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Consideration of Advanced Award of Contract for Los Altos Hills

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					                                                                                        AGENDA #12


TOWN OF LOS ALTOS HILLS                                               October 23, 2008
Staff Report to the City Council


SUBJECT:       CONSIDER ADVANCED AWARD OF CONTRACT FOR
               PREPARATION OF CONSTRUCTION DOCUMENTS FOR WEST
               LOYOLA SEWER ASSESSMENT DISTRICT NO. 1

FROM:          Richard Chin, City Engineer/Public Works Director     ?Q.   C   -




APPROVED: Carl Cahill, City Manager


RECOMMENDATION:

That the City Council deny the request for advanced award of a contract with Wilsey
Ham to prepare construction documents for the West Loyola Sewer Assessment District
No. 1 or alternatively continue the item ahd direct the FIC to study the matter and provide
a recommendation to council.

DISCUSSION:

The neighborhood representatives of the West Loyola area have requested that the Town
authorize Wilsey Ham to begin the preparation of contract documents for construction
prior to the sale of the bonds. This would require the Town to allocate funds in the
amount of $120,000 for the design, with the assumption that this cost would be
reimbursed to the Town upon successful sale of the bonds. At the request of the
neighborhood representative, a maximum interest rate of 6.8% was set for the sale of the
bonds. If the bonds cannot be sold at or below the maximum interest rate, the assessment
would not be able to move forward until such time it can be funded within the maximum
rate.

Standard practice is to begin development of contract documents after sale of the bonds
to ensure that there are sufficient funds to cover the cost of the consultant. If the Town
decides to fund the design cost and the bonds cannot be sold within the maximum interest
rate, the Town would not be able to recover the cost.

If Wilsey Ham is authorized to begin this month, construction documents should be
completed by February 2009. The project will be publicly bid and construction could
begin in April or May of 2009. Considering the volatile bond market at this time, the
schedule may be extended later into the year.

FISCAL IMPACT:

The finds in the amount of $120,000 will need to be allocated from the General Fund
until the Town can be reimbursed through the bond sale proceeds.
ATTACHMENTS

1. Resolution
2. Proposal prepared by Wilsey Ham
                                              ______________




                                                                                     Attachment 1

                         RESOLUTION NO.


             A RESOLUTION OF THE CITY COUNCIL
               OF THE TOWN OF LOS ALTOS HILLS
   AWARDING A CONTRACT FOR PREPARATION OF CONSTRUCTION
 DOCUMENTS FOR WEST LOYOLA SEWER ASSESSMENT DISTRICT NO. 1

WHEREAS, the Town Council approved the formation of the West Loyola Sewer
Assessment District No. 1; and

WHEREAS, Wilsey Ham submitted a proposal to prepare construction documents; and

WHEREAS, staff has reviewed the proposal and recommends that the contract for said
project be awarded to Wilsey Ham in an amount not-to-exceed $120,000;

NOW, THEREFORE, BE IT RESOLVED by the City Council of the Town of Los
Altos Hills that the City Manager is hereby authorized and directed to execute the
awarded contract to the above-named firm on behalf of the Town of Los Altos Hills.

      PASSED AND ADOPTED this                   day of________       2008.


                                        By:
                                                           Mayor


ATTEST:



           City Clerk
                                                                                                     Attachment 2



Match 10, 2008

Richard Chiu, Jr. P.R
Director of Public Works/City Engineer
Town of Los Altos Hills
26379 Fremont Road
Los Altos Hills, CA 94022
                                                                           WHNo. 400-01

Re: Response to Request for Proposals for the W. Loyola Sewer Project

Dear Richard:

Wilsey Ham previously submitted a proposal to the Town of Los Altos Hills for the preliminary
engineering design of a new sanitary sewer line and preparation of a preliminary Engineer's Report
for the W. Loyola Sewer Project. The previous proposal was based on the Town of Los Altos Hills
receiving a petition from a group of residents in the newly annexed, W. Loyola neighborhood
requesting the formation of an Assessment District to fund and construct a public sewer system. As
a result of this petition, the City Council has adopted a Resolution of Intention to begin the process
of forming an Assessment District in accordance with the California Streets and Highways Code,
Section 10200. The Town's Resolution accomplished two steps: 1 an acknowledgement to the
Petitioners of the Town's intent to proceed with the process to levy the assessments, and 2 the
ordering of the preparation of an Engineer's Report.

