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THIS AGREEMENT is between ______________ (“owner”), whose address for notices is _______________________, and California City Builders, Inc., a California Corporation (“contractor”), whose address for notices is 113 St. Albans Place, Goleta, California 93117 and whose Contractors’ License Number is 861440.
Description of Work. Contractor will furnish all work, labor, tools, equipment, materials, supervision, scheduling, coordination, and contract administration necessary to construct and complete in a good, expeditious, workmanlike, and substantial manner, under the terms of this contract, a single level, single family residence of approximately 1670 square feet (“project”), (more specifically described in the specifications attached to this contract as Exhibit 1), on real property owned by Owner described as follows: [Legal description of property or property address sufficient to identify the building location].
Property lines. Owner will locate and point out the property lines to contractor and will provide boundary stakes through a licensed land surveyor if any doubt about boundaries exists. Right to Approve Financial Arrangements. Before the work begins, owner shall disclose to contractor its arrangements for financing payments required under this contract. Contractor will have no obligation to start work until contractor is satisfied that such financial arrangements are reasonably adequate to assure payment of the contract price.
Personal Liability. If the owner is a business entity or a partnership rather than an individual, all of the officers and director or all of the partners, as the case may be, shall be personally liable, jointly and severally, with the owner for the performance of all obligations under this contract.
Building Department Requirements. The contract price includes full compensation to be paid to contractor for compliance with all requirements of the applicable building codes and all requirements that may be made by the building department, fire marshal, or any other public officer or agency, unless otherwise specified in an exhibit or addendum hereto which exhibits or addendums shall be incorporated herein by reference.
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Payment. Owner will pay contractor the total sum of $148,500.00 in installments as follows: $50,000.00 at permit issuance as a materials draw. $32,000.00 after “roof nail inspection”. $32,000.00 after Mechanical inspection. $32,000.00 upon substantial project completion but prior to issuance of certificate of occupancy. Final payment of the balance of $2,500.00 within 3 days after issuance of certificate of occupancy. Payment shall be due and payable five days after presentment of the bill for each progress payment. No further work will proceed until payment is received. If payments are to be made through a construction lender, owner represents that the construction loan fund is sufficient to pay the contract price and any extra work that may be ordered by owner and owner will do everything possible to expedite payments. The request for payment must be accompanied by supporting data in such form and substance as owner may require to confirm that the claimed portion of the work has been properly performed. Final payment will be made to contractor as scheduled above provided that contactor has furnished mechanics’ lien releases to Owner that comply with Civil Code § 3362 signed by all subcontractors, subsubcontractors, material suppliers, and others that have performed work on or furnished equipment or materials to the job. Notwithstanding the above, owner reserves the right to issue payment by joint check directly to contractor and to any subcontractor or material supplier who claims to remain unpaid for labor or materials provided for and incorporated into the work of improvement.
Start and Completion of Work. Contractor agrees to substantially commence work within ______ days after executing this agreement and shall diligently pursue the work to completion within 180 days, subject to permissible delays as described in § 9, below. Work will begin approximately on the _______ day
mechanics’ liens are recorded or threatened against the project. waives any claim that it may have against the contractor for damages from defects that are known to the owner. 10. contractor may keep the job idle until all payments are received. Substantial commencement of the work shall be deemed to be the date when contractor first supplies workers to the job who actually start construction operations. is not made to the contractor as agreed to under this contract. water service. 14. Contractor’s failure to commence work substantially within 20 days after the approximated date specified is a violation of the Contractors’ State License Law. or of owner’s employees or independent contractors. 11. Contractor shall make no major changes in the work without issuing a written change order. 12. the cost of which aggregates more than 5 percent of the gross contract price. Permits and Fees. and specifications are intended to supplement one another. Any substantial changes in the project desired by the owner are subject to approval by the Contractor. Unless otherwise specifically provided in the drawings or specifications. and owner will pay school. including sewer and storm-drain reimbursement charges. Contractor shall be excused for any delay in completion of the contract caused by acts of God. contractor shall be required to perform the work as though it were called for and displayed in both places. 9. Labor and Material. No such changes shall substantially change the scope of the project. storm-drains. 13.of ________. Interpretation of Documents. without affecting the validity of this contract. deletions. 16. and if owner orders work added or deleted and contractor agrees. Delay Beyond Contractor’s Control. then owner. Drawings. 