2021/10/27 Council Agenda Packet

EXHIBIT B FEES 1. In consideration of the Required Services and JOC Systems License set forth in Exhibit A, Gordian shall be paid a JOC System License Fee ("License Fee") according to the following schedule: JOC System License Fee — City shall pay Gordian a JOC System License Fee equal to One and Ninety - Five Hundredths Percent (1.95%) of the value of construction work ordered thereafter for the remainder of the initial term and any subsequent renewal term. The JOC System License Fee shall be payable upon the issuance of a Job Order, Notice -to -Proceed, Purchase Order, or similar purchasing document from City to the JOC contractor. 2. In consideration of the Tier 2 Optional Services set forth in Exhibit A, Gordian shall be paid the following Job Order Development Fee, in addition to the JOC System License Fee, except as otherwise set forth below, according to the following schedule: Job Order Development Fee — City shall pay Gordian a Job Order Development Fee of Three and Five Hundredths Percent (3.05%) of the value of the construction work ordered. The Job Order Development Fee shall be payable upon the issuance of a Job Order, Notice -to -Proceed, Purchase Order, or similar purchasing document from City to the JOC contractor. In the event City elects to receive the Tier 2 Optional Services for any Job Order prior to the procurement of Eight Million Dollars ($8,000,000) in construction, the total fees assessed to City, in combination with the JOC System License Fee of 1.95%, shall not exceed Five Percent (5.00%) of the value of each Job Order for which such services are provided. 3. For Tier 1 and Tier 2 services, any additional work ("Supplemental Job Orders") increasing the value of any issued Job Order, or Job Order credits ("Credits") that reduce the value of a project will be reflected in the monthly invoicing following the issuance of such Supplemental Job Orders or Credits. In the event a Job Order is cancelled after a contractor has been authorized to begin work, but prior to the work being started, these cancellations, and a credit for the full amount of Gordian's applicable fees, will be credited to the City in the next monthly invoicing process following the cancellation. 4. In consideration for the Tier 3 Optional Services set forth in Exhibit A, to be provided on a project -by - project basis, and only upon request from the City, Gordian shall be paid the following Project Management Fee, in addition to the applicable fees set forth above, according to the following schedule: Project Management Fee: City shall pay Gordian a Project Management Fee of Five and Ninety -Five Hundredths Percent (5.95%) of the value of the construction work ordered. The Project Management Fee shall be payable when construction of a Job Order has been completed and accepted by the City, except at the election of Gordian, the fee for Job Orders requiring more than 60 days to complete shall be payable monthly on a percentage of completion basis. 5. The JOC System License fee is subject to Washington State sales tax at the current City of Everett tax rate. The Job Order Development fee is exempt from sales tax as a professional service. Gordian Group, Inc. Professional Services Agreement (2021)