HomeMy WebLinkAboutHDR Kittitas County Recycling Feasbility Study Contract 02242021Agreement for Professional Services 1 1/2020
SHORT FORM AGREEMENT BETWEEN OWNER AND
HDR ENGINEERING, INC. FOR PROFESSIONAL SERVICES
THIS AGREEMENT is made as of this ________ day of __________________,
20___, between Kittitas County (“OWNER”) a municipal corporation, with principal
offices at 205 West 5th Street, Ellensburg, WA 98926, and HDR ENGINEERING, INC.,
(“ENGINEER” ) with principal office at 8404 Indian Hills Drive, Omaha, NE 68114 for
services in connection with the project known as Secondary Recycling Market Feasbility
Study (“Project”);
WHEREAS, OWNER desires to engage ENGINEER to provide professional
engineering, consulting and related services (“Services”) in connection with the Project;
and
WHEREAS, ENGINEER desires to render these Services as described in
SECTION I, Scope of Services.
NOW, THEREFORE, OWNER and ENGINEER in consideration of the mutual
covenants contained herein, agree as follows:
SECTION I. SCOPE OF SERVICES
ENGINEER will provide Services for the Project, which consist of the Scope of Services
as outlined on the attached Exhibit A.
SECTION II. TERMS AND CONDITIONS OF ENGINEERING
SERVICES
The HDR Engineering, Inc. Terms and Conditions, which are attached hereto in Exhibit
B, are incorporated into this Agreement by this reference as if fully set forth herein.
SECTION III. RESPONSIBILITIES OF OWNER
The OWNER shall provide the information set forth in paragraph 6 of the attached “HDR
Engineering, Inc. Terms and Conditions for Professional Services.”
SECTION IV. COMPENSATION
Compensation for ENGINEER’S services under this Agreement shall be on the basis of
Time and Materials. Time and Materials shall mean actual labor hours at the rates
included in Exhibit A, to be paid as total compensation for each hour an employee works
on the project, plus Reimbursable Expenses.
Compensation terms are defined as follows:
Reimbursable Expense shall mean the actual expenses incurred directly or indirectly in
connection with the Project for transportation travel, subconsultants, subcontractors,
technology charges, telephone, telex, shipping and express, and other incurred expense.
Agreement for Professional Services 2 1/2020
SECTION V. PERIOD OF SERVICE
Upon receipt of written authorization to proceed, ENGINEER shall perform the services
within the time period(s) described in Exhibit A.
Unless otherwise stated in this Agreement, the rates of compensation for ENGINEER’S
services have been agreed to in anticipation of the orderly and continuous progress of the
project through completion. If any specified dates for the completion of ENGINEER’S
services are exceeded through no fault of the ENGINEER, the time for performance of
those services shall be automatically extended for a period which may be reasonably
required for their completion and all rates, measures and amounts of ENGINEER’S
compensation shall be equitably adjusted.
Agreement for Professional Services 3 1/2020
SECTION VI. SPECIAL PROVISIONS
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first written above.
“OWNER”
BY:
NAME:
TITLE:
ADDRESS:
HDR ENGINEERING, INC.
“ENGINEER”
BY:
NAME: Rob Berman
TITLE: Washington Area Operations
Manager
ADDRESS: 929 108th Ave NE, Suite 1300
Bellevue, WA 98004
EXHIBIT A
SCOPE OF SERVICES
Background
Kittitas County (County), in partnership with Central Washington University, Yakima County, and
the Ellensburg Business Development Authority has been awarded a grant from the Washington
State Department of Ecology (Ecology) Recycling Development Center. This grant will support a
feasibility study of secondary recycling markets with an eye towards a regional, comprehensive
action plan. The feasibility study will consider the County’s unique position geographically at the
crossroads of two interstate freeways, a strong community desire to protect natural capital, and
demonstrated ability to build and sustain effective public/private partnerships.
Ellensburg, WA is a top ten micro-region for population growth and is the hub for progressive
economic development. Recently the County joined neighboring Yakima County and banned the
acceptance of glass materials from their recycling streams. This ban was brought about by the
cost of the long haul to recycling facilities in the state. While this has been a challenge for the
citizens, the County recognized that the situation also presented an opportunity to look at glass
and other recyclable materials with an innovative eye for a sustainable, secondary market. The
County has an opportunity to become known as the secondary recycling marketplace in central
Washington due to its geographic location.
