Waldman engineering consultants

July 11, 2017

Eric Mondrush, Property Manager RTI Property Management 11750 Highland Road, Suite 500 Hartland, MI 48353

Re: Plumbing Replacement Specifications and Drawings Proposal Southridge Condominium Association, South Lyon, Michigan WEC Project No: 17C-417

Dear Mr. Mondrush:

Waldman Engineering Consultants, Inc. (WEC) is pleased to present this proposal for the Plumbing Replacement Specifications and Drawings at Southridge Condominium Association located in South Lyon, Michigan. Waldman Engineering Consultants, Inc. is an engineering consulting firm with over 40 years of combined experience performing technical problem solving, Reserve Studies, Engineering Transition Studies, Structural Engineering Assessments, Moisture Investigations, Repair Specifications, and Project Management for community associations throughout the nation.

Scope of Work The scope of work for this proposal is outlined below:

Phase I: Site Evaluation and Project Manual

1. Site Evaluation The association contains 24 buildings, 188 units and was built in the 1980's. it has been reported that the buildings are experiencing plumbing issues due to Polybutylene piping. One of the buildings is being repaired by a restoration contractor. We propose to perform a visual evaluation of the building while walls are opened but the restoration contractor and surrounding area to obtain the necessary information required in order to prepare the drawings and specifications for replacement. The information gathered from the evaluation will define the scope of work for the project.

2. Project Manual The following components will be included in the project manual:

A. Bidding Requirements 1. Invitation to Bid 2. Instructions to Bidders 3. Bid Forms

4300 Coln/mire Court, Suite 260 Lisle, Illinois 60532 Tekthone: 630.922.3000 Fax: 6.30.922.3003

Santini* Condominium Association — .S'outh Lyon, Michigan Specifications and Drawings Proposal Waldman EngineeringConsultants, Inc.

B. Specifications 1. General Requirements 2. Specific Material or Product Information 3. Execution

C. Drawings

The following discusses in detail the scope of work included in the above-mentioned sections of a project manual:

A. Bidding Requirements The bidding requirements establish the procedures to be followed by bidders in preparing and submitting bids and includes the invitation to bid, instruction to bidders, and bid forms. All submittals that are required of the bidders, such as copies of licenses, insurance certificates, reference lists, etc., are included in this section.

B. Specifications Specifications define the qualitative requirements for products, materials, and workmanship upon which the construction contract is based. Sections within the specification not only define specific materials or products and their installation methods (i.e., execution), but it also defines contract modification procedures such as change orders, submittal procedures, project meeting and inspections, and on-site temporary facilities and controls.

C. Drawings The drawings will illustrate the materials and their relationship to one another, including shapes, sizes, locations, and connections, necessary to perform the work. Drawings may be a requirement for obtaining permits.

PLEASE NOTE: Up to jive copies of the bid package, including the repair .specifications and drawings will be sent out to a list of contractors which has been provided by the Association. If requested, additional bid packages can he sent out and IPEC will charge a flat fee of $25.00 per packet. This fee will he in addition to the project fee outlined below IPEC can provide a list of recommended bidders at the Association's request.

Phase II: Bid Package Review & Analysis WEC proposes to provide assistance in the selection of an appropriate contractor to provide the means and methods of construction. Contractor bids will be received by WEC and examined with respect to adherence to the project manual and completeness of the bidding process. A summary letter and spreadsheet analysis will be provided for reference to aid the association board in the selection of the contractor. A recommendation for the selection of a Contractor will not be based solely on the lowest bid submitted.

As part of the bid review process, WEC will:

• Conduct one pre-bid meeting at the construction site with all bidders present to discuss the scope of the project

• Answer contractor questions regarding scope of project and clarify the intent of the specifications or drawings if necessary.

FRC Projeet No: 17C417 J411, 2017 Age 2

.Contlnidge Condominium Association — South Lyon, Michigan Specifications and Droning: Proposal tr/aldman Engineering Consultants, Inc.

