ARTICLE 2 - EXCLUSIONS

THIS PROJECT DOES NOT INCLUDE:

• FILL IN PROJECT EXCLUSIONS HERE

ARTICLE 3 – PROJECT TIMELINE

PR strives to complete all projects undertaken within the set amount of days outlined below from the commencement of programming, determined by the date on the signed agreement (excluding the initial consultation), barring any major setbacks, limitations, emergencies, or unavoidable issues. Further, PR will use all reasonable efforts to expedite the completion of your project. However, we cannot be responsible for any delays in the performance or delivery of furniture, furnishings, subcontractors, or materials supplied by others as well as issues with the Owner not being able to afford services or items to complete the design as outlined in this agreement. 

ARTICLE 4 – COMPENSATION & PAYMENTS

4.1         CONTRACT PRICE

Shall mean the Estimate Price as adjusted by final allowances and final selections plus the net of any written change orders. PR does not provide a design or construction cost guarantee.

4.2   ALLOWING FOR ADDITIONAL EXPENSES

4.2.1 DESIGN PHASE There are many factors that contribute to design project cost, most of which are out of PR's control. Premier Remodel agrees to act in the Owners best interest in keeping detailed records of time spent on the project and giving the Owner adequate warning if approaching the allocation for each phase. However, if more time is needed and the totally hourly allocation as stated in 4.1.2 and 4.1.3 has been utilized the Owner agrees to purchase additional design hours in packages of ten to allow for (including the following scenarios but not limited to) Owner indecisiveness, product substitutions and or upgrades, increased design scope, additional revisions, replacing out of stock approvals or delayed Owner communication. Owner understands and agrees that the project cost is determined by the Owner’s approval on the above estimated construction and future approval of selections as determined by the allowances listed in this contract.

4.2.2 PROJECT MANAGEMENT In the event that the project is delayed due to unforeseen circumstances or any circumstances outside Premier Remodel's control the Owner agrees to pay the project management fee on a bi-weekly schedule to rectify the issue at hand. Premier Remodel agrees to act in the Owners best interest and keep detailed records for the duration of the delay.

4.2.3 CHANGE ORDERS Additionally, we highly encourage our Owners to agree to provide PR with a set “change order contingency fund” in order to move the project along without delay. Typically, PR would see the change needed, document the change, ask the Owner to sign for the change, and then begin the work on the necessary change. When Owners aren’t available, and we have to wait for documents to be signed, your project can be delayed. We ask that you agree to changes in advance up to a certain percentage of your total budget. PR and subcontractors will document these changes in your job report, so you will know on a frequent basis what changes have been performed. PR is not required to perform any additional services; rather, PR reserves the right to agree or reject any Customer Request to perform additional services.

4.2.4 CONTINGENCIES It is suggested that when embarking on any remodeling project you factor in an additional 20 - 30% for hidden unknowns and/or design taste changes. This is very typical in the construction industry. We hate for our Owners to be surprised when we open a wall to potential plumbing or electrical issues that they did not account for.

4.3   PAYMENT SCHEDULE 

HERE IS YOUR PAYMENT SCHEDULE AS WE KNOW IT TODAY. AMOUNTS AND DATES SUBJECT TO CHANGE DURING THE DEVELOPMENT OF THE DESIGN, SELECTION OF MATERIALS, FINISHES, FURNISHING, ETC. OWNER WILL BE UPDATED ON A BI-WEEKLY BASIS.

4.4         PAYMENT METHODS
PR accepts ACH transfer payments, Venmo, and Zelle as form(s) of payment. PR will assess a 1.95% processing fee on all electronic transactions as reimbursement from processing companies charge PR up to 3.95% for collecting such fees. ACH payments will incur 1% processing fee as processing companies charge PR 1% for collecting such fees. Fees will be documented and added on to the following invoice.

4.5         WORK PERFORMED
There are no returns on payments already collected by PR for work already performed. Work will be documented on a weekly basis and time records will be sent out weekly.

4.6         RETURNED CHECKS
The Owner understands and agrees that if they submit a check that returns unpaid and/or bounced, the Owner is responsible for a $35.00 NSF fee, in addition to any late fee’s that can incur as a result of the returned check.

4.7         ADDITIONAL WORK
The Owner understands that any additional work outside of the scope of this project including but not limited to above and beyond email and text communication is subject to our design hourly rate as outlined in this agreement. PR agrees to inform the Owner of billing options upon billing initiation.

4.8         RETURNS
The Owner may return NON CUSTOM and NON SPECIAL ORDER products purchased from PR, however such returns will incur up to 50% restocking fee + any shipping costs to return the product back to the manufacturer. Such items available for return will be indicated on your invoice for such item(s).

4.9         WHITE GLOVE SHIPPING
Premier Remodel charges a flat rate fee of 18% per item for shipping, receiving, storing and white glove delivery. Throughout the design process, we keep detailed records of the accrued charges. The Owner agrees to pay the overage of shipping charges, if applicable.

