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HVAC HOME IMPROVEMENT CONTRACT
Notice of Cancellation may be sent to the contractor at the address noted on the contract.
THIS HVAC 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, mat erials to be
used, and the equipment to be used or installed.
Type of Heat:
Heating Brand Name, Model, Size :
Heating Brand Name, Model, Size:
Heat Pump/Air Conditioner Brand Name, Model, Size:
Evaporator Coil, Brand Name, Model, Size:
Thermostat, Brand, Type:
Supply Ductwork Material:
There will be dampers installed in the supply duc twork to control air flow.
Insulated supply :
Return Air Ductwork Material:
Insulated returns:
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Basement-Zone 1 First Floor-Zone 2 Second Floor- Zone 3 Third Floor- Zone 3
Supplies
Hi-Lo Returns
Furnace Vents
Water Heater
Vents
Dryer Vent
Clothes Chute
Kitchen Vent
Bath Fan Vent
Safety Drain Pans
L/F Valley
Flashing
Chimney Flashing
A/C-Heat Pump
Furnace
Thermostat
Air Cleaner Brand Name, & Model:
Humidifier Brand Name, & Model:
A/C Pad:
Wiring:
Registers Brand Name, Style, & Number:
Grilles Brand Name, Style, & Number:
Fireplace Firebox Manu./Size:
Flue Material/Size:
Hearth Material/Size: Glass Doors:
Mantel:
Baseboard Heat Brand Name, Model & Numbers:
Gas Line:
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 t he judgment of the
Contractor to complete the Project. Unless called for in the drawings or specifications, no
landscaping, finish grading, filling or excavation is to be performed at the Work Site by the
Contractor.
4. COMMENCEMENT AND COMPLETION OF WORK TO BE PERFORMED:
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(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 d ue to circumstances
beyond its control including strikes, casualty, acts of God, or general unavailability of m aterials.
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 shal l be included as part of
the Project price.
6. INSURANCE: Contractor shall maintain general liability, workers compensation and builde r's
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 t he 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 t itle to the
Work Site and shall provide Contractor copies of any covenants, conditions, or re strictions 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 pri or to the
commencement of any work covered by the new change order. The order must des cribe 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:
.
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(b) DOWN PAYMENT:
Amount:
The down payment may not exceed $1,000 or 10 percent of the contract pric e, 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
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, al ong 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 separat ely 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 t his Contract. If payment is not made
when due, Contractor may suspend work on the job until such time as all payment s due have been
made without breach of the Contract pending payment or resolution of any dis pute. Owner agrees
to pay a late charge of 1% of all payments that are more than ten (10) day s 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 negli gence of the Contractor or
its subcontractors, Owner shall pay Contractor for any additional work done by Contra ctor in
rebuilding or restoring the Project to its condition prior to such destruction or damage. If the
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estimated cost of replacing work already accomplished by Contractor e
xceeds 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 Contra ct,
without the other part y’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,
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 f or 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 Contr act exists
between the parties. This Contract may only be modified only by a writ ten 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 pre vailing 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 comple tion 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 w ork shall be performed by
individuals duly licensed and authorized by law to perform said work.
(c) Contractor agrees to remove all debris and leave the premises in broom clean condit ion.
16. WARRANTY : Contractor warrants the heating and cooling design performance: at degrees
outside temperature, the heating system will maintain deg rees Fahrenheit in the center of
each heated room at a height of 5 feet 6 inches above the floor, and degrees outside
temperature the cooling system will maintain degrees Fahrenheit in the center of each
cooled room at a height of 5 feet 6 inches above the floor. Contractor agree s to repair or replace
any defective or improperly operating equipment, fixtures, materials, va lves, leaking or clogged
refrigerant lines, leaking gutters and downspouts for a period of year(s); and repair or
replace defective equipment (whose warranty period extends beyond ) during the full term
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of the manufacturer's warranty, according the manufacturer’s terms. Contractor ag
rees to repair or
replace leaking valley or flu flashing, separated or detached duct work, a nd to eliminate unusual
booming sound, not including typical mildly noisy ductwork, caused by stiffening or flexing of the
ductwork for a period of year(s). Owner agrees to inspect all fixtures and equipment within
days after installation. If such inspection finds chipped, cracked or otherwise defective and
malfunctioning fixtures, equipment, ductwork, lines or other installed items, then Contractor shall
repair or replace same. Contractor shall not be responsible after this period. Contractor shall not be
responsible for Owners’/Builders' negligence. 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, s igned by both you and the
Contractor, before any work may be started.
