South East Building ConsultantsOwner - Ray Thoroman www.atlantacommercialbuildinginspector.comray@atlantacommercialbuildinginspector.com404-698-0404678-410-3005

Property Address: Atlanta Commercial Property

Client: John

Phone: 404-698-0404

Inspection Proposal

3/7/2013

Hello,

We are pleased to offer the following Scope of work proposal and Inspection Proposal for the property at: Your Building Inspection in Georgia

Our inspection will be based in the common ASTM 2018 Commercial Inspection Standards geared to producing a clear and accurate Property Condition Report in a narrative type format with pictures of repairs, replacement, upgrades, considerations, recommendations, consistent with building standards the year of construction with safety upgrade considerations consistent with Current Building Standards.

Based on prior conversations via telephone, we propose to evaluate the following systems and components following the Standard Guide for Property Condition Assessments.

Included Excluded System or Component

Overall General Description

Site

Topography

Storm Water Drainage

Access and Egress

Paving, Curbing and Parking

Flatwork, Exterior Concrete, Stairs, Guardrails

Landscaping and Appurtenances

Recreational Facilities

Utilities

Water

Electricity

Natural Gas

Sanitary Sewer

Storm SewerSpecialty Utility Services, Phone, Internet,

Building Management System (BMS)

Structural Frame and Building Envelope

Foundation, Describe Type, ConditionBuilding Frame and Envelope, Describe Type,

Condition

Facades or Curtain wall, Type, Condition

Sidewall SystemFenestration Systems (Windows), Frames,

Seals

Scope of Work

Parapet Walls, Type, ConditionRoofing, Describe Type, ConditionRoof Penetrations

Mechanical and Electrical System

PlumbingSupply and Waste PipingValves, Supply LinesMain Waste Water

Domestic Hot Water Production

Restroom Fixtures

Air Conditioning / Heating Cooling System

Heat Cooling Generation EquipmentDistribution SystemFiltering System

Ventilation System

Equipment

Distribution System

Filtering System

Electrical System

Service(s) and Metering DevicesDistribution and Sub PanelsReceptacles, Ground Fault Protection,

Switches

Vertical Transportation / Elevator

Life Safety / Fire Protection

Fire Suppression Standpipe Inspection, RisersFire Alarm System, Inspected if possible without

BMS System being functional.

ADA Accessibility

Interior Elements

Common Areas, Office Space, walls and ceilings

Kitchen Space walls and ceilings

Additional Considerations

Document Review and InterviewsOpinions of Probable Costs to Remedy Physical Deficiencies of systems and components not being altered-replaced when tenant improvements are made for Roof, HVAC and Electrical only

Out of Scope Considerations, see below.Included Excluded System or Component

Additional Considerations

South East Building Consultants (We) agrees to pay all subcontractors – specialists we deem necessary to complete the property condition assessment, including but not limited to HVAC specialist, Plumbing specialist Roof Contractor, Licensed electrician, Licensed Plumber.

We will not provide the probable costs to remedy repair-replace any systems or components in the building limited to the major systems and components not being altered-replaced.

Client will provide any or all current building plans, certificates of occupancy, Cost for providing qualified assistant is the responsibility of others and is not included in the quoted price.

On the day of the inspection scheduled, we will be doing some research, including the review of documents and the performing of interviews to augment the information obtained during the inspection, and to provide supporting documentation to the inspection report.

In preparation of the walk-through survey portion of the inspection, please have the owner provide us with copies of as many of the following documents as can be reasonably procured:

• building plans

• Citations

• plans and construction permits

• deck and balcony maintenance records

• painting, treating, repair and modification history

• emergency evacuation plans

• fire-detection test and maintenance records

• fire door inspection reports

• fire records

• flame-resistant certificates

• floor plans

• former inspection reports

• kitchen post-fire inspections

• maintenance records

• manufacturers' installation instructions

• permits

• previous inspection reports

• repair proposals

• repair estimates/invoices

• safety inspection records

• seller disclosures

• sprinkler head replacement records

• utility bills if possible

• kitchen grease-cleaning records

I would also like to interview the person with the most knowledge about the condition of the building at the time of the inspection. Please arrange to have such person available the day of the inspection.

Wherever possible we intend to perform the assessment using our regular building inspectors however, we may elect to consult with other contractors/specialists. These may include: Roofing consultancy, HVAC specialists, Commercial electrical contractors and further specialist Engineers.

Cost(s) of these experts if needed will be borne by South East Building Consultants during the initial evaluation only, any further engineering/mechanical design/specifying costs are outside the scope of this agreement. Typographical errors and omissions are subject to correction.