PLEASE BE ADVISED, UNLESS AGREED TO OTHERWISE IN A SEPARATE WRITING SIGNED BY THE OWNER & PREMIER REMODEL, THE FOLLOWING ADDITIONAL FEES MAY APPLY IN CONJUNCTION WITH THE SHIPPING, RECEIVING, ASSEMBLY OR INSTALLATION OF ALL MATERIALS, SUPPLIES, FURNITURE, FIXTURES AND/OR ANY ITEM TO BE DELIVERED THAT IS SEPARATE FROM CONSTRUCTION OR DESIGN FOR THE DURATION OF THIS PROJECT.

4.9.1   FURNITURE ASSEMBLY  A furniture assembly/disassembly hourly fee ranging between $100.00 to $150.00, per person, per hour based upon the complexity, time, and level of detail required for assembly. Please note, in the event that PR must use a third party to perform assembly/disassembly, the fee shall be determined by the latter’s quote.

4.9.2   ALL ACCRUED SHIPPING FEES  All shipping fees, as well as any additional insurance, associated with delivery of merchandise or furniture from PR’s distributors to PR, as well as shipping fees associated with delivery of merchandise or furniture from PR to Owner. 

4.9.3   LABOR COSTS  Labor costs incurred by PR that are associated with the design build services provided to the Owner including, but not limited to, expected and unexpected labor costs, overtime work, and minimum pricing requirements charged by PR’s vendors or PR to rectify, replace or install.

4.10 REFUNDS
There are no refunds for services already rendered – however if PR collected payments for services not rendered (advanced payment, which can happen on a flat-rate contract) you may be entitled to a refund for hours NOT billed by PR. PR would provide you with a time metric of every hour spent on the project. You agree that if you cash a check, or accept any payments from PR for any refunds, you are accepting the following terms from 4.10.1 to 4.10.6 below:

4.10.1 NO ADMISSION OF LIABILITY Nothing herein shall constitute or be construed as an admission of any liability whatsoever by any Party. The Parties each deny any and all wrongdoing and liability.

4.10.2 WARRANTY AND REPRESENTATION No Prior Actions Except The Action. Each of the Parties, on behalf of themselves and each of their respective representatives, agents, employees and attorneys promises, represents, warrants and covenants that as of the time of signing this Agreement, that, with the exception of the Action, they have not filed any claims, complaints, lawsuits, arbitrations, or other actions or proceedings in any court, agency, arbitral body or other jurisdiction against any of the other Parties or their agents, representatives or employees.

4.10.3 SUCCESSORS AND ASSIGNS This Agreement will be binding upon the Parties' successors, assigns, heirs, executors, administrators, and other legal representatives.

4.10.4 SEVERABILITY If any provision of this Agreement is found to be void, voidable, illegal, invalid, or otherwise unenforceable, then the remainder of the Agreement nevertheless shall remain in full force and effect, and, to the extent reasonably possible, the parties shall replace the unenforceable provision with an enforceable provision that most closely approximates the intent of the unenforceable provision. The releases provided in this Agreement are effective immediately upon the Effective Date, and may not be revoked or rescinded by any alleged breach to this Agreement. 

4.10.5 REFUNDED PAYMENTS If you accept any refunds from PR for services not rendered on an advance payment to PR, you waive your right to request additional funds for whatever reason. PR will audit your account automatically and provide such refunds within 30 days of the agreement termination date or the date of the project completion.
 

ARTICLE 5 – DEFAULT ON PAYMENTS

5.1          FAILURE TO PAY  
Failure to submit payment for completed work in accordance with the payment schedule of this agreement will constitute a material breach of the agreement and PR reserves the right to terminate this agreement. The Owner will be responsible for any late payments, past due amounts and a termination fee as set in ARTICLE 9.

5.2         ENFORCING THIS AGREEMENT  
In the event PR hires an attorney to enforce any right under this Agreement, the Owner shall reimburse PR for all such attorney fees and expenses regardless of whether suit is filed.

5.3         LATE FEES Should the Owner not submit their payment within 5 days from the invoice date, the Owner's account will be considered late and will incur a late fee of $150, plus an additional $6 per day thereafter. Should the owner choose alternative payment methods that arrive or clear late and PR incur fees to pay vendors, subcontractors or expenses, the owner will be responsible for any additional fee incurred.

5.3.1 30 DAY LATE  If the Owner does not pay the invoice 30 days after the late fee is initiated, the contract will be terminated for non-payment and the Owner would be charged a termination fee as per article 7 section 7.3. At that point, the $6 per day fee will cap out, and the Owner's account will be submitted to collections. The Owner is responsible for any collection agency fee’s in addition to the debt from PR.

5.3.2 LIEN, LITIGATION AND/OR COLLECTION AGENCY Should the Owners account remain in collections for more than one hundred eighty (180) days, PR may either put a lien against the Owners property, or begin the litigation process in the county of Santa Cruz. In addition to this the collection agency that PR uses will report your debt to all three credit bureaus.   
 

