When To Use
Use C197™ when a Single Purpose Entity has been formed under C195, and a non-owner member, such as the architect or contractor, needs an agreement defining their obligations to the SPE.
What It Does
C197 is an agreement between a single-purpose entity (SPE) formed under C195 and its members who do not own the project, called non-owner members. All members of the SPE, other than the project owner, will execute C197.
This agreement sets forth the terms under which the non-owner members will provide services to the SPE to complete the design and construction of the project. The specific services required from the non-owner parties should be listed in the Integrated Scope of Services Matrix, which is included in the C195 Target Cost Amendment and incorporated into the executed C197 agreement.
In exchange for their services, the non-owner members are paid the direct and indirect costs they incur in providing services. Additionally, C197 allows non-owner members to receive profit through incentive and goal-achievement compensation.
