Exhibit 10.2

Standard Form of Agreement
Between
Owner and Design-Builder - Cost
Plus Fee with
an Option for a Guaranteed
Maximum Price
This AGREEMENT is made as of
the 19th day of December in the year of 2006 by and between the
following parties, for services in connection with the Project
identified below:
OWNER:
Liberty Renewable Fuels,
LLC
P. O. Box 335
Owosso, Michigan 48867
(989) 743-1042 Office
(989) 743-1032 FAX
DESIGN-BUILDER:
Wilcox Design-Build, LLC
37987 Interchange Drive
Farmington Hills, Michigan 48335
(248) 478-36990 Office
(248) 478-3986
PROJECT:
Design and build the Owner provided
scope of work; site work, utilities, roads, railways, buildings and
grain facilities as outlined in Attachment “A”
Segregation of Responsibilities and Scope of Work dated
December 19, 2006 in support of the One Hundred Ten Million
(110,000,000) gallons per year denatured alcohol ethanol plant
located in Ithaca, Michigan (said plant, the
“Facility”).
In consideration of the mutual
covenants and obligations contained herein, Owner and
Design-Builder agree as set forth herein.
|
|
|
|
|
DBIA Document No. 530 – Standard Form
of Agreement Between
|
|
Page 1
|
|
Owner and Design-Builder – Cost Plus Fee
with an Option for a Guaranteed Maximum Price
|
|
|
|
© 1998 Design-Build Institute of
America
|
|
|
Article 1
Scope of Work
1.1 Design-Builder shall perform all design and
construction services, and provide all material, equipment, tools
and labor, necessary to complete the Work described and reasonably
inferable from the Contract Documents.
1.2 Owner will provide the following services with
respect to the Project:
1.2.1 Confirm project funding is in
place and accessible. The Owner will provide Design-Builder with a
status report summarizing Owner’s financing plan, including
(1) the results of its equity offering and its position and
(2) identification of its debt financing plan in place and/or
any available lines of credit.
1.2.2 Acquire the necessary property
required to construct the Facility that is environmentally
acceptable and clear of any encumbrances that will restrict the
design, engineering and / or construction process.
1.2.3 Designate a single
representative of Owner for purposes of receiving communications
and making decisions on behalf of Owner.
1.2.4 Provide all other services
needed for the engineering, design, start-up and/or operation of
the Facility not furnished by the Design-Builder.
1.3 Design-Builder will provide the following site
investigation, planning, permitting, design, engineering and
construction related services:
|
1.3.1
|
Site
investigations services:
|
1. Boundary and topographic
surveying
2. Legal descriptions and parcel
splits
3. Hydro geological
studies
4. Geotechnical
investigations
A lump sum fee of $155,000 has been
established to complete the Scope of Work for the site
investigation requirements including the soil boring necessary for
(i) the work to be performed by ICM, Inc., a Kansas
corporation (“ICM”); and (ii) construction of the
grain facilities included within the Facility (the “Grain
Facilities”). If additional site investigation services are
required beyond the original Scope of Work, Design-Builder’s
standard rates will apply.
1.3.2 Planning and Permitting:
1. Lead the process of negotiating
the written agreement for coordination, engineering, design and
construction of the Owner provided Scope of Work for the
Facility.
2. Assist the Owner in the
permitting and grant application process including taking the lead
role in obtaining the permits for the engineering, design and
construction of the Scope of Work for the Facility as outlined in
Attachment “D”—Permit Schedule.
3. Attend project planning
meetings.
4. Attend and support the
preliminary site planning and re-zoning process meetings
1.3.3 Design and Construction Documents:
1. Coordinate, engineer and design
the Scope of Work as outlined in that certain Cost Estimate summary
Attachment “B” dated December 19, 2006.
2. Complete construction and bid
documents for site work, civil, roads, utilities, railway, siding,
basic offsite civil work, and administration and maintenance
buildings.
|
|
|
|
|
Page 2
|
|
DBIA Document No. 530 –
Standard Form of Agreement Between
|
|
|
|
Owner and Design-Builder –
Cost Plus Fee with an Option for a Guaranteed Maximum
Price
|
|
|
|
© 1998 Design-Build Institute
of America
|
3. The DDG building design scope is
based on a pre-engineered building, the Design-Builder will take
the preliminary engineering and design development information
provided by others and develop construction documents.
4. The maintenance building design
scope is based on a pre-engineered building, the Design-Builder
will take the preliminary engineering and design development
information provided by others and develop construction
documents.
5. The Grain Facilities design scope
is based on a pre-engineered building, the Design-Builder will take
the preliminary engineering and design development information
provided by others and develop construction documents.
