Insulation Home Improvement Contract

INSULATION HOME IMPROVEMENT CONTRACT

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

THIS INSULATION 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.

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: $

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 to its condition prior to such destruction or damage.

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.

(c) Contractor agrees to remove all debris and leave the premises in broom clean condition.

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 one (1) year from the date hereof.

Contractor warrants for a period of year(s), that the installed wall insulation R-Value is , and the installed ceiling insulation R-Value is .

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:

This Contract was negotiated at the Contractor’s place of business. Consequently, the law does not provide a right to cancel.

This Contract was not negotiated at the Contractor’s place of business. Initial if Contractor has given you a “Notice of the Three-Day Right to Cancel.”

This Contract is for repair/restoration after a declared emergency. Initial if 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 . 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.

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

This page is only applicable if this Contract was not negotiated at the Contractor’s place of business.

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 to:

Name of Seller (Contractor or Salesman):

Address of Seller’s Place of Business:

Not later than midnight of:

I hereby cancel this transaction.

EXHIBIT D - 7 DAY RIGHT TO CANCEL

This page is only applicable if the Contract is for repair or restoration after a declared emergency.

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 to:

Name of Seller (Contractor or Salesman):

Address of Seller’s Place of Business:

Not later than midnight of:

I hereby cancel this transaction.

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?

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?

Are you required to pay a down payment?

Is there a schedule of payments?

Did your contractor give you a “Notice to Owner,” a warning notice describing liens and ways to prevent them?

Did you know changes or additions to your contract must be in writing?