ADDENDUM: OWNER’S AMENDMENTS TO OWNER-ARCHITECT AGREEMENT,

AIA DOCUMENT B104—2007

The following Amendments are hereby made a part of and incorporated into that agreement between the State Board of Higher Education, acting through ______(Owner) and ______(Architect) to amend the AIA Document B104—2007 entitled “Standard Form of Agreement between Owner and Architect For a Project of Limited Scope” and its Exhibits (collectively, “Contract”), all for the “______Project.” The parties agree to the following terms and conditions and expressly agree that if any of the following terms and conditions are in conflict with any of the terms and conditions of the Contract, then notwithstanding any term in the Contract, the following terms and conditions govern and control the rights and obligations of the parties. Any amendments to the Contract or to this Addendum, or any other amendments, must be in writing and executed by both parties. When applicable, substitute the word “Engineer” for the word “Architect” throughout this Addendum and the Contract.

AIA B104—2007

Section

Reference The following sections and paragraphs are amended as follows:

Article 2 ARCHITECT’S RESPONSIBILITIES:

Add to this article a new paragraph, as follows:

Architect shall secure and keep in force during the term of the Agreement, from insurance companies authorized to do business in North Dakota: 1. commercial general liability, with minimum limits of liability of $1,000,000 per claim and annual aggregate limit; 2. Automobile liability, with minimum limits of liability of $250,000 per person and $1,000,000 per occurrence; and 3. workers’ compensation insurance as required by state law. Architect shall furnish Owner with certificates of insurance as evidence these policies are in effect.

Architect shall procure and maintain professional liability insurance covering liability for negligent acts, errors or omissions in providing or failing to provide professional services, with a minimum coverage limit of $500,000. Coverage shall be in force during the terms of this Agreement and for a period of at least twelve months thereafter. Architect will furnish Owner with certificate(s) of insurance as evidence this policy is in effect.

Insurance coverages may not be canceled or modified without thirty days written notice to Owner.

Architect agrees to indemnify, save and hold harmless the Owner and State of North Dakota and its agencies, officers and employees, from any and all claims of any nature, including all costs, expenses and attorneys’ fees, which may in any manner arise out of or result from Architect’s negligent acts or omissions in performing work under this Agreement, except for claims arising out of the sole negligence of Owner or State. Architect’s obligation to indemnify, save and hold harmless the Owner and State shall not be limited to the amount of insurance actually secured under this Agreement, including any insurance above the minimum required, but shall extend to the full amount on any claims, loss or damage incurred or awarded, including costs, expenses and attorneys’ fees.

3.1 Amend this sentence by inserting the word “civil,” after the word “customary” and before the word “structural.”

3.2.6 Amend this sentence by adding, at end, after phrase “Owner’s approval,” the phrase “in writing.”

3.3.4 Amend this sentence adding, at end, after phrase “Owner’s approval,” the phrase “in writing.”

3.4.2.1 Insert in second line from end of this paragraph, after word “known” and before the word “deviations” the phrase “or reasonably ascertainable”

3.4.2.4 Remove the period at end of this one sentence paragraph, and insert after last word of the sentence, which is “faith”, the phrase “and absent negligence.”

3.4.5 Add to this paragraph the following sentence:

The Architect shall promptly report to Owner, in writing, those minor changes in the Work authorized by Architect pursuant to this section.

5.3 Change this sentence to read:

The Owner shall furnish surveys to describe physical characteristics, legal limitations and utility location for the site of the project, with all such information being limited to that which is maintained by the Owner at its place of business; and services of geotechnical engineers or other consultants when the Architect requests such services and demonstrates that they are reasonably required by the scope of the project.

5.4 Add in first sentence, first line, after the word “coordinate” and before the word “the” the phrase “, with the assistance of Architect,”

5.6 Add new last sentence as follows:

“Architect understands that records generated by or received by Architect in course of conducting work on this contract are subject to review by North Dakota state auditor’s office and therefore, Architect will comply with auditing practices of North Dakota, including retention of records connected to this contract for a three year period of time following completion of contract.