• Issue project addenda as required • Attend one board meeting to discuss bids with the association board and conduct contractor

interviews a part of said board meeting.

Additional board meetings will be attended for an additional fee. Should the scope of work be increased by the association board during the specification development phase, the fees associated with the hid review phase of the project may he adjusted h3 IF/EC as necessary to accommodate the increased scope of work. The association board will be notified prior to the adjustment of aryfees should that be deemed necessary.

Phase III: Project Management The following services will be provided as part of the Project Management. These services will be invoiced according to the hourly rate schedule as outlined below.

Project Manual Modifications Modifications will include any changes to the specifications and drawings during the construction phase of the project. Changes to the drawings or specifications will be in the form of a change order or construction change directive as required.

Contract Administration We propose to act on behalf of the owner to provide contract administration services, which consists of such tasks as preparing the AIA Contract between the Association and contractor, review of contractor submittals (i.e., product substitutions), change orders, consulting with the owner and contractor regarding issues that arise, and the review and authorization of any payment applications.

Construction Monitoring We propose to act on behalf of the owner as a representative to ensure that the work performed is in compliance with the project specifications. The function of monitoring the construction activity is not to direct the contractor, but rather to observe and report on the contractor's installation progress and ensure that procedures, as defined in the specifications, are followed. WEC will present the owner with periodic field reports of the contractor's progress and note any pertinent non-conformities or problems. As a part of the construction monitoring phase, WEC will conduct one pre-construction meeting that will include all staff members from WEC involved in the project, contractor superintendent, Board members, and association manager. During the course of the project, WEC will work with the contractor to resolve any construction related issues that may arise that will necessitate a change in the work.

WEC reserves the right to bill all staff time that may he incurred as a result of municipality plan review. Time may include meetings with building departments, revisions to drawings or 1)0f:cations, meetings with the board to discuss changes to the project, etc. All time incurred as a result of municipality plan review will be billed above and bgond the stated not to exceed fee below for the project management phase of the project.

WEC Project No: 17C-417 July 11, 2017 Page 3

Soutbrid,ge Condominium Association — South Lyon, Michigan ,Vpecilications and Drairiw Proposal Waldman Engineering Consultants,

Project Schedule WEC is prepared to begin Phase I of this project within 20 days of written authorization to proceed and receipt of the project retainer check. We anticipate completing Phase I of the project, weather permitting, within 30-45 days of beginning the project. WEC will make every attempt to accommodate the scheduling needs of the client. Phase II will begin immediately upon completion of Phase I and Phase III will begin at the time the association awards the project to the bidding contractor.

Project Fee and Payment Schedule Waldman Engineering proposes to perform the scope of work included in Phase I as outlined above for a fixed fee of $7,000.00. A retainer fee of $3,500.00 is required to begin this Phase of the project. The fees for Phases I and II will be billed according to the following tables:

Phase I Project Milestone Project Fee Retainer (required to begin project) $3,500.00 Completion of Project Manual $3,500.00 Total Phase I Fee $7,000.00

Phase II Project Milestone Project Fee Completion of Bid Review and Analysis Not-to-Exceed $2,500.00 Total Phase II Fee Not-to-Exceed $2,500.00

Phase III of the project includes all issuing of project modifications, contract administration, and construction oversight. This phase will be invoiced hourly according to the rate schedule below and will be billed on a monthly basis for the duration of the project. Since the entire scope of the project is unknown at this time, an exact fee for Phase III services cannot be determined until Phases I and II are complete.

■ Expert Witness $300/hour ■ Principal $250/hour ■ Licensed Engineer/Architect $200/hour ■ Senior Engineer/Architect $180/hour ■ Field Engineer/Contract Administrator $145/hour ■ Technician $120/hour ■ Administrative Staff $75/hour

Sincerely, Waldman Engineering Consultants, Inc.

