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to be caused by ECS'negligent acts,errors or omissions,specifically excluding contracting with the CLIENT is located. CLIENT waives the right to remove any <br /> any damages caused by any third party or by the CLIENT. litigation action to any other jurisdiction, unless mutually agreed to by both <br /> 19.2 To the fullest extent permitted by applicable Law,CLIENT agrees to indemnify, parties. <br /> defend, and hold ECS harmless from and against any and all liability,claims, 23.4 This AGREEMENT including all matters related to performance and remediation <br /> damages, demands, fines, penalties, costs and expenditures (including shall be interpreted according to the substantive Laws of the state of Virginia(but <br /> reasonable attorneys' fees and costs of litigation defense and/or settlement) not including its choice of law rules). <br /> ["Damages"]caused in whole or in part by the negligent acts,errors,or omissions <br /> of the CLIENT and CLIENT'S employees, agents, staff, contractors, 24.0 CURING A BREACH <br /> subcontractors,consultants,and clients,provided such Damages are attributable 24.1 A party that believes the other has materially breached this AGREEMENT shall <br /> to: (a)the bodily injury, personal injury,sickness,disease and/or death of any issue a written termination notice to the other, identifying the cause for <br /> person;(b)injury to or loss of value to tangible personal property;or(c)a breach termination within five(5)business days of identifying such cause. Both parties <br /> of this AGREEMENT,except to the extent such Damage is caused by the sole shall then bargain promptly and in good faith to cure such cause. If an <br /> negligence or willful misconduct of ECS. acceptable cure can be achieved within fourteen (14)calendar days from the <br /> 19.3 It is specifically understood and agreed that in no case shall ECS be required to date of the termination notice,the parties shall commit their understandings to <br /> pay an amount of Damages disproportional to ECS'culpability,or any share of writing and termination shall not occur. <br /> any amount levied to recognize more than actual economic damages,subiect to 24.2 Either party may waive any right provided by this AGREEMENT in curing an <br /> any limitations of liability and INDEMNIFICATION provisions contained in this actual or alleged breach;however,such waiver shall not affect future application <br /> AGREEMENT. of such provision or any other provision. <br /> 19.41F CLIENT IS A HOMEOWNER, HOMEOWNERS' ASSOCIATION, CONDOMINIUM OWNER, 25.0 TERMINATION <br /> CONDOMINIUM OWNER'S ASSOCIATION, OR SIMILAR RESIDENTIAL OWNER, ECS <br /> RECOMMENDS THAT LEGAL COUNSEL BE RETAINED BY CLIENT BEFORE ENTERING INTO 25.1 CLIENT or ECS may terminate this AGREEMENT for breach of this <br /> THIS AGREEMENT TO EXPLAIN CLIENT'S RIGHTS, AND THE LIMITATIONS, AND AGREEMENT, or for any other reasons which may arise. In the event of <br /> RESTRICTIONS IMPOSED BY THIS AGREEMENT. CLIENT AGREES THAT FAILURE OF termination, the party effecting termination shall so notify the other party in <br /> CLIENT TO RETAIN SUCH COUNSEL SHALL BE A KNOWING WAIVER OF LEGAL COUNSEL writing,and termination shall become effective fourteen(14)calendar days after <br /> AND SHALL NOT BE ALLOWED ON GROUNDS OF AVOIDING ANY PROVISION OF THIS receipt of the termination notice. <br /> AGREEMENT. 25.2 Irrespective of which party shall effect termination,or the cause therefore,ECS <br /> 19.51f CLIENT is a residential builder or residential developer, CLIENT shall shall promptly render to CLIENT a final invoice and CLIENT shall immediately <br /> indemnify,defend and hold harmless ECS against any and all claims or demands compensate ECS for Services rendered and costs incurred,in accordance with <br /> due to injury or loss initiated by one or more homeowners,unit-owners,or their ECS' prevailing Fee Schedule and expense reimbursement policy. Services <br /> homeowners' association, cooperative board, or similar entity against CLIENT shall include those rendered up to the time of termination, as well as those <br /> which results in ECS being brought into the dispute. associated with termination itself, including without limitation, demobilizing, <br /> modifying schedules,and reassigning personnel. <br /> 20.0 CONSEQUENTIAL DAMAGES <br /> 20.1 CLIENT shall not be liable to ECS and ECS shall not be liable to CLIENT for any 26.0 TIME BAR TO LEGAL ACTION <br /> consequential damages incurred by either due to the fault of the other, 26.1 Unless prohibited by Law, and notwithstanding any Statute that may provide <br /> regardless of the nature of the fault,or wherever committed by the CLIENT or additional protection,CLIENT and ECS agree that claims by either party arising <br /> ECS, their employees, consultants, agents, contractors or subcontractors, or out of this AGREEMENT or the Services provided hereunder shall not be initiated <br /> whether such liability arises in breach of contract or warranty, tort (including more than two(2)years from the time the party knew,or should have known,of <br /> negligence), Statute, or any other cause of action. Consequential damages the condition giving rise to its claim, and shall under no circumstances be <br /> include,but are not limited to,loss of use and loss of profit. initiated more than three (3)years from the date of substantial completion of <br /> 20.2 ECS shall not be liable to CLIENT,or any entity engaged directly or indirectly by ECS'Services. <br /> CLIENT,for any liquidated damages due to any fault,or failure to act,in part or in 27.0 ASSIGNMENT <br /> total by ECS,its employees,agents,or subcontractors. 