| Description
of Build-to-Suit/Turn-Key Process:
1. Objectives of
Build-to-Suit/Turn-Key Process
- To design and build
a high quality dream home that reflects the desires and expectations
of the Buyer in as timely and cost effective manner as possible.
- To establish a collaborative
atmosphere based on common goals, open communications, team effort and
respect.
- To establish a positive,
responsive, constructive and friendly relationship between the Buyer,
Appleby and Appleby's Architect (the “Team”).
- To address the style/design/program
requirements and desires of the Buyer while effectively integrating
the home design into the natural environment of the building site and
taking optimum advantage of the site’s unique view corridor(s)
and topography.
- To focus on effective
architectural and construction front-end planning to minimize expensive
post framing changes and construction schedule delays – this requires
a strong understanding and commitment by the entire “Team”
to the planning process, project time schedules and key decision dates.
- To make the entire
Architectural and Construction process proactive, enjoyable, timely
and cost effective.
2. Definition of
“Build-to Suit/Turn-Key” Project
Appleby
Distinctive Custom Homes
works directly with the Buyer and Appleby’s architect on a collaborative
basis to design and develop plans and specifications for a Home that addresses
the unique requirements of the Buyer while taking advantage of the unique
view corridors and topography of a specific building site. During construction,
Appleby shall maintain complete ownership and control of the Building
Site and complete control over the construction process, construction
means, methods, techniques, schedules, sequences and procedures and selection
and procurement of all subcontractors, construction material, and construction
financing until completion of the Home and payment is received in full
for the Project (meaning the Building Site and Home thereon constructed
by Appleby in substantial accord with plans and specifications developed
to address the requirements and desires of the Buyer and agreed upon in
advance by Appleby and Buyer) is received.
3.
Requirements of Appleby Distinctive Custom Homes
- The
Buyer shall agree to having a home built that at least meets the Minimum
Appleby’s Build-to-Suit/Turn-Key Requirements for a given Building
Site.
- The
Buyer shall agree that all architectural work will be performed by Dan
Craine Architects. No landscaping plan shall be included in the architectural
documentation. All landscaping planning shall be considered under a
separate agreement with Appleby or shall be handled directly by the
Buyer after ownership has been transferred after closing.
- Appleby
shall retain ownership of the land until ownership is transferred to
the Buyer at closing.
- Appleby
shall have total responsibility for the entire construction process
and at Appleby’s
sole discretion shall select all subcontractors, construction material
suppliers, service providers and the provider of construction financing.
- The
home shall be built on a Turn-Key basis. All changes shall be performed
by the Appleby
and controlled through Appleby’s
Change Order System. All work performed on the home shall be performed
by Appleby
until the ownership has been legally transferred to the Buyer at closing.
- The
Buyer shall complete the Design Development Phase of the project within
no more than 12 weeks of executing the Build-to-SuitTurn-Key Agreement.
- Appleby
and Buyer shall work together and use their mutual best efforts to complete
the construction within 12 months of receiving a building permit except
for events outside of ROESCO’s control, such as weather conditions,
agreed upon Buyer change orders, sub-contractor work stoppage, material
shortages, etc.
4. Description
of The PROCESS
This Agreement contains the following
terms, condition and specific the work tasks to be performed by the Buyer
and Appleby.
- Terms and Conditions:
- The Buyer shall
agree to the Minimum Turn-Key Requirements and provide to Appleby
and Appleby’s
bank a written commitment letter from a reputable financial institution
for permanent financing of the home anticipated to be built.
- Based on the
due diligence of the Buyer and Appleby,
both parties shall agree to move forward on a-time-is-of-the essence
basis and in “good faith” under the terms and conditions
of this Agreement.
- Appleby
shall agree to not sell the subject building site to another party
until this Agreement has been fully executed within the allotted
elapse time frames and the Buyer, either decides to move forward
to build a home or not to move forward.
- All terms and
conditions of the Final Build-to-Suit/Turn-Key Agreement shall be
included in the Agreement except 1) the final Turn-Key Base Price
that shall be determined by Appleby
based on the Buyer approved Architectural Design Development drawings
and documents and 2) the estimate construction schedule.
- The Buyer shall
be responsible on a timely basis for paying Appleby
for architectural fees of Craine
Frahm Architects
for all work products forthcoming from the work tasks defined below.
A fee schedule for these costs shall be provided as part of this
Agreement. If the Buyer decides to move forward to build the home,
Appleby
shall include the architectural fees paid by the Buyer as part of
required minimum 20% non-refundable down payment amount.
- Appleby
shall provide the Buyer a Turn-Key Base Price range based on the
work product forthcoming from the Schematic Design Phase work task
of this Agreement. The Buyer shall be provided an option at this
point to terminate the Agreement or move forward to the Design Development
Phase that will provide enough details for the Appleby
to provide an estimated Final Turn-Key Base Price.
