Fractional Dutch Auctions of Commercial Income-Producing Real Estate Properties - TIC Plan Ownership Syndications

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Due Diligence Documentation "Exhibit A-1"

Architectural Services Agreement – Design/Build Pre-Construction Phase Services Agreement

The following notes are provided pertaining to this exhibit:

  1. What: the project requires the services of a licensed architect to design the buildings and structures to be built.  The preferred delivery method for the proposed Project is the design/build approach wherein the contractor is responsible for the quality of construction, timing of construction, cost of construction and the design of the building program.  The design of the building is a two-fold contract that requires the architect to design the building and then make written certifications that each portion of the construction work has in fact been built to the specifications and designs made by the architect.  This means we need a pre-construction phase services agreement as most of the architect's work happens in the pre-construction phase.

  2. When: this document must be negotiated and executed early in the pre-construction phase of the proposed Project's overall development schedule.

  3. Why: the Design/Builder is making the hiring decision and the Owner has the right to comment on the contract.  In most cases, the Design/Builder is seeking to have the Owner approve the selection of the architectural firm and personnel.

  4. Where: at the pre-construction phase once the market feasibility (see Exhibit F-3) study and pro forma financial presentation (see Exhibit F-5) have been prepared.

  5. How: the architect is hired via a consulting services agreement that is executed between the Design/Builder and the project architect.

  6. What's important: make sure the Design/Builder hired an architectural firm that is well-qualified and staffed by professionals.

  7. For existing properties seeking refinancing and/or recapitalization of a given income-producing property, this exhibit is not required. 

 

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