The Architect total contract fee for the project is: $235,000.

The Basic Services will be performed in four phases as described below.

The services shall be rendered in the following phases:

Schematic Design (SD)

Design Development (DD)

Construction Documents (CD)

Construction Administration (CA)

Payment Milestones for the project:

Initial payment $20,000

Schematic Design (SD) $40,000

Design Development (DD) $55,000

Construction Documents (CD) $75,000

Construction Administration (CA) $45,000

Total Fee $235,000

Up to date the developer paid to the architect for the project $30,000 (for the detailed invoice see attached Appendix A invoice no.1). All invoices in questions 2.1- 2.3 should be shown

as accumulative invoices.

Appendix A invoice no. 1

A.B.C Architects New York, NY Attn: Mr Jones Re: Project 129 East 31st For professional services rendered for the last period for the referenced project.

Initial Payment $20,000 X 100% = $20,000

Schematic Design $40,000 X 25% = $10,000

Total fee $30,000

Paid up to date $0

Total current billing $30,000

2.1 The SD phase was completed now. Prepare an invoice for the balance of SD (invoice number 2).

2.2 Assume that the invoice you prepared (in clause 2.1) was paid. Prepare an additional invoice for the completion of the DD phase and 50% from the CD phase (invoice no.3).

2.3 After completing 50% of the CD phase the developer decided to change the project. Following to this decision the architect will have to start over the CD phase now. Prepare a new invoice for the CD's completion assuming the additional fee for this phase was approved (the previous invoice, in clause 2.2 was paid).