ARTICLE 6 – COMPANY POLICIES AND MISC. PROVISIONS

6.1         COMMUNICATION The expectation is that if PR contacts the Owner in any manner (Email, phone, text message etc…) it is the Owner’s responsibility to respond to PR as quickly as possible. Timely correspondence is imperative in certain situations. For example: PR may need to confirm an order, confirm a change order, etc…and in the event that a response is not received in a timely manner, than (depending on the situation) PR may feel it necessary stall the project or cancel an order due to any lack of communication by the Owner. If the project is stalled due to lack of communication PR reserves the right to charge a project stall fee of up to $250 per hour and/or the vendor/subcontractor fees. PR is not obligated to answer phone calls, emails or text messages outside of normal business hours, on holidays or documented vacation time. 

6.2      ACCESS Owner is expected to grant reasonable access to the premises for the designer and the designers agents, as well as the contractor(s) required to perform the agreed upon work. By signing this agreement, you understand that the privacy and peace of your home may be disrupted for the duration of the project.

6.3       VERBAL AGREEMENT(S) It is mutually understood and agreed that there are no verbal or any other agreements in addition to or in contradiction of the terms and provisions herein set forth. All verbal mutual agreements will be documented and recapped in an electronic email.

6.4        AMENDMENTS This agreement is non-negotiable, and no amendments will be made except adding to the scope of work, or a change in the design cost for such additions to the scope.

6.5        DECREASE OF BUDGET The Owner shall not decrease their budget once they advise PR of their budget for the project. Should the Owner change the budget, they must notify PR immediately in writing and provide any corresponding documentation. If the budget is less than what was agreed upon, PR reserves the right to terminate this agreement and the Owner will be subject to a termination fee as outlined in Article 5.

6.6         CHANGE ORDERS Changes to the project scope must be requested in writing and are subject to a change order fee of 75.00 hour to research, quote, accommodate and plan for changes. They will be billed to the Owner accordingly and due upon receipt.

6.7         VENDOR INVOICES The designer does not have an obligation, nor will provide vendor invoices or receipts for any reason whatsoever even if requested by the Owner. The Owner understands they are purchasing materials and services from PR and therefore will only be able to receive an invoice from PR showing what was charged to the Owner.

6.8         RUSH DESIGN AND ORDERS The Owner understands that PR’s normal hours of operation are Monday – Friday 9am to 5pm pacific standard time, and that if the Owner receives an expected date of delivery for receivables, that we are limited on being able to deliver those receivables anytime sooner than the given expected date of delivery. If the Owner requests that the deliverables be delivered sooner than the given expected date, that the Owner will be assessed a $250 rush fee (PER REQUEST) to be able to accommodate that request. However – it is up to the discretion of the design team to determine whether or not we can accommodate the request to deliver your receivables earlier.

6.9          MARKUP PR charges a lower design fee in exchange for the Owner purchasing all furnishings, fixtures, fittings, materials, supplies & equipment directly from Premier Remodel.

6.9.1   FEE SCHEDULE
 

ARTICLE 7 – CONSTRUCTION POLICIES & PROVISIONS

7.1          DEFECTS Owner understands that there may be existing defects or concealed conditions that may not be discoverable until work has commenced. Unless specifically included in the work description and specifications, the cost for labor and materials to repair such defects is not included in the Contract Price. Owner(s) and PR agree that the cost for labor and materials to repair such defects will be estimated in writing as needed at the time of discovery and, upon written acceptance, the cost for the same will be added to the Contract Price.

7.2          STANDARD EXCLUSIONS Unless specifically included in the “General Scope of Work” section above, this Agreement does not include labor or materials for the following work: engineering fees or governmental permits and fees of any kind. Additional work required by governmental plan checkers on final “RedLined” Job Copy of plans that are yet to be issued. Testing, removal, and disposal of any materials containing asbestos (or any other hazardous material as defined by the EPA). Custom milling of any wood for use in Project. Moving Owner’s property around the site. Labor or materials required to repair or replace any Owner-supplied materials. Repair of concealed underground utilities not located on prints or physically staked out by Owner which are damaged during construction. Surveying may be required to establish accurate property boundaries for setback purposes (fences and old stakes may not be located on actual property lines). Final construction cleaning (PR will leave site in “broom swept” condition). Landscaping and irrigation work of any kind. Temporary sanitation, power, or fencing. Removal of soils under house in order to obtain 18 inches (or code-required height) of clear space between bottom of joists and soil. Removal of filled ground or rock or any other materials not removable by ordinary hand tools (unless heavy equipment is specified in Scope of Work section above), correction of existing out-of-plumb or out-of-level conditions in existing structure. Correction of concealed substandard framing. Rerouting/removal of vents, pipes, ducts, structural members, wiring or conduits, steel mesh that may be discovered in the removal of walls or the cutting of openings in walls. Removal and replacement of existing rot or insect infestation. Failure of surrounding part of existing structure, despite PR’s good faith efforts to minimize damage, such as plaster or drywall cracking and popped nails in adjacent rooms or blockage of pipes or plumbing fixtures caused by loosened rust within pipes; construction of a continuously level foundation around the structure (if the lot is sloped more than 6 inches from front to back or side to side, PR will step the foundation in accordance with the slope of the lot). Exact matching of existing finishes. Public or private utility connection fees. Repair of damage to roadways, driveways, or sidewalks that could occur when construction equipment and vehicles are being used in the normal course of construction. Cost of correcting errors and omissions by the Owner’s design professionals and separate Contractors. Cost of correcting/testing/remediating mold/fungus/mildew and organic pathogens unless caused by the sole and active negligence of PR as a direct result of a construction defect that caused sudden and significant water infiltration into a part of the structure. Cost of removing ponding groundwater or other unusual concealed site conditions during excavation. Extra costs associated with refusal of caisson drilling, cave-ins, etc. Cost to modify and/or remanufacture custom brackets and other custom-fabricated materials that are manufactured per plans and/or specifications but do not fit properly into the structure.

