1. OWNER'S RESPONSIBILITIES:
The Owner is responsible to supply water, gas, sewer and electrical utilities unless otherwise agreed to in writing. Electricity and water to the site is necessary. Owner agrees to allow and provide Fuse Service and Fuse Service' equipment access to the property. The Owner is responsible for having sufficient funds to comply with this agreement. This is a cash transaction unless otherwise specified. The Owner is responsible to remove or protect any personal property and Fuse Service is not responsible for the same or for any carpets, drapes, furniture, driveways, lawns, shrubs, etc. The Owner will point out and warrant the property lines to Fuse Service.
2. FEES, TAXES AND ASSESSMENTS; COMPLIANCE WITH LAWS:
Taxes, Permits, Fees, and assessments of all descriptions will be paid for by the Owner. Fuse Service will obtain all required building permits, at the sole expense of Owner. Upon demand by Fuse Service, Owner shall provide ample funds to acquire any and all necessary permits on a timely basis. Owner will pay assessments and charges required by public bodies and utilities for financing or repaying the cost of sewers, storm drains, water service, schools and school facilities, other utilities, hook-up charges and the like. Fuse Service shall comply with all federal, state, county and local laws, ordinances and regulations.
3. LABOR AND MATERIAL:
Fuse Service shall pay all valid charges for labor and material incurred by Fuse Service and used in the construction or repair of the Project.
Fuse Service is excused from this obligation for bills received in any period during which the Owner is in arrears in making progress payments to Fuse Service. No waiver or release of mechanic's lien given by Fuse Service shall be binding until all payments due to Fuse Service when the release was executed have been made.
4. DESTRUCTION OF WORK, WORKERS’ COMPENSATION INSURANCE & OTHER FORMS OF INSURANCE:
If the project is destroyed or damaged by accident, disaster or calamity, such as fire, storm, earthquake, flood, landslide, or by theft or vandalism, any work done by Fuse Service in rebuilding or restoring the project shall be paid by the Owner as extra work. If Fuse Service has employees, Fuse Service shall carry Workers Compensation Insurance for the protection of Fuse Service' employees during the progress of the work. Owner shall obtain and pay for insurance against injury to Owner's own employees and persons under Owner's discretion and persons on the job site at Owner's invitation.
5. INSURANCE AND DEPOSITS:
Owner will procure at his own expense and before the commencement of any work hereunder, "all risk" insurance with course of construction, vandalism and malicious mischief clauses attached, such insurance to be a sum at least equal to the Contract price with loss, if any, payable to any beneficiary under any deed of trust covering the project. Such insurance shall also name Contractor and its subcontractors as additional insured, and include sufficient funds to protect Owner, Contractor and its subcontractors and any construction lender as their interests may appear; should Owner fail to do so, Contractor may procure such insurance as agent for and at the expense of Owner, but is not required to do so.
6. PAYMENTS AND RIGHT TO STOP WORK:
Past due payments shall bear interest at the rate of 1% per week, until paid in full. Fuse Service shall have the right to stop work if any payment shall not be made, when due, to Fuse Service under this Agreement; Fuse Service may keep the job idle until all payments due are received. This remedy is in addition to any other right or remedy that Fuse Service may have. Such failure by Owner to make payment, when due, is a material breach of this Agreement.
7. CLEAN-UP:
Fuse Service will remove from the Owner's property debris and surplus material created by its operation and leave it in a neat and broom clean condition.
8. LIMITATIONS:
No action of any character arising from or related to this contract, or the performance thereof, shall be commenced by either party against the other more than two years after completion or cessation of work under this contract.
9. SUBCONTRACTS:
Fuse Service may subcontract portions of this work to properly licensed and qualified subcontractors.
10. VALIDITY:
In case one or more of the provisions of this Agreement or any application thereof shall be invalid, unenforceable or illegal, the validity, enforceability and legality of the remaining provisions and any other application shall not in any way be impaired thereby.
11. LIMITED WARRANTY:
Fuse Service warrants that all work performed by it and its subcontractors shall be done in a good and workmanlike manner in accordance with accepted trade practices. Said warranty shall extend for one year from the date of substantial completion of Fuse Service' portion of the project. However, the warranties for assemblies, appliances and the like, shall be those warranties provided by the manufacturer or supplier of that item rather than based on Fuse Service' warranty herein. Fuse Service shall assemble and provide to Owner all such manufacturer's warranties.