The County has requested for HDR to conduct the secondary recycling market feasibility study
and action plan. Provided below is a summary of the tasks required to develop the feasibility
study and comprehensive action plan.
Scope of Services
Task 1: Project Management
OBJECTIVE
The purpose of this task is to monitor, control, and adjust scope, schedule, and budget; and to
provide monthly status reporting, accounting, and invoicing for the project.
HDR SERVICES
• Schedule, manage, and allocate project resources based on schedule, budget, work
plan, and activities.
• Provide monthly, scheduled communication with the County Project Manager, including
calls, emails, meetings, workshops, and other communication appropriate based on the
activity.
• Prepare monthly electronic progress reports and invoices.
CLIENT RESPONSIBILITIES
• Attend monthly check-in meetings.
• Timely review and payment of monthly invoices and progress reports.
KEY UNDERSTANDINGS
• Invoices and progress reports will be submitted electronically on a monthly basis.
• Progress reports will be no more than two (2) pages and will include:
o Summary of the work completed during the previous month
o Identification of project issues
o Documentation of staff hours spent during current period
• HDR’s Project Manager will be available for phone or email correspondence on project
management issues or questions, but no in-person meetings are planned.
DELIVERABLES
• Up to four (4) monthly invoice and progress reports (electronic PDF).
Task 2: Project Initiation and Scope Refinement
OBJECTIVE
The purpose of this task is to bring the HDR and County project teams together at the start of the
project to confirm the goals, objectives, issues, and concerns related to the feasibility study.
HDR SERVICES
• Facilitate virtual project kick-off meeting with HDR and County teams.
• Provide a written data request detailing data required to develop the feasibility study.
• Review data provided by the County to be used in the development of the feasibility
study.
• Coordinate with the County on data clarifications and additional data needs.
• Coordinate and facilitate a virtual kick-off meeting.
CLIENT RESPONSIBILITIES
• Provide requested data in a timely manner.
• Provide additional data or clarifications to support the study analyses.
• Have appropriate County staff attend and participate in the kick-off meeting.
KEY UNDERSTANDINGS
• Data will be provided by the County in electronic format.
• The kick-off meeting will be 2 hours in length.
• Up to three (3) HDR staff will virtually attend and participate in the kick-off meeting; no in-
person meeting required.
DELIVERABLES
• Data request (electronic format - e.g., PDF, Excel, Word).
• Kick-off meeting agenda and meeting handout (electronic format).
Task 3: Stakeholder Engagement
OBJECTIVE
The purpose of this task is to facilitate stakeholder engagement to review goals and objectives
relating to recycling markets, development of strategies, and potential opportunities available and
solicit feedback on draft project documents.
HDR SERVICES
• One (1) HDR staff member will facilitate up to two (2) stakeholder engagement meetings
or presentations either virtually or in person at venues coordinated by the County.
• Hold internal meetings with County to discuss content and review materials
for both stakeholder meetings.
• Facilitate an initial kick-off meeting with stakeholders to review goals and
objectives relating to recycling markets, development of strategies, and
potential opportunities available;
• Upon completion of the draft Feasibility Study and Preliminary Action Plan,
facilitate a second meeting to review and solicit feedback on the draft
documents.
• Prepare stakeholder engagement meeting presentation materials.
CLIENT RESPONSIBILITIES
• Coordinate the dates and times of the stakeholder engagement meetings with HDR.
• Review and comment on the HDR developed presentation materials.
ASSUMPTIONS
• HDR will provide the presentation materials to the County in electronic format (e.g., PPT,
PDF).
• If desired, additional public presentations beyond the two (2) proposed stakeholder
engagement meetings can be provided on a time and material basis as agreed in writing
between the County and HDR for an additional fee.
• Budget includes in-person attendance for up to two (2) meetings by one HDR staff
member, including travel. If County determines meetings are to be virtual, travel time will
not be expended.
• In person meetings will follow current County, HDR, state, and local protocols for COVID-
19 precautions.