15. drawings. contractor will obtain and pay for all required building permits. modifications. or discoverable from reasonable inspection at the time final payment is made. and without prior approval of the owner. public bodies. hookup charges. The contract. If contractor fails to pay for work or materials furnished under this paragraph and as a result. contractor shall be entitled to the benefit of the discount. Contractor may. owner may make such payments in good faith on contractor’s behalf. or additions to the project for which there shall be no increase or reduction of the contract price. and contractor shall not be entitled to compensation for any major changes in the project unless the owner agrees and has issued a written change order designating the work to be performed. Right to Stop Work. If corrective or repair work of a minor nature remains undone by contractor after the project is ready for occupancy. apparent. Specifications. revolving fund charges. The project will be constructed according to drawings and specifications that have been examined by owner and contractor and that have been or may be signed (or initialed) by the parties to this contract. contractor shall perform the work expeditiously and owner shall not withhold any payment pending completion of such work. Final Payment Waives Claims. and similar fees and assessments and charges required by public agencies and utilities for financing or repaying the cost of sewers. pending completion of the work may withhold final payment but shall not withhold any greater amount. including any payment for extra work. however. inclement weather. 200__. If such nonpayment occurs. or other contingencies unforeseen by contractor and beyond its reasonable control. and this contract shall control both. acts of public utilities. The owner. acts of the owner. or inspectors (but not related to possible defects in contractor’s performance). owner’s failure to make progress payments promptly. the specifications shall control the drawings. If major items of corrective or repair work remain undone after the building is ready for occupancy. changes requested by owner. or if the work is called for in the specifications but not displayed on the drawings. Contractor may stop work if any payment. Contractor shall pay all valid charges for labor and material furnished to contractor or its subcontractors and used in the construction of the project. labor trouble. If owner settles or purchases such claims at a discount. and contractor shall on demand reimburse owner for the amount actually paid. perform minor changes. the contract price shall be increased or reduced by a fair and reasonable valuation determined in advance of the change by agreement of the parties. and other utilities. by making final payment under this contract. of owner’s agents. and the like. if the parties are . but is excused from this obligation to the extent that owner may be in arrears in making progress payments to contractor. Corrective or Repair Work. In a conflict. Change orders. If work is displayed on the drawings but not called for in the specifications. transportation.
or workmanship for a period of ____________ after completion of the project. and malicious-mischief coverage. Contractor’s and Subcontractors’ Required Insurance. payment shall be made by the owner upon completion of the change. Before work begins under the contract. fill. hired. owner may terminate the contractor’s further performance under this contract and contractor shall be paid the amount computed in accordance with the preceding sentence. (c) Automobile liability insurance including coverage for all owned.g. contractor. If the contract price includes allowances and if the cost of materials.. supplies. at its option.unable to agree on the amount or value of the change ordered by the Owner. the contract price shall be increased or decreased accordingly. of all work performed by contractor before cancellation. Owner’s Required Insurance. and work furnished on the job against defective construction. Allowances include only the cost of materials. groundwater) shall be paid for by owner as extra work. Requests for extra work should be made in writing. If. however. storm. If any such change constitutes extra work. The insurance must be in a sum at least equal to the contract price with loss payable to the owner or the beneficiary under any deed of trust covering the project. 21. owner will procure a broad form of builder’s risk insurance. If the project is destroyed or damaged by fire. without notice to Subcontractor or Contractor. The agency is irrevocable and is an agency coupled with an interest. and. handling. flood. including the following coverages: (a) Workers’ compensation and employer’s liability insurance. but the contractor is entitled to be paid for extra work whether or not the requests are in writing. 19. The insurance will name contractor and subcontractors as additional insureds and shall be written to protect owner. and non-owned vehicles. (b) Commercial general liability insurance covering all operations. material. owner may. All insurance coverages shall be in amounts and for durations acceptable to owner but in no event less than 1 million dollars per occurrence and 1 million in the aggregate. the owner shall pay for any work done by contractor in rebuilding or restoring the project as extra work. 20. in that event. Contractor guarantees all equipment. or by theft or vandalism. then owner hereby appoints contractor as owner’s agent to sign and record a notice of completion on owner’s behalf. Contractor may bar occupancy of the project by owner or anyone else until contractor has received all payments due under this contract and until notice of completion has been recorded. If subcontractor or contractor fails to procure and deliver acceptable insurance policies in accordance with the terms of this contract. at their expense. no change shall be allowed. subcontractors. Owner agrees to sign and record a notice of completion with 7 days after the project is completed and ready for occupancy. landslide. components. except when the supplier or manufacturer of the equipment or material provides a longer . and construction lender as their interests may appear. Guaranty. earth movement. 18. Notice of Completion. or equipment. including a net profit to contractor in the amount of ___ per cent. 17. obtain and maintain insurance on all their operations with carriers acceptable to owner. Contractor and all subcontractors shall. contractor shall be paid the reasonable cost. and installations are included in the contract price and not the allowance. Use of Insurance Proceeds. All costs of delivery. If owner fails to do so for 20 days after receiving notice from contractor. or earthquake. obtain such insurance at the expense of Subcontractor or Contractor. or equipment covered by the allowance is either greater or less than the allowance. including course of construction. fixtures. If such estimated cost exceeds _________ percent. subsidence. 