It is with great pleasure that Wilsey Ham submits our second proposal to the Town of Los Altos
Hills for the final engineering design, construction plan preparation, assessment district services and
construction services for the W. Loyola Sewer Project. The work included in this proposal would
cormnence after the approval of the Assessment District by the City Council, and would develop the
preliminary design initiated in the Assessment District formation phase into Construction
Drawings, Specifications and a bid package.

The horizontal and vertical sewer alignments will need to be designed to avoid conflicts with the
other existing utilities in the street to avoid costly construction change orders. Therefore, accurate
record utility information will be essential to avoid conflicts. From our experience, record mapping
of water, gas, communications and other non-gravity utilities is often-times inaccurate. As a result,
we have proposed some optional services to engage a utility location company to acquire more
accurate horizontal utility locations of the existing utilities. The utility locator uses various methods
to detect the underground utilities and then marks their location on the surface with paint or
markers. In addition, we have also included a potholing company as an optional service for
checking the depth of existing, non-gravity utilities at critical crossings. The horizontal and vertical
locations of the utilities would be picked up by field surveys and incorporated into the topographic
drawings. Although these services add to the overall cost of design, better knowledge of the existing
utilities will likely save a greater amount of construction costs. We will be happy to discuss the
risk/benefit of adding these optional services.
March 10, 2008
Richard Chiu
Page 2

In light of the foregoing, Wilsey Ham proposes the following scope of work to prepare the
construction improvement plans and bid package for the W. Loyola Sewer Project.

Scope of Services

Task 1 -Supplemental Topographic Survey
Supplemental topographic surveys will be performed to pick up the additional detail needed to
prepare the improvement plans. This will include information beyond the edge of pavement in the
areas where sewer services will be located as well as other required topographic features and
elevations. Four days of field survey have been budgeted for this task.

Deliverables: Updated project topographic base maps.


Task 2- Preliminary Design and Plan Preparation
After the preliminary Engineer's Report has been prepared, the preliminary sewer system
construction plans will be prepared. Service laterals will be shown on the plans up to the property
line where possible for each property to be served. The locations will be shown to the lowest area
of the lot along the roadway or as otherwise requested by the property owner. Preliminary technical
specifications will be prepared according to the Town of Los Altos Hills format. The plans will be
submitted to the Town for their review and comment. The preliminary sewer construction plans will
be developed to approximately the 65% stage which will include the following tasks:

     *   Calculations to veri.f the required sewer main size.
     *   Preparation of the tide sheet and general notes sheet
     *   Preparation of sewer plan and profile views of sewer main.
         Preparation of detail sheets.
     *   Location and design of service laterals.
     *   Preliminary construction specifications.
     *   Updated Construction Estimate

Deliverables: Six sets of 24" x 36" preliminary plans developed to the 65% stage, preliminary
construction specifications and updated construction cost estimate.

Task 3-95%        and Final Design, Bid Package Preparation
After receipt of comments from the Town of Los Altos Hills, the construction plans will be
developed to the 95% complete stage. Revisions will be incorporated into the package based on the
Town's review comments. The technical specifications will be fully developed and the full bid
package will be prepared using the Town's General Conditions, bid schedule and other standard
documents. The construction details will be fully developed and the engineer's estimate will be
COWIs:Rev 9/15/99
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Match 10, 2008
Richard Chin
Page 3

revised as necessary. The plans will be submitted to the Town for their review and comment. After
receipt of the Town's comments, Wilsey Ham will incorporate the Town's comments, finalize the
full bid package and submit the stamped and signed plans for the Town's use if bidding the project
Development of the 95% plan package and final plans, specifications and estimate will include the
following tasks:

     *    Incorporate the Town's 65% review comments.
     *    Develop the plan and profile sheets to the 95% level.
     *    Develop the detail sheets to the 95% level.
     *    Develop the plan and profile sheets to the 95% level.
          Develop the construction specifications to the 95% level and prepare the full bid package.
     *    Develop the construction estimate to the 95% level
     *    Perform quality control check and submit package to Town.
     *    Make final revisions to address the Town's final comments. Submit reproducible drawings
          and documets for bidding.

Deliverables: Six sets of 24" x 36" preliminary plans developed to the 95% stage, including
construction specifications and updated construction cost estimate. One set of final signed and
stamped reproducible plans, specification and bid package.