(b) A notice concerning commercial general liability insurance is attached to thi s Contract.
(c) A notice concerning workers’ compensation insura nce 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 cove red by the
new change order.
ii. Extra work or a change order is not enforceable against a buyer unless the c hange 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 t he 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 mec hanics' lien is a
claim, like a mortgage or home equity loan, made against your property a nd 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 aff ect your credit. To
preserve their right to record a lien, each subcontractor and material suppli er 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 h as 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 ma terial. 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 contrac tor or from laborers
who work on your project. The law assumes that you already know they are improv ing your
property. PROTECT YOURSELF FROM LIENS. You can protect yourself from li ens by
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getting a list from your contractor of all the subcontractors and mate
rial suppliers that work on
your project. Find out from your contractor when these subcontractors started work a nd when
these suppliers delivered goods or materials. Then wait 20 days, payi ng attention to the
Preliminary Notices you receive. PAY WITH JOINT CHECKS. One way to prote ct 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, writ e 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 CS LB 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 report ed to CSLB.
Use only licensed contractors. If you file a complaint against a licensed contra ctor within the
legal deadline (usually four years), CSLB has authority to investigate the comp laint. 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
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. Consequentl y, 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 d amaged by any
sudden or catastrophic event for which a state of emergency has been decl ared by the
President of the United States or the Governor, or for which a local emergenc y has been
declared by the executive officer or governing body of any city, count y, 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 Contrac tor 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 securit y.
Capitalized terms in this Exhibit shall have the same meanings that are assi gned 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 assi gned to those terms i n 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 thi s 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, an d
any negotiable instrument executed by you will be returned within 10 days followi ng receipt by the
seller of your cancellation notice, and any security interest arising out of the tran saction will be
canceled.
If you cancel, you must make available to the seller at your residence, in substanti ally 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 shipm ent 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 retur n the
goods to the seller and fail to do so, then you remain liable for performance of all obligati ons 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 th is 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, an d
any negotiable instrument executed by you will be returned within 10 days followin g receipt by the
seller of your cancellation notice, and any security interest arising out of the tran saction will be
canceled.
If you cancel, you must make available to the seller at your residence, in substanti ally as good
condition as when received, any goods delivered to you under this contract or sal e, or you may, if
you wish, comply with the instructions of the seller regarding the return shipm ent 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 u p 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 retur n the
goods to the seller and fail to do so, then you remain liable for performance of all obligati ons 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 res idential premises
damaged by any sudden or catastrophic event for which a state of emergency has bee n declared by
the President of the United States or the Governor, or for which a local emergen cy 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 h ave 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 d ays from
the above date.
If you cancel, any property traded in, any payments made by you under the contract or sale, an d
any negotiable instrument executed by you will be returned within 10 days followin g receipt by the
seller of your cancellation notice, and any security interest arising out of the tran saction will be
canceled.
If you cancel, you must make available to the seller at your residence, in substanti ally 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 shipm ent 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 retur n the
goods to the seller and fail to do so, then you remain liable for performance of all obligati ons 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
Add ress 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 res idential premises
damaged by any sudden or catastrophic event for which a state of emergency has bee n declared by
the President of the United States or the Governor, or for which a local emerge ncy 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 h ave 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 d ays from
the above date.
If you cancel, any property traded in, any payments made by you under the contract or sale, an d
any negotiable instrument executed by you will be returned within 10 days followin g receipt by the
seller of your cancellation notice, and any security interest arising out of the tran saction will be
canceled.
If you cancel, you must make available to the seller at your residence, in substanti ally 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 ship ment 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 retur n the
goods to the seller and fail to do so, then you remain liable for performance of all obligati ons 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
Add ress 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 assi gned 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 contract or'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 t o be used, and
equipment to be installed?
This description should include brand names, model numbers, quantities and colors. Specific descri ptions
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 y ou 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 o r
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.
Di d you know changes or additions to your contract must be in writing? Putting changes in writing
reduces the possibility of a later dispute.
