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April 3, 2017 6 Proposal No.: SWP-17-058 A retainer fee of $10,000.00 will be required to initiate services for this project. The retainer will be applied to the total fee upon completion of the scope of services provided. These fees will be sufficient to provide a report typically requested by reviewing agencies. However, if reviewing agencies request additional review, reporting, or information beyond the normal review process and reporting requirements detailed herein including changes in CBC Code requirements, additional fees may be required. Additionally, our fee does not include testing or observation during construction. If required, services in addition to the scope of work described above will be billed on a time-and-expense basis per the fee schedule in effect at that time. Our proposal is based on the understanding that our services, as outlined in this proposal, are not subject to Prevailing Wage Law for non-professional field staff (i.e. drillers and helpers). SCHEDULE Based on the requested information, we feel confident that we can provide the geotechnical engineering report as outlined in this proposal in an expeditious manner. Typically, once authorization to enter the property and a signed contract is received, we can mark respective exploration locations in the field. Subsequent to field marking, we will contact Underground Service Alert which requires 48 hours notification prior to any underground excavation or drilling. Depending on subcontractor availability, we anticipate excavating our field borings and CPTs within approximately two weeks after the minimum 48 hour wait required by Underground Service Alert. Exploration operations will take approximately one week to complete. Laboratory testing is anticipated to take two weeks after exploration is completed. This time frame is governed by the type of testing performed as certain tests anticipated for this project require at least one week to run. Normal time frames from receipt of authorization to report submittal is typically approximately six weeks. If requested, we can provide design data in the interim period before the report is finalized. TERMS FOR SERVICE The following terms and conditions shall be incorporated into the agreement for services between Earth Systems (Consultant) and client. 1. INVESTIGATION, MONITORING, AND INSPECTION: If the services include monitoring or inspection of soil, construction, and/or materials, Client shall authorize and pay for Consultant to provide sufficient observation and professional inspection to permit Consultant to form opinions, according to accepted statistical sampling methods, as to whether the work has been performed in accordance with recommendations. Such opinions, while statistically valid, do not guaranty uniformity of conditions or materials. Similarly, soils and geology investigations do not guaranty uniformity of subsurface conditions. Client hereby represents and warrants that it has provided and shall provide to Consultant all information and sufficient advance notice necessary in order for Consultant to perform the appropriate level of services. No statement or action of Consultant can relieve Client's contractors of their obligation to perform their work properly. Consultant has no authority to supervise or stop the work of others. EARTH SYSTEMS SOUTHWEST