Xyz Home Improvement Contract

Summary

XYZ HOME IMPROVEMENT CONTRACT
XYZ Construction
Construction “When you need it done right!”
4444 Fifth St., Suite 666
Owner's Name: Owner's Address Lancaster, CA 93535
JOHN Q. CUSTOMER 949 GRANT ST Phone (661) xxx-xxxx
Owner's City Owner's Zip Code Owner's Home Phone Owner's Work Phone Cell (661) xxx-xxxx
BENICIA 94510 707-747-4735 800-820-5656 Ca. Contr. Lic. #000000
Project Address Project City Project Zip Code Project Phone Date
Ho CONCORD
747 BOEING ST, SUITE 757
T h
94556 510-015-1111 8-10-03
Construction Fund Holder Name (If any)
me413 LOOT iSTREET
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Construction Fund Holder Address Construction Fund Holder City, State, Zip
WASHINGTON MUTUAL
Im s F BUCKTOWN, CA 99999
I/WE, the Owner(s) of the premises described above authorize XYZ Construction, hereinafter referred to as “Contractor”, to furnish all materials and labor necessary to improve
pro or
these premises in a good, workmanlike and substantial manner according to the following terms, specifications and provisions:
CA Apply Polyglass v e m to deck. Apply Georgia
Tear off old built-up
a. Description of the work and the materials to be used:
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Pacific dens- deck board to entire roof

LL to O meBitumen
roof down
Modified GCRoofing system as per
manufacturers recommendations

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b. Description of any areas that will NOT be worked on:Metal Roof over front logia

This list of specifications may be continued on subsequent pages (see page number below)

c. Payment: Contractor proposes to perform the above work, (subject to any additions and/or deductions pursuant to authorized change orders), for the
14,000.00
Total Sum of $_______________________ 1000.00
Down Payment (if any) $_____________________
PAYMENT DUE WHEN AMOUNT Payments to be made in installments as follows:
1. After Tearout $ 3000.00 By check upon receipt of invoice for the draws as
2. After Dens-Deck applied. $ 2000.00 described under “Payment Due When” to the left

3. After 50 % of roof completed $ 5000.00
4. At completion of job $ 3000.00
d. Commencement and Completion of Work: Per section 7159 (l) of the Calif. Business and Professions Code. failure, without lawful excuse, of any contractor to
substantially commence work within (20) days after the approximate date specified below when the work will begin is a violation of the Contractors’ License Law. Substantial
commencement shall mean either the physical delivery of materials onto the premises or the performance of any labor

8-21-03
Approximate Start Date:____________________ 9-21-03
Approximate Completion Date:____________________
e. Acceptance: This contract is approved and accepted. I (we) understand there are no oral agreements or understandings between the parties of this agreement. The written
terms, provisions, plans (if any) and specifications in this contract is the entire agreement between the parties. Changes in this agreement shall be done by written change order
only and with the express approval of both parties. Changes may incur additional charges

Additional Provisions Of This Contract Are On The Reverse Side And May Be Continued On Subsequent Pages (see page number below). Read Notice
To Owner on page two (2) before signing. Read “Arbitration of Disputes” provision on page two (2), provision 16 and the NOTICE following this
provision. If you agree to arbitration, initial on the line below the NOTICE where indicated. Also, initial in the same place onEACH COPY of this contract

You, the Buyer, may cancel this transaction at any time prior to midnight of the third
business day (in the case of disaster repairs, seventh business day) after the date of
approved and accepted (owner) date
this transaction. See the attached Notice of Cancellation form for an explanation of
this right. You, the Homeowner (Buyer) or Tenant have the right to require the
approved and accepted (owner)
Contractor to have a performance and payment bond, or funding control approved
by the Registrar of Contractors. The cost of this bond may be paid by the Owner

NOTE: This proposal may be withdrawn after ____
30 days from __________
8-10-03 if
approved (contractor) date not approved and signed by both parties

Form GC3-C Copyright © 1996-2003 ACT Contractors Forms (800) 820-5656 www.calform.com Page one of ____
2 Total Pages
ADDITIONAL PROVISIONS- Unless otherwise specified herein, the following additional provisions are expressly incorporated into this contract:
1. Contract, Plans, Specifications, Permits and Fees. The work described in this contract
shall be done according to the plans and the plan specifications (if any) except in the case of conflict 16. Arbitration of Disputes. Any controversy or claim arising out of or relating to
when the provisions of this contract shall have control over both the plans and the plan this proposal/contract, or the breach thereof, shall be settled by arbitration in accordance with
specifications. All required building permits will be paid for by owner and obtained by Contractor