22. rock. Contractor and subcontractors shall name owner as additional insured under their commercial general liability insurance policies. If owner fails to so record the notice of completion. Allowances. and owner may use insurance proceeds for such payments if they are available. contractor may terminate further performance under this contract. contractor may procure such insurance as agent for and at the expense of owner but is not required to do so. the estimated cost of replacing work already accomplished by contractor exceeds 20 percent of the contract price. Expense incurred because of unusual or unanticipated underground conditions (e. Contractor and subcontractors shall provide certificates of insurance and copies of additional insured endorsements to owner before commencement of the work. fixtures. and such insurance shall be primary to owner’s liability insurance policies. vandalism.
Unless otherwise ordered by the arbitrators. The arbitrators so selected shall choose a third arbitrator within 10 business days. requests for admission. surety. their agents or employees. Such indemnity shall extend to claims. a temporary restraining order or a preliminary injunction. Such orders shall be binding on the parties. Arbitration. The arbitrator will award to the prevailing party or parties such sums as are proper to compensate for the time. Judgment may be entered on the award. or liability are caused by contractor. and contractor shall supply owner with all warranty and guaranty documents relative to equipment and materials incorporated in the job and guarantied by their suppliers and manufacturers. 24. Any controversy among the parties to the construction of the project arising from or relating to the performance or interpretation of this contract or any subcontract is subject to arbitration. 23. contractor. Arbitration shall be before a panel of three arbitrators chosen as follows: A party desiring arbitration shall give the other party written notice containing the general description of the dispute and designating the name and address of its arbitrator. interrogatories. contractor expressly agrees to act as co-guarantor of such equipment and materials. The arbitrators may award any remedy that is just and equitable in the arbitrators’ opinion. or subcontractors employed on the project. and on terms and conditions the arbitrators may consider appropriate. or liability arising from\or encountered in connection with this contract or the prosecution of work under it. and other parties involved with the construction of the project are bound. sub-subcontractor. The arbitrators and parties may give notice by mail. including depositions. and trouble of arbitration. persons. by this arbitration clause. Contactor and subcontractors will indemnify and hold owner harmless from all claims. A prearbitration hearing shall be held within ____ days after the arbitrators are selected. the other party shall designate its arbitrator. the arbitrator(s) may decide the controversy in accordance with whatever evidence is presented by the party or parties who do participate. provided that the party has signed this contract or any document that refers to or incorporates this contract by reference. material suppliers. sub-subcontractors. The arbitrator(s) will retain jurisdiction of a controversy even if a party or parties to the dispute will not or cannot be joined in the arbitration proceedings. become a party to. If any party fails to comply with a discovery order authorized by this clause the arbitrators may assume that the evidence that would have been produced by complying with the order would have been unfavorable to the party that failed to comply with the order. contractor’s agents or employees. including arbitration fees and attorney fees. or other method of electronic transmission. or signs any other agreement to be bound by this arbitration clause. each to the other. . The parties authorize the arbitrators to order discovery proceedings. and be bound by such arbitration. a writ of attachment. and things. The arbitrators will not communicate with any party on any issue in controversy except at a hearing or during a conference call with all parties represented after reasonable notice. or products installed on the project by contractor or subcontractors. or a lis pendens notice. or other party bound by this arbitration provision agrees to join in. including email if a valid email address has been provided by the party upon notice is served. If any party refuses or neglects to appear at or participate in arbitration after reasonable notice.guaranty. Indemnity. expense. contractor. however the Rules of Evidence need not be followed. delivery service. the arbitrators’ compensation and the other arbitration expenses shall be divided equally between or among the parties. and orders for the examination of documents. Within 20 business days after receiving that notice. After the provisional remedy has been obtained. whether such claims. Arbitration shall be conducted and the arbitrators shall decide the issues under the laws of the State of California. demands. demands. with the court retaining jurisdiction only to enter and enforce a judgment arising from the arbitration. and all subcontractors. If the other party fails to designate an arbitrator the arbitrator appointed by the party desiring arbitration shall serve as sole arbitrator. On the demand of the arbitrator or any party to an arbitration initiated under the arbitration provisions of this contract. A party to this contract shall not be held to have waived the right to enforce this arbitration clause by filing a lawsuit to obtain or protect a mechanics’ lien. Owner. All parties will promptly make their job documents available to one another for inspection and copying. fax. owner. sureties. and liability for injuries occurring after completion of the project as well as during the work’s progress. a stop notice. Any hearing shall take place in _____________at a time and place selected by the arbitrator(s). court proceedings shall be stayed pending the arbitrators’ award. in the arbitrators’ discretion. excepting only such injury or harm as may be caused solely and exclusively by owners fault or negligence. Contractor shall incorporate this indemnity clause into its subcontracts. demands. and any subcontractor.