27.1 Except for Services normally or customarily subcontracted by ECS in the <br /> 21.0 SOURCES OF RECOVERY performance of its Services including, but not limited to surveyors,specialized <br /> 21.1 All claims for damages related to the Services provided under this AGREEMENT consultants, drilling and excavating subcontractors, and testing laboratories, <br /> shall be made against the ECS entity contracting with the CLIENT for the neither the CLIENT nor ECS may delegate,assign,sublet or transfer its duties, <br /> responsibilities or interests in this AGREEMENT without the written consent of <br /> Services,and no other person or entity. CLIENT agrees that it shall not name the other party. <br /> any affiliated entity including parent,peer,or subsidiary entity or any individual <br /> officer, director, or employee of ECS, unless such claims are based on acts 28.0 SEVERABILITY <br /> unrelated to the provision of Services under this AGREEMENT. 28.1 Any provision of this AGREEMENT later held to violate a Law, Statute, or <br /> 21.2 CLIENT agrees that it will not seek Damages from any individual associated with Regulation,shall be deemed void,and all remaining provisions shall continue in <br /> ECS as an officer,principal,partner,employee,or owner,from any and all claims full force and effect. CLIENT and ECS shall endeavor to quickly replace a voided <br /> or liability for injury or loss that would require such individual to relinquish provision with a valid substitute that expresses the intent of, or at least <br /> personal assets to satisfy such claim. addresses,the issues covered by the original provision. <br /> 22.0 THIRD PARTY CLAIMS EXCLUSION 29.0 TITLES <br /> 22.1 This AGREEMENT shall not create any rights or benefits to parties other than 29.1 The titles used in this AGREEMENT are for general reference only and are not <br /> CLIENT and ECS. No third-party shall have the right to rely on ECS'opinions part of the AGREEMENT. <br /> rendered in connection with ECS' Services without both CLIENT'S and ECS' <br /> written consent and the third-party's agreement to be bound to the same terms 30.0 SURVIVAL <br /> and conditions contained in this AGREEMENT as CLIENT, and third-party's 30.1 All obligations arising prior to the termination of this AGREEMENT and all <br /> agreement that ECS'Scope of Services performed is adequate. provisions of this AGREEMENT allocating responsibility or liability between the <br /> 23.0 DISPUTE RESOLUTION CLIENT and ECS shall survive the substantial completion of Services and the <br /> termination of this AGREEMENT. <br /> 23.1 All claims,disputes or controversies["Disputes"]arising out of,or in relation to <br /> the interpretation, application or enforcement of this AGREEMENT shall be 31.0 ENTIRE AGREEMENT <br /> decided as follows: 31.1 This AGREEMENT including the Scope of Services and Professional Fees and <br /> 23.1.1 CLIENT and ECS agree to attend a dispute resolution meeting within all exhibits, appendixes, and other documents appended to it, constitute the <br /> fourteen(14)days of identification of a Dispute by either party. CLIENT and entire AGREEMENT between CLIENT and ECS. CLIENT acknowledges that all <br /> ECS agree to negotiate in good faith to resolve the Dispute. prior understandings and negotiations are superseded by this AGREEMENT. <br /> CLIENT acknowledges acceptance of these terms by submitting a CLIENT Work <br /> 23.1.2 Should negotiation fail to resolve the dispute,CLIENT and ECS agree to Authorization to ECS. <br /> mediate their dispute via a mediator selected by either party, and <br /> acceptable to both parties. 31.2 CLIENT and ECS agree that subsequent modifications to this AGREEMENT <br /> shall not be binding unless made in writing and signed by authorized <br /> 23.1.3 Should mediation fail to result in resolution of the Dispute,CLIENT and ECS representatives of both parties. <br /> agree that litigation may be brought by either party. <br /> 31.3 All preprinted Terms and Conditions on CLIENT'S purchase order or Work <br /> 23.2 Should third-party dispute resolution be required,through mediation or litigation, Authorization, or other service acknowledgement forms, are inapplicable and <br /> the non-prevailing party shall reimburse the prevailing party for the prevailing superseded by this AGREEMENT. <br /> party's documented legal costs, in addition to whatever other judgments or <br /> settlement sums may be due. Such legal costs include,but are not be limited to, 31.4 If CLIENT fails to provide ECS with a signed copy of this AGREEMENT or a <br /> reasonable attorney's fees,court costs,forensic consultants and expert witness Work Authorization,by the act of authorizing and accepting the services of ECS, <br /> fees,and other documented expenses. CLIENT agrees to be fully bound by the terms of this AGREEMENT as if signed <br /> 23.3 Where legal action is brought by either party to resolve a dispute,the claim shall by CLIENT. <br /> be brought and tried in the judicial jurisdiction of the county in which ECS'office <br /> <END OF TERMS AND CONDITIONS OF SERVICE> <br /> ECS Proposal No: Page 3 of 3 Ver.03-03-06 <br />