Mark A. Waldman, SE, PE, LEED AP President

WhC Pnyect No: 17C-417 prly 11, 2017 Page 4

.Vontinidge Condominium Association — South Lyon, Michigan Specifications and Drawinff Proposal Waldman Engineering Consultants, Inc.

ACCEPTANCE OF PROPOSAL

If you are satisfied with this proposal, please sign and return this page to our office with the stipulated retainer fee. The acceptance of this proposal signifies the acceptance of the Standard Tcrms and Conditions.

PLEASE REMIT ACCEPTED PROPOSAL AND RETAINER FEE TO THE FOLLOWING ADDRESS:

WALDMAN ENGINEERING CONSULTANTS, INC. 4300 COMMERCE COURT, SUITE 260

LISLE, ILLINOIS 60532 ATTN: JULIE FRECHMANN

RFLIF,F@WALDMANTENG.COM FAX: 630-922-3003

NAME: SIGNATURE

PRINT NANIE

TITLE:

COMPANY:

DATE:

PHASE I: SITE EVALUATION AND PROJECT MANUAL RETAINER: $3,500.00 PROJECT FEE: $7,000.00

PHASE II: BID REVIEW AND ANALYSIS NOT-TO-EXCEED PROJECT FEE: $2,500.00

PHASE III: PROJECT MANAGEMENT PROJECT FEE: HOURLY, BASED ON PHASE I FINDINGS

Please nIce, note that this proposal shall expire 30 day from the date of this proposal. After that time, IVEC reserves the right to make any necessary modifications.

ivEc Project No: 17C-417 jub, 11, 2017 Page 5

WALDMAN ENGINEERING CONSULTANTS, INC. STANDARD TERMS AND CONDITIONS (2 Pages)

(Revised 12/7/11)

CLIENT: Client is defined as the person or entity requesting and/or authorizing the work, and in so doing, Client represents and warrants that he/she is duly authorized in this role. If Client is not the owner, then Client is acting with the consent of the owner. Waldman Engineering Consultants, Inc. (WEC) is an independent contractor and is not an agent and has no fiduciary relationship with the Client.

AGREEMENT: WF,C shall perform services in accordance with this Agreement made with the Client. This Agreement consists of WEC's Proposal which has been accepted by the Client and these Standard Terms and Conditions.

PROPOSAL: The Proposal defines the scope of services WEC will perform for the Client. The scope of work, costs, and time schedules, if any, defined in the Proposal are based on information provided by Client and shall be subject to the provisions of this Agreement. If this information is incomplete or inaccurate, or if the Client directs change to the scope of work established by the Proposal, a written amendment to this Agreement equitably adjusting the costs and time schedules shall be executed by the Client and WEC as soon as practicable. The cost and time schedules defined in the Proposal are valid for a period of thirty (30) days from the date of the Proposal.

INVOICES: Unless otherwise specified in the Proposal, WEC shall submit invoices on a monthly basis and/or upon completion of the work for services performed as well as for expenses incurred and not previously billed. Payment is due upon Client's receipt of the invoice and is past due thirty (30) days from the date shown on the invoice. Client agrees to pay a service charge of one and one-half percent (1.5%) per month on all past due amounts, which compounds to 19.8% per year. WEC shall be entitled to be reimbursed for all reasonable costs and expenses incurred in the collection of past due invoices, including., but not limited to, attorney's fees, expenses, court costs, and WEC staff time. Tn addition, a $50.00 fee ("NSF Fee") will be charged-back to the Client for any check which is returned by our financial institution due to insufficient funds.

STANDARD OF CARE: WEC will perform its services under this Agreement in conformance with the case and skill ordinarily exercised by reputable members of the profession practicing under similar conditions at the same time.

NO OTHER WARRANTY OF ANY KIND, EXPRESSED OR IMPLIED, IN FACT OR BY LAW, IS MADE OR INTENDED. IT IS AGREED THAT THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND THE IMPLIED WARRANTY OF HABITABILITY ARE EXPRESSLY DISCLAIMED, DENIED, AND EXCLUDED FROM THIS AGREEMENT.

