EXCAVATION, BACKFILL, GRADING, AND HAULING HOME IMPROVEMENT
CONTRACT
Notice of Cancellation may be sent to the contractor at the address noted on the contract.
THIS EXCAVATION, BACKFILL, GRADING, AND HAULING CONTRACT
(“Contract”), effective as of the date of the last party to sign below, _____________________ , is between
______________________________ , having an address at ______________________________
("Contractor") and ______________________________ , having an address at
______________________________ ("Owner").
For valuable consideration the parties hereby agree as follows:
1. LIST OF DOCUMENTS TO BE INCORPORATED INTO THIS 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
The above-mentioned Exhibits are hereby incorporated in and made part of this Contract.
2. SCOPE OF WORK: Contractor shall provide all labor and materials, and perform all work
necessary for the completion of the residence, structure, or improvements as described in the
drawings and specifications signed by both Owner and Contractor (“Project”) and more
particularly described as
Such drawings and specifications are hereby made a part of this Contract. Drawings and
specifications shall contain a scale drawing showing the shape, size, and dimensions of the
construction and equipment together with a description of the work to be done, materials to be
used, and the equipment to be used or installed.
(a) Contractor shall maintain continuous responsibility for proper placement of all bench marks,
monuments and reference points and leave the trees, landscaping at the project work site
reasonably undamaged.
(b) Contractor shall ensure access of workmen with concrete trucks to the foundation area by storing
the topsoil and stockpile backfill taken from all excavated areas at .
(c) Excavation shall be to undisturbed soil and all material of every description existing in the
excavation area to the depth of . Maximum allowable excavation grade variance will be
inches over each excavated level (if more than one) to allow for rainfall and normal
water drainage.
(d) Basement excavations will have approximately inches overdig of the dwelling footing
dimensions and establish a degree bank slope to prevent cave-in and allow for
installation of footings, foundation walls, piers, drain tile and gravel.
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(e) Contractor shall remove all unsuitable earth materials, topsoil and vegetation from excavated areas
receiving fill and place fill gravel in sub-grade concrete floor, patio, driveway,
sidewalk, and front stoop areas as indicated on the to ensure no settlement .
(f) Contractor will use only backfill material that is reasonably free from roots, debris, rocks larger
than inches in diameter and; and deposit backfill material in inch layers against
foundation walls in such manner to avoid wall damage and to ensure minimum settlement.
(g) Contractor shall rough grade the dwelling project area to inches below the finished grade
elevation.
(h) Contractor shall use to bring the dwelling project area to finished grade elevation that
ensures proper water drainage away from the dwelling.
(i) If any rocks larger than are discovered during excavation, Contractor shall place such sized
rocks in the .
(j) Contractor shall notify of unusual digging or soil conditions.
(k) Interior areas shall be backfilled as instructed by Owner to reduce settling.
(l) Owner will be responsible for providing hand labor, bracing, guard rails, fencing and other items
necessary for the protection of the workmen and public.
(m) Prior to backfilling and grading Owner shall be responsible for removing all construction debris
from all excavated and fill areas including but not limited to foundation and concrete flat work
forming materials; dewatering, removing old materials, fences and from the site.
3. WORK SITE: The Project shall be constructed on the property of Owner located at
and more
particularly described as (hereafter
"the Work Site"). Owner hereby authorizes Contractor to commence and complete the usual and
customary excavation and grading on the Work Site as may be required in the judgment of the
Contractor to complete the Project.
4. COMMENCEMENT AND COMPLETION OF WORK TO BE PERFORMED:
(a) The following describes how Contractor shall substantially commence work:
(b) APPROXIMATE START DATE:
(c) APPROXIMATE DATE OF SUBSTANTIAL COMPLETION:
Contractor shall not be liable, or in breach of this Contract, for any delay due to circumstances
beyond its control including strikes, casualty, acts of God, or general unavailability of materials.
5. 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.
6. INSURANCE: Contractor shall maintain general liability, workers compensation and builder's
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risk insurance.