6.1 Change this paragraph to read:

For purposes of this Agreement, the Cost of the Work shall be the total cost to the Owner to construct all elements of the Project designed or specified by the Architect and shall include contractors’ general conditions costs, overhead and profit. The Cost of the Work does not include the compensation of the Architect, the costs of the land, rights-of-way, financing, and contingencies for changes in the Work. The Cost of the Work does include those charges for the Owner’s own employees completing inspections or other services for the Owner.

6.3 Delete the last sentence, which is “If the Owner requests detailed cost estimating services, the Architect shall provide such services as an Additional Service under Article 4.”

6.6 Add this sentence:

The Owner reserves the option of terminating this agreement in accordance with Section 9.5.

6.6.1 Change this statement to read:

.1 undertake a good faith effort to obtain necessary and timely approval from those governmental entities having jurisdiction over the project for an increase in the budget for the Cost of the Work, as may be necessary, and then if approval is timely obtained, give written approval of an increase in the budget for the Cost of Work;

6.7 Change the first sentence to read:

If the Owner chooses to proceed under Section 6.6.4, the Architect, without additional compensation, shall modify the Construction Documents and re-bid the Work as necessary to comply with the Owner’s budget for the Cost of the Work at the conclusion of the Construction Documents Phase Services, or the budget as adjusted under Section 6.6.1.

7.3.1 Change the first sentence to read:

In the event the Owner uses the Instruments of Service without retaining the author of the Instruments of Service, the Owner releases Architect from liability for claims and causes of action arising from such use.

Delete the second sentence, which begins with the words “The Owner, to the extent permitted by law, …” and ends with the words “…Section 7.3.1.”

8.1.1 Change this paragraph to read:

The Owner and Architect shall commence all claims and causes of action, whether in contract, tort, or otherwise, against the other arising out of or related to this Agreement within the period specified by applicable North Dakota laws.

8.1.3 Consequential Damages Waiver. DELETE in its entirety.

8.2 Mediation. DELETE all subsections, 8.2.1 through 8.2.3

8.3 Arbitration. DELETE all subsections, 8.3.1 through 8.3.3.

8.3.4 Consolidation or Joinder. DELETE all subsections, 8.3.4.1 through 8.3.4.3.

9.1 Change the second to last sentence of this paragraph to read:

Before resuming services, the Architect shall be paid all agreed upon sums due prior to suspension and all agreed upon expenses incurred in the interruption and resumption of the Architect’s services.

9.2 Change the second sentence of this paragraph to read:

When the Project is resumed, the Architect shall be compensated for those agreed upon expenses incurred in the interruption and resumption of the Architect’s services.

9.7 Change this one sentence paragraph to read:

Termination Expenses are in addition to compensation for the Architect’s services and include the actual expenses directly attributable to termination for which the Architect is not otherwise compensated.

10.1 Change this paragraph to read:

This Agreement shall be governed by the laws of the State of North Dakota, and venue for all legal actions between the parties with respect to this Agreement shall in ______District Court, ______, North Dakota.

10.7 Change the first sentence to read:

The Architect, subject to Owner’s approval, which approval will not be unreasonably withheld, shall be entitled to include photographic or artistic representations of the design of the Project among the Architect’s promotional and professional materials.

11.8.1.1 After the word “subsistence” add the phrase: “, excepting in connection with trips between Architect’s office and Project site.”

13.2 To this provision add the sentence:

“Exhibit C: This document, entitled ADDENDUM: OWNER’S AMENDMENTS TO OWNER-ARCHITECT AGREEMENT, AIA DOCUMENT B104-2007.”

This Addendum is entered into and agreed to by:

OWNER: ARCHITECT:

______

Its:______Its:______

Date:______Date:______

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