Drywall Contract

DRYWALL HOME IMPROVEMENT CONTRACT

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

THIS DRYWALL 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.

Brand Name of Drywall:

Material:

Areas to Receive:

Hung With:

Drywall Nails

Surface and Joint Treatment will be taped and coat(s) of drywall compound applied, sanded and readied for painting or other wall coverings.

Special Wall Treatment

Ceiling Treatment

Labor and necessary materials to spray ceilings with textured spray; labor and necessary materials to apply to ceilings.

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

and more particularly described as

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 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.

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:

(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.

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.

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

13. 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.

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.

16. WARRANTY:

Contractor agrees to repair any defects in workmanship to walls and ceilings such as nail pops, blisters and hairline cracks in excess of " for a period of .

Contractor agrees to make such repairs at the following times: prior to final payment, days after move-in, and days after the move-in date.

Owner agrees to provide Contractor with a list of the defects and their exact location at each of the above-stated time periods; and Owner agrees Contractor shall have a week time period in which to complete repairs.

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 year(s) from the date hereof.

All said defects arising after year(s) and defects in material are not warranted by Contractor.

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 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 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.

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.

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

Right to Cancel

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... Initial the checkbox if the Contractor has given you a “Notice of the Seven-Day Right to Cancel.”

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 (“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 at to check 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.

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.

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.

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

at

not later than midnight of

I hereby cancel this transaction.

Owner’s Signature

Print Owner’s Name

EXHIBIT C (continued)

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.

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

at

not later than midnight of

I hereby cancel this transaction.

Owner’s Signature

Print Owner’s Name

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.

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

at

not later than midnight of

I hereby cancel this transaction.

Owner’s Signature

Print Owner’s Name

EXHIBIT D (continued)

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.

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

at

not later than midnight of

I hereby cancel this transaction.

Owner’s Signature

Print Owner’s Name

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:

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.