Terms & Conditions
1. Owner’s Responsibilities. The Owner is responsible to supply water, gas, sewer and electrical utilities unless otherwise agreed to in writing. Electricity and water to the site is necessary. Owner agrees to allow and provide Contractor and his equipment access to the property. The Owner is responsible for having sufficient funds to comply with the agreement. The is a cash transaction unless otherwise specified. The Owner is responsible to remove or protect any personal property and Contractor is not responsible for same or for any carpets, drapes, furniture, driveways, lawns, shrubs, etc. The Owner shall point out and warrant the property lines to Contractor, and shall hold Contractor harmless for any disputes or errors in the property line or setback locations.
2. Delays. Contractor agrees to start and diligently pursue work through to completion, but shall not be responsible for delays for any of the following reasons: failure of the issuance of all necessary building permits within a reasonable length of time, funding of loans, disbursement of funds into control or escrow, acts of neglect or omission of Owner or Owner’s employees or Owner’s agent, acts of God, stormy or inclement weather, strikes, lockouts, boycotts or other labor union activities, extra work ordered by Owner, acts of public enemy, riots or civil commotion, inability to secure material through regular recognized channels, imposition of Government priority or allocation of materials, failure of Owner to make payments when due, or delays caused by inspection or changes ordered by the inspectors of authorized Governmental bodies, or for acts of independent Contractors, or other causes beyond Contractor’s reasonable control.
3. Plans and Specifications. If plans and specifications are prepared for job, they shall be attached to and become a part of the Agreement. Contractor will obtain all required building permits, homeowner to reinsurance for costs. Owner will pay assessments and charges required by public bodies and utilities for financing or repaying the cost of sewers, storm drains, water service, other utilities, water hook-up charges and the like.
The contract, plans and specifications are intended to supplement each other. In case of conflict, however, the plans shall control over specifications, and the provisions of contract shall control both.
4. Labor and Materials. Contractor shall pay all valid charges for labor and material incurred by Contractor and used in the construction of the project.
Should Contractor fail to make any payments required under this paragraph, Owner may make such payments on behalf of Contractor, and Contractor shall credit Owner under contract for the for the amount actually paid.
No waiver or release of Mechanic’s Lien given by Contractor shall be binding until all payments due to Contractor when the release was executed have actually been paid by Owner.
5. Subcontracts. The Contractor may subcontract portions of the work to properly licensed and qualified subcontractors.
6. Completion and Occupancy. Owner agrees to sign and record a notice of completion within five days after the project is complete and ready for occupancy. If the project passes final inspection by the public body but Owner fails to record Notice of Completion, then Owner hereby appoints Contractor as Owner’s agent to sign and record a Notice of Completion on behalf of Owner.
This agency is irrevocable and is an agency coupled with an interest. In the event the Owner occupies the project or any part thereof before the Contractor has received all payment due under the contract, such occupancy shall constitute full and unqualified acceptance of all the Contractor’s work by the Owner and the Owner agrees that such occupancy shall be a waiver of any and all claims against the Contractor.
7. Insurance and Deposits. Owner will procure at his own expense and before the commencement of any work hereunder, fire insurance with course of construction, vandalism and malicious mischief clauses attached, such insurance to be a sum at least equal to the contract price with loss, if any, payable to any beneficiary under any deed of trust covering the project, such insurance to name the Contractor and his subcontractors as additional insured, and to protect Owner, Contractor and his subcontractors and construction lender as their interests may appear; should Owner fail to do so, Contractor may procure such insurance as agent for and at the expense of Owner, but is not required to do so.
If the project is destroyed or damaged by disaster, accident or calamity, such as fire, storm, earthquake, flood, landslide, or by theft or vandalism, any work done by the Contractor rebuilding or restoring the project shall be paid by the Owner as extra work. Any such destruction, damage or loss shall not excuse Owner’s obligation to pay for the portion of the project already completed and then subsequently destroyed or damaged.
Contractor shall carry Worker’s Compensation Insurance for the protection of Contractor’s employees during the progress of the work. Contractor will maintain in full force and effect a Worker’s Compensation Insurance policy and a Comprehensive Liability Insurance Policy in amounts not less than required by the specifications, and shall furnish certificates of insurance to owner before commencing work. The failure of owner to demand delivery of certificates hereunder shall be relieve contractor of any obligation under this paragraph.
