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PROPOSAL AND CONTRACT, LIMITED LABOR WARRANTY
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State License: No. 888232 C-54 C-33
Date: ___________________
Proposal and Contract
To: ________________________________________________________________________
Phone: _____________________________________________________________________
Address: ____________________________________________________________________
Job Location: ________________________________________________________________
Owner: _____________________________________________________________________
We propose to do the following work (This proposal good for seventy two hours 72 hrs, subject to change without notice):
Refer to quote/invoice # ___________________ for additional details about this project, as it becomes part of this contract.
3220 West Monte Vista Avenue
PMB #300
Turlock CA 95380
(323) 588-0394
(323) 588-7127
PROPOSAL AND CONTRACT, LIMITED LABOR WARRANTY
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All of the above work to be completed in a substantial workmanlike manner according to standard practices for the sum of: _______________________________ (
Work to be completed within _______ days
Initial payment _______ percent or $_______________________
1. Progress payment ________ percent or $__________________ Date: _______________
2. Progress payment ________ percent or $__________________ Date: _______________
3. Progress payment ________ percent or $__________________ Date: _______________
4. Progress payment ________ percent or $__________________ Date: _______________
A. Arbitration of Disputes: Any dispute arising out of or related to this contract or the interpretation or performance thereof shall be decided by arbitration under the Construction Industry Rules of the American Arbitration Association and judgment shall be entered on the award. The arbitrator shall award reasonable attorneys fees and expenses to the prevailing party. If any party after due notice fails to appear at or participate in arbitration proceedings, the arbitrator shall make an award based upon evidence presented by the party or parties who do appear and participate. In the event that there are court proceedings arising out of or related to the performance or interpretation of this contract, the court shall award reasonable attorneys fees to the prevailing party.
B. Notice: By initialing in the space below you are agreeing to have any dispute arising out of the matters included in the “arbitration of disputes” provision decided by neutral arbitration as provided by California law and you are giving up any rights you might possess to have the dispute litigated in a court or jury trial. By initialing in the space below you are giving up your judicial rights to discovery and appeal, unless those rights are specifically included in the “arbitration of disputes” provision. If you refuse to submit to arbitration after agreeing to this provision, you may be compelled to arbitrate under authority of the Business and Professions Code or other applicable laws. Your agreement to this arbitration provision is voluntary.
We have read and understand the foregoing and agree to submit disputes arising out of the matters included in the “arbitration of disputes” provision to neutral arbitration.
I agree to arbitration_________ (initials of owner or person in charge) I agree to arbitration ________ (initials of contractor)
C. Commencement/ Completion of Work:
a. Owner shall have jobsite ready for commencement of the work of improvement no later than 30 days of from the date of this contract, or on specified commencement date, and so notify the contractor in writing
b. The approximate date when the work will begin will be:________________
c. The approximate date when work is to be completed will be _____________________________________________________________
D. Terms and conditions: The terms and conditions on the reverse side are expressly incorporated into this contract. Materials terms and conditions of sale are incorporated on the reverse side of the invoice and are incorporated on this contract.
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E. Upon satisfactory payment being made for any portion of the work performed, the contractor shall, prior to any further payment being made, furnish to the person contracting for the home or commercial property improvement, a full and unconditional release** from any claim or mechanic’s lien pursuant to Section 3114 of the Civil Code, for that portion of the work for which payment has been made.
**BNI Form 110-UP, “Unconditional Waiver and Release Upon Progress Payment,” meets this requirement.
Contractor’s State License No. _____________________________
Name and State Registration Number of any salesman who solicited or negotiated this contract:
Name: _________________________________________________________
By: ____________________________________________________ (contractor or Agent Sign Here)
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TERMS AND CONDITIONS
1. Plans, Specifications, and Permits. The Project will be constructed according to plans and specifications which have been examined by the owner and which have been or may be signed by the parties hereto. Contractor will obtain and pay for all required building permits, but owner will pay assessments and charges required by public bodies and utilities for financing or prepaying the costs related to this work.
2. Labor and Material. Contractor shall pay all valid charges for labor and material incurred by contractor and used in the construction of the project, but is excused by owner from this obligation received in any period during which owner is in arrears in making progress payments to contractor.
Should contractor fail to make any payments required under this paragraph, owner may make such payments on behalf of contractor, and contractor shall reimburse owner for the amount actually paid on demand, but owner shall not, by means of assignment or otherwise, be entitled to collect any greater amount from contractor than the amount actually paid for labor or material under this paragraph.
No waiver or release of mechanic’s lien given by contractor shall be binding until all payments due to contractor when the release was executed have actually been made.
3. Contract, Plans and Specifications. The contract plans and specifications are intended to supplement each other in case of conflict, however, the plans shall control over the specifications, and the provisions of this contract shall control both.
4. Extra Work. Should owner construction lender or any public body or inspector direct any modification or addition to the work covered by this contract the cost shall be added to the contract price. For the purpose of this paragraph, “cost” is defined as the cost of extra subcontracts, labor and materials, plus 10% of “cost” for overhead, plus 10% of the sum of “cost and overhead” for profit. Changes in the contract shall be evidenced by a writing signed by both parties. Expense incurred because of unusual unanticipated ground conditions (such as fill, hard soil rock or ground water) shall be paid for by the owner as extra work.
