Current through Register Vol. 50, No. 9, September 20, 2024
A.
Insurance. Prior to the signing of the contract between owner and the designer,
the designer shall furnish to the owner proof of coverage for the following.
1. Insurance. Professional liability
insurance shall be required as per the owner's requirements on a project by
project basis. Refer to Exhibit B of the contract for the extent of coverage
required. Insurance will be required at the time of contract execution between
the owner and the designer. Proof of coverage will be required at that time. No
deductible shall be in excess of 5 percent of the amount of the
policy.
2. Comprehensive general
liability with minimum limits of $500,000 per accident/occurrence.
3. Comprehensive automobile liability
insurance with minimum limits of $300,000 per accident/occurrence.
4. The designer shall provide a certificate
of insurance as proof of workmen's compensation coverage.
B. Affidavit. The designer, on signing the
contract, shall submit to the owner, on such form as the owner shall designate,
a noncollusion affidavit.
C. When
the time schedule has been established by the owner and designer, a completion
date shall be set up for delivery of 100 percent completed, coordinated and
ready to bid construction documents to the owner. If the designer is delayed
through no fault of his/her own, then the completion date shall be extended
accordingly, provided the designer makes such request in writing before
starting the subsequent phase and the owner approves such as justified. The
designer shall continue to work during this process.
D. Non-Binding Mediation
1. In an effort to resolve any conflicts that
arise during or following the completion of the project, the owner and the
designer agree that all disputes between them arising out of or relating to
this agreement shall be submitted to non-binding mediation unless the parties
mutually agree otherwise. If non-binding mediation is not successful, then
arbitration is the only remedy available to all parties of the contract.
Arbitration, mediation and/or any legal action resulting from this contract
shall take place in East Baton Rouge Parish.
2. The owner and designer further agree to
include a similar mediation provision in all agreements with independent
contractors and consultants retained for the project and to require all
independent contractors and consultants to likewise include providing for
mediation as the primary method for dispute resolution between the parties to
those agreements.
3. If this
non-binding mediation fails to resolve any conflicts, then the following
arbitration clause shall take effect. All claims, disputes and other matters
arising from the contract shall, at the option of the owner, be decided by
arbitration. To the extent possible, such arbitration proceedings shall be
conducted in accordance with the construction industry association rules of the
American Arbitration Association. Any such arbitration proceeding shall, at the
option of the owner, be consolidated with or joined to other arbitration
proceedings between the owner and other persons or entities under contract with
the state for the construction, repair or alterations of the project in
question.
E. Fault. Time
delays, cost overruns, design inadequacies or other problems with performance
of the designer may result in the designer being held "at fault." The owner
shall determine if the designer is to be held at fault as provided in
R.S.
38:2313.B.(5).
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
39:1410.