Task 4 Assessment District Support
          -


Wilsey Ham will provide Assessment District support after completion of the construction
improvement plans. The following items are included in this task:

     *   Finalize the boundary map, assessment diagram that was initiated in the preliminary
         Assessment District Services.
     *   Attend meeting with the Town and property owners to help clarify the Assessment District
         process.
     *   Finalize the narrative and exhibit of the construction improvements that will be constructed
         and paid for by the Assessment District.
     *   Finalize the full cost estimate for all costs included in the Assessment District including final
         design costs, construction staking, construction, financing, Bond Counsel and the costs
         associated with conducting the assessment vote and proceedings.
     *   Finalize the cost spread to the properties.
     *   The Assessment Roll will be finalized.
     *   The Engineer's Report will be finalized and submitted to the Town for review.
Deliverables: Final Engineer's Report and documents.

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Marëh 10, 2008
Richard Chiu
Page 4



Task 5- Bidding & Construction Services
Wilsey Ham will provide engineering assistance during the bidding and construction phase of the
project. Construction for the improvements is anticipated to occur over a period of approximately 4
months. The following tasks are anticipated for this phase of work.
    * Attend the pre-bid meeting, respond to bidders questions and prepare bid addenda as
        needed.
    * Assist the Town in evaluating bids and make a recommendation for award.
     * Attend the pre-construction meeting.
    * Review and respond to submittals. 8 assumed.
    * Respond to RFI's. 10 assumed.
     * Attend site meetings for resolution of construction issues. 3 meetings assumed
    * Prepare minor plan revisions and updates per project needs.
        Perform punchlist and final inspections. Prepare punchlist.
    * Prepare record drawings of the civil engineering plans based upon contractor markups and
        plan updates.


Deliverables
One digital copy and hard copy of record drawings. Responses to REI's and submittals as required.
Minor revisions to the plans as required.


Optional Services

Task 6- Utility Location and Potholing
If authorized, Wilsey Ham will engage a utility locator service to locate and mark the horizontal
location of the existing utilities on the streets. It is assumed that this work `will be performed at the
beginning of the project and that the paint marks will be picked up during the supplemental surveys.
The location of the utilities will be revised on the base maps to show their surveyed locations.

Once the preliminary improvement plans are prepared, Wilsey Ham `will engage a vacuum potholing
contractor to pothole critical utility crossings along the alignment of the sewet The potholes will be
backflhled and repaired with asphalt by the vacuum contractor. The depths of these utilities will be
picked up in the field by our survey crew to acquire an accurate elevation of the existing utility. This
information will be used to veriz our profile design at the crossings. Since it is difficult to estimate
the level of potholing and utility location required, it is proposed that these services be provided on
a time and materials basis to a maximum shown in the fee estimate.

COWk:Rv 9/15/99
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March 10, 2008
Richard Chiu
Page 5

The following work will be included in this task:
   * Locate utilities in the project streets using a utility locator company.
   * Additional supplemental survey and base mapping for picking up the utility location paint
       markings.
   * Vacuum potholing to determine the depth of some utilities at critical crossings.
   * Additional supplemental survey and base mapping to pick up the utility pothole information.


Deliverables: Updated project topographic base maps.



Assumptions and Exclusions
The following assumption and exclusions were made in the preparation of this proposaL

     1. It is assumed that all sewer mains will be gravity mains in roadways, and therefore no pump
        stations or force mains are included in this proposal.
     2. Some homes will require pumps to access the gravity main. The design of pumps for
        individual property services is not included in this proposal.
     3. The design of sewer laterals will be within the public right of way only. Sewer lateral design
        on private property is not included in this proposal.
     4. Utility location and the potholing of utilities is included in this proposal as an optional
        service and can be added to the contract if desired.
     5. All permit costs and agency/utility fees will be paid by others.
     6. It is anticipated that a Geotechnical Investigation is not needed for the design of the
        proposed sewer system and is therefore not included in this proposal.
     7. No formal survey monuments will be set as part of the proposed work.
     8. This proposal is for design services only.           No construction services are included.
        Construction and bid services can be provided for an additional fee if desired.


Fee and Schedule
Wilsey Ham's Lump Sum Labor Fee for Tasks 1 through 5 Basic Services described above is
$111,970. Billings will be monthly based on the percent of the total fee completed during the billing
period. Reimbursable items will be charged on a time and materials basis in accordance with the
attached Charge Rate Fee Schedule. A budget of $5000 is proposed for the reimbursable items.

