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A. Preparation of Invoices. Engineer will prepare <br />a monthly invoice in accordance with Engineer's <br />standard invoicing practices and submit the invoice to <br />Owner. <br />B. Payment of Invoices. Invoices are due and <br />payable within 30 days of receipt. If Owner fails to <br />make any payment due Engineer for services and <br />expenses within 30 days after receipt of Engineer's <br />invoice, the amounts due Engineer will be increased at <br />the rate of 1.0 % per month (or the maximum rate of <br />interest permitted by law, if less) from said thirtieth day. <br />In addition, Engineer may, without liability, after giving <br />seven days written notice to Owner, suspend services <br />under this Agreement until Engineer has been paid in <br />full all amounts due for services, expenses, and other <br />related charges. Payments will be credited first to <br />interest and then to principal. <br />3.01 Additional Services <br />A. If authorized by Owner, or if required because <br />of changes in the Project, Engineer shall furnish services <br />in addition to those set forth above. <br />B. Owner shall pay Engineer for such additional <br />services as follows: For additional services of Engineer's <br />employees engaged directly on the Project an amount <br />equal to the cumulative hours charged to the Project by <br />each class of Engineer's employees times standard <br />hourly rates for each applicable billing class; plus <br />reimbursable expenses and Engineer's consultants' <br />charges, if any. <br />4.01 Termination <br />A. The obligation to provide further services <br />under this Agreement may be terminated: <br />For cause, <br />a. By either party upon 30 days written <br />notice in the event of substantial failure by the <br />other party to perform in accordance with the <br />Agreement's terms .through no fault of the <br />terminating party. <br />b. By Engineer: <br />1) upon seven days written notice <br />if Engineer believes that Engineer is <br />being requested by Owner to furnish or <br />perform services contrary to Engineer's <br />responsibilities as a licensed <br />professional; or <br />2) upon seven days written notice <br />if the Engineer's services for the Project <br />are delayed or suspended for more than <br />90 days for reasons beyond Engineer's <br />control. <br />3) Engineer shall have no liability <br />to Owner on account of such <br />termmation. <br />c. Notwithstanding the foregoing, this <br />Agreement will not terminate as a result of a <br />substantial failure under paragraph 4.O1.A.l.a <br />if the party receiving such notice begins, <br />within seven days of receipt of such notice, to <br />correct its failure and proceeds diligently to <br />cure such failure within no more than 30 days <br />of receipt of notice; provided, however, that if <br />and to the extent such substantial failure <br />cannot be reasonably cured within such 30 day <br />period, and if such party has diligently <br />attempted to cure the same and thereafter <br />continues diligently to cure the same, then the <br />cure period provided for herein shall extend <br />up to, but in no case more than, 60 days after <br />the date of receipt of the notice. <br />2. For convenience, by Owner effective upon the <br />receipt of notice by Engineer. <br />B. The terminating party under paragraphs <br />4.O1.A.1 or 4.O1.A.2 may set the effective date of <br />termination at a time up to 30 days later than otherwise <br />provided to allow Engineer to demobilize personnel and <br />equipment from the Project site, to complete tasks whose <br />value would otherwise be lost, to prepare notes as to the <br />status of completed and uncompleted tasks, and to <br />assemble Project materials in orderly files. <br />5.01 Controlling Law <br />A. This Agreement is to be governed by the law <br />of the state in which the Project is located. <br />6.01 Successors, Assigns, and Beneliciaries <br />A. Owner and Engineer each is hereby bound and <br />the partners, successors, executors, administrators, and <br />legal representatives of Owner and Engineer (and to the <br />extent permitted by paragraph 6.O1.B the assigns of <br />Owner and Engineer) are hereby bound to the other <br />party to this .Agreement and to the partners, successors, <br />executors, administrators, and legal representatives (and <br />said assigns) of such other party, in respect of all <br />covenants, agreements, and obligations of this <br />Agreement. <br />B. Neither Owner nor Engineer may assign, <br />sublet, or transfer any rights under or interest (including, <br />2of4 <br />EJCDC E-520 Short Form of Agreement Between Owner and Engineer for Professional Services <br />Copyright ° 2002 National Society of Professionat Engineers for EJCDC. All rights reserved. <br />