California Contract

DRAINAGE HOME IMPROVEMENT CONTRACT

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

THIS DRAINAGE 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. 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:

Contractor shall provide all necessary labor and materials, and perform all drainage services as set forth in the plans and specifications signed by both Owner and Contractor (“Project”) indicated in Section 1 above.

3. WORK SITE: The Project shall be constructed on the property of Owner located at and more particularly described as (hereafter "the Work Site").

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:

5. PERMITS: Contractor shall apply for and obtain such permits and regulatory approvals as may be required by the local municipal/county government.

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

7. INSURANCE: Contractor shall maintain general liability and workers compensation insurance.

8. SURVEY AND TITLE: Owner shall provide Contractor documentation that Owner has title to the Work Site and copies of any covenants, conditions, or restrictions that affect the Work Site.

9. 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.

10. 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: $

(c) SCHEDULE OF PROGRESS PAYMENTS:

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

11. LATE PAYMENT/DEFAULT: 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.

12. DESTRUCTION AND DAMAGE: If the Project is destroyed or damaged, Owner shall pay Contractor for additional work done by Contractor in rebuilding or restoring the Project.

13. ASSIGNMENT: Neither party may assign this Contract without the other party’s written consent.

14. INTERPRETATION:

(a) Interpretation of Documents. The Contract, plans, 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 governed in accordance with the laws of the State of California.

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

16. PERFORMANCE:

(a) Contractor may engage licensed subcontractors to perform work pursuant to this Contract.

(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.

17. WARRANTY: Contractor's warranty shall be limited to defects in workmanship within the scope of work performed by Contractor.

18. 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 written authorization.

ii. Extra work or a change order is not enforceable unless identified in writing prior to commencement.

iii. A Contractor’s failure to comply with requirements for a change order does not preclude recovery of compensation for work performed.

(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.

(g) 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. Initial the checkbox if the Contractor has given you a “Notice of the Three-Day Right to Cancel.”

iii. This Contract is for emergency repair/restoration. Initial the checkbox if the Contractor has given you a “Notice of the Seven-Day Right to Cancel.”

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 . 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 at to check coverage.

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

Notice of Cancellation (copy 1 of 2)

Date last party signed the Contract

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice to

at

not later than midnight of

I hereby cancel this transaction.

Owner’s Signature

Print Owner’s Name

EXHIBIT D – 7 DAY RIGHT TO CANCEL

Notice of Cancellation (copy 1 of 2)

Date last party signed the Contract

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice to

at

not later than midnight of

I hereby cancel this transaction.

Owner’s Signature

Print Owner’s Name

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

Check Out Your Contractor

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?

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.