7. SURVEY AND TITLE: If the Project is near the Owner’s property boundary, Owner will point
out property lines to the Contractor. If the Owner or Contractor has any doubt about the location
of the property lines, Owner shall provide Contractor with boundary stakes through a licensed
surveyor. In addition, Owner shall provide Contractor documentation that Owner has title to the
Work Site and shall provide Contractor copies of any covenants, conditions, or restrictions that
affect the Work Site.
8. 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. 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 (if applicable) or the completion date.
9. 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. Contractor
shall be paid as follows:
.
OR
{FIXED FEE}
Owner agrees to pay Contractor the sum of $ for performing the services set
forth in the scope of the work. Contractor shall be paid as follows:
.
(b) DOWN PAYMENT:
Amount:
The down payment may not exceed $1,000 or 10 percent of the contract price, whichever is
less.
(c) SCHEDULE OF PROGRESS PAYMENTS:
Payment amount
in dollars and
cents Amount of work or service to be
performed Materials or equipment to be
supplied
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The schedule of progress payments must specifically describe each phase of work, including
the type and amount of work or services scheduled to be supplied in each phase, along with
the amount of each proposed progress payment. IT IS AGAINST THE LAW FOR A
CONTRACTOR TO COLLECT PAYMENT FOR WORK NOT YET COMPLETED, OR
FOR MATERIALS NOT YET DELIVERED. HOWEVER, A CONTRACTOR MAY
REQUIRE A DOWNPAYMENT.
Upon satisfactory payment being made for any portion of the work performed, the contractor,
prior to any further payment being made, shall furnish to the person contracting for the home
improvement or swimming pool work a full and unconditional release from any potential lien
claimant claim or mechanics lien authorized pursuant to Sections 8400 and 8404 of the Civil Code
for that portion of the work for which payment has been made.
(d) FINANCE CHARGE (if applicable):
Amount: $
Law requires the finance charge to be stated in dollars and cents and to be set out separately from
the Contract amount.
10. 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. If payment is not made
when due, Contractor may suspend work on the job until such time as all payments due have been
made without breach of the Contract pending payment or resolution of any dispute. Owner agrees
to pay a late charge of 1% of all payments that are more than ten (10) days late plus interest at the
rate of 1% per month.
11. DESTRUCTION AND DAMAGE : If the Project is destroyed or damaged for any reason,
except where such destruction or damage was caused by the sole negligence of the Contractor or
its subcontractors, Owner shall pay Contractor for any additional work done by Contractor in
rebuilding or restoring the Project to its condition prior to such destruction or damage. If the
estimated cost of replacing work already accomplished by Contractor exceeds 20 percent of the
Contract price, either the Contractor or Owner may terminate this Contract. Upon termination by
either party, Contractor shall be excused from further performance under this Contract and Owner
shall pay Contractor a percentage of the Contract price in proportion to the amount of work
accomplished prior to the destruction or damage.
12. ASSIGNMENT : Neither party may assign this Contract, or payments due under the Contract,
without the other party’s written consent. Any such assignment shall be void and of no effect.
13. INTERPRETATION:
(a) Interpretation of Documents. The Contract, drawings, and specifications are intended to
supplement one another. In the event of a conflict, the specifications shall control the drawings,
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and the Contract shall control both. If work is displayed on the drawings but not called for in the
specifications, or if the work is called for in the specifications but not displayed on the drawings,
Contractor shall be required to perform the work as though it were called for and displayed in both
documents.
(b) Entire Agreement. This Contract constitutes the entire agreement of the parties. No other
agreements, oral or written, pertaining to the work to be performed under this Contract exists
between the parties. This Contract may only be modified only by a written agreement signed by
both parties.
(c) Governing Law. This Contract shall be interpreted and governed in accordance with the
laws of the State of California.
14. 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.
15. 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. To the extent required by law, all work shall be performed by
individuals duly licensed and authorized by law to perform said work.
