William S. Hedley, Jr. Architect
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AGREEMENT BETWEEN CLIENT AND ARCHITECT
FOR A NEi~ CITY HALL BUIIDING PROJECT
THIS AGREEMENT is made between the CITY OF GILROY (CLIENT) and WILLIAM W.
HEDLEY, JR., Architect (ARCHITECT).
The CLIENT intends to construct a new city hall building of approximately
20,000 square feet on Rosanna Street in the City of Gilroy hereinafter referred to
as "CITY" or "CLIENT."
The CLIENT and ARCHITECT agree:
I. PROJECT BUDGET AND CONDITION PRECEDENT
A. The estimated cost of project construction, building inprovements,
landscaping and parking, is $1,000,000.00, exclusive of architec-
tural services.
B. The size of the project and type and quality of construction
depend on the funds available for the project. The ARCHITECT will
exercise his best judgment in determining the balance between the
size of the project, the type of construction, and the quality of
construction to achieve a satisfactory solution within budget
limitations.
II. BASIC SERVICES OF THE ARCHITECT
A. Schematic Design Phase:
1. The ARCHITECT shall consult with the CLIENT to ascertain the
requirements of the project.
2. The ARCHITECT shall prepare schematic design studies and site
utilization plans leading to a recommended solution together
with a general description of the project for approval by the
CLIENT.
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3. The ARCHITECT shall inform the CLIENT his estimate of project
construction cost.
B. Design Development Phase:
1. Using the schematic design, the ARCHITECT shall prepare site
and floor plans, elevations and other drawings and an outline
of the specifications showing the kinds of materials, character
of the buildings, type of structure, mechanical and electrical
installations, landscaping and such other work as is reasonably
necessary to define the project as a whole.
2. The ARCHITECT shall inform the CLIENT of any indicated adjust-
ment in the estimated project construction cost.
3. The ARCHITECT shall assist the CLIENT in applying for and
obtaining approval from public agencies.
C. Construction Document Phase:
l. When the design development documents are approved by the
CLIENT, the ARCHITECT shall prepare working drawings and
specifications prescribing in detail the work to be done, the
materials, workmanship, finishes, and equipment required for
the architectural, structural, mechanical, and electrical
equipment, and site work, including landscaping. The ARCHITECT
shall also prepare necessary information for bidders and con-
tract conditions, and shall assist the CLIENT'S legal advisor
in the drafting of a proposal and contract forms.
2. The ARCHITECT shall assist the CLIENT in applying for and
obtaining required approvals from public agencies.
3. The ARCHITECT shall notify the CLIENT whether there should be
any change in previous estimates of the project construction
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cost due to market fluctuations or changes in scope or require-
ments.
D. Construction Phase:
l. The ARCHITECT shall reproduce a sufficient number of the
contract documents so that the City and the bidders may all
have copies. Reproduction will be paid for as provided in
section XIV, Parts A and B. The ARCHITECT shall assist the
CLIENT in obtaining bids and awarding the construction contract
or contracts.
2. The ARCHITECT shall provide technical direction to a full-time
project insPector. The project inspector shall be employed by
the CLIENT and responsible to the CLIENT. The ARCHITECT shall
instruct the inspector or the contractor or both in preparing
a U1arked set of prints, with dimensions showing the locations
of buried utility lines found and installed. On completion
of the project, the prints and an "as built plan" shall be
delivered to the CLIENT.
3. The ARCHITECT will endeavor to cause compliance by contractors
with the contract requirements, but he does not guarantee the
performance of their contracts.
4. The ARCHITECT shall provide general administration of the
prime construction contract or contracts. Contract administra-
tion includes periodic inspections by the ARCHITECT at the site
to the extent that he finds necessary to render architectural
supervision. (Architectural supervision is not the continuous
personal inspection that is to be provided by the CLIENT'S
project inspector.) The ARCHITECT shall make the reports
ordinarily required by public agencies, inform the CLIENT of
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the progress of the work, check and approve or deny approval
of schedules and shop drawings, approve or deny approval of
substituted materials or equipment, review for compliance
with the conditions for payment all requests for payments to
contractors, prepare change orders for written approval by the
CLIENT, ascertain and record all completion dates, make the
final inspection of the project, and assemble all written
guarantees, instruction books and manuals, diagrams and charts
that the contractor or contractors are required to provide,
and issue the ARCHITECT'S certificate of completion and final
certificate for payment.
5. The ARCHITECT shall provide advice to the CLIENT concerning
defects in the work, both during construction and during the
warranty period, and in order to do so, will make a complete
warranty inspection of the project shortly before the end of
the warranty period.
