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TERMS AND CONDITIONS OF AGREEMENT BETWEEN OWNER AND ARCHITECT <br /> ARTICLE 5 <br /> ART._ �_ CLE 2 . <br /> THE OWNER'S RESPONSIBILITIES <br /> PAYMENTS TO THE ARCHITECT <br /> 2.1 The Owner shall provide full information regarding 5.1 Payments on account of the Architect's services, and <br /> � requirements for the Project. for Reimbursable Expenses as defined in Article 4,shall be <br /> made monthly upon presentation of the Architect's state- <br /> 2,2 The Owner shall designate, when necessary, a rep- ment of services rendered or as otherwise provided in this <br /> resentative authorized to act in the Owner's behalf with �Agreement. <br /> respect to the Project. The Owner or such authorized 5.2 An initial payment as set forth in Paragraph 10.1 is <br /> representative shall examine the documents submitted by the minimum payment under this Agreement. <br /> the Architect and shall render decisions pertaining thereto 5.3 If the Project is suspended or abandoned in whole <br /> promptly, to avoid unreasonable delay in the progress of or in part for more than three months, the Architect shall <br /> the ArchitecYs services. be compensated for all services performed prior to re- <br /> 2.3 The Owner shall furnish required information as ex- ceipt of written notice from the Owner of such suspen- <br /> peditiousfy as necessary for the orderly progress of the sion or abandonment, together with Reimbursable Ex- <br /> Work, and the Architect shall be entitled to rely upon the Penses then due and all Termination Expenses as defined <br /> accuracy and completeness thereof. in Paragraph 8.4. If the Project is resumed after being <br /> suspended for more than three months, the Architect's <br /> ARTICLE 3 compensation shall be equitably adjusted. <br /> DIRECT SALARY AND ARTICLE 6 <br /> DIRECT PERSONNEL EXPENSE <br /> 3.1 Direct Salary Expense is defined as the direct salaries <br /> ARCHITECT'S ACCOUNTING RECORDS <br /> of all the ArchitecYs personnel engaged on the Project, 6,� Records of Reimbursable Expenses and expenses <br /> but does not include the cost of contributions and bene- pertaining to services performed on the basis of a Multiple <br /> fits related thereto, whether mandatory or customary, as of Direct Salary or Direct Personnel Expense shall be kept <br /> described in Paragraph 3.2, and included in Direct Per- on the basis of generally accepted accounting principles <br /> sonnel Expense. and shall be available to the Owner or the Owner's <br /> 3.2 Direct Personnel Expense is defined as the direct <br /> authorized representative at mutually convenient times. <br /> salaries of all the ArchitecYs personnel engaged on the ARTICLE 7 <br /> Project, and the portion of the cost of their mandatory ARBITRATION <br /> and customary contributions and benefits related thereto, <br /> such as employment taxes and other statutory employee <br /> benefits, insurance, sick leave, holidays,�vacations, pen- 7.1 All claims, disputes and other matters in question <br /> sions, and similar contributions and benefits. between the parties to this Agreement arising out of or <br /> relating to this Agreement or the breach thereof, shall be <br /> ARTICLE 4 decided by arbitration in accordance with the Construc- <br /> REIMBURSABLE EXPENSES tion Industry Arbitration Rules of the American Arbitra- <br /> tion Association then obtaining unless the parties mutu- <br /> 4.1 Reimbursable Expenses are in addition to the Archi- Iatlnagtoeth shA reement shallranclude,sby onsolidation, <br /> tect's compensation and include actual expenditures g g <br /> � made by the Architect and the Architect's employees and joinder or in any other manner, any additional person not <br /> � consultants in the interest of the Project for the expenses a parry to this Agreement except by written consent con- <br /> listed in the following Subparagraphs: taining a specific reference to fhis Agreement and signed <br /> ; by the Architect, the Owner and any other person sought <br /> � .1 expense of transportation and living expenses in to be joined. Any consent to arbitration involving an <br /> connection with out-of-town travel authorized by additional person or persons shall not constitute consent <br /> � the Owner, to arbitration of any dispute not described therein or with <br /> � any person not named or described therein. This agree- <br /> � ,2 long distance communications, � ment to arbitrate and any agreement to arbitrate with an <br /> .3 fees paid for securing approvals of authorities hav- additional person or persons duly consented to by the <br /> � ing jurisdiction over the Project, parties to this Agreement shall be specifically enforceable <br /> .4 reproductions, under the prevailing arbitration law. <br /> 7.2 Notice of the demand for arbitration shall be filed in <br /> � .5 postage and handling of documents, writing with the other party to this Agreement and with <br /> . .6 renderings and models requested by the Owner, the American Arbitration Association. The demand shall ; <br /> be made within a reasonable time after the claim, dispute 'I <br /> ' J data processing and photographic production or other matter in question has arisen. In no event shall 'I <br /> techniques when used in connection with Addi- the demand for arbitration be made after the date when �I <br /> tional Services, institution of legal or equitable proceedings based on <br /> .8 expense of overtime work requiring higher than such claim, dispute or other matter in question would be �I <br /> regular rates, if authorized by the Owner. barred by the applicable statute of limitations. <br /> AIA DOCUMENT 8727 • SPECIAL SERVICES AGREEMENT • JUNE 1979 EDITION • AIA� • p1979 B727_1979 3 <br /> THE KMERIUN INSTITUTE OF ARCHITECTS,'1735 NEW YORK AVE., N.W.,�NASHINGTON, D.C.20006 <br />