16 . 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 from the date
hereof. All said defects arising after and defects in material are not warranted by
Contractor. Owner agrees to inspect the work with Contractor within day(s) following
completion of each excavation, backfilling and grading and phase and make a written record of
any defects. Contractor shall not be responsible for Owners’/Builders' negligence. Contractor
agrees to correct immediately, weather permitting, any defects in the excavation, backfilling or
grading work discovered to be due to fault of Contractor. Contractor hereby assigns to Owner all
warranties on materials as provided by the manufacturer of such materials.
17. 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 t his 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
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new change order.
ii. Extra work or a change order is not enforceable against a buyer unless the change order
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 price; and (iii) the effect the order will make
in the progress payments (if applicable) or the completion date.
iii. A Contractor’s failure to comply with the requirements for a change order does not
preclude the Contractor’s recovery of compensation for work performed based upon
legal or equitable remedies designed to prevent unjust enrichment.
(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. 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 '20-day 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. BE CAREFUL. The Preliminary Notice can be
sent up to 20 days after the subcontractor starts work or the supplier provides material. This
can be a big problem if you pay your contractor before you have received the Preliminary
Notices. You will not get Preliminary Notices from your prime contractor or from laborers
who work on your project. The law assumes that you already know they are improving your
property. PROTECT YOURSELF FROM LIENS. You can protect yourself from liens by
getting a list from your contractor of all the subcontractors and material suppliers that work on
your project. Find out from your contractor when these subcontractors started work and when
these suppliers delivered goods or materials. Then wait 20 days, paying attention to the
Preliminary Notices you receive. PAY WITH JOINT CHECKS. One way to protect yourself is
to pay with a joint check. When your contractor tells you it is time to pay for the work of a
subcontractor or supplier who has provided you with a Preliminary Notice, write a joint check
payable to both the contractor and the subcontractor or material supplier. For other ways to
prevent liens, visit CSLB's Web site at www.cslb.ca.gov or call CSLB at 800-321-CSLB
(2752). REMEMBER, IF YOU DO NOTHING, YOU RISK HAVING A LIEN PLACED ON
YOUR HOME. This can mean that you may have to pay twice, or face the forced sale of your
home to pay what you owe."
(f) Information about the Contractors' State License Board (CSLB): CSLB is the state consumer
protection agency that licenses and regulates construction contractors. Contact CSLB for
information about the licensed contractor you are considering, including information about
disclosable complaints, disciplinary actions, and civil judgments that are reported to CSLB.
Use only licensed contractors. If you file a complaint against a licensed contractor within the
legal deadline (usually four years), CSLB has authority to investigate the complaint. If you use
an unlicensed contractor , CSLB may not be able to help you resolve your complaint. Your
only remedy may be in civil court, and you may be liable for damages arising out of any
injuries to the unlicensed contractor or the unlicensed contractor 's employees. For more
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information: visit CSLB's Web site at www.cslb.ca.gov ; call CSLB at 800-321-CSLB (2752);
or write CSLB at P.O. Box 26000, Sacramento, CA 95826.
(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.
Initial the checkbox if the Contractor has given you a “Notice of the Three-Day
Right to Cancel.”
iii. This Contract is for the repair or restoration of residential premises damaged by any
sudden or catastrophic event for which a state of emergency has been declared by the
President of the United States or the Governor, or for which a local emergency has been
declared by the executive officer or governing body of any city, county, or city and
county. Consequently, 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 the Seven-Day Right to Cancel.”
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AGREED:
CONTRACTOR:
Signature
Print Name & Title
Date
Contractor’s License Number
Contractor’s Business Address OWNER:
Signature
Print Name
Date
If applicable:
Salesperson’s Name
Salesperson’s Registration Number
The owner or tenant has the right to require the contractor to have a performance and payment bond.
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EXHIBIT A
COMMERCIAL GENERAL LIABILITY INSURANCE
Contractor must check the box that applies
This Contractor does not carry commercial general liability insurance.
Contractor carries commercial general liability insurance written by
(“Insurance Company”). 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. You may call
(“Insurance Company or Trust Company or Bank”) at
to check Contractor’s insurance coverage to check on the contractor's insurance coverage or security.