- At the completion
of the Design Development Phase, Appleby
shall have up to three weeks to discuss the project with its subcontractors
and suppliers and to present a Turn-Key Base Price and estimated
construction schedule to the Buyer. If the price is acceptable to
the Buyer, the Buyer and Appleby
shall execute an Addendum to this Agreement that sets forth the
Turn-Key Base Price and the estimated construction schedule. If
the Buyer decides to terminate the Agreement and not move forward,
the Buyer shall be responsible for paying for all architectural
fees, structural engineering, civil engineering and surveying fees
incurred through the Design Development Phase. The termination fee
to Appleby
will be limited to ownership of all architectural design documents
and all documents relating to the work products of the structural
engineer, civil engineer and surveyor
- Work Tasks to Be Performed:
- Schematic
Design Stage: - Required Completion Elapse Time – 5 to 6 weeks
- The Buyer
shall work with Craine
Frahm Architects
to develop up to three (3) alternative designs based on their
requirements and desired design program to include architectural
style and interior/exterior space programs.
- The Buyer
and Craine
Frahm Architects
shall meet with Appleby
to review design alternatives and discussed value engineering
considerations and market research consideration for each design.
- Buyer shall
make their decision as to the design program to be pursued. Preliminary
site plan, elevations, floor plans and desired finishes shall
be developed.
- Based on this
information, Appleby
shall provide Buyer an estimate of the price range for completing
the project including the reasons for the range. The Buyer at
this point has the option to terminate the Agreement or move forward
to the Design Development Phase. If the Buyer decides to terminate
the Agreement, the Buyer shall pay Appleby
for all outstanding architectural fees from Craine
Frahm Architects
that were incurred to complete the Schematic Design Phase.
- Design Development Stage: - Required
Completion Elapse Time – 2 1/2 to 3 weeks
- Based on the
Schematic Design documents, Craine
Frahm Architects
shall refine and expand the drawings and documents set to a level
that Appleby
can submit to their key sub-contractors and material suppliers
for cost estimates. This documentation set shall be reviewed and
approved by the Buyer before submission Appleby.
- Appleby
shall submit the documentation set to Appleby’s
structural engineer or their civil engineer for review and input.
- Appleby
shall have their surveyor stake the footprint of the home on the
site for review by the Buyer and Craine
Frahm Architects
.
- The Buyer
and Appleby
shall develop a benchmark interior and exterior finishes schedule
by room that shall serve as the baseline for estimating the Turn-Key
Base Price. As a benchmark, the level of finishes in the Appleby
project at 730 Genesee Mountain Road shall be used. This schedule
will contain macro level information such as the grade and type
of material to be used, not the specific color or name (example:
kitchen counter tops – medium grade slab granite. If the
Buyer decides to change or upgrade the material at a later date,
this shall be handled using the Upgrade/Change Order procedure
set forth in the Agreement.
- Base Price Establishment Stage:
Required Completion Elapse time 2 to 3 Weeks
- Based on this
information, Appleby
shall present the Buyer with a final Turn-Key Base Price for the
project and an estimated project completion schedule.
- The Buyer
shall make their decision to either terminate the contract or
to execute the Addendum to the Turn-Key Agreement authorizing
Appleby
to proceed to build the home.
- If the Buyer
decides to terminate the Agreement, the Buyer shall immediately
pay Appleby
for the unpaid costs of all architectural, engineering and surveying
fees, related to the Schematic Design and Design Development Phases
of the Agreement. As termination compensation to Appleby
for taking it building site off the market and for its time spent
on the project, Appleby
shall have the rights to all documentation created by Craine
Frahm Architects
and the engineers. The Final Base price will be subject to adjustment
for price changes incurred for the purchase of commodity materials
such as steel, concrete, wood framing and finish materials.
- If the Buyer
decides to proceed to build the home, the Buyer shall execute
the Addendum to the Turn-Key Agreement and shall immediately pay
Appleby
the required 20% Non-refundable Down Payment based on the established
Turn-key Base Price. Any payment of architectural fees previously
paid by the Buyer shall be credited against the required 20% Non-refundable
Down Payment.
- Phase 4 –Execution and
Performance of Turn-Key Agreement and Addendum
- Construction Documentation Preparation:
Required Completion Elapse time 3 to 4 Weeks
- Immediately
upon the execution of the Addendum to the Turn-Key Agreement by
the Buyer and Appleby,
Craine
Frahm Architects
and Appleby
shall work together to prepare and finalize the detailed construction
drawings. This set of drawings shall serve as the main contractual
document that will govern what is to be built.
- Buyer and Appleby
shall meet with the Builders’ kitchen designer to layout kitchen
design and pick out cabinetry for the entire home.
- The Buyer and
Appleby
shall sign each page of the construction drawing set upon completion.
- All upgrades
and changes to the signed construction drawings must be approved
by signing an Upgrade/Change Order. All costs relating to upgrades
and changes shall be paid for in advance by the Buyer.
- Building Permit and Construction
Loan Approval: Required Completion Elapse time 2 to 3 Weeks
- The approved
construction drawings set shall then be used to secure a building
permit and construction loan.
- Construction
shall commence
upon the receipt of the building permit and construction loan.
- Construction Process: Completion
Elapse time 10 to 12 Months
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