8. Allowances. If the contract price includes allowances, and the cost of performing the work covered by the allowance is greater or less than the allowance, then the contract price shall be increased or decreased accordingly. Unless otherwise requested by Owner in writing, Contractor shall use his own judgment in accomplishing work covered by an alliance. If Owner requests that work covered by an allowance be accomplished in sic a way that the cost will exceed the allowance, Contractor shall copy with Owner’s request, provided that Owner pays the additional cost as extra work in advance.
9. Taxes and Assessments. Taxes and special assessments of all descriptions will be paid by Owner.
10. Failure to Make Payments, Right to Stop Work. Contractor shall have the right to stop work if any payment shall not be made, when due, to Contractor under the agreement; Contractor may keep the job idle until all payments due are received. Such failure to make payment, when due, is a material breach of the Agreement.
Payments not made when due hereunder shall bear interest at the rate of 11/2% per month (or, if less, the maximum rate permitted by law) from the date such payment was due until the date such payment is actually made. If the above provisions are not satisfied, Contractor shall have the right to terminate the contract, owner shall pay contractor the reasonable value of all other work performed and materials furnished prior to that time.
11. Bankruptcy. If either party files a petition on bankruptcy, makes an assignment for the benefit of creditors, or has an involuntary petition in bankruptcy filed against it which is not dismissed within thirty days after it is filed, the other party has the right to terminate the contract. If the contract is terminated pursuant to this paragraph, then all payments which are due must be paid by Owner and Owner shall pay the reasonable value of all other work performed and materials furnished prior to that time.
12. Clean Up. Contractor will remove from Owner’s property debris and surplus material created by his operation and leave it in a neat and broom clean condition.
13. Limitations. No action of any character arising from or related to the contract, or the performance thereof, shall be commenced by either party against the other more than two years after completion or cessation of work under the contract.
14. Validity and Damages. In case one or more of the provisions of the Agreement or any application thereof shall be invalid, unenforceable or illegal, the validity, enforceability and legality of the remaining provisions and any other applications shall not in any way be impaired thereby. Any damages for which Contractor may be liable to Owner shall not, in any event, exceed the cash price of the contract.
15. Warranty. Labor, materials and paint are covered for 1 year. This is a natural wood product. We make every effort to insure you have a beautiful and long lasting patio cover. As with any natural product, some imperfections are expected and normal. They can include but are not limited to checking, cracking, twisting and sap dripping. These are all normal conditions and will not jeopardize the structural integrity of the product.
16. Asbestos, Lead, Mold, and other Hazardous Materials. Owner hereby represents that Owner has no knowledge of the existence on or in any portion of the premises affected by the Project of any asbestos, lead paint, mold (including all types of microbial matter or microbiological contamination, mildew or fungus), or other hazardous materials.
Testing for the existence of mold and other hazardous materials shall only be performed as expressly stated in writing. Contractor shall not be testing or performing any work whatsoever in an area that is not identified in the Scope of Work.
Unless the contract specifically calls for the removal, disturbance, or transportation of asbestos, polychlorinated biphenyl (PCB), mold, lead paint, or other hazardous substances or materials, the parties acknowledge that such work requires special procedures, precautions, and/or licenses. Therefore, unless the contract specifically calls for same, if Contractor encounters such substances, Contractor shall immediately stop work and allow the Owner to obtain a duly qualified asbestos and/or hazardous material contractor to perform the work or Contractor may perform the work itself at Contractor’s option. Said work will be treated its as an extra under the contract, and the Contract Term setting forth the time for completion of the project may be delayed.
In the event that mold or microbial contamination is removed by Contractor, Owner understands and agrees that due to the unpredictable characteristics of mold and microbial contamination, Contractor shall not be responsible for any recurring incidents of mold or microbial contamination appearing in the same or any adjacent location, subsequent to the completion of the work performed by Contractor. Owner agrees to hold Contractor harmless, and shall indemnify Contractor harmless for any recurrence of mold or microbial contamination. Owner also agrees that Contractor shall not be responsible, and agrees to hold Contractor harmless and indemnify Contractor, for the existence of mold or microbial contamination in any area that Contractor was not contracted to test and/or remediate. Further, Owner is hereby informed, and hereby acknowledges, that most insurers expressly disclaim coverage for any actual or alleged damages arising from mold or microbial contamination.
