CONTRACT FOR DESIGN-BUILD SERVICES

This CONTRACT between World Class Acoustical Visual Elements, LLC (INTEGRATOR) and Calvary Church (CLIENT) initiates design-build services to be performed by INTEGRATOR for New Facility AVLA of Calvary Church (OWNER). INTEGRATOR agrees to perform the base design work described within this document for a fee as enumerated below.

The project defined by this CONTRACT shall be divided into two (2) phases, ‘Design Phase’ and ‘Build Phase’.

Services to be provided by INTEGRATOR during DESIGN PHASE

Programming and needs assessment

INTEGRATOR shall conduct a Programming meeting prior to the commencement of any design services. At this meeting, any integral staff from the INTEGRATOR shall meet with representatives of the CLIENT and OWNER as well as representatives from other involved trades. This meeting is critical to ensuring that the final design is specifically tailored to your needs. At this meeting, we will introduce two primary lines of conversation: (a) a discussion of the

venue’s format and requirements, and (b) initiating communications with engineering consultants regarding the integration of our systems with their designs.This meeting may be conducted in-person or via teleconference as needed.

Opinion of probable cost and functional description

Based on information obtained during programming, INTEGRATOR shall prepare an Opinion of Probable Cost for the completion of the system and a brief functional description of the included systems. CLIENT will be required to approve these documents in writing prior to further work being conducted.

Listing of major equipment and Schematic design

INTEGRATOR shall prepare initial concept drawings and preliminary equipment lists. As needed, CLIENT shall be asked to review and approve these concepts. Initial coordination with engineering consultants is conducted at this time.

Infrastructure requirements for architectural and engineering coordination

INTEGRATOR shall prepare a complete drawing set for coordination with the Mechanical, Electrical, Structural, and Architectural disciplines, as required. This shall include information regarding structural loading, electrical requirements, conduit and raceway requirements, noise control specifications, and heat loads placed on the building. CLIENT shall review and approve these documents prior to their release.

Services to be provided by INTEGRATOR during BUILD PHASE

Systems integration documents

INTEGRATOR shall prepare a complete set of system integration documents (shop drawings) for all technical and/or acoustical systems in the design. This shall include sufficient written specifications and detailed drawings for integration of the system. CLIENT will be required to approve these documents in writing prior to further work being conducted.

Equipment supplied

INTEGRATOR shall provide the CLIENT with all equipment required for the design, with the exception of Owner-Furnished Equipment. Equipment listed shall be new equipment unless otherwise stated.

Installation of equipment

INTEGRATOR shall provide equipment installation of all items provided by INTEGRATOR as designed and approved by CLIENT. Equipment installation shall include rigging and suspension of devices and pulling and termination of signal cables (low-voltage). Note that work may be required by other trades outside of the scope of this contract. This may include, but not be limited to, high voltage cabling, high-voltage termination, installation of low-voltage conduits and

raceways, and provision for mounting structures.

Note that INTEGRATOR has provided for labor to be performed on a maximum 10-hour per day basis during normal hours (7 AM to 5 PM local time Monday through Friday). CLIENT shall provide INTEGRATOR with unhindered access to the site during these hours. Overtime, weekend, or night hours are not included in the provision for labor. Should these work hours be necessary, a written change order shall be required to adjust labor costs accordingly.

Consequent increases in labor and installation costs shall be borne by the CLIENT.

CLIENT should note that project schedule and timely delivery of equipment and completion of installation is directly related to the receipt of approvals and any required deposit funds by the CLIENT. Project schedule may be adversely affected should the CLIENT not release such approvals or funds in a timely manner.

Commissioning

INTEGRATOR shall commission the systems following construction. INTEGRATOR shall provide any necessary testing and tuning services and equipment to optimize the installed systems and judge conformance to INTEGRATOR’s specifications.

Disciplines INTEGRATOR shall practice

INTEGRATOR shall incorporate the following design disciplines in this work. INTEGRATOR shall provide no additional services in any discipline other than that defined in Section ‘Services to be provided by INTEGRATOR during DESIGN PHASE’. Other works not defined shall be considered outside of the scope of this contract, and shall be billed according to the terms in Section ‘Work not included in scope or rework of approved works’.

Audio systems design

INTEGRATOR shall develop audio systems as required by the programming information. These systems shall utilize the latest technologies and employ advanced digital signal processing techniques to minimize the required physical equipment and maximize the effectiveness of the design. INTEGRATOR shall be responsible for audio design in the following spaces: Sanctuary, Lobby/Foyer, Kid’s Chapel

Sound reinforcement systems

INTEGRATOR shall employ commercial and proprietary methods for designing and predicting the performance of sound reinforcement systems. INTEGRATOR shall incorporate our knowledge of the acoustical behavior of the room in optimizing loudspeaker performance, etc.