If desired and authorized, the optional utility location and potholing services Task 6 will be
charged on a time and materials basis up to a maximum of $35,107 in accordance with the attached
Charge Rate Fee Schedule.
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March 10, 2008
Richard Chiu
Page 6

Authorization
You may authothe Wilsey Ham to proceed in accordance with this proposal and the Town of Los
Altos Hills' Contract Provisions upon execution of a contract

We appreciate the opportunity to participate on your project.

Very truly yours,                                        Accepted: Richard Chiu
                                                                   Director of Public Works/City Engineer

WILSEY HAM                                                By:

                                                         Tide:________________________________
Jeffrey M. Peterson
Principal                                                Date:________________________________

Attache&     Standard Contract Provisions and Fee Schedule
             Effective January 1,2008




COWh:Rev 9/15/99
CrDOCUMENTS AND SETrINGSRCHIUWCAL SETflNGSThMPORARY INTERNET FILES0LK7303-IO-OS U03 SEWER DESIGN PROPOSALDOC
                                                                                   Town of Los Altos Hills
                                                                                 West Loyola Sewer project
                                                                                       Fee Estimate
                                                                                                 March 10, 2008

                                                               SUPERVISING        ENGINEER     ASSISTANT       DESIGNER      2 PERSON                   TOTAL                 TOTAL
                                                                 ENGINEER             II       ENGINEER       TECHNICIAN II SURVEY CREW     Sub          WH      TOTAL     Wi-I LABOR
                                    Descriptionlrask             $190 HRS          $127 HRS     slog HRS        $112 HRS        $225 HRS Consullants   LABOR$     ALL$       HOURS
                                     Topographic Survey
                                                  Mapping        190         I     254     2                   3,584    32    7,200   32                11,228    11,228          67
                                                                 190         1     254     2                   3,584    32    7,200   32                11,228    11,228          67

                                        Plan Prep
                                      yen1 Size,                                    254    2      654     6                                                908       908           8
                                         general notes sht                          254    2      654     6      896     8                               1,804     1,804          16
                                        and profile views        190         1    1,524   12   10,464    96   10,752    96                              22,930    22,930         205
                                       detail sheets                                762    6    1,744    16    1,792    16                               4,298     4,298          38
                                          design and layout       190        1      508    4    1,308    12    1,792    16                               3,798     3,798          33
                                       specifications             190        1    3,048   24                                                             3,238     3,238          25
                                        constr cost estimate      190        1      508    4    1,308    12                                              2,006     2,006          17
                                         Coord                  1,140        6      762    6      654     6                                              2,556     2,556          18
                                                                1,900       10    7,620   60   16,786   154   15,232    136                             41,538    41,538         360

                                     Design+Bid Pkg Prep
                                        65% comment,             190         1      762    6    1,308    12    1,344     12                              3,604     3,604          31
                            Develplan&profilesheets-95%          190         I      762    6    8,720    80    8,960     80                             18,632    18,632         167
                                         sheets to 95%                              254    2      654     6    1,792     16                              2,700     2,700          24
                                            + bid pkg            760         4    4,064   32                                                             4,824     4,824          36
                                          on estim to 95%                           254    2      654     6                                                908       908           8
                                      Chck-submit toTwn        1,140         6      254    2      872     8       896     8                              3,162     3,162          24
                                        comments-submit          380         2      508    4      872     8       896     8                              2,656     2,656          22
                                                                 570         3      381    3      327     3                                              1,278     1,278           9
                                                               3,230        17    7,239   57   13,407   123   13,888    124                             37,764    37,764         321

                                         District Support
                                          map& AD diagram      1,140         6      127    1                      896     8                              2,163     2,163          15
                                        & exhibit                190         I      254    2                      448     4                                892       892           7
                                       cost estitnateforAD       760         4    1,016    8                                                             1,776     1,776          12
                                         spread                  760         4    1,016    8                                                             1,776     1,776          12
                                    assessment roll              190         1      508    4                                                               698       698           5
                                    Engineers Report             760         4      762    6                                                             1,522     1,522          10
                                            & Prop Owners        570    *    3      381    3                                                               951       951           6
                                                               4,370        23    4,064   32                   1,344     12                              9,778     9,778          67




03-10-06 Fee Estim-Los Altos Hills 55 proj
                                                                                                                                                                                        10/15/2008
                                                                      ___________                                                               ____________       ________