6. Design Review Meetings - The
Design-Builder will conduct two formal design review meetings with
the Owner per month from November 2006 through March 21, 2007.
It is understood that the Owner and the Design-Builder will work
together to make the design and design review process as efficient
and effective as possible. The meeting schedule is not intended as
a hard and fast line item, but as a directional definition as to
the degree of reasonableness. The design review process will be
considered complete once the bid packages have been issued. For
additional meetings that may be required the Wilcox standard
billing rates will apply.
1.3.4 Construction services and staking services will
include providing engineering and survey staff to provide baseline
construction staking and layout for scope of work as outlined in
the Scope of Work. The survey crew will check and confirm line and
grade of critical contractor installations for the Scope of Work.
The engineering team will provide construction observation /
inspection services as required to support the quality assurance
program including materials and density testing for the Scope of
Work. The engineering staff will provide solutions to construction
related issues as they may arise, and will coordinate the project
record documents for the Scope of Work.
1.4 Design-Builder provided scope of services for
construction management services:
1.4.1 General services:
1. Design-Builder’s
representative will communicate with the Owner on a regular basis,
through meetings, design reviews and progress meetings.
2. Design-Builder will provide the
Owner with a monthly status report outlining the progress of the
work, including updates on safety, quality, schedule, cost and
other general open issues.
3. The Design-Builder has included
as part of this proposal one formal project review meeting per
month from December 2006 through May 8, 2008. It is understood
that the Owner and the Design-Builder will work together to make
the monthly project review meetings as efficient and effective as
possible. The meeting schedule is not intended as a hard and fast
line item, but as a directional definition as to the degree of
reasonableness. For additional meetings that may be required the
Wilcox standard billing rates will apply.
1.4.2 Bid process:
1. Review and provide input as to
the completeness and constructability of the bid documents,
pre-qualify sub-contractors, issue documents for bid, receive and
review bids on behalf of the Owner.
2. Complete a review and analysis of
the bid submittals. Make award recommendations to the Owner based
on the overall best interest of the project (safety, quality,
schedule and cost).
|
|
|
|
|
DBIA Document No. 530 – Standard Form
of Agreement Between
|
|
Page 3
|
|
Owner and Design-Builder – Cost Plus Fee
with an Option for a Guaranteed Maximum Price
|
|
|
|
© 1998 Design-Build Institute of
America
|
|
|
1. Design-Builder will provide
through itself or Subcontractors the necessary supervision, labor,
inspection, testing, temporary facilities to permit the
Design-Builder to complete the Project consistent with the Contract
Documents.
2. Coordinate the subcontractors and
implement a site safety program for the Scope of Work.
3. Work with subcontractors on a
daily basis to resolve constructability and coordination
issues.
4. Conduct weekly project
coordination meetings with subcontractors and issue necessary
meeting minutes. The Design-Builder will notify the Owner as to the
date, time and location of the regular meetings. The Owner may
elect to a send representative attend the weekly progress review
meetings.
5. Conduct weekly safety meetings
and safety tool box talks.
6. Oversee the installation of the
work to assure conformance with project specifications.
7. Manage the shop drawing and
material submittal process.
8. Manage, coordinate and
administrate all subcontractors performing any portion of the Scope
of Work to be performed by Design-Builder in accordance with this
Agreement.
9. Manage the schedule, budget,
quality assurance program and the safety program for the Scope
directly under the control of the Design-Builder.
1.4.4 Office support services including:
1. Coordinate the subcontractor
documentation process including insurance requirements, contracts,
bonds, schedule of values.
2. Manage the project accounting
requirements, including supplier payables, monthly payment
application, subcontractor payment distribution and waiver of lien
process.
1.4.5 Exclusions. The following items are specifically
excluded from the services to be provided by the
Design-Builder:
1. Travel outside the state of
Michigan; provided , however , representatives of
Design-Builder shall attend two strategy/planning meetings at
ICM’s offices in Colwich, Kansas.
2. The process design, engineering,
coordination and construction services to be provided by
ICM;
3. Land cost;
4. Any non-design and/or
non-construction related activity.
5. Environmental remediation, other
environmentally related tasks, including Phase I and Phase II
services;
6. Off site equipment and amenities
(example: fire equipment);
7. Plant operations;
8. Corn and chemical
inventory;
9. Research;
|
|
|
|
|
Page 4
|
|
DBIA Document No. 530 –
Standard Form of Agreement Between
|
|
|
|
Owner and Design-Builder –
Cost Plus Fee with an Option for a Guaranteed Maximum
Price
|
|
|
|
© 1998 Design-Build Institute
of America
|
10. IT solutions and computer
systems;
11. Maintenance and spare
parts;
12. Financing and grants, other than
the preparation of the grant