7.4          RESPONSIBILITIES PR agrees to perform the work description and specifications as outlined in the Estimate and any agreed written changes incorporated into this Agreement.

7.5          WORK SCHEDULE All specifications for the work must be finalized prior to obtaining a final schedule date. PR agrees to perform the Work in a good and workmanlike manner with reasonable dispatch in accordance with the specifications contained herein. PR is responsible for establishing the scheduling and sequencing of the work to be performed. Reasonable delays include, but are not limited to, weather, non-delivery, discontinuance, default in shipment by a supplier in whole or in part, loss in transit, labor strikes, labor shortages, lockouts, injuries, or other causes beyond PR’s control.

7.6          FORCE MAJEURE  PR shall not be considered to be in default or breach of this Agreement, and shall be excused from performance or liability for damages to any other party, if and to the extent it shall be delayed in or prevented from performing or carrying out any of the provisions of this Agreement, arising out of or from any act, omission, or circumstance by or in consequence of any act of God, labor disturbance, sabotage, failure of suppliers of materials, act of the public enemy, war, invasion, insurrection, riot, fire, storm, flood, ice, earthquake, explosion, epidemic, pandemic, breakage or accident to machinery or equipment or any other cause or causes beyond PR's reasonable control, including any curtailment, order, regulation, or restriction imposed by governmental, military or lawfully established civilian authorities, or by making of repairs necessitated by an emergency circumstance not limited to those listed above upon the property or equipment of PR or property or equipment of others which is deemed under the Operational Control of the Party. A Force Majeure event does not include an act of negligence or Intentional Wrongdoing by a Party. Any Party claiming a Force Majeure event shall use reasonable diligence to remove the condition that prevents performance and shall not be entitled to suspend performance of its obligations in any greater scope or for any longer duration than is required by the Force Majeure event. Each Party shall use its best efforts to mitigate the effects of such Force Majeure event, remedy its inability to perform, and resume full performance of its obligations hereunder.

7.7          MATERIALS Except as otherwise set forth in a writing between Owner(s) and PR, PR will provide necessary materials to complete the work per the work description and specifications. PR shall not be responsible for an exact match of any materials, including but not limited to paint, wood stain, siding, shingles, etc. Owner understands and acknowledges that unless otherwise agreed to in writing, all materials provided by PR are the property of PR, and any unused materials as of the completion of the work will be retained by PR and removed from Owner(s) property. Owner to reimburse PR for all materials, blueprinting, and copies plus 15%. Payment of reimbursable expenses is due upon submission of the invoice by PR.

7.8          OWNER RESPONSIBILITIES Owner(s) warrants to PR that he/she/they is the legal Owner of the property. Owner(s) agrees to provide PR electric power and water for construction purposes at no charge to PR. Owner(s) shall make himself/herself available during work for clarification of specifications, approval of additional work and to provide adequate access to the property as may be required. When Owner isn't available, Owner agrees that PR will make decisions in the best interest of the project and use funds from the Change Order Contingency Fund. Owner(s) acknowledges that the removal of permanently attached building materials often disturbs and vibrates the existing property. The noise, debris, and vibration generated from the work may cause inconvenience to Owner(s) and changes to Owner(s) property including but not limited to: interior wall cracks, flaking of wall paint, debris falling into attic, dust, disturbance to shrubbery and lawns, small divots or ruts in yard from equipment such as Equipter, small divots in the driveway from equipment such as roll-off containers and dump truck. As a precaution, Owner(s) shall remove from walls or ceilings items such as, but not limited to, chandeliers, paintings, pictures and any breakables. Owner(s) shall remove, move or cover at least 10’ away from the work area any outdoor furniture, grills, planters, etc. PR shall not be responsible for any of the aforementioned property damage or for any inconvenience experienced by Owner(s) as a normal consequence of the work.

7.8.1          SAFETY The Owner agrees to keep all pets, children, and guests out of the work area of the property. The Owner understands that the PR, specialty PRs, or employees will not be responsible for any pet(s) and/or children leaving home or premises due to doors, windows, gates, or other openings in the home or on the premises being left open due to work in progress. The Owner assumes liability and responsibility for any injuries and/or death for guests, children or pet(s) entering the job site without express permission from the PR.