All other charges, taxes, assessments, fees etc., of any kind whatsoever, required by any government the applicable Construction Industry Arbitration Rules of the American Arbitration
body, telephone or utility company or the like shall be paid for by Owner. Association which are in effect at the time the demand for arbitration is filed. A judgment upon
2. Property Lines. Owner is responsible to locate and inform Contractor of the location of all the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof

property lines. At the discretion and direction of Contractor, Owner may be required to provide at
Owner's expense, a licensed surveyor's map of the property showing the property lines. Any arbitration award shall be subject to correction and/or vacation for the reasons stated in
3. Installation. Contractor has the right to subcontract any part of, or all of, the work herein. the Code of Civil Procedure. The arbitrator shall award reasonable attorneys fees and
4. Change Orders. Should Owner, construction lender, or any government body or inspector
require any modification to the work covered under this contract, any cost incurred by Contractor expenses to the prevailing party. After being given due notice, should any party fail to appear
shall be added to the contract price as extra work and Owner agrees to pay Contractor his normal at or participate in the arbitration proceedings, the arbitrator shall make an award based upon
selling price for such extra work. All extra work as well as any other modifications to the original
contract shall be specified and approved by both parties in a written change order. All change orders
the evidence presented by the party(ies) who do (does) appear and participate

shall become a part of this contract and shall be incorporated herein. Notwithstanding Contractor's right to arbitrate, Contractor does not waive any of its lien rights

5. Owner’s Responsibility: Insurance etc. Owner is responsible for the following: (1) to see
all necessary water, electrical power, access to premises, and toilet facilities are provided on the NOTICE: By initialing in the space below you are agreeing to have any dispute arising out
premises. (2) to provide a storage area on the premises for equipment & materials. (3) to relocate of the matters included in the “arbitration of disputes” provision decided by neutral
and protect any item that prevents Contractor from having free access to the work areas such as but
not limited to TV or radio antennas, vehicles, tools, clothing, furniture, draperies, or garden arbitration as provided by California law and you are giving up any rights you might
equipment. If Owner fails to relocate such items, Contractor may relocate these items as needed but possess to have the dispute litigated in a court or jury trial. By initialing in the space below,
in no way is Contractor responsible for damage to these items during their relocation and during the
performance of the work. (4) to obtain permission from the owner(s) of adjacent property(ies) that you are giving up your judicial rights to discovery and appeal, unless those rights are
Contractor must use to gain access to work areas. Owner agrees to be responsible and to hold specifically, included in the “arbitration of disputes” provision. If you refuse to submit to
Contractor harmless and accept any risks resulting from the use of adjacent property(ies) by
Contractor. (5) to correct any existing defects which are recognized during the course of the work. arbitration after agreeing to this provision, you may be compelled to arbitrate under the
Contractor shall have no liability for correcting existing defects such as, but not limited to, dry rot, authority of the Business and Professions Code or other applicable laws. Your agreement
structural defects, or code violations. (6) to maintain property insurance with Fire, Course of to this arbitration provision is voluntary

Construction, all Physical Loss with Vandalism and Malicious Mischief clauses attached, in a sum
at least equal to the contract price, prior to and during performance of this contract. If the project is
destroyed or damaged by accident, disaster, calamity, theft or vandalism, work or materials supplied We have read and understand the foregoing and agree to submit disputes arising out of the
by Contractor in reconstructing or restoring the project shall be paid for by Owner as extra work

6. Delay. Contractor shall not be held responsible for any damage occasioned by delays resulting
matters included in the “arbitration of disputes” provision to neutral arbitration

from: work done by Owner's subcontractors, extra work, acts of owner or owner's agent including I Agree to Arbitration: _______________ I Agree to Arbitration _________________
failure of owner to make timely progress payments or payments for extra work, shortages of
material and/or labor, bad weather, fire, strike, war, governmental regulations, or any other (Initials of Owner) (Initials of Contractor)
contingencies unforeseen by Contractor or beyond Contractor’s reasonable control. NOTICE TO OWNER
7. Surplus Materials and Salvage. Any surplus materials left over after this contract has been ‘Under the California Mechanics’ Lien Law, any contractor, subcontractor, laborer, supplier, or other
completed are the property of Contractor. No credit is due Owner on returns for any surplus person or entity who helps to improve your property, but is not paid for his or her work or supplies, has
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materials and all salvage resulting from work under this contract is the property of Contractor. a right to place a lien on your home, land, or property where the work was performed and to sue you in
8. Cleanup & Advertising. Upon completion, and after removing all debris and surplus court to obtain payment