DELIVERABLES
• Draft and final stakeholder engagement meetings and presentation materials in electronic
format for up to two (2) meetings either virtually or in-person.
Task 4: Research Recyclable End-Markets and Benchmarking Exercise
OBJECTIVE
The purpose of this task is to conduct a benchmarking exercise that includes up to five (5) like-
sized jurisdictions, both local and regional, relating to recycling acceptance, handling, marketing,
and end-use that establishes existing conditions.
HDR SERVICES
• Identify up to five (5) like sized, innovative, and successful recycling management
practices or initiatives that may be replicated in Kittitas County relating to recycling
acceptance, handling, marketing, and end-use of materials.
• Conduct research on feasible uses and end-markets for recyclables collected with
emphasis on innovation and sustainable opportunities that exist both locally and in the
region.
• Conduct additional research on existing recycling options and facilities available in the
region that provide sustainable end-uses for materials.
• Develop a draft and final technical memo summarizing existing conditions in the region,
feasible end-use markets, and potential, sustainable technologies that could be
duplicated in Kittitas County to establish long-term recyclable materials markets.
• Conduct one (1) meeting to present preliminary results to the County to explore benefits
and drawbacks of potential sustainable technologies that could be duplicated.
CLIENT RESPONSIBILITIES
• Identify attendees and participate in a preliminary results workshop and provide
feedback.
• Review and provide one set of consolidated comments on the draft technical memo.
ASSUMPTIONS
• Up to two (2) HDR staff will attend the workshop either virtually or in-person. If County
determines meeting is to be virtual, travel time will not be expended.
• In person meetings will follow current County, HDR, state, and local protocols for COVID-
19 precautions.
• Workshop will be held at County offices.
DELIVERABLES
• Draft and final workshop agenda and presentation materials (Word, PDF, and
PowerPoint format, as appropriate, electronic only).
• Draft and final workshop notes (Word format, electronic only).
• Draft and final technical memo (Word format, electronic only).
Task 5: Secondary Recycling Market Feasibility Study and Preliminary Action Plan
OBJECTIVE
As identified in the Task 4 technical memo, up to five (5) identified successful recycling
management practices and technologies will be selected as potential candidates to create a
foundation for future recycling management options and infrastructure needed in the region. The
objective of this task is to further evaluate these options; determine whether they will meet the
goals and objectives; and determine whether they may be economically viable, environmentally
sound, socially acceptable, and achievable in the region. A preliminary action plan will be
presented through a planning matrix for implementation.
HDR SERVICES
• Develop up to five (5) planning-level opinions of probable construction costs for the
selected recycling management practices and technologies.
• Develop up to five (5) planning-level estimates of probable annual operating costs for the
selected recycling management practices and technologies.
• Develop the draft secondary recycling market feasibility study and preliminary action
plan.
• Conduct one (1) meeting to present the draft feasibility study and preliminary action plan
with the County.
• Develop the final feasibility study and preliminary action plan.
CLIENT RESPONSIBILITIES
• Identify attendees and participate in a preliminary results meeting and provide feedback.
• Review and provide one set of consolidated comments on the draft feasibility study and
preliminary action plan.
ASSUMPTIONS
• Estimated costs will be developed on the HDR’s team knowledge of previous facility
designs, current industry standards and operating information that is available.
• Up to two (2) HDR staff will attend the review meeting either virtually or in-person. If
County determines meeting is to be virtual, travel time will not be expended.
• In person meetings will follow current County, HDR, state, and local protocols for COVID-
19 precautions.
• Workshop will be held at County Offices.
DELIVERABLES
• Draft and final meeting agenda and presentation materials (Word, PDF, and PowerPoint
format, as appropriate, electronic only).
• Draft and final meeting notes (Word format, electronic only).
• Draft and final feasibility study and preliminary action plan (Word format, electronic only).