7.8.2          COMPLIANCE The Owner agrees to comply with all reasonable requests of PR regarding its provision of the services required in addition to granting access.

7.9          BUILDING PERMITS PR will file for all required permits. The client will be responsible for all expenses, labor and fees associated with the permit approval process.

ARTICLE 8 - LIABILITY

8.1          LIMIT OF LIABILITY Owner(s) acknowledges that at no time shall PR’s liability exceed the total amount charged for the work performed under this Agreement. PR shall not be liable for any defects which are characteristic to the particular materials such as cracks, splits, and shrinkage or warping of wood or lumber, etc. PR cannot be held liable because PR cannot guarantee prices of merchandise, interior installation, or other services not performed by him or her, because vendor pricing is sometimes subject to change, and if Owner is indecisive or unsure, and takes longer than is necessary to make a firm decision, a vendor’s change in price will be out of the PR’s control. 

8.2          OWNER INSURANCE Owner(s) agrees to carry homeowner’s insurance covering fire, theft, storm, and damage to the property including, but not limited to, landscaping, trees, shrubs, driveways, and walkways in sufficient amounts to cover the work and materials under construction by the PR and agrees to compensate the PR for losses sustained by these conditions. Owner shall pay for and maintain "Course of Construction" or "Builders Risk" insurance if Owner will not be living on the property during the time of construction. PR shall, in amounts and with carriers subject to PR’s sole discretion, provide workers’ compensation and liability coverage for the Work.

8.3          COMPANY INSURANCE PR agrees to maintain liability insurance covering personal injury in an amount not less than $1,000,000 and insurance covering property damage caused by its work in an amount not less than $1,000,000. Any work performed on the roof or in multi-family dwelling units or duplexes is not covered by insurance and defaults to the Owner(s) insurance.

8.3.1   SUBCONTRACTOR INSURANCE PR only works with subcontractors that are licensed, insured and bonded. PR maintains contracts with each awarded subcontractor. The Owner understands they are purchasing services from PR and therefore will only be able to receive an invoice from PR showing what was charged to the Owner. Contracts will only be made available at the discretion of PR with any proprietary pricing and/or vendor information redacted.

8.4          ESCALATION CLAUSE FOR SPECIFIED BUILDING MATERIALS The contract price for this project has been calculated based on the current prices for the component building materials. However, the market for the building materials is considered to be volatile, and sudden price increases could occur. PR will use our best efforts to obtain the lowest possible prices from available building material suppliers. In the event there should be an increase in the prices of the building materials that are purchased after execution of the contract, the Owner agrees to pay the cost increase. PR will notify the Owner of any material increases before a purchase is made.

8.5          SERVICE CALLS Service calls requested by the Owner shall be included in the written workmanship warranty only if the call for service is a warranted service call. On service calls where it is deemed by the PR to be a non-warranted item, the Owner will be charged for the service call or Work performed at PR’s current established rates.

8.6          DISPUTE RESOLUTION & ATTORNEY’S FEES Any controversy or claim arising out of or related to this Agreement involving an amount less than $5,000 (or the maximum limit of the Small Claims court) must be heard in the Small Claims Division of the Municipal Court in the county where the PR’s office is located. Any dispute over the dollar limit of the Small Claims Court arising out of this Agreement shall be submitted to an experienced private construction arbitrator that shall be mutually selected by the parties to conduct a binding arbitration in accordance with the arbitration laws of the state where the project is located. The arbitrator shall be either a licensed attorney or retired judge who is familiar with construction law. If the parties can not mutually agree on an arbitrator within 30 days of written demand for arbitration, then either of the parties shall submit the dispute to binding arbitration before the American Arbitration Association in accordance with the Construction Industry Rules of the American Arbitration Association then in effect. Judgment upon the award may be entered in any Court having jurisdiction thereof. The Owner agrees to pay for any and all attorney fees regardless of the outcome of the hearing.

 

ARTICLE 9 - TERMINATION OF AGREEMENT

9.1          CANCELLATION: You, the buyer, have the right to cancel this contract within three business days. You may cancel through email to [email protected] by midnight of the third business day after you received a signed and dated copy of the contract that includes this notice. Include your name, your address, and the date you received the signed copy of the contract and this notice. If you cancel, PR must return to you anything you paid within 30 days of receiving the notice of cancellation. For your part, you must make available to PR at your residence, in substantially as good condition, as you received it, any goods delivered to you under this contract or sale. Or, you may, if you wish, comply with the PR’s instructions on how to return the goods at the PR’s expense and risk. If you do make the goods available to PR and PR does not pick them up within 30 days of the date of your notice of cancellation, you may keep them without any further obligation. If you fail to make the goods available to the PR, or if you agree to return the goods to the PR and fail to do so, then you remain liable for the performance of all obligations under the contract.

