieger Klatt Architects Inc. 2120 East 11 Mile Road Royal Oak MI 48067 P.248.414.9270 F.248.414.9275 www.kriegerklatt.com 6

indemnification, contractual or otherwise, did not pay the insurance premium directly or indirectly, and whether or not the person or entity had an insurable interest in the property damaged. CONSTRUCTION OBSERVATION If requested, the Architect shall visit the project construction site to generally observe the construction work and answer any questions that the Owner may have. However, the Architect shall not be required to make exhaustive or continuous on-site inspections to check the quality or quantity of the construction work, or to determine whether the construction work is being constructed in accordance with the Contract Documents. If the Owner desires the Architect to perform more frequent or comprehensive observations of the construction work, this Agreement shall be amended to specifically state the additional scope of service, along with the additional compensation to be paid to the Architect for performing such service. JOBSITE SAFETY Neither the performance of the services by the Architect, nor the presence of the Architect at a project construction site, shall impose any duty on the Architect, nor relieve the construction contractor of its obligations, duties and responsibilities including, but not limited to, construction means, methods, sequence, techniques or procedures necessary for performing, superintending and coordinating the construction work in accordance with the plans and specifications and any health or safety precautions required by any regulatory agencies or applicable law. The Architect and its personnel have no authority to exercise any control over any construction contractor or its employees in connection with their work or any health or safety programs or procedures. The Owner agrees that the construction contractor shall be solely responsible for jobsite and worker safety. STANDARD OF CARE The Architect shall perform its services consistent with the professional skill and care ordinarily provided by Architect’s practicing in the same or similar circumstances. The Architect shall perform its services as expeditiously as is consistent with such professional skill and care and the orderly progress of the project. RESPONSIBILITY FOR CONSTRUCTION Evaluations of the Owner’s project budget, the preliminary estimate of construction cost and detailed estimates of construction cost, if any, prepared by the Architect, represent the Architect’s judgment as a design professional familiar with the construction industry. It is recognized, however, that neither the Architect nor the Owner has control over the cost of labor, materials or equipment, over the contractor’s methods of determining bid prices, or over competitive bidding, market or negotiating conditions. Accordingly, the Architect cannot and does not warrant or represent that bids or negotiated prices will not vary from the Owner’s project budget or from any estimate of construction cost or evaluation prepared or agreed to by the Architect.

DISPUTE RESOLUTION Any claims or disputes made during design, construction or post-construction between the Owner and Architect shall be submitted to non-binding mediation. Owner and Architect agree to include a similar mediation agreement with all contractors, sub-contractors, sub-consultants, suppliers and fabricators, thereby providing for mediation as the primary method for dispute resolution between all parties. The mediation shall be governed by the then current Construction Industry Mediation Rules of the American Arbitration Association (“AAA”). Mediation shall be a condition precedent to the initiation of any other dispute resolution process, including court actions. LIMITATION OF LIABILITY In recognition of the relative risks and benefits of the Project to both the Owner and the Architect, the risks have been allocated such that the Owner agrees, to the fullest extent permitted by law, to limit the liability of the Architect and Architect's officers, directors, partners, employees, shareholders, owners and sub-consultants for any and all claims, losses, costs, damages of any nature whatsoever or claims expenses from any cause or causes, including attorneys' fees and costs and expert-witness fees and costs, so that the total

Attachment 6

           

Krieger Klatt Architects Inc. 2120 East 11 Mile Road Royal Oak MI 48067 P.248.414.9270 F.248.414.9275 www.kriegerklatt.com 7

aggregate liability of the Architect and Architect’s officers, directors, partners, employees, shareholders, owners and sub-consultants shall not exceed $25,000.00 or the Architect's total fee for services rendered on this Project, whichever is greater. It is intended that this limitation apply to any and all liability or cause of action however alleged or arising, unless otherwise prohibited by law. TERMINATION OR SUSPENSION If the Owner fails to make payments to the Architect in accordance with this Agreement, such failure shall be considered substantial nonperformance and cause for termination or, at the Architect’s option, cause for suspension of performance of services under this Agreement. If the Architect elects to suspend services, prior to suspension of services, the Architect shall give seven days written notice to the Owner. In the event of suspension of services, the Architect shall have no liability to the Owner for delay or damage caused the Owner because of such suspension of services. Before resuming services, the Architect shall be paid all sums due prior to suspension and any expenses incurred in the interruption and resumption of the Architect’s services. The Architect’s fees for the remaining services and the time schedules shall be equitably adjusted. CERTIFICATIONS If the Owner requests the Architect to execute certificates, the proposed language of such certificates shall be submitted to the Architect for review at least 14 days prior to the requested dates of execution. The Architect shall not be required to execute certificates that would require knowledge, services or responsibilities beyond the scope of the Agreement, nor shall any certificates be construed as a warranty or guarantee by the Architect. MISCELLANEOUS PROVISIONS This Agreement shall be governed by the law of the place where the Project is located. Nothing contained in this Agreement shall create a contractual relationship with, or a cause of action in favor of, a third party against either the Owner or the Architect. The Architect and Architect’s consultants shall have no responsibility for the identification, discovery, presence, handling, removal or disposal of, or exposure of persons to, hazardous materials in any form at the Project site. This Agreement entered as of the day and year first written above. __________________________________________ ____________________________ OWNER (Signature) Architect (Signature) Jason Krieger, AIA Architect __________________________________________ ______________________________ (Printed name and title) (Printed name and title)

Attachment 6