materials, wherever possible, Contractor will leave premises in a neat, broom clean condition. This means that after a court hearing, your home, land, and property could be sold by a court officer
Owner hereby grants to Contractor the right to display signs at the job site for the period of time and the proceeds of the sale used to satisfy what you owe. This can happen even if you have paid your
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starting at the date of signing of this contract and continuing uninterrupted until fourteen (14) days contractor in full if the contractor's subcontractor's, laborers, or suppliers remain unpaid

past the date job is completed and payment in full is made. Owner grants Contractor the right to To preserve their right to file a claim or lien against your property, certain claimants such as
pro or
publish the project street address on a “references” list which may be given to prospective customers

9. Unanticipated Conditions & Concealed Damage. Expense incurred because of unusual
subcontractors or material suppliers are each required to provide you with a document called a
“Preliminary Notice.” Contractors and laborers who contract with owners directly do not have to provide
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or unanticipated conditions shall be paid for by owner as extra work (conditions such as, but not
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such notice since you are aware of their existence as an owner. A preliminary notice is not a lien against
limited to, ground conditions that require fill, or unusually hard soil, rocky soil, or the presence of your property. Its purpose is to notify you of persons or entities that may have a right to file a lien against
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ground water). Contractor will inform Owner of any dry rot or other deterioration or unanticipated
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condition which is concealed and is discovered. Contractor is not responsible to repair any such
discovered deterioration or condition and work done by Contractor to remedy such will only be
your property if they are not paid. In order to perfect their lien rights, a contractor, subcontractor,
supplier, or laborer must file a mechanic's lien with the county recorder which then becomes a recorder
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lien against your property. Generally, the maximum time allowed for filing a mechanics’ lien against
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done as extra work in a written change order. your property is 90 days after substantial completion of your project

10. Hazardous Substances. Owner understands that Contractor is not qualified as a Hazardous To insure extra protection for yourself and your property, you may wish to take one or
Material Handler or Inspector or as a Hazardous Material Abatement contractor. Should any more of the following steps:
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hazardous substances as defined by the government be found to be present on the premises, it is the
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Owners’ responsibility to arrange and pay for abatement of these substances

ntr (1) Require that your contractor supply you with a payment and performance bond (not a license bond),
which provides that the bonding company will either complete the project or pay damages up to the amount
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11.Right to Stop Work and to Withhold Payment on Labor and Materials. If any
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payment is not made to Contractor as per this contract, Contractor shall have the right to stop work
of the bond. This payment and performance bond as well as a copy of the construction contract should be
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filed with the county recorder for your future protection. The payment and performance bond will usually
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and keep the job idle until all past due progress payments are received. Contractor is further excused
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by Owner from paying any material, equipment and/or labor suppliers or any subcontractors cost from 1 to 5 percent of the contract amount depending on the contractor's bonding ability. If a contractor
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(hereinafter collectively called “suppliers”), during the period that Owner is in arrears in making cannot obtain such bonding, it may indicate his or her financial incapacity

tor
payments to Contractor for bills received during that same period. If these same “suppliers” make (2) Require that payments be made directly to subcontractors and material suppliers through a joint
20
demand upon Owner for payment, Owner may make such payment on behalf of Contractor and control. Funding services may be available, for a fee in your area which will establish voucher or other
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Contractor shall reimburse Owner for this amount at such time that Owner becomes current with means of payment to your contractor. These services may also provide you with lien waivers and other
-56
Contractor for all past due payments. Owner is responsible to verify the true amounts owed by forms of protection. Any joint control agreement should include the addendum approved by the registrar

Contractor to these same “suppliers”, prior to making payment on behalf of Contractor. Owner shall (3) Issue joint checks for payment, made out to both your contractor and subcontractors or material
56
not be entitled, under any circumstances, to collect as reimbursement from Contractor any amount suppliers involved in the project. The joint checks should be made payable to the persons or entities
greater than that exact amount actually and truly owed by Contractor to these same “suppliers”, for which send preliminary notices to you. Those persons or entities have indicated that they may have lien
work done or materials supplied on Owner's job. rights on your property, therefore you need to protect yourself. This will help to insure that all persons
12.Payment. Payments shall be made per Sec. 7159 (e) and (f) of the California Business and due payment are actually paid

