Contract review and approval level, NC 578 multi-use path, Sage Point

The Town of Sage Point’s draft agreement for design of the NC 578 multi-use path, compared with the published EJCDC E-500 and checked against the firm’s Contract Approval Matrix. Attachment C lists 5 modifications, but 10 paragraphs are changed, and submitting on these terms needs CEO approval rather than the Principal’s.

RFQ No. 2026-14, Town of Sage Point, North CarolinaDraft agreement vs. EJCDC E-500 (2020)Contract Approval Matrix 2026Prepared Nov 5, 2026

Summary

Attachment C

Attachment C lists 5 modifications; the draft changes 10 paragraphs

Attachment C (p. 2) covers 3.02.D, 4.01, 6.04, 6.08, and Exhibit I. The draft in Attachment D also changes 6.01.A, 6.02.A, 6.05.E, 6.10.A, and 6.10.E, and two of those edits are not marked in the redline.

Contract Approval Matrix

Two unlisted changes move approval from the Principal to the CEO

The listed modifications stop at Level 2: a $3,000,000 liability cap and payment 45 days after approval. The warranty in 6.01.A and the uncapped indemnity in 6.10.A are Level 4 items under Sections 3.2 and 3.3 of the matrix.

North Carolina law

The new duty to defend conflicts with N.C. Gen. Stat. § 22B-1(c)

Paragraph 6.10.A of the draft (p. 16) requires the Engineer to defend the Town. Since S.L. 2019-92, § 22B-1(c) makes void a provision requiring a design professional to defend the owner against claims caused or allegedly caused by professional negligence, so the clause is likely unenforceable as written. Ask the Town to conform the clause by the Nov 16, 2026 question deadline, and count it at full weight in the approval until the Town answers. The statute was read from secondary sources, not the official General Statutes; construction counsel licensed in North Carolina should confirm the reading before the question is sent.

E-500 vs. the Town’s draft, paragraph by paragraph

Select a paragraph to see what the published form provides next to the Town’s draft language, with file, page, and assessment. The approval panel works out which level of the Contract Approval Matrix the submittal needs, with or without the unlisted changes.

Status
Filter
0Paragraphs compared
0Listed in Attachment C
0Changed, not listed
0Supplemented

Approval level under the Contract Approval Matrix

Ashcombe Engineering, PLLC, Contract Approval Matrix 2026, Section 3. The highest level among the criteria governs.

Count
    CriterionThresholdTown draftLevel

    If the Town strikes an unlisted change

    Sources and method

    Sources

    • RFQ_2026-14_NC578_Multi-Use_Path.pdfRequest for Qualifications under G.S. 143-64.31, including Section 6, Contract Terms18 pages
    • Attachment_C_Town_Modifications_to_E-500.pdfTown’s summary of modifications to the published form3 pages
    • Attachment_D_Draft_Agreement_E-500_Redline.pdfDraft agreement with exhibits, redlined against EJCDC E-500 (2020)41 pages
    • Attachment_E_Scope_of_Services.pdfExhibit A scope: survey, design, NCDOT encroachment support, bid phase12 pages
    • Addendum_1_Questions_and_Answers.pdfTown’s answers to questions 1–63 pages
    • Contract_Approval_Matrix_2026.pdfAshcombe Engineering, PLLC, approval thresholds in Section 35 pages
    • Fee_Estimate_NC578.xlsxInternal fee estimate, $465,000 lump sum3 tabs
    • PL_Insurance_Certificate_2026.pdfProfessional liability, $5,000,000 per claim and aggregate1 page
    • EJCDC E-500 (2020)Agreement Between Owner and Engineer for Professional Services, published form with exhibitsArticles 1–8
    • N.C. Gen. Stat. § 22B-1Construction and design professional indemnity agreements, as amended by S.L. 2019-92Statute

    Method

    1. The draft agreement in Attachment D was compared paragraph by paragraph with the published EJCDC E-500 (2020), including Exhibits A, B, G, I, and J.
    2. Each paragraph was classified as unchanged, listed in Attachment C, changed but not listed, or supplemented where the form expects the parties to fill in terms.
    3. Each change was checked for whether the redline marks it, and indemnity and defense language was checked against N.C. Gen. Stat. § 22B-1.
    4. The changes were tested against Section 3 of the Contract Approval Matrix. The highest level among the criteria sets the approval.
    5. Addendum 1 was checked. None of its six answers addresses the unlisted changes.

    Assumptions and limitations

    • Unlisted changes are counted as written for approval, including the duty to defend that § 22B-1(c) makes void. Enforceability is a question for General Counsel; approval at a higher level does not cure it.
    • The firm’s standard Exhibit I entry is the greater of $1,000,000 or the fee. The fee is the firm’s internal estimate; under G.S. 143-64.31 compensation is negotiated after selection.
    • This is a contract review for the submittal decision, not a legal opinion. General Counsel reviews before CEO approval.
    • Only the 24 E-500 paragraphs and exhibit sections that the draft touches or that affect approval are listed.
    • Signing authority was not reviewed beyond the Contract Approval Matrix. General Counsel confirms who signs for the firm, and that the Town’s signatory is authorized to bind the Town, before signature.