9.2          TERMINATION FOR CAUSE: If either party breaches any provision of this agreement and if such breach is not cured within thirty (30) days after receiving written notice from the other party specifying such breach in reasonable detail, the non-breaching party shall have the right to terminate this agreement by giving written notice thereof to the party in breach, which termination shall go into effect immediately on receipt.

9.3          TERMINATION FOR CONVENIENCE: This agreement may be terminated by either party on thirty (30) days advance written notice effective as of the expiration of the notice period. Contingent to 9.6 below.

9.4          CONTRACT TERMINATION FEE: The Owner further agrees that if they terminate the agreement before its completion date, the Owner will be responsible for paying a termination fee of up to 50% of the cost of the total contract price fee. As an example: If your contract price is $50,000 total, your termination fee would be $25,000.

In the event of termination, Owner shall pay PR for the Services performed through the date of termination in the amount of a prorated portion of the fees due. Owner shall pay all Expenses, Fees, and Additional Costs incurred through the date of termination including a termination fee if applicable.

9.5          PROTECTION: PR reserves the right to terminate this agreement in the event the Owner becomes verbally abusive, conducts themselves in an inappropriate/ unprofessional manner, or creates a hostile work environment toward any Owner, director or employee of PR. Should PR be forced to terminate the agreement for such actions, a termination fee would be charged as outlined in Article 9, section 9.4.

9.6          MUTUAL CANCELLATION: This agreement can be terminated by mutual agreement should the agreement not be able to be fulfilled to its fullest by either party. Such termination can be effective immediately from the date of the notice by either party and any termination fees would be paid by the Owner if applicable.

ARTICLE 10 - PHOTOGRAPHY AND STYLING

Each project is a visual representation of the work we are able to provide therefore directly affecting business growth. Because of this, we need to be able to fully style and photograph each finished project.

10.1      Owner to authorize Premier Remodel to photograph and/or film their renovation or design project at project completion. Project address and Owner identity are protected in strict confidence.

10.2      Owner grants Premier Remodel advance authorization to arrange for movers and/or cleaners when work progress may be interrupted.

10.3      Owner authorizes Premier Remodel to place a lawn or fence sign on the property throughout the project.

10.4     Styling and accessorizing is part of our design service package, and we offer this service in order to provide our Owners with a fully finished room; one they will enjoy for many years.

10.5     Styling and photography is a 1-5 day process, depending on project size. Premier Remodel strives to present a complete design including art and accessories, however, Premier Remodel may bring in additional styling items that cannot be planned for or were not estimated for. An itemized styling pricing sheet will be made available, and any items not previously paid for by the client for will be available for purchase.
 

ARTICLE 11 - NOTICES REQUIRED BY THE STATE OF CALIFORNIA

11.1    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. A mechanics’ lien is a claim, like a mortgage or home equity loan, made against your property and recorded with the county recorder. Even if you pay your contractor in full, unpaid subcontractors, suppliers, and laborers who helped to improve your property may record mechanics’ liens and sue you in court to foreclose the lien. If a court finds the lien is valid, you could be forced to pay twice or have a court officer sell your home to pay the lien. Liens can also affect your credit. To preserve their right to record a lien, each subcontractor and material supplier must provide you with a document called a ‘20-day Preliminary Notice.’ This notice is not a lien. The purpose of the notice is to let you know that the person who sends you the notice has the right to record a lien on your property if he or she is not paid. 

BE CAREFUL. The Preliminary Notice can be sent up to 20 days after the subcontractor starts work or the supplier provides material. This can be a big problem if you pay your contractor before you have received the Preliminary Notices. You will not get Preliminary Notices from your prime contractor or from laborers who work on your project. The law assumes that you already know they are improving your property. 

PROTECT YOURSELF FROM LIENS. You can protect yourself from liens by getting a list from your contractor of all the subcontractors and material suppliers that work on your project. Find out from your contractor when these subcontractors started work and when these suppliers delivered goods or materials. Then wait 20 days, paying attention to the Preliminary Notices you receive. 

PAY WITH JOINT CHECKS. One way to protect yourself is to pay with a joint check. When your contractor tells you it is time to pay for the work of a subcontractor or supplier who has provided you with a Preliminary Notice, write a joint check payable to both the contractor and the subcontractor or material supplier. For other ways to prevent liens, visit CSLB’s website at www.cslb.ca.gov or call CSLB at 1-800-321-CSLB (2752). 

Remember, if you do nothing, you risk having a lien placed on your home. This can mean that you may have to pay twice, or face the forced sale of your home to pay what you owe.

11.2 INFORMATION ABOUT THE CONTRACTORS STATE LICENSE BOARD (CSLB) CSLB is the state consumer protection agency that licenses and regulates construction contractors. Contact CSLB for information about the licensed contractor you are considering, including information about disclosable complaints, disciplinary actions and civil judgments that are reported to CSLB. Use only licensed contractors. If you file a complaint against a licensed contractor within the legal deadline (usually four years), CSLB has authority to investigate the complaint. If you use an unlicensed contractor, CSLB may not be able to help you resolve your complaint. Your only remedy may be in civil court, and you may be liable for damages arising out of any injuries to the unlicensed contractor or the unlicensed contractor’s employees. For more information: VISIT CSLB’s website at www.cslb.ca.

