Common use of Design Activities Clause in Contracts

Design Activities. 5.1 Project Manager shall exercise any and all rights and responsibilities of Owner, as authorized agent of Owner, under the Architect’s Contract, except (a) as otherwise directed in writing by Development Manager from time to time and (b) except any exercise which would result in (i) a modification (including any change order) or termination of the Architect’s Contract; (ii) any modification (including any change order) of the Drawings and Specifications that will, in the aggregate, increase or decrease the cost of construction or development of the Project by more than the Change Cap other than any change (each, a “Mandated Change”) (A) reasonably necessary for compliance with laws (including, without limitation, any such change which is reasonably necessary for the issuance of any permits or certificate of occupancy), (B) required to address a previously unknown condition (e.g., the environmental or physical condition of the Site) or (C) required by the Construction Lender; or (iii) any other matter which could have a material adverse affect on the Project and/or the Owner. Notwithstanding the foregoing, Project Manager shall obtain Development Manager’s consent prior to initiating any Mandated Change costing in the aggregate in excess of the Change Cap that would not otherwise be covered by the Development Budget, after taking into account cost savings and amounts available for contingency, or which would result in the foreseeable future of the Construction Loan falling “out of balance” as result of such expenditure. 5.2 Project Manager shall supervise Architect and other consultants with respect to the preparation of the Drawings and Specifications, as well as with respect to any and all proposed change orders, revisions, amendments or addenda thereto. 5.3 Project Manager shall review any and all requests for changes in the Drawings and Specifications and, with respect to changes requiring Owner’s approval pursuant to Section 5.1, make recommendations to Development Manager with regard to any such requested changes.

Design Activities. 5.1 Project Development Manager shall exercise any and all rights and responsibilities of Owner, as authorized agent of Owner, under the Architect’s 's Contract, except (a) as otherwise directed in writing by Development Manager Owner from time to time and (b) except any exercise which would result in (i) a modification (including any change order) or termination of the Architect’s 's Contract; (ii) any modification (including any change order) of the Drawings and Specifications that will, in the aggregate, increase or decrease the cost of construction or development of the Project by more than the Change Cap other than any change (each, a “"Mandated Change”") (A) reasonably necessary for compliance with laws (including, without limitation, any such change which is reasonably necessary for the issuance of any permits or certificate of occupancy), (B) required to address a previously unknown condition (e.g., the environmental or physical condition of the Site) or (C) required by the Construction Lender; or (iii) any other matter which could have a material adverse affect on the Project and/or the Owner. Notwithstanding the foregoing, Project Development Manager shall obtain Development Manager’s Owner's consent prior to initiating any Mandated Change costing in the aggregate in excess of the Change Cap that would not otherwise be covered by the Development Budget, after taking into account cost savings and amounts available for contingency, or which would result in the foreseeable future of the Construction Loan falling “"out of balance” " as result of such expenditure. 5.2 Project Development Manager shall supervise Architect and other consultants with respect to the preparation of the Drawings and Specifications, as well as with respect to any and all proposed change orders, revisions, amendments or addenda thereto. 5.3 Project Development Manager shall review any and all requests for changes in the Drawings and Specifications and, with respect to changes requiring Owner’s 's approval pursuant to Section 5.1, make recommendations to Development Manager Owner with regard to any such requested changes.