Sample:
Retention of Ownership: There is often debate over this topic in many contracts – the owner may be provided license to use the design professional’s documents, defined in the contract as “Instruments of Service,” however if client ownership of said instruments is requested, including designs, plans, and any intellectual property, ownership shall remain with the AEC firm until full and final payment is received. Written consent for the owner to reuse any part of the instruments of service should also be required. Progress Payments: Payments shall be made in accordance with project milestones and completed phases as specified in the payment schedule. Failure to make timely payments may delay project progress. Payment Certification : The client agrees that all invoices issued by the AEC firm shall be considered accurate and correct, unless disputed in writing within [X] days of receipt. Failure to dispute an invoice within the specified timeframe shall be deemed as acceptance of the invoice. Suspension of Services : In the event of non-payment within the specified timeframe, the AEC firm reserves the right to suspend services until outstanding payments are made. The suspension of services shall not relieve the client from their payment obligations. Sample: CLIENT recognizes that late payment of invoices results in extra expenses for XXX. XXX retains the right to assess CLIENT interest at the rate of one percent (1%) per month, but not to exceed the maximum rate allowed by law, on invoices which are not paid within forty-five (45) days from the date of the invoice. In the event undisputed portions of XXX’s invoices are not paid when due, XXX also reserves the right, after seven (7) days prior written notice, to suspend the performance of its services under this Agreement until all past due amounts have been paid in full. Client shall pay A/E within thirty (30) days of receipt of an undisputed invoice. In the event Client disagrees with or disputes any portion thereof, Client shall notify A/E within five (5) days of receipt of the respective invoice and A/E shall update or rectify the invoice in accordance with the terms herein. All undisputed portions shall be paid within thirty (30) days as specified herein. A/E reserves the right to suspend further Work in the event payment is not paid within sixty (60) days on all undisputed invoices. In the event disputed invoices, or potions thereof, exceed twenty-five percent (25%) of the Agreement value, A/E shall be authorized to suspend services until such time as the disputes have been resolved.
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