California Service Contract

RESIDENTIAL SERVICE AND REPAIR CONTRACT

Not applicable to swimming pools or spas

DATE SIGNED:

Notice of Cancellation may be sent to the contractor at the address noted on the contract.

WORK TO BE PERFORMED AT:

Finance Charge:

Amount of Service Charge:

OK for contractor to take replaced parts

List of Documents to be incorporated into the Contract: EXHIBIT A – Commercial General Liability Insurance, EXHIBIT B – Workers’ Compensation Insurance, EXHIBIT C – 3 day right to cancel, EXHIBIT D – 7 day right to cancel, EXHIBIT E – Sample change order form.

Notice to the Buyer: The law requires that service and repair contracts must meet all of the following requirements: (A) The price must be no more than seven hundred and fifty dollars ($750). (B) You, the buyer, must have initiated contact with the contractor to request the work. (C) The contractor must not sell you goods or services beyond those reasonably necessary to take care of the particular problem that caused you to contact the contractor. (D) No payment is due and the contractor may not accept any payment until the work is completed. (E) You are entitled to a completely filled in and signed copy of this agreement before any work may be started.

The law requires that the contractor give you a notice explaining your right to cancel. Initial the checkbox if the contractor has given you a Notice of Your Right to Cancel.

The law requires that the Contractor give you a notice explaining your right to cancel contracts for the repair or restoration of residential premises damaged by a disaster. Initial the checkbox if the Contractor has given you a “Notice of Your Right to Cancel”.

DESCRIPTION OF THE PROJECT

1. DESCRIPTION OF THE PROJECT AND DESCRIPTION OF THE SIGNIFICANT MATERIALS TO BE USED AND EQUIPMENT TO BE INSTALLED:

(a) Project description:

(b) Significant materials to be used:

a. Materials to be provided by the Contractor:

b. Materials to be provided by the Owner:

(c) Equipment to be installed:

2. WORK SITE: The Project shall be constructed on the property of Owner located at

and more particularly described as

3. PERMITS: Contractor shall apply for and obtain such permits and regulatory approvals as may be required by the local municipal/county government, the cost thereof shall be included as part of the Project price.

4. SOIL CONDITIONS: Contractor shall have no responsibility for the condition of the soils at the Work Site.

5. INSURANCE: Contractor shall maintain general liability, workers compensation and builder's risk insurance.

6. SURVEY AND TITLE: If the Project is near the Owner’s property boundary, Owner will point out property lines to the Contractor.

7. EXTRA WORK AND CHANGE ORDERS: Extra work and change orders become part of this Contract once the order is prepared in writing and signed by both parties prior to the commencement of any work covered by the new change order.

PRICING

8. PRICING

(a) CONTRACT PRICE - COST PLUS

Owner agrees to pay Contractor the actual cost to Contractor of materials plus the sum of $ for performing the services set forth in the scope of the work.

OR

(a) CONTRACT PRICE - FIXED FEE

Owner agrees to pay Contractor the sum of $ for performing the services set forth in the scope of the work.

(b) DOWN PAYMENT: Amount:

(c) SCHEDULE OF PROGRESS PAYMENTS:

(d) FINANCE CHARGE (if applicable): Amount: $

9. LATE PAYMENT/DEFAULT: A failure to make payment for a period in excess of ten (10) days from the due date shall be deemed a material breach of this Contract.

10. DESTRUCTION AND DAMAGE: If the Project is destroyed or damaged for any reason...

11. ASSIGNMENT: Neither party may assign this Contract, or payments due under the Contract, without the other party’s written consent.

12. INTERPRETATION:

(a) Interpretation of Documents. The Contract, drawings, and specifications are intended to supplement one another.

(b) Entire Agreement. This Contract constitutes the entire agreement of the parties.

(c) Governing Law. This Contract shall be interpreted and governed in accordance with the laws of the State of California.

13. ATTORNEYS’ FEES AND COSTS: If any party to this Contract brings a cause of action against the other party arising from or relating to this Contract, the prevailing party in such proceeding shall be entitled to recover reasonable attorney fees and court costs.

