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STANDARD CONTRACT CONDITIONS <br /> APPLICABLE LAWS <br /> The laws of the State of North Carolina shall govern this proposal and work described by it. <br /> BILLING AND PAYMENT <br /> CPI shall bill the Client as services are rendered and expenses incurred by this Contract. "Fixed <br /> Fee"work shall be billed on a"percentage completion" basis, and other work shall be billed on an <br /> "hourly" basis. All invoices are net 10 days. Any invoice that is not paid within 10 days shall be <br /> considered past due and shall accrue interest, payable to CPI, at a rate of 18%annually beginning from <br /> the original invoice date. In the event any portion or all of an account remains unpaid 45 days after the <br /> invoice date,the Client shall pay costs of collection, including attorneys fees to the extent allowed by <br /> law, and CPI has all rights to proceed with any legal action deemed necessary to secure compensation <br /> for the work performed. <br /> STANDARD OF CARE <br /> CPI shall perform project services using that degree of care and skill ordinarily exercised under <br /> similar conditions by reputable members of CPI's profession practicing in the same or similar locality. No <br /> other warranty or performance standard shall be applicable regarding the quality of services provided by <br /> CPI under this Contract. <br /> ACCESS TO SITE <br /> By executing this contract, Client hereby authorizes CPI, its employees, and consultants safe, <br /> reasonable, and legal access to the site for activities necessary for performance of the work. <br /> CLAIMS AND DISPUTES <br /> In the event any claim or dispute arises from the performance of these services, and it cannot be <br /> satisfactorily resolved between CPI and Client, it shall then be subject to non-binding mediation by a <br /> neutral third party, acceptable to both parties. In any event,the maximum total aggregate liability of CPI, <br /> and CPI's officers, directors, shareholders, and employees, for any and all claims related to this project, <br /> shall not exceed CPI's total billings for the project less billings paid by CPI's subcontractors or suppliers. <br /> INDEMNIFICATION <br /> The Client shall indemnify and hold harmless CPI, CPI's personnel, and CPI's consultants from <br /> and against any and all claims, damages, losses and expenses (including reasonable attorney's fees) <br /> arising out of or resulting from the performance of the services, provided that any such claim, damage, <br /> loss or expense is caused in whole or in part by the negligent act, omission, and/or strict liability of the <br /> Client, anyone directly or indirectly employed by the Client(except CPI), or anyone for whose acts any of <br /> them may be liable. <br /> CONSTRUCTION COSTS <br /> The Client recognizes that CPI has no control over market conditions, contractors' methods of <br /> bidding, nor the cost of construction labor, equipment, or materials. Consequently, CPI makes no <br /> warranty or other representation that bids or actual construction costs will not exceed any established <br /> estimate or budget for the project, including any CPI estimate. Any work to redesign the project to lower <br /> construction will be performed as supplemental work. <br /> OCERCD Revised 2 <br /> February 28,2000 <br /> Page 3 of 4 <br />