Schedule
• County issues notice to proceed (NTP) – Estimated March 10, 2021
• HDR issues request for information (RFI) – Within 2 days of NTP
• County provides RFI documents – Within 1 week of NTP
• Initial kick-off meeting – Within 1 week of NTP
• Initial stakeholder engagement meeting – 2 weeks after initial kick-off meeting
• HDR issues draft technical benchmarking memo – 1 week after stakeholder engagement
• Conduct County workshop to review technical memo – 1 week after draft technical
benchmarking memo issued
• HDR issues final technical benchmarking memo – 1 week after workshop
• HDR issues draft secondary recycling market feasibility study and preliminary action plan
– 3 weeks after final benchmarking memo
• Conduct County workshop to review feasibility study and preliminary action plan – 2
weeks after draft feasibility study
• Conduct stakeholder engagement meeting to review feasibility study and preliminary
action plan – 3 weeks after workshop
• HDR issues final feasibility study and preliminary action plan – 2 weeks after stakeholder
engagement
Estimated Fees and Disbursements
Compensation for proposed services will be billed on a Time and Materials basis. The total fee for
these services is not to exceed $34,500.00, unless mutually agreed upon by HDR and the Client.
Table 1. Schedule of Fees
Task Task Name Amount
1 Project Management $1,700.00
2 Project Initiation and Scope Refinement $2,200.00
3 Stakeholder Engagement $6,600.00
4 Research Recyclable End-Markets and Benchmarking Exercise $16,700.00
5 Secondary Recycling Market Feasibility Study and Preliminary
Action Plan $7,300.00
TOTAL $34,500.00
Table 2. Schedule of Billing Rates
Terms and Conditions
These services are proposed to be completed under HDR’s standard Professional Services
Agreement and Terms and Conditions.
This proposal is valid for 30 working days from the date of submission. Thereafter, it may be
subject to change.
Rate Category Rate
Project Manager $190
Senior Solid Waste Planner $225
Senior Solid Waste Engineer $225
Solid Waste Planner $150
Solid Waste Engineer $175
Strategic Communications Specialist $135
Technical Editor $120
Project Accountant $120
EXHIBIT B
TERMS AND CONDITIONS
HDR Engineering, Inc. Terms and Conditions
for Consulting Services
1. STANDARD OF PERFORMANCE
The standard of care for all professional engineering, consulting and related services performed or furnished by
CONSULTANT and its employees under this Agreement will be the care and skill ordinarily used by members of
CONSULTANT’s profession practicing under the same or similar circumstances at the same time and in the same
locality. CONSULTANT makes no warranties, express or implied, under this Agreement or otherwise, in connection
with CONSULTANT’s services.
2. INSURANCE/INDEMNITY
CONSULTANT agrees to procure and maintain, at its expense, Workers' Compensation insurance as required by statute;
Employer's Liability of $250,000; Automobile Liability insurance of $1,000,000 combined single limit for bodily injury and
property damage covering all vehicles, including hired vehicles, owned and non-owned vehicles; Commercial General
Liability insurance of $1,000,000 combined single limit for personal injury and property damage; and Professional Liability
insurance of $1,000,000 per claim for protection against claims arising out of the performance of services under this
Agreement caused by negligent acts, errors, or omissions for which CONSULTANT is legally liable. OWNER shall be
made an additional insured on Commercial General and Automobile Liability insurance policies and certificates of
insurance will be furnished to the OWNER. CONSULTANT agrees to indemnify OWNER for third party personal injury
and property damage claims to the extent caused by CONSULTANT's negligent acts, errors or omissions. However,
neither Party to this Agreement shall be liable to the other Party for any special, incidental, indirect, or consequential
damages (including but not limited to loss of use or opportunity; loss of good will; cost of substitute facilities, goods, or
services; cost of capital; and/or fines or penalties), loss of profits or revenue arising out of, resulting from, or in any way
related to the Project or the Agreement from any cause or causes, including but not limited to any such damages
caused by the negligence, errors or omissions, strict liability or breach of contract.
3. ESTIMATES
Any estimates of project cost, value or savings provided by CONSULTANT are intended to allow a comparative
evaluation between alternatives and do not constitute a detailed evaluation or prediction of actual project costs, value or
savings. Any such estimates are made on the basis of information available to CONSULTANT and on the basis of
CONSULTANT's experience and qualifications, and represents its judgment as an experienced and qualified professional
engineer. However, since CONSULTANT has no control over the impact of various factors that impact the actual project
cost, value or savings, CONSULTANT does not guarantee that the actual project cost, value or savings will not vary from
CONSULTANT’s estimates.