                                                                                            Town of Los Altos Hills
                                                                                          West Loyola Sewer project
                                                                                                Fee Estimate
                                                                                                              March 10, 2008

                                                                      SUPERVISING          ENGINEER          ASSISTANT          DESIGNER      2 PERSON                         TOTAL               TOTAL
                                                                        ENGINEER               II            ENGINEER          TECHNICIAN II SURVEY CREW     Sub                WH      TOTAL     WH LABOR
                                      Description/Task                  sioo HRS            $127 HRS          $109  HRS          $112 HRS        $225 HRS Consullanis         LABOR$     ALL$      HOURS
                  5          Bid & Construction Services
                          1. Attend pre-bid;respond to bid Q's             190        I     762      6                                                                           952       952          7
                             Eval bids & make rccommend                    190        I     381      3                                                                           571       571          4
                          2. Attendpre-constrmeeting                       570        3     381      3                                                                           951       951          6
                          3. Review submittals 8 assumed                                    508      4       1,308        12                                                    1,816     1,816        16
                          4. Respond to REt's 8                                            1,016     8       1,744        16                                                    2,760     2,760        24
                          5. Attend site mtg during constr 3                               1,143     9                                                                          1,143     1,143         9
                          6. Perform pamchlist & final inspect             570        3      762     6                                                                          1,332     1,332         9
                          7. Prep record drawings                                            127     1         218         2     1,792    16                                    2,137     2,137        19
                         Subtotal                                         1,520       8    5,080    40       3,270        30     1,792    16                                   11,662    11,662        94

                                   Total Basic Services                                                                                                                       III 970   111 970

                  6           Utility Location & Potholing
                          1. Utilitylocatorservice                                          254       2                                                               8,150      254      8,404         2
                          2. Suppl survey for util location                                                  1,744        16                      3,600       16                5,344     5,344        32
                          3. Potholing service 3 day budget                                 381       3      2,616        24                                         13,200     2,997    16,197        27
                          4. Suppl survey for pothoLing                                     254       2      1,308        12                      3,600       16                5,162     5,162        30
                         Subtotal                                                           889       7      5,668        52                      7,200       32     21,350    13,757    35,107        91


                         BASIC + OPTIONALSERVICES                      5,320      I
                                                                                  28     15,113 1119       30,1931 277          32,704j   292     7,200   I   32     21,350   125,727   147,077       748
                Notes:       1. The amounts may vsey between tasks sod individuals but the Grand Total amount will not be
                                exceeded without approval of the Client
                              2. Total All includes subcon,ultants and reimbursable costs
                              3. Elourly eates effective through December 31. 2008 and subject to revision annually thereafter,
                              4. AU positions may not be shown. Ifs position is not shown the Charge Rate Pee Schedule will govern




03-10-08 Fee Estim-Los Altos Hills SS proj
                                                                                                                                                                                                             10/15/2008
                                     WILSEY HAM
                         2007/2008 CHARGE RATE FEE SCHEDULE

    CHARGE RATE FEE SCHEDULE

    The compensation of Wilsey Ham for work done will be on the basis of an hourly charge rate, plus
    incurred expenses and will be the sum of all the items set forth below:

    A. PERSONNEL SERViCES
     Principal                         $ 200   Per Hr      Designer/Technician II      $ 112    Per Hr
      Supervising Engineer               190   Per Hr      Designer/Technician I         104    Per Hr
     Managing Engineer                   168   Per Hr      Cad Operator/Drafter II        92    Per Hr
     Senior Engineer                    150    Per Hr      Designer/Technician            84    Per Hr
     Associate Engineer                 136    Per Hr      Word Processor                 77    Per Hr
     Engineer   II                      127    Per Hr      Technical Assistant             52   Per Hr
     Engineer I                         117    Per Hr      2 Person Survey Crew           225   Per Hr
     Assistant Engineer                 109    Per Hr
     Junior Engineer                     86    Per Hr      Contract Personnel             2x    Invoice
     Senior Designer/Technician         118    Per Hr      Outside Survey Specialist    $136    Per Hr

     Effective Through December 31, 2008 and subject to revision annually thereafter.