Perimeter audio system

INTEGRATOR shall develop a perimeter audio system for coverage of subsidiary areas of the facility.

Video systems design

INTEGRATOR shall be responsible for video design in the following spaces:

INTEGRATOR shall develop a projection system that allows the client to convey both textual information and present large-screen video. Necessary control and processing technologies will also be specified for the projection system.

Digital signage systems

INTEGRATOR shall develop a digital signage system for integration into the perimeter architecture of your facility.

Video production systems

INTEGRATOR shall develop a video production and control platform that allows the CLIENT to reach expected goals for in-house or broadcast video acquisition and production.

Lighting systems design

INTEGRATOR shall develop lighting systems for the following spaces: Sanctuary, Lobby/Foyer, Kid’s Chapel

Theatrical and platform lighting systems

INTEGRATOR shall design a lighting system capable of supporting general platform illumination and theatrical lighting as required. Any required theatrical and/or broadcast lighting systems will be fully integrated into the control technologies of the space. INTEGRATOR shall optimize these systems to operate with

minimal noise and to be seamlessly integrated into the architectural environment.

Audience chamber house lighting systems

INTEGRATOR shall design and document a lighting system for performance audience illumination to be included in the architectural and engineering documents. Emergency lighting and work lights required for energy code shall be designed and provided by others.

Architectural lighting controls

INTEGRATOR shall design and coordinate a unified dimming and/or control system for the space such that audience lighting and theatrical lighting integrate seamlessly under a common control system.

Acoustical design

Integral to the development of the aural character of each space is a careful consideration of the acoustical environment in and around each room. INTEGRATOR’s designs shall coordinate with the architecture of the space in order to maintain a consistent visual and aural feel in the following spaces:

Sanctuary

Room acoustics design

INTEGRATOR shall develop a finish-material specification that maximizes the utility of the space. INTEGRATOR shall utilize proprietary modeling and simulation techniques to optimize reflection patterns and sound quality.

Exclusions

INTEGRATOR SHALL NOT practice or provide services in the electrical contracting, architectural, electrical engineering, mechanical engineering, structural engineering, or life safety trades. As required by the project, these services shall be provided by CLIENT in a manner consistent with local laws, regulations and codes. INTEGRATOR shall be held harmless for any action or error by any trade or other provider retained by CLIENT.

Warranty

INTEGRATOR shall provide a Warranty of Workmanship to the client on the soundness of installation for a period of one (1) year from date of commissioning of the system(s) and shall cover any failure due to workmanship upon installation of equipment or materials. This Warranty of Workmanship shall not cover damage due to other parties, including accidental damage by the CLIENT, OWNER or others, expendable products, or normal wear on equipment and materials.

Equipment provided under this CONTRACT shall be provided to the owner with an Equipment Warranty equal to the equipment manufacturer’s standard warranty and shall be administered by the equipment manufacturer. The INTEGRATOR will assist the customer in obtaining replacement or service on any installed equipment per still covered under the manufacturer’s warranty for a period of one (1) year from date of commissioning. INTEGRATOR shall not warrant nor provide warranty support for Owner-Furnished Equipment (OFE).

Coordination with architectural and engineering consultants and other parties

INTEGRATOR shall provide appropriate documents for coordination with engineering consultants. INTEGRATOR shall provide floorplan-base drawings for coordination with engineering and architectural trades as required in AutoCAD DWG format. The CLIENT shall be responsible for coordination of INTEGRATOR’s work with other consultants, designers, engineers, architects or trades.

Indemnification

The CLIENT, CLIENT’s representatives, or any other parties hired by CLIENT, OWNER, or other trades shall hold harmless INTEGRATOR from liabilities of any kind for errors due to CLIENT or any party except INTEGRATOR. CLIENT acknowledges that CLIENT is responsible for providing any architectural or engineering services required for the implementation of technical systems designed by INTEGRATOR, and shall hold harmless INTEGRATOR for errors made by these parties during the execution of the project.

Intellectual property

CLIENT acknowledges that designs, drawings and specifications are property of INTEGRATOR. CLIENT shall not distribute INTEGRATOR’s drawings or specifications to any third party except CLIENT’s engineers without prior consent of the INTEGRATOR.