Contractor makes no representations whatsoever as to coverage for mold contamination, though at Owner’s additional expense, if requested in writing Contractor will inquire as to the availability of additional coverage for such contamination or remediation, and if available, will obtain such coverage if the additional premium is paid for by Owner as an extra.
17. Governing Law. The contract shall be deemed entered into in the County of Ventura, State of California, and shall be governed by the law thereof.
18. Sole and Only Agreement. The written contract constitutes the sole and only agreement between the parties relating to the project, and correctly sets forth the rights, duties and obligations of each to the other as of its date. Any prior agreements, promises, negotiations, or representations not expressly set forth in the contract are of no force and effect.
19. Disclaimer. Contractor expressly disclaims any responsibility to Owner or its successors and assigns for any error or omission contained in the plans or any geological, soils, hazardous substance, environmental, or other reports prepared by third parties for use by Contractor in connection with the project.
20. Attorney Fees. If either party commences litigation or any other proceeding agains the other arising out of the contract or the performance thereof, the court in such litigation proceeding, or in a separate suit, shall award reasonable costs and expenses, including attorney fees, to the prevailing party. In awarding attorney fees, the court will not be bound by any court fee schedule; but shall, if it is in the interest of justice to do so, award the full amount of costs, expenses and attorney fees paid or incurred in good faith.
21. Prohibition of Assignment. Contractor may not assign the contract or payment due under the contract to any other party without with written consent of owner.
22. Standards of Materials and Workmanship. Contractor shall use and install “standard grade” or “builder’s grade” materials on the project unless otherwise stated in the Scope of Work, the plans, and/or specifications provided to Contractor prior to the execution of the Agreement. Unless expressly stated in the Scope of Work, Contractor shall have no liability or responsibility to restore or repair the whole or any part of the premises affected by the work of Contractor to be performed herein or by any subsequently agreed-upon change order, including as an illustration and not as a limitation, any landscaping, sprinkler system, flooring and carpet, wall coverings, paint, tile, or decorator items.
23. Interest: Overdue payments will bear interest at the rate of 11/2% per month (18% per annum).
24. Changes in the Work. Should the Owner; construction lender; or any public body or inspector direct any modification or addition to the work covered by the contract, the contract price shall be adjusted accordingly. For the purpose of the contract, “cost” is defined as the cost of extra subcontracts, labor and materials, plus 10% of “cost” for overhead, plus 10% of the sum of “cost and overhead” for profit.
Expense incurred because of unusual or unanticipated ground conditions (such as fill, hard soil, rock or ground water) shall be paid for solely by owner as extra work, and Contractor recommends that Owner retain a Soils Expert to test for unusual or unanticipated ground conditions.
Unless specifically indicated, the stated price does not include rerouting vents, pipes, ducts or wiring conduits that may be discovered in the removal, or cutting open, of walls, or the removal of pipes, sprinkler lines, water or sewage disposal systems or conduits in areas of excavation, grading, paving or construction, and Contractor shall not be responsible for and damage thereto.
Requests for extra work should be made in writing, but Contractor is entitled to be paid for extra work whether reduced to writing or not. Modification or addition to the work shall be executed only when a Contract Change Order has been signed by both the Owner and the Contractor: The change in the Contract Price caused by such Contract Change Order shall be as agreed to in writing, or if the parties are not in agreement as to the change in Contract Price, the Contractor’s actual cost of all labor, equipment, subcontracts and materials, plus a Contractor’s fee of 20% shall be the change in Contract Price.
The Contract Change Order may also increase the time within which the contract is to be completed.
Contractor shall promptly notify the Owner of (a) subsurface or latent physical conditions at the site differing materially from those indicated in the contract, or (b) unknown physical conditions differing materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the contract. Any expense incurred due to such conditions shall be paid for by the Owner as added work.
Note about Extra Work and Change Orders: Extra work and Change Orders become part of the contract once the order is prepared in writing and signed by the parties prior to the commencement of any work covered by the new change order. The order must describe the scope of the extra work or change, the cost to be added or subtracted from the contract, and the effect the order will have on the schedule of progress payments.