SAFETY: It is understood and agreed that, with respect to project site health and safety, WEC is responsible for the safety of itself, its officers, agents, employees, and subcontractors in the performance of their duties. It is expressly agreed that WEC has no responsibility for the protection and safety of any other persons on or about the project site. Unless indicated otherwise in the Proposal, Client shall provide, at its expense, all facilities and labor necessary to afford WEC personnel safe access to sampling, testing, or observation locations in confonnance with federal, state, and local laws, ordinances, and regulations. Unless access equipment is provided by Client, it is understood and agreed that WEC shall not be in charge of, and shall have no control or responsibility over, any aspect of the erection, construction, or use of any scaffolds, hoists, cranes, stays, ladders, supports, or other similar devices as defined and interpreted under any law, ordinance, or regulation relating in any way to project safety.

HAZARDOUS SUBSTANCES: If WEC is to provide services in the general vicinity of a facility or other area where there may exist any substance which poses or may pose a present or potential hazard to human health, then the Client shall immediately notify WEC of such present or potential health hazard which it knows or reasonably suspects exists. Thereafter WEC is authorized by Client to take all reasonable measures, including suspension of services and termination of this Agreement, that WEC deems necessary to protect its personnel against such possible health hazards. Client shall bear the direct costs of such measures. In the event samples collected or received by WEC on behalf of Client contain any substance which poses or may pose a present or potential hazard to human health or the environment, WEC will, at the completion of testing and at Client's sole expense, take one of the following actions: 1. Return such samples to Client or; 2. Upon written request from Client, release such samples to a carrier for transport to a location selected by Client for final disposal. The Client is responsible for the disposal of any hazardous substances and must be in compliance with all applicable federal, state, and local statutes, as well as all applicable laws, rules, regulations, and ordinances.

DELAYS: WEC shall not be considered in default under this Agreement if its performance is prevented or delayed by any cause which is beyond its reasonable control. Further, Client understands and agrees to pay all reasonable charges associated with any delays, cancellations, rescheduling, or other activities that may alter time schedules and anticipated costs and that are due as a result of circumstances that arc beyond the reasonable control of WF.C.

OWNERSHIP OF DOCUMENTS: With the exception of WF.0 submittals to Client, all documents, including field data, field notes, laboratory test data, calculations, and analyses, prepared by WEC as instruments of service shall remain the property of WEC. WEC will retain all pertinent records relating to the services performed for a period of two (2) years following the completion of WEC's services.

After this period, they may he discarded unless other arrangements arc requested and paid for by Client. WEC also reserves the right to use any photographs taken during the course of the service(s) provided to Client in various commercial advertising, including but not limited to various marketing pieces, trade show displays, website(s), presentations, etc.

In addition, drawings, specifications, and other documents, prepared by WEC and WEC's consultants are Instruments of Service for use solely with respect to this Project. This includes documents in electronic form. WF.0 and WEC's consultants shall be deemed the authors and owners of their respective Instruments of Service and shall retain all common law, statutory, and other reserved rights, including copyrights. The Instruments of Service shall not be used by Client for future additions or alterations to this Project or for other projects, without the prior written agreement of WEC. Any unauthorized use of the Instruments of Service shall be at Client's sole risk and without liability to WEC and/or WEC's consultants.

SUBPOENAS OR COURT ORDERS: If any subpoena or court order is served upon WEC and/or any of its staff, sub-consultants, or subcontractors requiring the presentation of documents ur appearance at a deposition or trial, or for other discovery purposes, arising out of services provided under this Agreement, Client shall pay the charges applicable to WEC's compliance with the subpoena or court order. Charges will accrue un an actual time and related expense basis in accordance with specific WEC rates which are in effect at the time process service is effectuated upon WEC of any such subpoena or court order. Invoices will include all time and expenses incurred from gathering, organizing, and duplicating documents, preparing to give testimony, travel, and testifying in any deposition and/or trial.