III. EMPLOYEES AND CONSULTANTS
As part of the service required by this agreement, and at no
cost to the CLIENT other than provided in Article VIII, the ARCHITECT
shall employ at his expense technical and professional persons (i.e.,
structural, mechanical, electrical, and civil engineersJ and a land-
scape architect. At least three wo:rking days before employing any of
these persons, the ARCHITECT will inform the CLIENT of the identity
of each. The CLIENT shall have an additional two business days in
which to notify the ARCHITECT that it accepts or rejects the employ-
ment of such person. The CLIENT'S approval shall not unreasonably be
withheld.
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IV. EXTRA SERVICES OF THE ARCHITECT
The following services, when performed at the written request
of the CLIENT, are "extras" and shall be paid for by the CLIENT as
provided in Article VIII:
I. Changes to drawings previously approved by the CLIENT and all
preparation of change orders made for the purpose of reducing the
cost of the project to within ten per cent of the final estimate
described in Articles II A 3, B 3, and C 3, and VII, and except
for changes or change orders to correct defects in the plans or
specifications which the ARCHITECT ought to have corrected before
presenting them to the CLIENT.
2. Additional work in the preparation of any plans, specifications,
or similar papers necessary because of the CLIENT'S decision to
let the contract for the construction work to more than one prime
contractor.
3. Extraordinary supervision of repair of damage to the project.
4. The selection by the ARCHITECT at the CLIENT'S request of movable
furniture, equipment or articles not included in'the construction
contract.
S. Additional services caused by the contractor's failure to meet
work schedules or the contractor's insolvency.
6. If directed by the CLIENT, the employment of special consultants,
and the preparation of special delineations or models.
7. If directed by the CLIENT, the cost of overtime work by the
ARCHITECT'S enployees at the regular rate provided by this agree-
ment plus the direct overtime increment paid by the ARCHITECT to
such employees.
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v. THE CLIENT'S RESPONSIBILITIES
A. The CLIENT shall provide the ARCHITECT with detailed information
about the size and functions of the building and the addition,
and reasonably accurate budget limitations and schedules.
B. The CLIENT shall provide an adequate soils analysis for proper
design of the building and the addition.
C. The CLIENT shall furnish the inspection service described in
Article II, D 2.
D. The CLIENT shall furnish all legal advice and service for the
project except as provided in Article II, C 1.
E. The CLIENT shall designate in writing a representative who shall
have all authority to notify the ARCHITECT of the CLIENT'S decisions
and to make requests of the ARCHITECT. The CLIENT shall revie'Vl
docwnents presented by the ARCHITECT and shall promptly render
decisions concerning them. The CLIENT shall only issue orders to
the contractor or contractors through the ARCHITECT.
F. During the warranty period after completion, the CLIENT shall
notify the ARCHITECT in writing of all known defects in materials
and workmanship.
G. The CLIENT shall procure a survey of the property for the new
building. The survey shall show grades and lines of streets,
pavenent, adjoining properties, rights-of-way, the location of
land burdened by restrictions and easements, boundaries, contours
of the site of the new building, the location of the building to
be demolished, other inprovements and trees, and the location of
utility lines.
VI. PROJECT CONSTRUCTION COST
A. The project construction cost as used in this agreement means
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the total cost to the CLIENT of all work designed by the ARCHITECT
including work to comply with change orders, but not including
soils testing, the cost of complying with c~e City's inspection
obligation, nor the cost of complying with the provisions of
Article III.
B. CUrrent market cost shall be used to calculate project construction
cost.
VII. ESTIMATES OF PROJECT CONSTRUCTION COST
A. Estimates referred to in Article II shall be prepared on a square
foot basis, or more detailed computation if deemed necessary by'
the ARCHITECT, considering prevailing construction costs and
including all construction work. It is understood that the project
construction cost is affected by the labor and material market
cost and other conditions beyond the control of the ARCHITECT or
CLIENT.
B. The project budget is set forth in Article I. The ARCHITECT shall
make reasonable efforts to design the work so that it can be
completed within the budget. If the ARCHITECT cannot, with the
exercise of reasonable skill and diligence, design the project
within the budget, the CLIENT shall modify the project, increase
the budget, or abandon the project.
C. If the CLIENT obtains bids within sixty days of the ARCHITECT'S
notification of his final estimate (Article II, C 3) and the
lowest lawful bid is more than ten per cent higher than the esti-
mate, the ARCHITECT shall, on request by the CLIENT, at no addi-
tional cost to the CLIENT, revise the plans and specifications
sufficiently to permit the CLIENT to request further bidding and to
obtain one or more lawful bids within ten per cent of the original
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estimate.
