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Due Diligence Documentation "Exhibit E-16"
MEP Engineering
Contract
The following notes
are provided pertaining to this exhibit:
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What: all
MEP engineering services must be provided pursuant to
a fee-for-services agreement that specifies the required services to be
delivered and the schedule of payments to be made in exchange for the
services provided.
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When: during
the pre-construction phase once the market feasibility study (see Exhibit
F-3), the pro forma financial presentation (see Exhibit
F-5) have been
completed and accepted, the Project Site has been identified and placed
under contract (see Exhibit P-11)
and the Schematic Phase Architectural Design Documents have been drafted
(not in final form - see Exhibit A-5).
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Why: the
provision of these services and/or the reported results may have a material impact on the proposed Project's
total development cost budget. Accordingly, these services must be
provided pursuant to a contractual agreement to protect the rights of the
Owner, the Design/Builder and the syndicate purchasers/investors.
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Where: various
off site locations and reviewed for acceptance by the Developer.
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How: review
of proposed contract, errors and omissions insurance (naming the Owner as
"also-insured") and payment requirements.
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What's important: a
full-scope agreement that includes insurance that is appropriate for the
scope of work to be provided within a design/build package (the most likely
venue for these services to be provided).
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For projects that
have no materially-significant construction operations to undertake, this
exhibit may be waived.
For more information, please contact us at 832.659.5009 or via email at info@realestateplays.com.
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