Terms of Service
All material is guaranteed to be as specified. All work to be completed in a professional and timely manner according to standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written order/request and must be signed before continuation. All agreements are contingent upon strikes, accidents, or delays beyond our control. Owner is to carry necessary insurance. Our workers are fully covered by Workers Compensation Insurance.
Under the California Mechanics’ Lien Law, any contractor, subcontractor, laborer, supplier, or other person or entity who helps to improve your property, but is not paid for his 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 after a court hearing, your home, land, and property could be sold by a court officer and the proceeds of the sale used to satisfy what you 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 noti¢e is not a lien against your property. Its purpose is to notify you of persons or entitles 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 ENSURE 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 any damages up to the amount of the bond. This payment and performance bond as well as a copy of the ¢onstction contract should be filed with the county recorder to further your 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.
1. Require that payments be made directly to your subcontractors and material suppliers through a joint control. Funding services may be available, for a fee, in your area which will establish a voucher or other means of payment to your contractor. These services may also provide you with lien wavers and other forms of protection. Any joint agreement should include the addendum approved by the registrar.
2. Issue joint checks for payment, made out both your contractors and subcontractors or material suppliers involved in the project. The joint checks should be made payable to the persons or entitles which send preliminary notices to
you. Those persons or entitles have indicated that they may have lien rights on your property, therefore you need to protect yourself. This will help to insure that all persons due payment are actually paid.
3. 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 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 from are the persons or entities who have filed preliminary notices with you. If you are not certain of 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 a mechanics’ lien 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 mechanics 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 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. Check the government pages of the white pages for the office nearest you or call 1-800-321-CSLB (2752) for more information.
All Claims, disputes, and other matters in question between AC Sure Plan and the customer arising out of, or relating to this agreement, the Work to be performed hereunder, or any other matter relating to the subject matter hereof, shall be decided by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association then in effect; provided however, that notwithstanding any of these rules, the parties hereto shall have the right to take discovery in accordance with the Federal Rules of Civil Procedure. Any and all demands to arbitrate shall be filed promptly and in any event prior to the expiration of any applicable Statute of Limitations. Arbitration shall be held in California. The award of the arbitrators shall be final and binding upon the parties, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction. Unless otherwise agreed in writing, Contractor shall carry on performance of the Work and maintain its progress during any arbitration proceedings, and the Customer shall continue to make payments not in dispute to Contractor in accordance with the terms hereof. This agreement to arbitrate shall be self-executing without the necessity of filing any action in any court and shall be specifically enforceable under the prevailing arbitration law.
Attorneys’ fees: The prevailing party in any arbitration or other legal proceeding shall be entitled to an award of all costs of arbitration or litigation including reasonable attorneys’ fees, in such amount as may be determined by the arbitrators or court having jurisdiction.
ACCEPTANCE OF PROPOSAL
The above prices, specifications and conditions a re satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above. It is understood and agreed that this work is not provided for any other agreement and no contractual rights arise until this proposal is accepted in writing. Failure by the contractor without lawful excuse, to substantially commence work within twenty (20) days from the approximate date specified in this contract when the work will begin, is a violation of the Contractor’s License Law.