Capitalized terms in this Exhibit shall have the same meanings that are assigned to those terms in the
Contract.
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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.
Capitalized terms in this Exhibit shall have the same meanings that are assigned to those terms in the
Contract.
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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. If so, the Owner is to receive two (2) copies. Capitalized terms in this Exhibit shall have
the same meanings that are assigned to those terms in the Contract.
Notice of Cancellation (copy 1 of 2)
Date last party signed the Contract
You may cancel this transaction, without any penalty or obligation, within three business days from
the above date.
If you cancel, any property traded in, any payments made by you under the contract or sale, and
any negotiable instrument executed by you will be returned within 10 days following receipt by the
seller of your cancellation notice, and any security interest arising out of the transaction will be
canceled.
If you cancel, you must make available to the seller at your residence, in substantially as good
condition as when received, any goods delivered to you under this contract or sale, or you may, if
you wish, comply with the instructions of the seller regarding the return shipment of the goods at
the seller's expense and risk.
If you do make the goods available to the seller and the seller does not pick them up within 20 days
of the date of your notice of cancellation, you may retain or dispose of the goods without any
further obligation. If you fail to make the goods available to the seller, or if you agree to return the
goods to the seller and fail to do so, then you remain liable for performance of all obligations under
the contract .
To cancel this transaction, mail or deliver a
signed and dated copy of this cancellation notice,
or any other written notice, or send a telegram
to
Name of Seller (Contractor or Salesman)
at
Address of Seller’s Place of Business
not later than midnight of .
Date I hereby cancel this transaction.
Date
Owner’s Signature
Print Owner’s Name
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EXHIBIT C (continued)
This page is only applicable if this Contract was not negotiated at the Contractor’s place of
business. If so, the Owner is to receive two (2) copies. Capitalized terms in this Exhibit shall have
the same meanings that are assigned to those terms in the Contract.
Notice of Cancellation (copy 2 of 2)
Date last party signed the Contract
You may cancel this transaction, without any penalty or obligation, within three business days from
the above date.
If you cancel, any property traded in, any payments made by you under the contract or sale, and
any negotiable instrument executed by you will be returned within 10 days following receipt by the
seller of your cancellation notice, and any security interest arising out of the transaction will be
canceled.
If you cancel, you must make available to the seller at your residence, in substantially as good
condition as when received, any goods delivered to you under this contract or sale, or you may, if
you wish, comply with the instructions of the seller regarding the return shipment of the goods at
the seller's expense and risk.
If you do make the goods available to the seller and the seller does not pick them up within 20 days
of the date of your notice of cancellation, you may retain or dispose of the goods without any
further obligation. If you fail to make the goods available to the seller, or if you agree to return the
goods to the seller and fail to do so, then you remain liable for performance of all obligations under
the contract .
To cancel this transaction, mail or deliver a
signed and dated copy of this cancellation notice,
or any other written notice, or send a telegram
to
Name of Seller (Contractor or Salesman)
at
Address of Seller’s Place of Business
not later than midnight of .
Date I hereby cancel this transaction.
Date
Owner’s Signature
Print Owner’s Name
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EXHIBIT D
This page is only applicable if the Contract is for the repair or restoration of residential premises
damaged by any sudden or catastrophic event for which a state of emergency has been declared by
the President of the United States or the Governor, or for which a local emergency has been
declared by the executive officer or governing body of any city, county, or city and county. If so, the
Owner must receive two (2) copies. Capitalized terms in this Exhibit shall have the same meanings
that are assigned to those terms in the Contract.
Notice of Cancellation (copy 1 of 2)
Date last party signed the Contract
You may cancel this transaction, without any penalty or obligation, within seven business days from
the above date.
If you cancel, any property traded in, any payments made by you under the contract or sale, and
any negotiable instrument executed by you will be returned within 10 days following receipt by the
seller of your cancellation notice, and any security interest arising out of the transaction will be
canceled.