14. PERFORMANCE:

(a) Contractor may, at its discretion, engage licensed subcontractors to perform work pursuant this Contract provided Contractor shall remain fully responsible for the proper completion of the Project.

(b) All work shall be completed in a workman-like manner and in compliance with all building codes and applicable laws.

(c) Contractor agrees to remove all debris and leave the premises in broom clean condition.

15. WARRANTY: Contractor's warranty shall be limited to defects in workmanship within the scope of work performed by Contractor and which arise and become known within one (1) year from the date hereof.

16. REQUIRED NOTICES:

(a) You are entitled to a completely filled in copy of this Contract, signed by both you and the Contractor, before any work may be started.

(b) A notice concerning commercial general liability insurance is attached to this Contract.

(c) A notice concerning workers’ compensation insurance is attached to this Contract.

(d) Change Orders:

i. The Owner 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.

ii. Extra work or a change order is not enforceable unless the order identifies the scope, the amount, and the effect on progress payments or completion date.

iii. A Contractor’s failure to comply with the requirements for a change order does not preclude recovery under legal or equitable remedies.

(e) 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.

(f) Information about the Contractors' State License Board (CSLB): CSLB is the state consumer protection agency that licenses and regulates construction contractors.

(a) Under certain circumstances the law gives you a right to cancel a contract. Check the appropriate box below describing your right to cancel this Contract:

i. This Contract was negotiated at the Contractor’s place of business. Consequently, the law does not provide a right to cancel.

ii. This Contract was not negotiated at the Contractor’s place of business. Consequently, the law requires that the Contractor give you a notice explaining your right to cancel.

iii. This Contract is for the repair or restoration of residential premises damaged by any sudden or catastrophic event...

AGREED

Contractor’s Business Address

If applicable:

The owner or tenant has the right to require the contractor to have a performance and payment bond.

EXHIBIT A - COMMERCIAL GENERAL LIABILITY INSURANCE

Contractor must check the box that applies

This Contractor does not carry commercial general liability insurance.

This Contractor carries commercial general liability insurance written by .

You may call the Insurance Company at to check Contractor’s insurance coverage.

This Contractor is self-insured.

This Contractor is a limited liability company that carries liability insurance or maintains other security as required by law.

EXHIBIT B - WORKERS’ COMPENSATION INSURANCE

Contractor must check the box that applies

This Contractor has no employees and is exempt from workers’ compensation requirements.

This Contractor carries workers’ compensation insurance for all employees.

EXHIBIT C - 3 DAY RIGHT TO CANCEL

This page is only applicable if this Contract was not negotiated at the Contractor’s place of business.

Notice of Cancellation (copy 1 of 2)

Date last party signed the Contract:

Name of Seller (Contractor or Salesman):

Address of Seller’s Place of Business:

not later than midnight of .

I hereby cancel this transaction.

EXHIBIT D - 7 DAY RIGHT TO CANCEL

This page is only applicable if the Contract is for the repair or restoration of residential premises damaged by a sudden or catastrophic event.

Notice of Cancellation (copy 1 of 2)

Date last party signed the Contract:

Name of Seller (Contractor or Salesman):

Address of Seller’s Place of Business:

not later than midnight of .

I hereby cancel this transaction.

EXHIBIT E - SAMPLE CHANGE ORDER

A. Scope of work encompassed by this change order:

B. Amount to be added or subtracted from the Contract price:

C. Effect this change order will have on progress payments (if applicable):

D. Effect this change order will have on the estimated completion date:

CHECKLIST FOR HOMEOWNERS

Did you contact the Contractors State License Board (CSLB) to check the status of the contractor's license?

Did you get at least 3 local references from the contractors you are considering?

Did you call them?

Building Permits - will the contractor get a permit before the work starts?

Did you read and do you understand your contract?

Does the 3-day right to cancel a contract apply to you?

Does the contract tell you when work will start and end?

Does the contract include a detailed description of the work to be done, the material to be used, and equipment to be installed?

Are you required to pay a down payment?

Is there a schedule of payments?

Did your contractor give you a “Notice to Owner,” a warning notice describing liens and ways to prevent them?

Did you know changes or additions to your contract must be in writing?