Agreed with all prior posts to revise a lender's standard language to accurately reflect your responsibility and the compliance of your construction documents to relevant codes and regulations. Two additional suggestions beyond "knowledge, information, and belief":
- Compliance is predicated on the contractor's and owner's performance, too. Add language to the effect that, "the project, if constructed in accordance with the contract documents, will comply . . . "
- Some lenders will stipulate an assignment of the agreement for services, in the event borrower is in default. Make sure there is an assumption of all terms, which includes fee payments for the balance of services. More important, you may need to add language that all past payments that are likely past due are also paid by lender. (This used to be a sticking point, because banks didn't want to pick up money owed by their borrowers, but not as much today.)
Regardless of form of agreement, I usually include in a project meeting, say the start of CD's, that we'll need 2 weeks to review such forms. I use that opportunity to make all of the points in this thread, so that there's no surprises, least of all a "gun to the architect's head."
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Michael Prifti FAIA
Managing Principal
BLT Architects
Philadelphia PA
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