Site visits by INTEGRATOR during DESIGN PHASE

This CONTRACT shall include INTEGRATOR’s hourly fees for travel to and meeting at the OWNER’s site for the following major visits:

Site visits conducted prior to this agreement

One trip for a one-day programming meeting with one consultant (1 man-day)

One trip for one-day design review meetings with one consultant (1 man-day).

Pricing and costs

Payment and terms during DESIGN PHASE

INTEGRATOR agrees to perform the DESIGN PHASE work described within this document for a fixed fee of $24,900.00, not including taxes or reimbursable expenses if required. All hourly rates for services are included in this value, excluding work not covered under this CONTRACT. Work outside the scope of this CONTRACT shall be billed according to the terms in Section ‘Work not included in scope or rework of approved works’. Reimbursable expenses as defined in Section ‘Reimbursable Expenses’ shall be billed on a progress basis.

Invoices shall be submitted on a progress basis to CLIENT and are due upon receipt. INTEGRATOR reserves the right to halt work if payment is not received within thirty (30) days. If conditions exist which may preclude prompt payment of invoices, client shall provide INTEGRATOR with written notice prior to commencing work and shall attached said terms as an addendum to CONTRACT. Additions or modifications to this contract, and provided equipment, materials,

labor, design or training shall be executed using signed change order documents for all changes. CLIENT agrees to pay any expenses incurred in collecting amounts owed to INTEGRATOR under this agreement, including attorney’s fees and expenses. CLIENT shall provide needed documentation defining any exemption from pre-paid taxes should this be applicable. This agreement is governed by laws in the state of North Carolina.

Design-phase fees shall be billed as follows:

Contract Initiated: 25% of design fee

Opinion of probable cost (O.P.C.) and functional specification delivered: 50% of design fee

Listing of major equipment and schematic design concept delivered: 75% of design fee

Infrastructure documents delivered: 100% of design fee

Payment and terms during BUILD PHASE

Both parties agree that the working budget for the project shall be determined during the DESIGN PHASE and shall be approved by both INTEGRATOR and CLIENT.

Any building infrastructure shall be outside of the build phase budget and provided by OWNER, including any architectural or electrical modifications required prior to installation. Any adjustments to the scope by the client shall either (1) be accompanied by a proportional adjustment in other items to maintain the project budget or (2) increase the budget by the corresponding difference in end-user cost for all changes. Changes shall be issued and approved using “Change Order” documents signed by the CLIENT.

Invoices shall be submitted on a progress basis to CLIENT and are due upon receipt. INTEGRATOR shall submit invoice for any planned or upcoming equipment order and associated installation labor costs and submit to CLIENT. Equipment shall be ordered, delivered and installed upon payment. INTEGRATOR reserves the right to halt work if payment is not received within thirty (30) days. If conditions exist which may preclude prompt payment of

invoices, client shall provide INTEGRATOR with written notice prior to commencing work and shall attached said terms as an addendum to CONTRACT. Additions or modifications to this contract, and provided equipment, materials, labor, design or training shall be executed using signed change order documents for all changes. CLIENT agrees to pay any expenses incurred in collecting amounts owed to INTEGRATOR under this agreement, including attorney’s fees and expenses. CLIENT shall provide needed documentation defining any exemption from pre-paid sales taxes should this be applicable. This agreement is governed by laws in the state of North Carolina.

Work not included in scope or rework of approved works

Any design work outside of the scope of the contract is based on a fee of $165 per hour, per engineer. Additionally, any re-work required on approved components of the design (when associated written client approval has been secured) shall be billed at this rate. Rework or changes during the build phase shall be issued via signed change orders.

Reimbursable expenses during DESIGN PHASE

CLIENT agrees to reimburse INTEGRATOR for direct expenses incurred during the DESIGN PHASE of the project. INTEGRATOR shall invoice client for direct expenses on a monthly basis for expenses incurred during that billing period. Direct expenses include, but are not limited to: Travel fare, Transportation fare, Auto rental and associated temporary insurance and fuel costs, Auto mileage on private or corporate vehicles, equal to the “Standard Mileage Rate” set forth by the U.S. Internal Revenue Service at the time of travel, Parking fees, Lodging expenses, Subsistence upon travel, not to exceed $50 per-person per day, Long distance telephone fees, Post and delivery costs, Laboratory testing costs or rental of specialized test equipment, Printing or plotting of drawings and

specifications for release to CLIENT, OWNER, or representatives of either the CLIENT or OWNER. Direct reimbursable expenses shall be billed at the COST OF THE INTEGRATOR with NO ADMINISTRATION CHARGES.