No extra or change-order work shall be required to be performed without prior written authorization of the person contracting for the construction of the home or commercial building improvement. Any change-order forms** for changes or extra work shall be incorporated in, and become a part of the contract.
**BNI Form 103. Extra Order is recommended for this purpose.
5. Allowances. If the contract price includes allowances, and the cost of performing the work covered by the allowance is greater or less than the allowance, then the contract price shall be increased or decreased accordingly. Unless otherwise requested by owner in
writing, contractor shall use his own judgment in accomplishing work covered by an allowance. If owner requests that work covered by an allowance be accomplished in such a way that the cost will exceed the allowance, contractor shall comply with owner’s request provided that owner pays the additional cost in advance.
6. Delay. Contractor shall be excused for any delay in completion of the contract caused by acts of God, acts of owner or owner’s agent, stormy weather, labor trouble acts of public utilities, public bodies or inspectors, extra work, failure of owner to make progress payments promptly, or other contingencies unforeseen by contractor and beyond the reasonable control of contractor.
7. Completion and occupancy. Owner agrees to sign and record a Notice of Completion within five days after completion of the project. If the project passes final inspection by the public body but owner fails to record Notice of Completion, then owner hereby appoints contractor as owner’s agent to sign and record a Notice of Completion on behalf of owner. This agency is irrevocable and is an agency coupled with an interest. Contractor may use such force as is necessary to deny occupancy of the project by owner or anyone else until contractor has received all payments, excluding the retention payment due under this contract, and until Notice of Completion has been recorded.
8. Damage to Project and Insurance. Owner will procure at his own expense and before commencement of any work hereunder, fire insurance with course of construction, vandalism and malicious mischief clauses attached, such insurance to be in a sum at least equal to the contract price with loss, if any payable to any beneficiary under any deed of trust convening the project, such owner fail to do so, contractor may procure such insurance as agent for and at expense of owner, but is not required to do so.
If the project is destroyed or damaged by an accident, disaster or calamity such as fire storm, flood landslide, subsidence or earthquake or by theft or vandalism, any work done by contractor rebuilding the project shall be paid for by owner as extra work under section four.
Contractor will maintain in full force and affect a worker’s compensation insurance policy and a comprehensive liability insurance policy in amounts not less than required by the specifications, and shall furnish certificates of insurance to owner before commencing work. The failure of owner to demand delivery of certificates hereunder shall not relieve contractor of any obligation under this paragraph.
9. Right to Stop Work. Contractor shall have the right to stop work if any payment shall not be made to contractor under this agreement contractor may keep the job idle until all payments due are received.
10. Limitations. No action arising from or related to the contract or the performance thereof shall be
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commenced by either party against the other more than two years after completion or cessation of work under this contract. This limitation applies to tall actions of any character, whether at law or in equity, and whether sounding in contract tort or otherwise. This limitation shall not be extended by any negligent misrepresentation or unintentional concealment, but shall be extended as provided by law for willful fraud, concealment, or misrepresentation.
11. Attorney Fees. If either party becomes involved in litigation arising out of this contract or the performance thereof, the court in such litigation, or in a separate suit, shall award reasonable costs and expenses, including attorney fees, to the party justify entitled thereto. In awarding attorney fees, the court will not be bound by any court fee schedule, but shall, if it is in the interest of justice to do so, award the full amount of costs, expenses and attorney fees paid or incurred in good faith.
12. Clean-up. Upon completion of the work, contractor will remove debris and surplus material from owner’s property and leave it in a neat and broom clean condition.
13. Taxes and assessments. Taxes and special assessments of all descriptions will be paid by owner.
14. Notice. Any notice required or permitted under this contract, may be given by ordinary mail at the address contained in this contract, but such an address may be changed by written notice given by one party to the other from time to time. After a notice is deposited in the mail, postage prepaid, it shall be deemed received in the ordinary course of the mail delivery process.
15. Prohibition of Assignments. Contractor may not assign this contract or payment due under this contract to any other party without the written consent of owner.
16. Bankruptcy. If either party becomes bankrupt, or makes an assignment for the benefit of creditors, the other party has the right to cancel this contract.
17. Mediation. Unless otherwise agreed by the parties in writing any controversy arising out of the construction of the project referred to in this contract or regarding the interpretation of this contract shall be subject to a good faith arbitration conducted by and in accordance with rules of the American Arbitration Association. Mediation shall take place prior to the commencement of arbitration, but in no event later than sixty (60) days after the first demand for arbitration is filled by one of the parties. Mediation shall be governed by confidentiality requirements contained in California Evidence Code Section 1152.5. Should mediation fail, the parties shall arbitrate their dispute.
18. Section 7159 of the California Business and professions Code, as amended by AB 2190, effective 1/1/92, and as reproduced on the last page of this form, is incorporated as Section 18 of these Terms and Conditions.
19. The undersigned (owner) agrees to hold harmless and to indemnify Qubyco Corporation and to defend any claims or actions against the same, or any of its officers, employees, subcontractors, or administration which may arise out of the services provided under this contract or attached quote.
20. Exclusion of implied warranties. As part of this contract, all implied warranties (including merchantability or fitness for a particular purpose) are excluded and the owner/buyer expressly waives any claim or remedy based thereon.