You, the buyer, may not require a contractor to perform extra or change-order work without providing written authorization prior to the commencement of any work covered by the new change order: Extra work or a change order is not enforceable against a buyer unless the change order also identifies all of the following in writing prior to the commencement of any work covered by the new change order:
(i) The scope of work encompassed by the order; (ii) The amount to be added or subtracted from the contract; and (iii) The effect the order will make in the progress payments or the completion date. The contractor’s failure to comply with the requirements of this paragraph does not preclude the recovery of compensation for work performed based upon legal or equitable remedies designed to prevent unjust enrichment.
Three Day Right To Cancel
You, the buyer, have the right to cancel the contract within three business days. You can cancel by e-mailing, mailing, faxing, or delivering a written notice to the Contractor at the Contractor’s place of business by midnight of the third business day after you receive a signed and dated copy of the contract that includes the notice. Include your name, your address, and the date you received the signed copy of the contract and the notice.
If you cancel, the contractor must return to you anything you paid within 10 days of receiving the notice of cancellation. For your part, you must make available to the contractor at your residence, in substantial as good condition as you received them, any goods delivered to you under the contract or sale. Or, you may, if you wish, comply with the contractor’s instructions on how to return the goods at the contractor’s expense and risk. If you do make the goods available to the contractor and the contractor does not pick the up within 20 days of the date of your notice of cancellation, you may keep them without any further obligation. If you fail to make the goods available to the contractor, or if you agree to return the goods to the contractor and fail to do so, then you remain liable for performance of all obligations under the contract.
Mechanic’s Lien Warning
HOME IMPROVEMENT MECHANICS LIEN WARNING. Anyone who helps improve your property, but who is not paid, may record what is called a mechanics lien on your property. A mechanics lien is a claim, like a mortgage or home equity loan, made against your property and recorded with the county recorder.
Even if you pay your contractor in full, unpaid subcontractors, suppliers, and laborers who helped to improve your property may record mechanics liens and sue you in court to foreclose the lien. If a court finds the lien is valid, you could be forced to pay twice or have a court officer sell your home to pay the lien. Liens can also affect your credit.
To preserve their right to record a lien, each subcontractor and material supplier must provide you with a document called a ‘Preliminary Notice”. This notice is not a lien. The purpose of the notice is to let you know that the person who sends you the notice has the right to record a lien on your property if he or she is not paid.
Arbitration of Disputes
ARBITRATION OF DISPUTES: ANY CONTROVERSY OR CLAIM ARISING OUT OF OR RELATED TO THE CONTRACT, OR BREACH THEREOF, SHALL BE SETTLED BY BINDING ARBITRATION IN ACCORDANCE WITH THE CONSTRUCTION INDUSTRY ARBITRATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION, AND JUDGMENT UPON THE AWARD RENDERED BY THE ARBITRATOR(S) MAY BE ENTERED IN ANY COURT HAVING JURISDICTION THEREOF. CLAIMS WITHIN THE MONETARY LIMIT OF THE SMALL CLAIMS COURT SHALL BE LITIGATED IN SUCH COURT AT THE REQUEST OF EITHER PARTY, SO LONG AS BOTH PARTIES LIMIT THEIR RIGHT TO RECOVERY TO THE JURISDICTION OF THE SMALL CLAIMS COURT.
ANY CLAIM FILED IN SMALL CLAIMS COURT SHALL NOT BE DEEMED TO BE A WAIVER OF THE RIGHT TO ARBITRATE, AND IF A COUNTER CLAIM IN EXCESS OF THE JURISDICTION OF THE SMALL CLAIMS COURT IS FILED IN THE MUNICIPAL OR SUPERIOR COURT, THEN THE PARTY FILING IN SMALL CLAIMS COURT MAY DEMAND ARBITRATION PURSUANT TO THIS PARAGRAPH.
NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE “ARBITRATION OF DISPUTES” PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE “ARBITRATION OF DISPUTES’ PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THE PROVISION. YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE BUSINESS AND PROFESSIONS CODE OR OTHER APPLICABLE LAWS.