4. CONTROLLING LAW
This Agreement is to be governed by the law of the state where CONSULTANT's services are performed.
5. SUCCESSORS, ASSIGNS AND BENEFICIARIES
OWNER and CONSULTANT, respectively, bind themselves, their partners, successors, assigns, and legal
representatives to the covenants of this Agreement. Neither OWNER nor CONSULTANT will assign, sublet, or transfer
any interest in this Agreement or claims arising therefrom without the written consent of the other. No third party
beneficiaries are intended under this Agreement.
6. SERVICES AND INFORMATION
OWNER will provide all criteria and information pertaining to OWNER's requirements for the project, including design
objectives and constraints, space, capacity and performance requirements, flexibility and expandability, and any
budgetary limitations. OWNER will also provide copies of any OWNER-furnished Standard Details, Standard
Specifications, or Standard Bidding Documents which are to be incorporated into the project.
OWNER will furnish the services of soils/geotechnical engineers or other consultants that include reports and appropriate
professional recommendations when such services are deemed necessary by CONSULTANT. The OWNER agrees to
bear full responsibility for the technical accuracy and content of OWNER-furnished documents and services.
In performing professional engineering, consulting and related services hereunder, it is understood by OWNER that
CONSULTANT is not engaged in rendering any type of legal, insurance or accounting services, opinions or advice.
Further, it is the OWNER’s sole responsibility to obtain the advice of an attorney, insurance counselor or accountant to
protect the OWNER’s legal and financial interests. To that end, the OWNER agrees that OWNER or the OWNER’s
representative will examine all studies, reports, sketches, drawings, specifications, proposals and other documents,
opinions or advice prepared or provided by CONSULTANT, and will obtain the advice of an attorney, insurance counselor
or other consultant as the OWNER deems necessary to protect the OWNER’s interests before OWNER takes action or
forebears to take action based upon or relying upon the services provided by CONSULTANT.
7. RE-USE OF DOCUMENTS
All documents, including all reports, drawings, specifications, computer software or other items prepared or furnished by
CONSULTANT pursuant to this Agreement, are instruments of service with respect to the project. CONSULTANT retains
ownership of all such documents. OWNER may retain copies of the documents for its information and reference in
connection with the project; however, none of the documents are intended or represented to be suitable for reuse by
OWNER or others on extensions of the project or on any other project. Any reuse without written verification or
adaptation by CONSULTANT for the specific purpose intended will be at OWNER's sole risk and without liability or legal
exposure to CONSULTANT, and OWNER will defend, indemnify and hold harmless CONSULTANT from all claims,
damages, losses and expenses, including attorney's fees, arising or resulting therefrom. Any such verification or
adaptation will entitle CONSULTANT to further compensation at rates to be agreed upon by OWNER and
CONSULTANT.
8. TERMINATION OF AGREEMENT
OWNER or CONSULTANT may terminate the Agreement, in whole or in part, by giving seven (7) days written notice to
the other party. Where the method of payment is "lump sum," or cost reimbursement, the final invoice will include all
services and expenses associated with the project up to the effective date of termination. An equitable adjustment shall
also be made to provide for termination settlement costs CONSULTANT incurs as a result of commitments that had
become firm before termination, and for a reasonable profit for services performed.
9. SEVERABILITY
If any provision of this agreement is held invalid or unenforceable, the remaining provisions shall be valid and binding
upon the parties. One or more waivers by either party of any provision, term or condition shall not be construed by the
other party as a waiver of any subsequent breach of the same provision, term or condition.
10. CONTROLLING AGREEMENT
These Terms and Conditions shall take precedence over any inconsistent or contradictory provisions contained in any
proposal, contract, purchase order, requisition, notice-to-proceed, or like document.
11. INVOICES
CONSULTANT will submit monthly invoices for services rendered and OWNER will make payments to CONSULTANT
within thirty (30) days of OWNER's receipt of CONSULTANT's invoice.
CONSULTANT will retain receipts for reimbursable expenses in general accordance with Internal Revenue Service rules
pertaining to the support of expenditures for income tax purposes. Receipts will be available for inspection by OWNER's
auditors upon request.