waste materials. YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE BUSINESS AND PROFESSIONS CODE OR OTHER APPLICABLE LAWS. and surplus material from owner’s property and will thoroughly clean the project. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION. pertaining to the work to be performed under this contract. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY. UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE "ARBITRATION OF DISPUTES' PROVISION. if in writing. Contractor shall keep the project free from accumulation of debris. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL. No other agreements. and failure to comply with this provision shall be a material breach of this contract. 30. Waiver by any party of performance of any part of this contract shall not constitute waiver of any other part of the contract or to any future performance of the contract including subsequent performance under the part of the contract waived. oral or written. Mail. Any notice required or permitted under this contract shall be deemed given. first class postage prepaid and addressed to the party at the address shown in this contract. that portion shall be stricken from the contract and the remainder of the contract shall remain valid and in full force and effect. Waiver." "WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION. All such waivers shall be in writing signed by the parties to this contract. leaving it in a neat and broom clean conditions. rubbish. Unenforceable Provisions to be Stricken. 29. contractor will remove all debris. If any party to this contract commences an action or arbitration proceeding to interpret or enforce this Contract or any provision of it. exist between the parties. . or payments due under the contract. 32. Unless otherwise expressly stated. and other documents are incorporated into this contract: [list] Costs and Fees." I accept the arbitration provision: ____________(initial) Owner ____________(Initial) Contractor 25. This contract can be modified only by an agreement in writing signed by both parties. although such address may be changed by written notice from one party to the other as necessary. Time of the Essence. 26."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. 33. the party prevailing at trial or arbitration shall be entitled recover his reasonable costs and fees. All time limits stated in this contract are of the essence to this contract. any reference in this contract to days means calendar days. If any portion of this agreement shall be deemed unenforceable or illegal. This contract constitutes the entire agreement of the parties. or rubbish caused by its operations. owner may do so at the contractor’s expense. Cleanup. waste materials. 28. on the earlier of delivery or 5 days after deposit in the U. Assignment.S. If contractor fails to clean up. without the other party’s written consent. On completion of the work. Integration. Notice. The following drawings. 27. Neither party may assign this contract. Other Documents. 31. specifications. including attorneys fees and expert witness fees in addition to any other amounts ordered by the court or arbitrator(s).
CA 95826. Any questions concerning a contractor may be referred to the Registrar. This contract shall be construed in accordance with.Customer By: Its: __________________________________________ California City Builders. P. _________________________________________ Date: Owner . and governed by. A complaint regarding a latent act or omission pertaining to structural defects must be filed within 10 years of the date of the allege violation. Contractors’ State License Board. Governing Law. (Contractor) By: Dave Demeter Its: President . Contractors are required by law to be licensed and regulated by the Contractors’ State License Board. Sacramento. which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent act or omission is filed within four years of the date of the alleged violation. Contractor’s License Notice. the laws of the State of California. PERFORMANCE AND PAYMENT BOND.34. THE OWNER HAS THE RIGHT TO REQUIRE THE CONTRACTOR TO OBTAIN A PERFORMANCE AND PAYMENT BOND AT THE OWNER’S EXPENSE. This paragraph shall not prevent application of the Federal Arbitration Act to any dispute that may arise under this contract. 35.O. Box 26000. Inc. 36.
EXHIBIT 1 (Project Specifications) .
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