21.
 

 

 

 

 

 

LIMITED LABOR WARRANTY
Qubyco Corp. Construction Painting & Flooring hereby warrants, for the period stated in the Agreement between Qubyco Corp. Construction and Owner (if no period is stated then its Limited Labor Warranty shall be for 3 months), subject to the terms and conditions set forth herein, that it will make necessary repairs to the project which will result from defects in workmanship by Qubyco Corp at no cost to the Owner when those defects occur within the stated term of this warranty. For material warranties please refer to manufacturers warranties and limitations.
(a) This warranty is non transferrable to a new owner of the property, applies only to purchasing owner.
(b) In order to obtain performance of any warranty obligation, the Owner first provide prompt written notice of a defect to Qubyco Corp. Construction promptly after a defect is experienced. Qubyco Corp. Construction shall make repairs as soon as practical upon notification of reported defects.
 

 

 

 

 

NOTICE TO OWNER
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Under the California Mechanic’s Lien Law, any contractor, subcontractor, laborer, supplier, or other person or entity that helps to improve your property, but is not paid for his or her work or supplies, has a right to place a lien on your home, land, or property where the work was performed and to sue you in court to obtain payment.
This means that after a court hearing, your home, land, and property could be sold by court officer and the proceeds of the sale used to satisfy what your owe. This can happen even if you have paid your contractor in full, if the contractor’s subcontractors, laborers, or suppliers remain unpaid.
To preserve their rights to file a claim or lien against your property certain claimants such as 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 such notice, since you are aware of their existence as an owner. A preliminary notice is not a lien against your property; its purpose is to notify you of persons or entities that may have a right to file a lien against your property if they are not paid. In order to perfect their lien rights, a contractor, subcontractor, supplier, or laborer must file a Mechanics’ lien with the county recorder which then becomes a recorded lien against your property. Generally, the maximum time allowed for filing a mechanics’ lien against your property is 90 days after substantial completion of your project.
To insure extra protection for yourself and your property, you may wish to take one or more of the following steps:
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 of the bond. This payment and performance bond as well as a copy of the construction contract should be filed with the county recorder for your further protection. The payment and performance bond will usually cost from 1 to 5 percent of the contract amount depending on the contractor’s bonding ability. If a contractor cannot obtain such bonding, it may indicate his or her financial incapacity.
2) Require that payments be made directly to subcontractors and material suppliers, through a joint control. Funding services may be available, for a fee, in your area which will establish voucher or other means of payments to your contractor. These services may also provide you with a lien waiver and other forms of protection. Any joint control agreement should include the addendum approved by the registrar.
3) Issue joint checks for payment, made out to both your contractor and subcontractors or material suppliers involved in the project. The joint checks should be made payable to the persons or entities which send preliminary notices to you. Those persons entities have indicated that they may have lien rights on your property, therefore need to protect yourself. This will
help to insure that all persons due payment are actually paid.
4) Upon making payment on any completed phase of the project, and before making any further payments, require your contractor to provide you with unconditional Waiver and Release forms signed by each material supplier, subcontractor, and laborer involved in that portion of the work for which payment was made. The statutory lien releases are set forth in exact language in Section 3262 of the Civil Code. Most stationery stores will sell the Waiver and Release forms if your contractor does not have them. The material suppliers, subcontractors, and laborers that you obtain releases form are those persons or entities who have filed preliminary notices with you. If you are not certain of the material suppliers, subcontractors, and laborers working on your project, you may obtain a list from your contractor. On projects involving improvements to a single family residence or a duplex owned by individuals, the persons signing these releases lose the right to file a mechanics’ lien claim against your property. In other types of construction, this protection may still be important, but may not be as complete.
To protect yourself under this option, you must be certain that all material suppliers, subcontractors, and laborers have signed the Waiver and Release form. If a mechanics’ lien has been filed against your property, it can only be voluntarily released by a recorded Release of Mechanics’ Lien signed by the person or entity that filed the mechanic’s lien against your property unless the lawsuit to enforce the lien was not timely filed. You should not make any final payments until any and all such liens are removed. You should consult an attorney if a lien is filed against your property.
State law requires anyone who contracts to do construction work to be licensed by the Contractors State License Board in the category in which the contractor is going to be working – if the total price of the job is $300 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. Our only remedy against an unlicensed contractor may be in a 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 possible suspensions, revocations, judgments, and citations.
I acknowledge receipt of a copy of this notice on _______________________________ (date)
Signature of Owner or Owner’s Agent _________________________________