If OWNER disputes any items in CONSULTANT's invoice for any reason, including the lack of supporting
documentation, OWNER may temporarily delete the disputed item and pay the remaining amount of the invoice.
OWNER will promptly notify CONSULTANT of the dispute and request clarification and/or correction. After any dispute
has been settled, CONSULTANT will include the disputed item on a subsequent, regularly scheduled invoice, or on a
special invoice for the disputed item only.
OWNER recognizes that late payment of invoices results in extra expenses for CONSULTANT. CONSULTANT retains
the right to assess OWNER interest at the rate of one percent (1%) per month, but not to exceed the maximum rate
allowed by law, on invoices which are not paid within thirty (30) days from the date OWNER receives CONSULTANT’s
invoice. In the event undisputed portions of CONSULTANT's invoices are not paid when due, CONSULTANT also
reserves the right, after seven (7) days prior written notice, to suspend the performance of its services under this
Agreement until all past due amounts have been paid in full.
12. CHANGES
The parties agree that no change or modification to this Agreement, or any attachments hereto, shall have any force or
effect unless the change is reduced to writing, dated, and made part of this Agreement. The execution of the change
shall be authorized and signed in the same manner as this Agreement. Adjustments in the period of services and in
compensation shall be in accordance with applicable paragraphs and sections of this Agreement. Any proposed fees by
CONSULTANT are estimates to perform the services required to complete the project as CONSULTANT understands it
to be defined. For those projects involving conceptual or process development services, activities often are not fully
definable in the initial planning. In any event, as the project progresses, the facts developed may dictate a change in the
services to be performed, which may alter the scope. CONSULTANT will inform OWNER of such situations so that
changes in scope and adjustments to the time of performance and compensation can be made as required. If such
change, additional services, or suspension of services results in an increase or decrease in the cost of or time required
for performance of the services, an equitable adjustment shall be made, and the Agreement modified accordingly.
13. EQUAL EMPLOYMENT AND NONDISCRIMINATION
In connection with the services under this Agreement, CONSULTANT agrees to comply with the applicable provisions of
federal and state Equal Employment Opportunity for individuals based on color, religion, sex, or national origin, or
disabled veteran, recently separated veteran, other protected veteran and armed forces service medal veteran status,
disabilities under provisions of executive order 11246, and other employment, statutes and regulations, as stated in Title
41 Part 60 of the Code of Federal Regulations § 60-1.4 (a-f), § 60-300.5 (a-e), § 60-741 (a-e).
14. EXECUTION
This Agreement, including the exhibits and schedules made part hereof, constitute the entire Agreement between
CONSULTANT and OWNER, supersedes and controls over all prior written or oral understandings. This Agreement
may be amended, supplemented or modified only by a written instrument duly executed by the parties.
15. ALLOCATION OF RISK
OWNER AND CONSULTANT HAVE EVALUATED THE RISKS AND REWARDS ASSOCIATED WITH THIS
PROJECT, INCLUDING CONSULTANT’S FEE RELATIVE TO THE RISKS ASSUMED, AND AGREE TO ALLOCATE
CERTAIN OF THE RISKS, SO, TO THE FULLEST EXTENT PERMITTED BY LAW, THE TOTAL AGGREGATE
LIABILITY OF CONSULTANT (AND ITS RELATED CORPORATIONS, SUBCONSULTANTS AND EMPLOYEES) TO
OWNER AND THIRD PARTIES GRANTED RELIANCE IS LIMITED TO THE LESSER OF $1,000,000 OR ITS FEE,
FOR ANY AND ALL INJURIES, DAMAGES, CLAIMS, LOSSES, OR EXPENSES (INCLUDING ATTORNEY AND
EXPERT FEES) ARISING OUT OF CONSULTANT’S SERVICES OR THIS AGREEMENT REGARDLESS OF
CAUSE(S) OR THE THEORY OF LIABILITY, INCLUDING NEGLIGENCE, INDEMNITY, OR OTHER RECOVERY.
16. LITIGATION SUPPORT
In the event CONSULTANT is required to respond to a subpoena, government inquiry or other legal process related to
the services in connection with a legal or dispute resolution proceeding to which CONSULTANT is not a party, OWNER
shall reimburse CONSULTANT for reasonable costs in responding and compensate CONSULTANT at its then standard
rates for reasonable time incurred in gathering information and documents and attending depositions, hearings, and trial.