Professions Code. Pursuant to Sec. 7159 (f) of the California Business and Professions Code, upon (4) Upon making payment on any completed phase of the project, and before making any further
satisfactory payment being made for any portion of the work performed, the contractor shall, prior payments, require your contractor to provide you with unconditional “Waiver and Release” forms signed
to any further payment being made, furnish to the person contracting for this home improvement, a by each material supplier, subcontractor, and laborer involved in that portion of the work for which
full and unconditional release from any claim or mechanic's lien pursuant to Section 3114 of the payment was made. The statutory lien releases are set forth in exact language in Section 3262 of the
Civil Code, for that portion of the work for which payment has been made. Civil Code. Most stationary stores will sell the “Waiver and Release” forms if your contractor does not
13.Completion. When applicable, Owner agrees to record a Notice Of Completion within five have them. The material suppliers, subcontractors, and laborers that you obtain releases from are those
days after project completion and after the project passes final building inspection. Should owner persons or entities who have filed preliminary notices with you. If you are not certain of the material
fail to sign and record a Notice Of Completion within this five day period, the owner authorizes suppliers, subcontractors, and laborers working on your project, you may obtain a list from your
Contractor to be Owner's agent to sign and record a Notice Of Completion on the behalf of Owner. contractor. On projects involving improvements to a single-family residence or a duplex owned by the
This agency is irrevocable and Contractor is acknowledged to be a party of interest in this matter by individuals, the person signing these releases lose the right to file a mechanic’s lien claim against your
Owner. Contractor may use any necessary force to deny occupancy of the project until Contractor property. In other types of construction, this protection may still be important, but may not be as complete

has received all payments that are due Contractor under this contract, excluding any retention To protect yourself under this option, you must be certain that all material suppliers,
payment, and until recording of the Notice Of Completion. subcontractors, and laborers have signed the “Waiver and Release” form. If a mechanics’ lien has been
14.Collection. Owner agrees to pay all collection fees and charges including but not limited to all filed against your property, it can only be voluntarily released by a recorded “Release of Mechanics’
legal and attorney fees that result should Owner default in payment of this contract. Overdue Lien” signed by the person or entity that filed the mechanics’ lien against your property unless the
accounts are subject to interest charged at the rate of 10% per annum. lawsuit to enforce the lien was not timely filed. You should not make final payments until any and all
15.Legal Fees. In the event litigation arises out of this contract, prevailing party(ies) are entitled such liens are removed. You should consult an attorney if a lien is filed against your property.”
to all legal, arbitration, and attorney fees

Contractors are required by law to be licensed and regulated by the contractors state license board, which has jurisdiction to investigate complaints against contractors if a complaint
regarding a patent act or omission is filed within four years of the date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be filed
within 10 years of the date of the alleged violation. Any questions concerning a contractor may be referred to the Registrar, Contractors State License Board, P.O. Box 26000, Sacramento,
CA 95826-0026. State law requires anyone who contracts to do construction work to be licensed by the Contractors’ State License Board in the license category in which the contractor is
going to be working- If the total price of the job is $500 or more (including labor and materials). Licensed contractors are regulated by laws designed to protect the public. If you contract
with someone who does not have a license, the Contractors’ State License Board may be unable to assist you with a complaint. Your only remedy against an unlicensed contractor may be
in civil court, and you may be liable for damages arising out of any injuries to the contractor or his or her employees. You may contact the Contractors’ State License Board to find out if
this contractor has a valid license. The board has complete information on the history of licensed contractors, including any possible suspensions, revocations, judgments, and citations

The Board has offices throughout California. Please check the government pages of the White Pages for the office nearest you or call 1-800-321-CSLB for more information

Page two of ____ 2 Total Pages

Contractor harmless and accept any risks resulting from the use of adjacent property(ies) by Contractor. (5) to correct any existing defects which are recognized during the course of the …

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Frequently Asked Questions

What is a home improvement contract?

A home improvement contract is an agreement between a contractor and a property owner or between a contractor and a tenant, and includes in its description all labor, services, and materials to be furnished and performed.

Do i need a contract for home improvement projects in california?

In California, there must be a written contract for all home improvement projects over $500 in combined labor and materials costs. That contract must include specific information about your rights and responsibilities.

When do you need a change order in a home improvement contract?

Any additional work or modifications to the work listed in the attached scope of work shall require a change order. A change order is a formal document listing the materials and labor required for services not listed in the original home improvement contract, and must be signed by both the Homeowner and Contractor.

What is a home improvement contractors right of access?

Homeowner agrees to provide Contractor’s employees and subcontractors with reasonable access to the property where the home improvement project is taking place. Contractor agrees to make reasonable efforts to prevent disturbance or damage to the property or surrounding areas.