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<br />20 <br /> <br />CONSULTING ENGINEERING <br /> <br />led inflationary periods and compensation must reflect the actual conditions that <br />occur as the contract progresses. <br />It would be desirable in these times to have a provision in the contract stating that <br />on completion of the contract drawings and specifications the Consulting Engineer <br />and the Owner will establish a construction cost estimate. This estimate will serve <br />as the basis for determining the Consulting Engineer' s basic services compensation <br />if the project is delayed and bids are not received within six months of completion <br />of the contract documents. This would relate construction cost of the project and <br />the Engineer's cost for services pe'rformed during the same period and should <br />be equitable to both the Consulting Engineer and the Owner, in most cases. <br />The right of either party to terminate the contract, prior to its completion, <br />should be clearly stated. Otherwise, it should be stated that the agreement will <br />continue to completion. Engineering contracts frequently contain a unilateral <br />termination clause, whereby the Client may terminate the agreement at any time <br />he is dissatisfied with the services of the Consulting Engineer, subject, of <br />course, to appropriate notification and payment for services already performed. <br />The justification for such an arrangement is that the proper rendering of profes- <br />sional services demands an environment of mutual confidence between Client <br />and Consulting Engineer. <br />Engineering contracts usually cover highly technical services. Therefore, to <br />assure the soundness of a legal document, it is essential that someone who is <br />thoroughly conversant with the pratice of consulting engineering prepare the <br />sections describing services to be performed, sequence o( work, information to <br />be furnished by the Client, and terms of payment. <br /> <br />Form of Contract <br />Many government agencies, business firms, and engineering organizations <br />have developed standardized printed forms of engineering contracts. Some of <br />these forms are lengthy, but when carefully completed they serve the proper <br />purpose. The American Consulting Engineers Council, the National Society of <br />Professional Engineers, the American Institute of Architects, and many state <br />societies offer sample forms of contracts between Client and Engineer. A simple <br />"Guide Form of Agreement for Engineering Services" is shown as Appendix I, <br />page 42. (See also, "Guide Form of Letter Agreement Between Engineer and <br />Architect on Joint Services," Appendix II, page 43.) <br /> <br />Contract Provisions <br />The following check list contains the essential provisions to be considered in <br />preparing any agreement for engineering services, w,hether executed in' precise <br />legal form or by exchange of letters: <br />I. Effective date of agreement. <br />2. Names and descriptions of the parties to the agreement with their addres. <br />ses and, in the case of a corporate body, the legal description of the <br />