Construction Agreement (old Norcross)

EXHIBIT 10.16.05


THE AMERICAN INSTITUTE OF ARCHITECTS


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AIA DOCUMENT A117-1987


Abbreviated Form of Agreement Between


Owner and Contractor


for


CONSTRUCTION PROJECTS OF LIMITED SCOPE


where the basis of payment is the


COST OF THE WORK PLUS A FEE


with or without a Guaranteed Maximum Price


1987 EDITION


THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES; CONSULTATION WITH AN ATTORNEY IS ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION.


This document includes abbreviated General Conditions and should not be used with other general conditions. It has been approved and endorsed by The Associated General Contractors of America.


- ------------------------------------------------------------------------------- AGREEMENT


made as of the 15th day of August in the year of Nineteen Hundred and Ninety-Eight.


BETWEEN the Owner: Roberts Properties Residential, L.P. (Name and address) 8010 Roswell Road, Suite 120
Atlanta, Georgia 30350


and the Contractor: Roberts Properties Construction, Inc. (Name and address) 8010 Roswell Road, Suite 120
Atlanta, Georgia 30350


The Project is: Old Norcross Apartments (Name and location) Old Norcross & Herrington Roads
Norcross, Georgia 30044


The Architect is: The Preston Phillips Partnership, Inc. (Name and address) 9000 Central Park West
Suite 100
Atlanta, Georgia 30328


The Owner and Contractor agree as set forth below.


- -------------------------------------------------------------------------------- Copyright 1979, (C)1987 by The American Institute of Architects, 1735 New York Avenue, N.W., Washington, D.C. 20006. Portions of this document are derived from AIA Documents A111, Standard Form of Agreement Between Owner and Contractor where the basis of payment is the Cost of the Work Plus a Fee, copyright (C) 1987 and earlier years, and AIA Document A201, General Conditions of the Contract for Construction, copyright (C)1987 and earlier years. Reproduction of the material herein or substantial quotation of its provisions without written permission of the AIA violates the copyright laws of the United States and will be subject to legal prosecution. - --------------------------------------------------------------------------------


ARTICLE 1


THE WORK OF THIS CONTRACT


1.1 The Contractor shall execute the entire Work described in the Contract Documents, except to the extent specifically indicated in the Contract Documents to be the responsibility of others, or as follows:


All site clearing, grading, utilities, paving, curb and gutters, landscaping, etc. associated with the construction of 249 total one, two, or three bedroom units, swimming pool, maintenance/car wash building and trash compactor. The property consists of approximately 35.325 acres of land located in Land lots 38 and 41 of the 7th District of Gwinnett County, Georgia. Project is to be constructed in accordance with the approved Plans & Specifications to be prepared by The Preston Phillips Partnership, Inc.


Any adverse soil conditions that may be encountered are included in this Cost Plus Contract; any costs associated with those conditions shall be borne by the Owner.


ARTICLE 2


RELATIONSHIP OF THE PARTIES


2.1 The Contractor accepts the relationship of trust and confidence established by this Agreement and covenants with the Owner to cooperate with the Architect and utilize the Contractor's best skill and judgment in furthering the interests of the Owner; to furnish efficient business administration and supervision; to make best efforts to furnish at all times an adequate supply of workers and materials; and to perform the Work in the best way and most expeditious and economical manner consistent with the interests of the Owner. The Owner agrees to exercise best efforts to enable the Contractor to perform the Work in the best way and most expeditious manner by furnishing and approving in a timely way information required by the Contractor and making payments to the Contractor in accordance with the requirements of the Contract Documents.


ARTICLE 3


DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION


3.1 The date of commencement is the date from which the Contract Time of Paragraph 3.2 is measured, and shall be the date of this Agreement, as first written above, unless a different date is stated below or provision is made for the date to be fixed in a notice to proceed issued by the Owner.


The Date of Commencement shall be the first day after both parties have signed the original Agreement or a later date agreed upon by both parties. Contractor must file a Notice of Commencement per Georgia Law. A recorded copy will be maintained in the Contractor's file and on the jobsite.


3.2 The Contractor shall achieve Substantial Completion of the entire Work not later than 14 months after the Date of Commencement, subject to adjustments of this Contract Time as provided in the Contract Documents.


- -------------------------------------------------------------------------------- AIA DOCUMENT A117 o ABBREVIATED COST-PLUS OWNER-CONTRACTOR AGREEMENT o SECOND EDITION o AIA(R) (C)1987 o THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N. W., WASHINGTON, D.C. 20006 - --------------------------------------------------------------------------------


2


ARTICLE 4


CONTRACT SUM


4.1 The Owner shall pay the Contractor in current funds for the Contractor's performance of the Contract the Contract Sum consisting of the Cost of the Work as defined in Article 5 and the Contractor's Fee determined as follows:


The Contractor shall be paid monthly on a cost basis plus the Contractor's fee of 10%, payable on the 10th of each month unless the 10th falls on the weekend, then payment shall be due on the next business day. The Contractor shall submit an invoice to the Owner no later than the 1st of the following month for all expenses incurred in the preceding month. This invoice shall include a detailed listing of all expenses which shall include invoice numbers, dates, supplier or subcontractor identification and amounts due. ...