AGREEMENT

for

TECHNICAL CONSULTING SERVICES

The following is a standard form for consultant services recommended by Danske Ark

and based upon ABR 89 (GCC 89).

Project: 12 Townhouse Dwellings in South Horsens, Denmark

1. The parties involved

1.1 The undersigned:

ECO-Home Ltd.,

Rådhustorvet 12a,

8700 Horsens,

-  in the following called the Client

1.2 and the co-undersigned:

Sustainable Design Architects Ltd.

Architects M.A.A

Søndergade 14, 8700 Horsens – the contact person for the whom, in accordance with GCC 89, sect. 2.1.1., is Peter Pedal, Architect M.A.A.

- in the following called the Total Consultant, have entered into a formal agreement based on the following conditions:

2. Scope of work

2.1 The task comprises total consultancy services concerning:

The design and site inspection services for 3 new townhouse-style terraced houses situated on a virgin plot in the southern part of the town of Horsens, East Jutland, Denmark.

Each terraced house complex must comprise 3 dwellings in 2 stories.

The total area per dwelling must be approximately 115 m2.

Therefore, the total area per terrace house should be approx. 345 m2, and the total desired area for the whole development is approx. 1040 m2 habitable area.

The following structural design consultant has been assigned to the project:

Structural Design Services Ltd

Bygholm Søpark 20

8700 Horsens

2.2: The project manager for the design team: Peter Pedel, Architect M.A.A., Sustainable Design Architects Ltd.

3. Contractual basis

3.1 General Conditions for Technical Consultation Services 89 (hereafter referred to as GCC 89/Danish: ABR89) with the amendments and alterations, which appear in the following agreement, are valid for the project.

3.2 The following performance specifications drawn up in April 2006, by respectively,

The Council of Practising Architects, P.A.R.

Association of Consulting Engineers, F.R.I., are valid.

3.3 The following materials, provided by the Client, are valid:

The brief for the project entitled “The Design Brief for the EcoHome Development Project” prepared in Feb. 2015

4. The Consultant´s services

The consultant´s services comprises the following:

-  Management of the design process

-  Execution of design meetings

-  The Schematic Design Phase

-  The Design Development Phase

-  The Detail Design Phase (including application for planning permission)

-  Technical site inspection during the construction phase

-  1-Year inspection

-  Operation and Maintenance, with reference to Horsens Council´s manual of 19 April, 2010

-  All drawings must be submitted to the Client in digital form after the handing over of the building. Furthermore, one complete set of revised drawings (as-built) must also be submitted to the Client.

-  Execution of the Client's obligations in accordance with the Working Environment Act, cf. Executive Order Regarding the Client´s/Developer's Duties re: demarcation, planning and coordination of health and safety work and notification to local authorities.

-  To conduct the coordination of health and safety, the consultant must appoint a competent person to carry out the function as coordinator. This person´s overall responsibilities are:

-  Identify and demarcate health and safety issues and provisions on the building site´s common areas.

-  Develop a plan for the health and safety of the building site´s layout and operation.

-  Notify the building site to the Factory Inspectorate (Danish: Arbejds Tilsynet).

-  The design must be performed at a level of detail corresponding to Detail Design Phase and in accordance with the description guidelines and other guidelines, which are published by BIPS. This is especially true of the Case Specifications, Work Specifications, and Building Component Specifications. The form of procurement for the construction work is, therefore, the Prime Contract procurement form.

The above services include quality assurance in accordance with the Departmental Order on Quality Assurance.

5. Client’s services:

-  Services according GCC 89 (ABR89) and FRI´s and Danish Ark's Description of Services for Construction and Planning of December 2012.

-  Approval of the consultant's draft for legally binding documents

-  Participation in client meetings

6. Time schedule and deadlines

6.1 Deadlines for the assignment.
The design work must be executed in accordance with the schedule stipulated under “8.0 Time Schedule” in “The Design Brief for the EcoHome Development Project”.

It is the consultant´s duty to keep the schedule up to date and be aware of delays that may be anticipated and, if appropriate, make proposals for catching-up these delays.

The client takes reservation for the schedule´s dependence on timely program clarification, obtaining any waivers from the authorities and any approval by the institutions that provide financial grants for the project, etc. The chief consultant must therefore go no further in the counseling process than agreed at any one time.

6.2 Penalties

In accordance with GCC 89 (ABR 89)

7. Economic basis for the solution of the task

7.1 The Economic Framework (Reference is also made to Section 7 of the design brief):

The interim economic framework is set at 9,000 kr/m2. excl. VAT (relevant construction index for March 2015).

This aforementioned economic frame equates to 1,035,000 DDK excl. VAT per. dwelling.

Everything within the plinth area referred to in the design brief must be included in the above price.

The costs of land acquisition, planning permission, connection fees, exterior paving and landscaping shall be borne by the Client, EcoHome Ltd., separately.

7.2 The economic framework is binding for the consultant and must be seen as a benchmark for the structural quality level, which all design work should aim at achieving.

If the estimate of construction costs at the Design Development Phase is exceeded when offers are received from contractors when the project is tendered for bids, the consultant is obligated to revise the project free of charge in cooperation with the client. This does not apply, however, if the consultant proves that the excess is due to circumstances that were not or could not be known at the time of the last approved estimate.

8. Fee

8.1 A fee percentage is agreed for the stipulated services of this contract´s Section 4.
The fee with reference to Section 4 is 10% of the approved construction costs, excl. VAT.

(Note for students: Alternatively, the stipulated services under the contract´s Section 4 could be paid with a fixed fee, e.g., a fixed sum, stated as:

“The stipulated services under the contract´s Section 4 will be paid with a fixed sum of 1,300,000 Dkr, excl. VAT”)

8.2 The fee for services not stipulated in Section 4, above, will be settled using an hourly rate of 800 kr/hr, excl VAT.
The consultant is only entitled to this extra fee if the he/she, prior to performing additional services, informs the client in writing that performance of the additional service/work is not subject to the agreed price for each phase.

Supplementary services executed without such notice will be considered included in the agreed price.

9. Outlay costs

Compensation for outlay costs will be paid in accordance with GCC 89 (ABR 89).

10. Payment of the fee and outlay costs

10.1 Payment

In accordance with GCC 89 (ABR 89), Sect. 3.4

10.2 Payment shall be made after the issue of monthly interim payment requests (interim certificates) based on the services provided in the percentage distribution as follows (see also “8 Time Schedule” in the design brief):

Schematic Design Phase 20%
Design Development Phase 20%
Detail Design Phase 30%
Project Tender Phase 5%
Technical site inspection during the construction phase 18%
Handing over, operation and maintenance 5%
1st Year Inspection 2%

For the 1st Year Inspection, however, payment can only be made after the inspection has been implemented.

11. Liabilities

The consultant's liability is limited; cf. 6.2 in GCC 89 (ABR 89), to the Liability Insurance maximum sums mentioned in Section. 12.1 below.

12. Insurance

12.1. Insurance: Topdanmark
Policy no.: TOPD 0500055
Damage coverage: 2,500,000 Dkr. per. property item and/or damage to property
5,000,000 Dkr. per. person injury

13. Disputes

13.1 Disputes between the client and the consultant in connection with the assignment that cannot be resolved through negotiations between the parties, shall be finally settled by arbitration under cf. GCC 89 (ABR 89), Section 9.0.1.

14. Special conditions

None

15: Appendices

None

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Date Client Date Consultant

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