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  1. Licensing – Contractor is duly licensed under the law and statutes of the State of California.
  2. Property owner(s) represents that (s) he is the person properly authorized, whether by virtue of ownership or tenancy interests, agency relationship with such interest, or otherwise, to enter into this contract for Contractor’s service and goods. Property owner(s) will keep the property and improvements and materials on it free from any claims that would tend to interfere with contractors work or performance.
  3. Code Violations – All work to be done in a thorough and workmanlike manner in strict accordance with the Building Code of the State of California and the city or county involved. The Contractors is not responsible for any existing violations of local building ordinances and building codes.
  4. Personal Guarantee – Where undersigned signs on behalf of a corporation, partnership or other association, the undersigned irr irrevocably and unconditionally individually guarantees to Contractor, payment when due, whether by acceleration, or otherwise, of any and all present and future obligations of debtor to Contractor.
  5. Contractor does not refund 10% overhead and 10% profit when customer agrees to reduce scope of work or elects to cash out term. Cash out terms are at the election of Contractor, and must be in writing.
  6. Contractor may assign rights or delegate duties under his contract or Contractor may assign any right to receive compensation under the Contract. In either event, Contractor will remain responsible for all performance required under contract.
  7. Property owner(s) may assign any benefits or delegate any duties of payment or other responsibility under this Contract to any successor in title on ownership of tenancy interest to the premises herein described. However, property owner will remain personally liable for all his performance under this Contract.
  8. Property owner(s) will provide, entirely at his own expense continuously during the course of the work herein, adequate property damage and public and public liability insurance to cover the scope of all activities contemplated hereunder and the value of services, labor, materials and goods involved in this work as well as a reasonable claim liable to occur during the course of the work
  9. Should property owner(s) or insurance company be in default of compensation owning at any time under the Contract of a period of five (5) days after the notification that compensation is due, Contractor, in addition to any other legal remedies or processes available, may stop work and/or terminate the Contract and enter the premises and remove any portion of, or all materials or goods installed at or affixed to the premises under this Contract, (so long as the work or removal does not interfere with any materials or goods installed outside of this agreement) up to the extent that they represent in their condition the price then owning the Contractor under Contract.
  10. Title to any material supplied by Contractor will remain with Contractor and will not pass to customer until the entire price called for herein or in any subsequent extra work Contract, has been paid. Contractor may remove any amount or portion of such material equivalent in value to any payment then in default. No part of this provision, however, may be asserted as against any lienholder whether prior or subsequent to any lien which Contractor may hold assignee of successor such lienholder.
  11. If Insurance Company issues progress payment(s) property owner(s) agrees to endorse all drafts when presented for signature.
  12. Should any dispute arise from this Contract, customer agrees that the proper venue for the action shall be in Los Angeles County. In the event of any litigation or arbitration between the parties concerning the work hereunder or any event relative hereto, the prevailing party in such dispute shall be entitled to reasonable attorney’s fees and costs.
  13. Contractor is entitled to loss of profits if Contract is canceled for any reason.
  14. Contractors are required by law to be licensed and regulated by the Contractor’ State License Board. Any questions concerning a Contractor may be referred to the Registrar of the Board whose address is: P.O. Box 26000, Sacramento, CA 95826.



Any controversy or claim arising out of, or relating to this contract, or the breach thereof, shall be settled by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association, and judgment judgment upon the award rendered by Arbitrator(s) may be entered in any Court having jurisdiction thereof.


In accordance with Section 7018.5* of the Business and Professions Code of the State of California (Contractors License Law), as effective July 1, 1984, the following "Notice to Owner" is tendered to the owner(s) who are party to the PRIME CONSTRUCTION CONTRACT into which this notice is incorporated for their reading and acknowledgement PRIOR to entering into said contract.

Under the California Mechanics Lien Law any contractor, subcontractor, laborer, supplier or other person who helps to improve your property, but is not paid for his/her work or supplies, has a right to enforce a claim against your property. This means that after a court hearing, your property could be sold by a court officer and the proceeds of the sale used to satisfy the indebtedness.  This can happen even if you have paid your contractor in full if the subcontractor, laborers or suppliers remain unpaid.

To preserve their right to file a claim or lien against your property, certain claimants such as subcontractors or material suppliers are required to provide you with a document entitled "Preliminary Notice." Original (or prime) contractors and laborers for wages do not have to provide this notice. A Preliminary Notice is not a lien against your property. Its purpose is to notify you of persons who may have a right to file a lien against your property if they are not paid. (Generally, the maximum time allowed for filing a claim or lien against your property is ninety [90] days after completion of your project).


(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.

(2) Require that payments be made directly to subcontractors and material suppliers through a joint control. Any joint control agreement should include the addendum approved by the Registrar of Contractors.

(3) Issue joint checks for payment, made out to both your contractor and subcontractors or material suppliers involved in the project. This will help to insure that all persons due payment are actually paid.

(4) After making payment on any completed phase of the project, and before making any further payments, require your contractor to provide you with unconditional lien releases signed by each material supplier, subcontractor and laborer involved in that portion of the work for which payment was made. 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 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.

This Notice To Owner read and acknowledge by owner prior to signing of contract with contractor.

*7018.5  The board shall prescribe a form entitled "Notice to Owner" which shall describe in nontechnical language and in a clear and coherent manner using words with common and everyday meaning, the pertinent provisions of this state's mechanics lien laws and the rights and responsibilities of an owner of property and a contractor thereunder including the provisions relating to the filing of a contract concerning a work of improvement with the County Recorder and the recording in such office of a contractor's payment bond for private work.  Each contractor licensed under this chapter prior to entering into a contract with an owner for work for which a contractor's license is required shall give a copy of this "Notice to Owner" to the owner, his agent or the payor.




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