ARTICLE 12 - LIMITED WARRANTY

Whereas, Premier Remodel has built a Project located in the County of Santa Cruz, State of California, at the above-mentioned property address and 

Whereas, Premier Remodel does hereby agree to give a limited warranty on the Project located at the above property for a period of 1 year following closing or occupancy by the Owner, whichever comes first, upon the following condition.

Now Therefore, in consideration of the payment of the purchase price of the Project, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and the premises and agreements hereinafter set fort, the parties hereby agree as follows:

12.1         WARRANTY PERIOD Not later than thirty (30) days after closing or occupancy, whichever comes first, the Owner shall deliver a written list of any minor omissions or malfunctions not previously made known in writing to the Premier Remodel.  To the extent that such items are a normal Premier Remodel responsibility or not otherwise excluded hereunder, corrections or adjustments will be made by the Premier Remodel.

12.2         WARRANTY PR warrants the above Project to be free from latent defects for a period of one (1) year following closing or occupancy, whichever event shall first occur. A latent defect in construction is herein defined as a defect not apparent at time of occupancy or closing, but which becomes apparent within one (1) year from date of closing or occupancy, whichever event shall first occur, and such defect has been directly caused by Premier Remodel’s failure to construct in accordance with the standard of construction prevailing in the geographical area of the Project.  It is stressed, however, that normal characteristic behavior of building materials, wear and tear, general maintenance, and like items, will not constitute a latent defect.

Procedure:  Should it appear that a possible latent defect (non-emergency nature) has developed, Owner shall outline pertinent details in writing, and deliver same to Premier Remodel.  Following receipt of such notice, Premier Remodel will make an inspection.  If a latent defect exists, the Premier Remodel will (at Premier Remodel’s sole option) either (1) repair, (2) replace, or (3) pay to Owner the reasonable cost of such repair or replacement due to such latent defects(s); however, Premier Remodel shall not be obligated to spend more than the purchase price of the Project less the value of the land upon which the Project is situated.

Notwithstanding anything to the contrary stated herein.  This warranty does not cover any appliance, piece of equipment, or item which is a consumer product for purposes of the Magnuson-Moss Warranty Act (15 USC, 2301 through 2312.)

This warranty is given in lieu of any and all other warranties, either expressed or implied, including any implied warranty or merchantability, fitness for a particular purpose, habitability and workmanship, except, if applicable, such warranty as specifically stated in any required VA/FHA warranty delivered simultaneously herewith.

12.3         WRITTEN NOTICE  The Premier Remodel shall not be liable under this Agreement unless written notice of the latent defect shall have been given by Owner to Premier Remodel within one (1) year warranty period.  Steps taken by the Premier Remodel to correct any defect or defects shall not act to extend the warranty period described hereunder.

12.4         EXPIRATION  The Owner shall have 90 days after expiration of the one (1) year warranty period to bring any legal action hereunder.

12.5         MANUFACTURE WARRANTIES  Premier Remodel hereby assigns to Owner all of Premier Remodel’s rights, if any, under manufactures warranties on appliance and items of equipment included in the Project.  Premier Remodel assumes no responsibility for such manufacturers warranties and Owner should follow the procedures in these warranties if defects appear in such appliances and items of equipment.

12.6         COVERAGE EXCLUSIONS  Premier Remodel does not assume responsibility for any of the following, all of which are expressly excluded from coverage under this Limited Warranty:

• Defects in appliances or equipment which are covered by a manufacturer’s warranty.
• Incidental, consequential, or secondary damages caused by a breach of this warranty.
• Defects which are the result of characteristics common to the materials used, such as (but not limited to) warping and deflection of wood; mildew and fading, chalking and checking of paint due to sunlight; cracks due to drying and curing of concrete, stucco, plaster, bricks and masonry; drying, shrinking and cracking of caulking and weather-stripping.
• Conditions resulting from condensation on, or expansion or contraction of materials.
• Defective design or materials supplied by Owner or installed under his direction, or Defects caused by anything not built into, or installed in the Project pursuant to contract between Premier Remodel and Owner.
• Damages due to ordinary wear and tear, abusive use or lack of proper maintenance of the Project.
• Loss or injury due to the elements.
• Landscaping or any portion thereof is hereby expressly excluded from this warranty including sod, seeding, shrubs, trees and plantings.
• Insect damage of any nature whatsoever.
• Non-uniformity in appearance of used or simulated used brick.
• Chips, scratches or mars in tile, woodwork, walls, porcelain, brick, plumbing fixtures, plastic laminate, and glass not expressly identified to Premier Remodel prior to closing.
• Dripping faucets and toilet adjustments after the initial thirty (30) day warranty period described herein.
• Utility service lines installed by developer, municipality or service company and settling, back filling or slumping thereof.
• Deterioration or defects in asphalt paving.
• Movement, shifting, expansion or plasticity of the soils beneath the Project and changes in the underground water table and subsurface soil structures beyond Premier Remodel’s control.