OPINIONS OF PROBABLE COST: In fulfilling the services of this Agreement, WEC may identify probable costs related to future expenditures. WEC's opinions of probable costs provided as part of the services under this Agreement are made on the basis of WEC's knowledge, experience, and qualifications and represent WEC's judgment as being experienced, qualified, and familiar with the construction industry. WEC cannot and does not guarantee that proposals, bids, or actual costs will not vary from the opinions of probable costs provided by WEC.

LIMITATION OF LIABILITY: Any cause of action or litigation will be brought within two (2) years following the completion of WEC's services. If brought subsequently, any cause of action or litigation will be deemed to be time barred. THE LIABILITY OF WEC FOR ANY REASON WHATSOEVER ARISING UNDER OR RELATING TO THIS AGREEMENT WILL NOT EXCEED, IN THE AGGREGATE, $10,000 OR THE AMOUNT OF THE FEE ACTUALLY RECEIVED BY WEC, WHICHEVER IS LESS. IN ADDITION, IN NO EVENT WILL WEC BE LIABLE FOR ANY CLAIM OR DEMAND BY CLIENT, OR AGAINST CLIENT BY ANY THIRD PARTY, IN ANY AMOUNTS REPRESENTING LOSS OF PROFIT, LOSS OF BUSINESS, DELAY OF DAMAGES, OR SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES. THE PROVISIONS OF THIS PARAGRAPH SHALL APPLY REGARDLESS OF THE FORM OF THE CAUSE OF ACTION, WHETHER IN CONTRACT OR TORT, INCLUDING WITHOUT LIMITATION, NEGLIGENCE, STATUTE, OR OTHERWISE. Should any claim or cause of action be brought against WEC for any reason whatsoever arising out of or related to this Agreement and WF.0 is deemed to be the prevailing party by a respective court of law, WEC is entitled to collect all reasonable costs and necessary disbursements and attorney's fees incurred by WEC in enforcing this Agreement. Costs shall, include, but not be limited, to filing fees, all service fees for summons, complaint, and all other court papers, court reporting fees, and photocopying charges, etc.

INDEMNIFICATION: If any claim, suit, or legal action arising out of the services under this Agreement is asserted against WEC by a person or entity who is not a party to this Agreement, Client agrees to indemnify, hold harmless, protect, and defend WEC from and against any such claim, suit, or legal action, and any and all loss, liability, damage, costs, and expenses associated therewith, except to the extent that the event and/or damages giving rise to such claim, suit, or legal action is found to have been caused by the negligence of WEC. The Client's obligation hereunder includes, but is not limited to the payment of reasonable legal fees, attorneys' fees, court costs, and expert and consulting charges, costs, and expenses required for the proper and vigorous defense of WEC. No third party shall have any right to rely upon any statement made by WEC, or any act or omission of WEC.

NO THIRD PARTY BENEFICIARIES: Nothing in this Agreement shall create a contractual relationship with, or cause of action in favor of, a third party. It is not intended that any third party, including any shareholders, member, or constituent should use or rely on the services contained within this Agreement.

DISPUTE RESOLUTION: Any cause of action or litigation relating to all claims, disputes, controversies, or matters in question arising out of, or relating to, this Agreement or any breach thereof which cannot be resolved through negotiation, shall take place in DuPage County, Illinois, unless Client and WF.0 agree otherwise. The parties waive the right to reject the award of the arbitrators.

TERMINATION: This Agreement may be terminated by either party upon at least seven (7) days written notice in the event of substantial failure by the other party to perform in accordance with the terms hereof. Contract termination by WEC due to possible health hazards shall not be considered in default, but shall be considered good and sufficient grounds. Such termination shall not be effective if that substantial failure has been remedied before expiration of the period specified in the written notice. In the event of termination, WEC shall be paid for services performed prior to the termination date set forth in the notice plus reasonable termination expenses.