    B.   REIMBURSABLE EXPENSES

         1.   TRAVEL & TRANSPORTATION EXPENSES

                 a   Reimbursement for actual travel and subsistence expenses paid to or on behalf of
                     employees on business connected with the project, plus a handling charge of 15%.

                 b   Fifty cents .50 per mile, or current rate allowable set by the Internal Revenue
                     Service for use of company passenger vehicles, and fifteen dollars $15.00 per hour for
                     use of vehicles carrying field survey equipment or used for field inspection and
                     supervision.

         2.   MISCELLANEOUS EXPENSES

                 a   The cost of materials, supplies, reproduction work, agency filing fees, and other
                     services, including communication expenses, plus a handling charge of 15%.

    C. OUTSIDE SERVICES

                 a   Invoice cost of services and expenses charged to Wilsey Ham by outside consultants,
                     professional, or technical firms engaged in connection with the order, plus 15%
                     handling charge.




                                                  See reverse side




Revised: 04/18/2007, 01/08/2008
         STANDARD CONTRACT PROVISIONS
    D. TERMS OF PAYMENT

          Fees and all other charges will be billed monthly as work progresses and the amount of each billing shall be
          due and payable in ten 10 days after the date of such billing. Any portion of a billing not paid within thirty
          30 days of the billing date shall be considered delinquent and shall bear a delinquency charge of one and one
          half 11/2 percent per month on the unpaid balance, but in no event shall said delinquency charge or the
          payment thereof extend the due date.

          If any billing is not paid in full within 30 days after the billing date, then in addition to any other remedies
          available to Wilsey Ham, it may cease performing work hereunder upon delivery of written notice of its
          intention thereof to the client. Further, in the event of such default, Wilsey Ham shall have the right, but
          not the obligation, to cease performing work under any other contract then outstanding between the client
          and Wilsey Ham.

          Should legal action be necessary to enforce the provisions of any contract entered into of which this schedule
          is a part, the client agrees to pay all attorneys' fees and court costs incurred in the prosecution thereof.

    E.    SCOPE & EXECU11ON OF SERViCES

          Wilsey Ham makes no warranty, either express or implied, as to its findings, recommendations,
          specifications, or professional advice, except that the same will be promulgated after being prepared in
          accordance with generally accepted professional practice. No agent, employee or officer of Wilsey Ham has
          any authority to make such warranty as disclaimed above.

          In the event the client requests termination of the work prior to completion, Wilsey Ham reserves the right
          to complete such analyses and records as maybe necessary to place its files in order and, where considered
          necessary to protect its professional reputation, to complete a report on work performed to date. A
          termination charge to cover the costs thereof in an amount not to exceed ten 10 percent of all charges
          incurred up to the date of the stoppage of the work may be made at the discretion of Wilsey Ham.

          Wilsey Ham will diligently proceed with the work contracted for, but it is expressly agreed and understood
          that Wilsey Ham shall not be held responsible for delays occasioned by factors beyond its control, nor by
          factors which could not reasonably have been foreseen at the time of the execution of the agreement between
          the parties.

          In the event the client makes a claim against Wilsey Ham, at law or otherwise, for any alleged error,
          omission, or other act arising out of the performance of its professional services, and the client fails to prove
          such claim, then the client shall pay all costs, including actual attorneys' fees incurred by Wilsey Ham in
          defending itself against such claim.

    F.    LIMITATION OF LIABILITY

          Any liability, claim for damages, cost of defense, or expenses to be levied against Wilsey Ham will be limited
          to a sum not to exceed Fifty Thousand Dollars $50,000.00 or the amount of its fee, whichever is greater, on
          account of any injury or damage to persons or property or arising out of any design defect, error, omission,
          or professional negligence. Further, the client agrees to notify any contractor or subcontractor who may
          perform work in connection with or making use of any design, report, or study prepared by Wilsey Ham of
          such limitation of liability and require as a condition precedent to its performing the work a like limitation
          of liability on their part as against Wilsey Ham. In the event a client fails to obtain a like limitation of
          liability provision as to injury or damage to persons or property, design defects, errors, omissions, or
          professional negligence, any liability of Wilsey Ham and/or the client to such contractor or subcontractor
          arising out of alleged injury or damage to persons or property, design defects, errors, omissions, or
          professional negligence shall be allocated between the client and Wilsey Ham in such a manner that the
          aggregate liability of Wilsey Ham shall not exceed Fifty Thousand Dollars $50,000.00 or the amount of its
          fee, whichever is greater.

Revised: 04/18/2007, 01/08/2008

				
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