VIII. ARCHITECT'S COMPENSATION
A. The ARCHITECT'S fee for other than extra services is:
l. For Article II, A and B, fees at the hourly and other rates
shown in the attached Exhibit "A". If the extensions of the
Exhibit "A" rates are more than $26,000.00, the ARCHlTECTfS
fee shall be $26,000.00.
2. For Article II, C and D, a fixed sum (subject to the provisions
of this agreement concerning extras and terminations) to be
negotiated by the CLIENT and the ARCHITECT. (The ARCHITECT f S
services will terminate after completion of the Article II, A
and B work unless the CLIENT decides to proceed with the
project. Before the decision to proceed is effective, it
must be expressed in writing addressed to the ARCHITECT. The
combined negotiated fee and the fee provided for in Article
VIII, A l, is the Total Fee.)' However, it is hereby mutually *
B. The CLIENT further agrees to pay the ARCHITECT compensation for
extras qualified for compensation under the provisions of Article
IV. Payment, regardless of whether the extra is performed under
the provisions of Article II A, B, C or D is at the rates
specified in the attached Exhibit "An. For work or services
requested in advance by the CLIENT, in \Y'ri ting, and not set forth
in Exhibit "An, the CLIENT shall pay the ARCHITECT his cost. Pay-
menta for extras are in addition to amounts payable under Article
VIII, A l, and may exceed the $26,000.00 limit, and in addition
to fixed fee to be negotiated under Article VIII, A 2.
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* agreed that all combined ARCHITECT'S fees under this agreement and project shall
not exceed the range of $70,000.00 to $75,000.00, provided the sco~of the project
remains substantially the same as ARCHITECT now understands it, and the
total construction cost does not exceed $1,000,000.00.
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C. The CLIENT shall reimburse the ARCHITECT for permit and aPPlication
fees the ARCHITECT advances on the CLIENT'S behalf.
IX. PAYMENTS TO THE ARCHITECT
A. Payments of the compensation provided in Article VIII shall be:
I. Schematic and Design Development Phases:
Amount calculated at the rates set forth in Article VIII, A I,
shall be paid on a monthly basis, upon submission of an
itemized statement of work by the ARCHITECT, on a schedule
mutually agreeable to both parties.
2. Construction Document phase and Bidding:
Eighty per cent of the Total Fee in Article VIII, A 2, shall
be paid on a monthly basis in amounts proportional to work
completed based on the work hour estimate presented and
a,pproved in the fixed fee negotiations.
3. Construction Phas~:
Twenty per cent of the Total Fee in Article VIII, A 2, shall
be paid on a monthly basis in the manner provided in Part I,
above, except that an amount to be specified in the fixed fee
negotiations will be withheld until signing of the notice of
completion and final acceptance of the as-built drawings.
B. Payment in the following situations shall be:
1. If the CLIENT does not let the project for bid within sixty
days after the construction dOCUlUant phase is completed and
all necessary public agency approvals have been obtained, the
CLIENT shall proIl(>tly pay the ARCHITECT seventy-five per cent
of the Total Fee.
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2. If the CLIENT lets a contract for the work more than sixty
days, but within one year, after the construction document
phase is completed and all necessary pUblic agency approvals
have been obtained, the ARCHITECT shall do the construction
phase work for twenty-five per cent of the Total Fee (plus
payment for extras as provided in this agreement) paid in the
manner provided in Article IX, A I.
3. If the CLIENT does not let a contract for the work wi thin one
year after the construction docl.U!ent phase is completed and
all necessary Public approvals have been obtained, the ARCHITECT
will have no obligation to do the construction phase work un-
less the parties so provide by subsequent agreement.
X. TERMINATION OF AGREEMENT
A. This agreement may be terminated at any time by either party on .
written notice to the other if there is a substantial failure of
performance by the other, or may be terminated by the CLIENT if
the CLIENT should decide to abandon or indefinitely postPone the
project.
B. In the event of termination because of abandonment or indefinite
postponement by the CLIENT, the CLIENT shall pay to the ARCHITECT
as full payment for all of his services and expenses an amount
which bears the same ratio to the Total Fee as the services
actually rendered by the ARCHITECT bear to the total services
necessary for the full performance of this aqreement, plUS any
sums due the ARCHITECT for extras and any allowable expense
reimbursement. In ascertaining the extent of the services
rendered to the date of termination, consideration shall be given
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to both completed work and work in process including complete and
incomplete drawings and documents, '-1hether delivered to the CLIENT
or in the possession of the ARCHITECT.