All warranty work shall be scheduled during normal weekday working hours except in emergencies. This warranty is extended only to the Owner named herein.  It is not transferable to subsequent Owners of the Project or the residence.

 

EXHIBIT A - CONTRACT SUMMARY

• DELAYS We cannot be responsible for any delays in the performance or delivery of furniture, furnishings, finishes, equipment, sub-contractors, or materials supplied by others as well as issues with the owner not being able to afford services or items to complete the design as outlined in this agreement.

• ADDITIONAL EXPENSES There are many unknowns that Premier Remodel either cannot see or cannot control that could incur additional costs and fees to your project. Please know that your project will likely increase (including but not limited to) selecting higher-end materials, issues within the walls, shipping delays, etc. Be financially aware and prepared.

• BUDGET Premier remodel provides bi-weekly time log reports during the design phase and weekly reports during the construction phase. All changes initialized by Premier Remodel will be discussed and agreed upon via change order and paid for prior to execution. A change order is billed at $85 per hour to research, quote accommodate and plan for changes.

• PAYMENTS & FEES In order to keep this project running smoothly we insist on on-time payments and do charge payment processing fees, late fees, etc. Please refer to article 4.

• COMMUNICATION before or after business hours is at the discretion of Premier Remodel. We typically do not respond before 8am, after 5pm or on the weekends. Premier Remodel is a family fun business, so there may be days when we have to take care of our sick child or go out of town. We’ll be in communication regarding all unforeseen “shut down” times or family events. In return, we ask that you do the same. If you need a day off from the noise of construction to take care of yourself or your child, please let us know.

• VERBAL AGREEMENTS We will do our best to follow up with your verbal or text message requests for a formal communication email. If you do not receive written confirmation via email then you may follow up, as well. 

• REFUNDS & RETURNS No refunds for work performed. No refund after three days on your deposit. All returns are subject to vendor policies. A shipping refusal is not a return.

• SAFETY We will do our best to maintain a clean secure jobsite, however, your kids, pets, and personal belongings are not our responsibility. Please read section 7 carefully.

• MATERIALS We provide all materials and remove all materials provided by us at the completion of the task or project. Should we need to print something, travel outside of  additional 20 miles or incur additional expenses from printing plans, hiring movers, furnishing cleaners to clean your space to access your project, these will be billed directly to you and will be due immediately.

• INSURANCE We are insured, licensed, and bonded and so are our subcontractors. You need to have homeowners insurance. For properties that you do not live in you need to get builders risk insurance.

• SHIPPING We charge a flat-rate fee of 18% for shipping. We track all shipping and receiving charges and will invoice for anything not covered by the initial 18%.

• ESCALATION With inflation and price changes we estimate the current cost of materials. If the price increases by the time the work begins, you will be invoiced for the increase in materials.

• EXCEPTIONS We provide estimates based on what we can see and the information that is available to us at the time. There may be and likely will be with older homes, hidden issues that we will have to update in order to bring to code or carry out the design or scope of work. This can increase cost.

• SUBCONTRACTOR & VENDOR PRICING & RECEIPTS Its proprietary based on our longstanding loyalty and relationships. If you want to know every detail and every cost we can offer a transparent cost-plus contract in which you will be billed for all fees, labor and expenses at a margin which is typically the more time-consuming and costlier route. By signing this contract you waive the right to view any proprietary pricing.

• DISPUTE RESOLUTION We are reasonable people, and we know you are too. Let’s keep the lines of communication open and honest. If we cannot do that - arbitration is next. Should we have to hire an attorney for any reason, you will be responsible for the cost of both parties to hire an attorney regardless of who prevails.

• TERMINATION Either party can terminate this agreement as long as it is mutual. Any unused funds will be returned to you within thirty days or if there are fees due you will remit payment within ten days. If you would like to terminate the agreement without cause there will be a reasonable cancellation fee to cover our professional fees and time that we have reserved for your project in lieu of taking other projects.

• PICTURES & SIGNAGE Each new project affects our business health. We give it our all and in return we ask that you allow us to post signage, take photos and display your project on various social media channels. Your identities and homes location will be not be revealed.

DISCLOSURE: THIS CONTRACT SUMMARY DOES NOT TAKE THE PLACE OF THE ACTUAL CONTRACT. PLEASE MAKE SURE TO READ THE CONTRACT THOROUGHLY. IF YOU HAVE ANY QUESTIONS, PLEASE LET US KNOW.

 

EXHIBIT B - EXAMPLE CHANGE ORDER

EXHIBIT C - SUBCONTRACTOR MSA

DOCUMENT ACCEPTANCE

Should any term of this Agreement be deemed by a Court of competent jurisdiction to be unenforceable, such determination shall not affect the enforceability of the remaining provisions.

Use of one gender shall include all other genders; use of the singular shall include the plural; and use of the plural shall include the singular; all as may be appropriate.

In Witness Whereof, the parties hereto have executed this Agreement on the day and year signed below and agree to Buildertrends signature system as legally binding: