Bringing closure to this thread:
I was able to make some some edits to the document, which the bank has accepted. The most significant was to assign the entire B105 agreement to the Lender, rather than just the "Plans and Specifications" as had been the original wording. This should keep all the provisions and protections of the agreement intact, if the agreement is assigned to the Lender. I also replaced all the dangerous words our insurance companies don't like with old standbys, like "to the best of my knowledge, information and belief" and referenced the 'professional standard of care' in connection to our work. Finally, in the Exhibit where the "Plans and Specifications" were supposed to be listed, I inserted a simple reference to Article I Contract Documents, in the A105 Owner Contractor Agreement.
Thanks everyone for responding, offering advice and sharing your experiences!
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Scott Rappe AIA, LEED AP
Principal
Kuklinski + Rappe Architects
Chicago IL
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Original Message:
Sent: 12-21-2020 03:17 PM
From: Scott Rappe
Subject: Assignment of 'Plans & Specifications' to Lender
A residential client's lender is requiring that we sign a document called "Assignment of Plans and Specifications with Joinder and Consent of Architect". The document appears to be yet another form in that pile of a thousand that gets signed at loan closing.
It has provisions that are odious (pre-emptive forfieture of lien rights), untrue (assert approval by code authorities before permit submission) and impractical (architect will not permit any change orders that increase cost).
I'd be open to assigning the entire B105 owner/architect agreement to the Lender but am leary of just handing over "plans & specs".
Anyone have any experience with this?
Anyone had any luck negotiating the terms of the assigment document to be less odious?
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Scott Rappe AIA, LEED AP
Principal
Kuklinski + Rappe Architects
Chicago IL
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