12. EXISTING CONDITIONS:
Fuse Service calls attention to Owner the limitations of patching plaster and stucco, matching paint, matching texture and/or matching any finished product. Fuse Service will make every effort to match all existing conditions, i.e. textures and colors, however exact duplication is not promised or guaranteed.
13. ASBESTOS, MOLD AND HAZARDOUS SUBSTANCES:
Owner hereby represents that the Owner has no knowledge of the existence on or in any portion of the premises affected by the Project of any asbestos, lead paint, mold (including all types of microbial matter or microbiological contamination, mildew or fungus), or other hazardous materials. Testing for the existence of mold and other hazardous materials shall only be performed as expressly stated in writing. Contractor shall not be testing or performing any work whatsoever in an area that is not identified in the Scope of Work. Unless the contract specifically calls for the removal, disturbance, or transportation of asbestos, polychlorinated biphenyl (PCB), mold, lead paint, or other hazardous substances or materials, the parties acknowledge that such work requires special procedures, precautions, and/or licenses. Therefore, unless the contract specifically calls for the same, if Contractor encounters such substances, Contractor shall immediately stop work and allow the Owner to obtain a duly qualified asbestos and/or hazardous material contractor to perform the work. Said work will be treated as an extra under this contract, and the Contract Term setting forth the time for completion of the project may be delayed.
14. STANDARDS OF MATERIALS AND WORKMANSHIP:
Fuse Service shall use and install "standard grade" or "builder's grade" materials on the project unless otherwise stated in the Scope of Work, the plans and/or specifications provided to the Contractor prior to the execution of this Agreement. Unless expressly stated in the Scope of Work, Fuse Service shall have no liability or responsibility to restore or repair the whole or any part of the premises affected by the work of Fuse Service to be performed herein or by any subsequently agreed-upon change order, including as an illustration and not as a limitation, any landscaping, sprinkler system, flooring and carpet, wall coverings, paint, tile, or decorator items.
15. DELAYS AND INCREASES IN MATERIAL COSTS:
Fuse Service shall be excused for any delay in completion of the contract caused by acts of God; stormy or inclement weather; strikes, lockouts, boycotts or other labor union activities; acts of Owner, of Owner's agents, or of Owner's employees or independent contractors; disbursement of funds into funding control or escrow; acts of public utilities or public bodies; acts of public enemy, riots or civil commotion; inability to secure material through regular recognized channels; imposition of Government priority or allocation of materials; delays caused by inspection or changes ordered by the inspectors of authorized governmental bodies; changes requested by Owner; Owner's failure to make progress payments promptly; failure of the issuance of all necessary building permits within a reasonable length of time; or other contingencies unforeseen by Fuse Service and beyond its reasonable control.
Additionally, while Fuse Service believes that it can complete the Project without any increases in costs, to the extent that material costs increase by more than 10% from the costs of said materials on the date this Agreement was signed, Fuse Service shall be entitled to an increase in the contract price equal to the increased costs above the 10% increase in material cost. To the extent material costs increase due to delay caused by Owner, Owner’s agents or separate contractors, Fuse Service shall be entitled to all cost increases incurred as a result, in addition to any extended field and home office expenses. There shall be no additional markup for overhead or profit on the increased cost, except as otherwise indicated.
16. RIGHT TO CURE:
In the event that Owner alleges that some of the work is not or has not been done correctly or timely, Owner shall give Fuse Service a notice that Fuse Service shall commence to cure the condition that Owner has alleged is insufficient within ten days.
17. 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 ‘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 Internet Web site at www.cslb.ca.gov or call CSLB at 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.
18. RELEASE:
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 improvement or swimming pool work a full and unconditional release from any claim of mechanic's lien for any person entitled to make such a claim of lien pursuant to Sections 8400 and 8404 of the Civil Code for that portion of the work for which payment has been made.
19. MAINTENANCE REQUIREMENT:
You must maintain the equipment in accordance with the service requirements set forth by the manufacturer to keep Your Service Agreement in force. Evidence of proper service, when required by Administrator, must be submitted in the event of a claim. If you maintain your equipment in other company, Fuse Service provides 1 year labor warranty. If you maintain your equipment in Fuse Service, Fuse Service provides 3 year labor warranty. Failure to maintain the product in accordance with the manufacturers instructions may result in denial of coverage under this Agreement.