© 2015 SME SME General Conditions – Commercial (03/15) 1
<br />SME GENERAL CONDITIONS
<br />1. DEFINITIONS: In this Agreement, the party agreeing to have the services performed is the “CLIENT.” The CLIENT’s CLIENT
<br />shall be referred to as the “OWNER.” Unless expressly stated otherwise, SME, its employees, agents, subconsultants and
<br />subcontractors, are collectively referred to as “SME.” The “services” to be provided under this Agreement are defined in SME’s Proposal
<br />and subsequent written amendments, change orders, or otherwise-authorized additional services.
<br />2. INVOICING AND PAYMENT: SME will submit invoices to CLIENT monthly and a final bill upon completion of services.
<br />Payment is due upon presentation of invoice to the CLIENT and is past due 30 days from date of the invoice. CLIENT agrees to pay a
<br />service charge of 1-1/2% per month, or the maximum rate allowed by law, whichever is greater, on past due accounts.
<br />3. INSTRUMENTS OF SERVICE: All reports, field data, field notes, laboratory test data, calculations, estimates, and other
<br />documents prepared by SME in connection with this Project shall be considered instruments of service, and shall remain the property of
<br />SME. SME grants CLIENT and OWNER a limited license to use such instruments of service for the purpose of designing, constructing,
<br />maintaining or repairing work that is part of this Project. Any reuse of SME’s instruments of service for any purpose other than the limited
<br />license granted herein is prohibited and SME shall have no responsibility to CLIENT, OWNER or third parties for unauthorized use of its
<br />instruments of services.
<br />4. RECORDS RETENTION: SME will retain pertinent records relating to the services performed for CLIENT for a period of time
<br />consistent with SME’s File Management Plan, a copy of which will be provided to CLIENT upon request. During that period, the records
<br />will be made available to the CLIENT at reasonable times. At the end of the retention period indicated in SME’s File Management Plan,
<br />SME may, in its sole discretion, dispose of all such records.
<br />5. SME MAKES NO WARRANTY, EXPRESS OR IMPLIED, WITH REGARDS TO ITS
<br />SERVICES.
<br />6. TERMINATION: Either party may terminate this Agreement upon at least 7 days written notice in the event of substantial failure
<br />by the other party to perform in accordance with the terms hereof. Such termination will not be effective if that substantial failure is
<br />remedied before expiration of the period specified in the written notice. This Agreement shall also be automatically terminated upon a
<br />suspension of the Project for more than 3 months. In the event of termination, CLIENT will pay SME for services performed to the
<br />termination notice date plus reasonable termination expenses. In the event of termination, or suspension, prior to completion of all reports
<br />contemplated by this Agreement, SME may complete such analyses and records as are necessary to complete the files and may also
<br />complete a report on the services performed to the date of notice of termination or suspension. The expenses of termination or
<br />suspension include all direct costs of completing such analyses, records, and reports.
<br />7. DISPUTES: If any dispute arising out of or relating to this Agreement, or its breach, is not settled through direct discussions, the
<br />parties agree that as a condition precedent to litigation or arbitration, they will endeavor for 30 days following written notice by one party
<br />to the other of a dispute or breach, to settle the dispute by mediation with the assistance of a neutral mediator. In any litigation or
<br />arbitration, if applicable, the parties agree that the prevailing party is entitled to recover all reasonable costs incurred in defense or
<br />prosecution of the claim, including its staff time, court costs, attorney’s fees, and other claim-related expenses. Notwithstanding, SME has
<br />no obligation to mediate with CLIENT prior to litigation when collecting fees owed by CLIENT.
<br />8. AUTHORIZATION: By signing these General Conditions, CLIENT agrees to accept the proposal, including these General
<br />Conditions and any Special Conditions, as the Agreement governing SME’s services and the relationship between the parties. If CLIENT
<br />gives SME other-than-written authorization to proceed with services after receiving SME’s written proposal, CLIENT accepts the
<br />proposal, these General Conditions, and any Special Conditions, as the Agreement governing SME’s services, and the Agreement is
<br />effective, except for those provisions that CLIENT objects to in writing within 7 days following the other-than-written authorization.
<br />9. SAFETY: SME will be responsible only for the safety of SME employees. Unless otherwise explicitly described in our scope of
<br />services, the scope of services does not include job or site safety for, or supervision or direction of, the work of others. The presence of
<br />SME on the job site should not be construed to in any way relieve the CLIENT, other contractors, or other parties on the site of the
<br />obligation and responsibilities for their personal safety and the safety of their employees, consultants, and subcontractors.
<br />10. INSURANCE: SME and its staff are protected by worker’s compensation insurance and SME has coverage under General
<br />Liability and Professional Liability insurance policies. SME will provide CLIENT with evidence of such policies upon written request. SME
<br />is not responsible for any loss, damage or liability arising from acts of CLIENT, its agents, staff, and other consultants employed by
<br />CLIENT.
<br />11. INDEMNIFICATION: To the fullest extent permitted by law, CLIENT shall hold harmless, defend, and indemnify SME from
<br />and against all claims, damages, losses and expense, including reasonable attorney fees, arising out of the performance of SME’s
<br />services or the materials of others in connection with the Project regardless of whether or not such claim, damage, loss or expense is
<br />caused in part by SME; provided however, that this obligation shall not apply to claims, damage, loss or expense caused solely by
<br />negligence of SME.
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