17. NO THIRD PARTY BENEFICIARIES
This Agreement gives no rights or benefits to anyone other than the OWNER and CONSULTANT and has no third-party
beneficiaries. All work product will be prepared for the sole and exclusive use of the OWNER and is not for the benefit of
any third party and may not be distributed to, disclosed in any form to, used by, or relied upon by, any third party without
the prior written consent of CONSULTANT, which consent may be withheld in its sole discretion. OWNER agrees to
indemnify CONSULTANT and its officers, employees, subcontractors, and affiliated corporations from all claims,
damages, losses, and costs, including but not limited to litigation expenses and attorney's fees arising out of or related to
the unauthorized disclosure, change, or alteration of such work product.
Use of any report or any information contained therein by any party other than OWNER shall be at the sole risk of such
party and shall constitute a release and agreement by such party to defend and indemnify CONSULTANT and its
affiliates, officers, employees and subcontractors from and against any liability for direct, indirect, incidental,
consequential or special loss or damage or other liability of any nature arising from said party’s use of such report or
reliance upon any of its content. To the maximum extent permitted by law, such release from and indemnification
against liability shall apply in contract, tort (including negligence), strict liability, or any other theory of liability.
18. DISCLAIMER
In preparing reports, CONSULTANT relies, in whole or in part, on data and information provided by the OWNER and third
parties, which information has not been independently verified by CONSULTANT and which CONSULTANT has assumed
to be accurate, complete, reliable, and current. Therefore, while CONSULTANT has utilized the customary professional
standard of care in preparing this report, CONSULTANT does not warrant or guarantee the conclusions set forth in reports
which are dependent or based upon data, information or statements supplied by third parties or the OWNER.
19 OPERATIONAL TECHNOLOGY SYSTEMS
OWNER agrees that the effectiveness of operational technology systems (“OT Systems”) and features designed,
recommended or assessed by CONSULTANT are dependent upon OWNER’s continued operation and maintenance of
the OT Systems in accordance with all standards, best practices, laws, and regulations that govern the operation and
maintenance of the OT Systems. OWNER shall be solely responsible for operating and maintaining the OT System in
accordance with applicable industry standards (i.e. ISA, NIST, etc.) and best practices, which generally include but are
not limited to, cyber security policies and procedures, documentation and training requirements, continuous monitoring
of assets for tampering and intrusion, periodic evaluation for asset vulnerabilities, implementation and update of
appropriate technical, physical, and operational standards, and offline testing of all software/firmware patches/updates
prior to placing updates into production. Additionally, OWNER recognizes and agrees that OT Systems are subject to
internal and external breach, compromise, and similar incidents. Security features designed, recommended or
assessed by CONSULTANT are intended to reduce the likelihood that OT Systems will be compromised by such
incidents. However, CONSULTANT does not guarantee that OWNER’s OT Systems are impenetrable and OWNER
agrees to waive any claims against CONSULTANT resulting from any such incidents that relate to or affect OWNER’s
OT Systems.
20. FORCE MAJEURE
CONSULTANT shall not be responsible for delays caused by factors beyond CONSULTANT’s reasonable control,
including but not limited to delays because of strikes, lockouts, work slowdowns or stoppages, government ordered
industry shutdowns, power or server outages, acts of nature, widespread infectious disease outbreaks (including, but
not limited to epidemics and pandemics), failure of any governmental or other regulatory authority to act in a timely
manner, failure of the OWNER to furnish timely information or approve or disapprove of CONSULTANT’s services or
work product, or delays caused by faulty performance by the OWNER’s or by contractors of any level or any other
events or circumstances not within the reasonable control of the party affected, whether similar or dissimilar to any of the
foregoing. When such delays beyond CONSULTANT’s reasonable control occur, the OWNER agrees that
CONSULTANT shall not be responsible for damages, nor shall CONSULTANT be deemed in default of this Agreement,
and the parties will negotiate an equitable adjustment to CONSULTANT’s schedule and/or compensation if impacted by
the force majeure event or condition.