If you cancel, you must make available to the seller at your residence, in substantially as good
condition as when received, any goods delivered to you under this contract or sale, or you may, if
you wish, comply with the instructions of the seller regarding the return shipment of the goods at
the seller's expense and risk.
If you do make the goods available to the seller and the seller does not pick them up within 20 days
of the date of your notice of cancellation, you may retain or dispose of the goods without any
further obligation. If you fail to make the goods available to the seller, or if you agree to return the
goods to the seller and fail to do so, then you remain liable for performance of all obligations under
the contract .
To cancel this transaction, mail or deliver a
signed and dated copy of this cancellation notice,
or any other written notice, or send a telegram
to
Name of Seller (Contractor or Salesman)
at
Address of Seller’s Place of Business
not later than midnight of .
Date I hereby cancel this transaction.
Date
Owner’s Signature
Print Owner’s Name
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EXHIBIT D (continued)
This page is only applicable if the Contract is for the repair or restoration of residential premises
damaged by any sudden or catastrophic event for which a state of emergency has been declared by
the President of the United States or the Governor, or for which a local emergency has been
declared by the executive officer or governing body of any city, county, or city and county. If so, the
Owner must receive two (2) copies. Capitalized terms in this Exhibit shall have the same meanings
that are assigned to those terms in the Contract.
Notice of Cancellation (copy 2 of 2)
Date last party signed the Contract
You may cancel this transaction, without any penalty or obligation, within seven business days from
the above date.
If you cancel, any property traded in, any payments made by you under the contract or sale, and
any negotiable instrument executed by you will be returned within 10 days following receipt by the
seller of your cancellation notice, and any security interest arising out of the transaction will be
canceled.
If you cancel, you must make available to the seller at your residence, in substantially as good
condition as when received, any goods delivered to you under this contract or sale, or you may, if
you wish, comply with the instructions of the seller regarding the return shipment of the goods at
the seller's expense and risk.
If you do make the goods available to the seller and the seller does not pick them up within 20 days
of the date of your notice of cancellation, you may retain or dispose of the goods without any
further obligation. If you fail to make the goods available to the seller, or if you agree to return the
goods to the seller and fail to do so, then you remain liable for performance of all obligations under
the contract .
To cancel this transaction, mail or deliver a
signed and dated copy of this cancellation notice,
or any other written notice, or send a telegram
to
Name of Seller (Contractor or Salesman)
at
Address of Seller’s Place of Business
not later than midnight of .
Date I hereby cancel this transaction.
Date
Owner’s Signature
Print Owner’s Name
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EXHIBIT E
Capitalized terms in this Exhibit shall have the same meanings that are assigned to those terms in the
Contract.
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:
AGREED:
CONTRACTOR:
Signature
Print Name & Title
Date OWNER:
Signature
Print Name
Date
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Checklist for Homeowners
Check Out Your Contractor
Did you contact the Contractors State License Board (CSLB) to check the status of the contractor's
license?
Contact the CSLB at 1-800-321-CSLB (2752) or visit our web site: www.cslb.ca.gov.
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?
Check Out the Contract
Did you read and do you understand your contract?
Does the 3-day right to cancel a contract apply to you?
Contact the CSLB if you don't know.
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?
This description should include brand names, model numbers, quantities and colors. Specific descriptions
now will prevent disputes later.
Are you required to pay a down payment?
If you are, the down payment should never be more than 10% of the contract price or $1,000, whichever
is less.
Is there a schedule of payments?
If there is a schedule of payments, you should pay only as work is completed and not before. There are
some exceptions - contact the CSLB to find out what they are.
Did your contractor give you a “Notice to Owner,” a warning notice describing liens and ways to
prevent them?
Even if you pay your contractor, a lien can be placed on your home by unpaid laborers, subcontractors or
material suppliers. A lien can result in you paying twice or, in some cases, losing your home in a
foreclosure. Check the “Notice to Owner” for ways to protect yourself.
Did you know changes or additions to your contract must be in writing? Putting changes in writing
reduces the possibility of a later dispute.
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