Architects and engineers under contract with the St. Louis Public Schools will be held liable for all errors on their part whose resulting damages exceed $2,500 or 5% of the base price of the architect's contract. Moreover, said architects and engineers shall also be held liable for any omissions whose incidental and consequential damages to the Board of Education exceed $2,500 or 5% of the base price of the architect's contract.

This errors and omissions policy will be implemented as follows:

1. The superintendent of schools shall not pay any architect or engineer his percentage fee on any change orders resulting from any error or omission.

2. As each change order is approved, identify whether there are damages involved either for an error or the incidental and consequential damages resulting from an omission. Notify the architect or engineer of the existence of damages that will be subject to claim at the end of the construction project in accordance with the terms of the contract.

3. Establish a lot retention of each architect's fee: three-quarters of the amount (or 7.5% of the architect's total fee) payable upon issuance of the "Certificate of Substantial Completion"; the balance payable upon completion of the "Punchlist.”

4. Whenever the damages from errors and omissions on a project exceed the limits set forth in this policy, the superintendent of schools shall review the entire project and provide the board with a recommendation as to the extent and amount of damages applicable to architect or engineer errors and omissions that exceed the limits of this policy. The superintendent of schools shall make a claim for all damages for errors and omissions as applicable, report to the board as to whether or not the superintendent of schools is satisfied with the results of the demand and recommend further action to be taken by the board.

Policy adopted: July 24, 2001