Home Improvement Contract

Renovation Home Improvement Contract

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

THIS RENOVATION 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:

Work description

The work to be performed includes the following:

The work to be performed does not include the following:

Preparatory work:

Items to be salvaged:

Waste disposal/hauling/hazardous waste handling:

Structural details:

Finishing details:

MATERIALS

3. WORK SITE: The Project shall be constructed on the property of Owner located at and more particularly described as (“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, the cost thereof shall be included as part of the Project price.

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, workers compensation and builder's risk insurance.

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

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 prior to the commencement of any work covered by the new change order.

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: 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.

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

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

14. 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.

15. 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.

16. 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.

17. 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.

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 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 recovery of compensation for work performed based upon 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. 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.

Contractor carries commercial general liability insurance written by

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.

Notice of Cancellation

Date last party signed the Contract

Name of Seller (Contractor or Salesman)

Address of Seller’s Place of Business

Date

Owner’s Signature

Print Owner’s Name

EXHIBIT D

7 DAY RIGHT TO CANCEL

This page is only applicable if this Contract is for the repair or restoration of residential premises damaged by a declared emergency.

Notice of Cancellation

Date last party signed the Contract

Name of Seller (Contractor or Salesman)

Address of Seller’s Place of Business

Date

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: