Part 1 – Contract Clauses !!!!(SEE ATTACHMENTS FOR PART 1)!!!!
1. For the City of RPV, City of Bellevue, and Excerpts from a Typical Construction Contract:
Determine the standard of care (SOC) required by each contract. Identify the section of the contract that defines the SOC. Is this standard of care heightened as compared to the ordinary professional standard of care? Explain your response.
2. Identify the section(s) of the Bellevue Youth Center Expansion Professional Services Agreement that deal with the following contract terms and conditions and prepare an explanation on your understanding if this clause as written would be acceptable or unacceptable and why:
- Scope Changes
- Contract Termination
- Legal Action
Part 2 – In-Class Exercise Preparation
Read the scenario below and then study the contract.
You are the CEO for Inland Architects. You firm is well established in Southern California and has a reputation as providing high quality work. Your rates reflect this high quality; they’re above the average rate in the area but they’re not exorbitant.
This is your first significant opportunity to work for a major telecom company. You would really like to close this deal. You believe that this contract could be a stepping stone to other lucrative telecom work. You’ve heard Big Corp is a tough negotiator and seldom gives much on their end of negotiations. You’re willing to accept more risk than you normally would to get this opportunity, but you’ll walk if Big Corp comes in and says “Take it or leave it,” you’ll leave it. You’re not going to sign a bad contract just to get the work.
You’ve decided to focus on your top 3 to 4 concerns. If you can get some movement from Big Corp on these concerns, you can make this contract work. Bottom-line: you don’t have to have it all your way, but you won’t mortgage the farm for this contract.
Read the contract and identify the 3 to 4 areas in which you most want changes from Big Corp. For each area decide what changes would make the contract acceptable to you. Come with written notes, or you won’t be effective in the negotiations.
1. What clauses in the contracts deal with standard of care? Is the required standard of care stated in the contract greater than the ordinary professional standard of care? Which statements from the contract support your view?
2. If you were representing Inland Architects, would you sign this contract as written? If not what paragraphs would you object to?
3. For each paragraph you identified in (2), explain how much you would give up at the Big Corp representative in order to reach an agreement with Inland Architects.