C. If, after payment of the amount required to be paid under Part B,
the CLIENT should determine to complete the oriqinal project or
substantially the same project, the CLIENT for such puxpose shall
have the right to use any completed or unconpleted drawings, speci-
fications, estimates and other docUJlents prepared under this agree-
ment by the ARCHITECT, who shall make them available to the CLIENT
on request .without additional pay.
XI. TIME SCHEDULE
The time schedule for completion of performance through the contract
document phase, barring delays caused by conditions beyond the control
of the ARCHITECT, is attached as Exhibit "B".
XII. ACCOUNTING RECORDS OF THE ARCHITECT
Records of the ARCHITECT'S direct employee and reimbursable expense
pertaining to progress payments and to extras and records of accounts
between the CLIENT and contractor shall be prepared and kept by the
ARCHITECT on a generally recognized accounting basis and shall be
available to the CLIENT or his authorized representative at mutually
convenient times. The ARCHITECT shall keep such records for at least
two years after completion of the project and for so long as any
litigation may be pending concerning the project.
XIII. INSURANCE TO BE CARRIED BY ARCHITECT
The ARCHITECT shall carry workers' conpensation and errors and
omissions insurance ($250,000 min.) and shall furnish the CLIENT with
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assigned by the ARCHITECT without the consent and approval of the
CLIENT.
XVII. NOTICES
All notices are deemed to have been gi van when made in writing and
delivered or seventy-two hours after being mailed to the respective
representatives of CLIENT and ARCHITECT at the following addresses:
CLIENT:
CITY OF GILROY
Post Office Box 66
Gilroy, CA 95020
ARCHITECT:
WILLIAM W. HEDLEY, JR., ARCHITECT
346 E. Campbell Avenue
Campbell, CA 95008
IN WITNESS WHEREOF, the CLIENT and the ARCHITECT have executed this
agreement on the dates indicated.
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Dated: :)- I - c)
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Dated:
May 2, 1978
CITY OF GILROY
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By ~~,4f4~~
, MAYOR
CLIENT
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WILLIAM W. HEDLEY, JR.,
LETTER OF TRANSMITTAL
346 E. CAMPBELL AVENUE, CAMPBEll, CALIFORNIA 95008 DATE
(408) 379-7404 RE:
JOB NO.
6 78 78-490
Gilroy City Hall Contract
TO
I
I
Ci ty of Gilroy
7390 Rosanna Street
Gilroy, CA 95020
IA /1tt Susanne E. Steinmetz
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WE ARE SENDING YOU:- !!J I Attached D under separate cover via
o Prints 0 Shop drawings 0 Plans 0 Specifications
o Change order 0 Copy of letter D
the following items:
D Samples
COPIES DATE NO. DESCRIPTION
origin" I Exhibit "A" -
THESE ARE TRANSMITTED AS CHECKED BELOW:
o for approval
[] for your use
o As requested
o Approved as submitted
o Approved as noted
D Returned for corrections
o Resubmit
o Submit
o Retu rn
copies for approval
copies for distribution
corrected prints
D For review and comment D
o FOR BIDS DUE
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D PRINTS RETURNED AFTER LOAN TO US
REMARKS
Please attached Exhibit "A" to our contract for the above project.
COPY TO
SIGNED:
Bill Hedley
If enclosures are not as noted, kindly notify us at once.
Subject to the maximum figures for the Consultant's Preliminary Fee,
the Consultant's Fee, and the Additional Services Fee, respectively,
as set forth in pertinent portions of the agreement, compensation for
the Consultant's services under this agreement shall be computed as
follows:
1. Hourly Rate.
Employee Performing the Services
Compensation to be Paid
for each hour spent in
Performing Services
Principal
$40.00
Associate Architect
37.00
Project Architect
30.00
Draftsman
20.00-27.50
Clerical
20.00
2. Cost Plus. The actual cost incurred by the Consultant in
hiring other consultants to provide services under this agreement,
shall be the amount the Consultant is billed by the other professional
consultants thus hired for their services, multiplied by a factor of 1.2.
3. Material and Transportation. Except as otherwise provided,
Architect shall be compensated at cost plus 25% for reproduction of
brochures, specifications, blueprints, display models, or other materials
that may be ordered. Transportation shall be paid at $0.17 per mile.
EXHIBIT "A"