To be Provided by Client

Out of Scope Considerations

Warranty

Other

South East Building Consultants inspection of the property and the accompanying report are in no way intended to be a guarantee or warranty, express or implied, regarding the future use, operability, habitability or suitability of the commercial building or its components. Any and all warranties, express or implied, including warranties of merchantability and fitness for a particular purpose, are expressly excluded by this Agreement to the fullest extent allowed by law.

South East Building Consultants assumes no liability for the cost of repair or replacement of unreported defects or deficiencies either current or arising in the future. CLIENT acknowledges that the liability of South East Building Consultants., its agents, employees, for claims or damages, costs of defense or suit, attorney’s fees and expenses and payments arising out of or related to the INSPECTOR’S negligence or breach of any obligation under this Agreement, including errors and omissions in the inspection or the report, shall be limited to liquidated damages in an amount equal to the fee paid to South East Building Consultants and this liability shall be exclusive. CLIENT waives any claim for consequential, exemplary, special or incidental damages or for the loss of the use of the commercial building even if the CLIENT has been advised of the possibility of such damages. The parties acknowledge that the liquidated damages are not intended as a penalty but are intended (i) to reflect the fact that actual damages may be difficult and impractical to ascertain; (ii) to allocate risk among the INSPECTOR and CLIENT; and (iii) to enable the INSPECTOR to perform the inspection at the stated fee.

In the event of a claim against South East Building Consultants., CLIENT agrees to supply us with the following: (1) Written notification of adverse conditions within 7 days of discovery, and (2) Access to the premises. Failure to comply with the above conditions will release South East Building Consultants and its agents from any and all obligations or liability of any kind.

Any dispute, controversy, interpretation or claim including claims for, but not limited to, breach of contract, any form of negligence, fraud or misrepresentation or any other theory of liability arising out of, from or related to, this contract or arising out of, from or related to the inspection or inspection report shall be submitted to final and binding arbitration under the rules and procedures of Construction Dispute Resolution Services, LLC. The decision of the Arbitrator appointed thereunder shall be final and binding and judgment on the Award may be entered in any Court of competent jurisdiction.

The parties agree that any litigation arising out of this Agreement shall be filed only in the Court having jurisdiction in the County in which the INSPECTOR has its principal place of business. In the event that CLIENT fails to prove any adverse claims against INSPECTOR in a court of law, CLIENT agrees to pay all legal costs, expenses and fees of INSPECTOR in defending said claims.

If any court declares any provision of this Agreement invalid or unenforceable, the remaining provisions will remain in effect. This Agreement represents the entire agreement between the parties. All prior communications are merged into this Agreement, and there are no terms or conditions other than those set forth herein. No statement or promise of South East Building Consultants or its agents shall be binding unless reduced to writing and signed by INSPECTOR. No change or modification shall be enforceable against any party unless such change or

modification is in writing and signed by the parties. This Agreement shall be binding upon and enforceable by the parties and their heirs, executors, administrators, successors and assignees. CLIENT shall have no cause of action against INSPECTOR after six months from the date of the inspection.

This Agreement is not transferable or assignable.

• 50% retainer of the contracted service fees due to schedule project before the inspection.• Payment of the fee to South East Building Consultants or Ray Thoroman (less any

deposit noted above) is due upon completion of the on-site inspection. The CLIENT agrees to pay all legal and time expenses incurred in collecting due payments, including attorney’s fees, if any. If CLIENT is a corporation, LLC, or similar entity, the person signing this Agreement on behalf of such entity does personally guaranty payment of the fee by the entity.

• Personal Guaranty: If CLIENT is a corporation, LLC, partnership, or other artificial entity, the undersigned person hereby personally and unconditionally guarantees punctual payment by CLIENT as required by this agreement. The undersigned guarantor waives diligence, demand for payment, extension of time for payment, notice of acceptance of this guaranty and indulgences and notice of every kind, and consents to any and all forbearances and extensions of the time for payment or performance under this agreement and to any and all changes in the terms of this agreement. Superior Home Inspections. may enforce this guaranty without first resorting to or exhausting other remedies provided by the agreement or the law. Guarantor agrees to pay all reasonable costs and attorneys’ fees incurred by South East Building Consultants. in enforcing this guaranty. Guarantor signs this Guaranty in consideration of Superior Home Inspections, willingness to enter into this agreement with CLIENT.

• Proposal includes applicable local, state, or federal taxes. • Proposal is valid for one month from issue date.

QTY DESCRIPTION UNIT PRICE LINE TOTAL

1 Property Condition Assessment, $3,950.00

TOTAL $3,950.00

XClient or Representative

Terms

Please feel free to give us a call to discuss our suggestions or with any queries that you may have.

Yours Sincerely,

Ray Thoroman

678.410.3005

President South East Building Consultants

www.atlantacommercialbuildinginspector.com

ray@atlantacommercialbuildinginspector.com

404-698-0404 or 678-410-3005