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1 , PREPARED FOR:, 5782 Ring Ct, Fremont CA PREPARED BY: Paul Fowler President 2245-A Fortune Dr. San Jose, CA (408) cell (408) office

2 June 12th 2014 Thank you for the opportunity to offer to you the following re-roofing proposal. I would briefly like to tell you about Westshore Roofing, and why you will want to choose us for your roofing project. Summary of Coverage Westshore Roofing provides $1,000, of liability insurance per occurrence. Westshore Roofing employees are covered by Workers Compensation Insurance so that you will not be exposed to any liability should any of our employees be injured while on your job. We are licensed & bonded with the State of California License # for your protection. We are members of National Roofing Contractors Association We are members of the Better Business Bureau Certifications & Installation As a legitimate and dependable roofing company, we maintain these affiliations and credentials to provide you with the highest level of confidence and customer service. We are registered, licensed and approved with many manufacturers for the installations of premium roofing products. We are Certified Select Shingle Roofers for Certainteed Roofing Products We are a GAF master Elite Contractor We are a Diamond Certified Company We Owens Corning Preferred Contractors We are IKO Certified Shield Preferred Contractors 5 Star Rated by the Santa Clara & San Mateo County Home Services Review We are Gerard Master Roofers since Angie s list super service award. (This roofing proposal includes a $ Angie s List coupon. We are a family owned and operated company with a permanent place of business, a showroom and over 23 years in the roofing trade, we take pride in our quality workmanship and the specialty services offered to our clients. Sincerely, Paul Fowler President, Westshore Roofing, Inc. 2

3 ROOFING AGREEMENT General Specifications: This project has been specified in accordance with local building codes, industry standards and manufacturer specification requirements. All work will be installed by certified craftsmen to assure qualification for the long-term roofing warranty. 1. General starting time is 8am; General ending time is 5pm. 2. At the end of each day, the working area will be made watertight to protect the building from normal weather conditions. 3. At the end of each day, the working area will be broom cleaned and all roofing debris neatly stacked. 4. At the end of each day, the working area will be magnetically swept to pick-up left over nails 5. All gutters will be cleaned out of all debris. 6. Include Lien Release upon final payment. 7. All work performed by Westshore Roofing will be in accordance to manufacturer s recommendations, guidelines set by the National Roofing Contractors Association (NRCA), and the local building codes. Safety Concerns: Westshore Roofing is concerned about maintaining the safety of your family, children, pets, and neighbors. During the course of the re-roofing project, do we need to be aware of any special instructions? Job Site Preparation: Westshore Property Protection Measures will be implemented throughout the job. 1. Upon the start of the job, we will place a job site yard sign on your property and request that it stay for a period of thirty days after completion of your project. This is our best form of advertising as we are proud to display the quality workmanship we instill in every roofing project we complete. 2. WESTSHORE may require the full use of your driveway during the course of your roofing project. Extra charges will be assessed if use of the driveway is not permitted prior to or during the course of the job. It will also be necessary to have access to an external electrical power source. 3. WESTSHORE recommends that prior to start of the job that you remove or secure all fragile or irreplaceable items on walls and ceilings that could be disturbed or damaged during the job. WESTSHORE cannot be held responsible for damage to said items. 4. WESTSHORE recommends that if you have any contents in your attic or garage ceiling that you cover them with a tarp or plastic. If your garage does not have a ceiling, please remove vehicles or cover them so debris does not damage them. We cannot be responsible for cleaning of attics after removing the shingles. If you would like us to provide this service please inform us before approving this proposal so we can take the necessary actions. 5. WESTSHORE will remove and/or replace antennas, cables, satellite dishes, cupolas, and any other electronic devices to accommodate continuation of the scope of work contracted. We cannot be held responsible for operating condition or damage to said items after replacement. Television or satellite reception, all cabling, wiring and hardware are the responsibility of the homeowner. 3

4 Utilities: Westshore Roofing has not included the costs for electrical, water. It is understood that we shall have full use of the owner s utilities during the construction costs and the owner shall bear these costs. Permit: Westshore Roofing will furnish the permit on this project. The cities require a city business license, proof of a valid contractor s license, and proof of Workman s Compensation Insurance for all workers. The permit will be posted on the job site in a conspicuous site, usually the fence. The permit must remain until the job is completed, and final is inspection is signed off. At that time, the homeowner may remove and keep the permit for their permanent files. Each City has special requirements regarding roof inspections; some cities will have one inspection, some cities up to four. Generally during the course of construction, a city inspector will visit the job site for an inspection. The building inspector requires access to the roof-top. WESTSHORE will leave a ladder for the use by the building department. Please do not remove the ladder prior to the building inspector s inspection. WESTSHORE will schedule and coordinate the inspections. Dry Rot Repair: (material and labor cost) WESTSHORE will: Replace rotted or damaged 1x8 Primed V Rustic roof boards at $4.75 per board foot. Replace rotted or damaged 2x6 roof boards with new Primed Fingerjoint Lumber at $10.00 per board foot. Replace rotted or damaged 2x8 roof boards with new Primed Fingerjoint Lumber at $11.00 per board foot. Rafter tails $58.00 each. - 2x4 $ x6 each (Primed Fingerjoint Lumber) or $50.00 non-primed Doug - fir Replace 2x6 Tongue & Groove Boards at a cost of $5.50 per ft. Replace shingle rake molding with 1x2 Primed Fingerjoint Lumber at a cost of $4.25 per ft. Replace rotted ACX plywood at a cost of $ per 4 x8 sheet. Replace 1x6 boards at a cost of $4.75 per ft. WESTSHORE will notify the customer prior to proceeding with the above additional work Rafter tail 1x8 V rustic eave board 4

5 Composition Fiberglass asphalt shingles JOB SCOPE Roof Removal Westshore Roofing will remove ( 2 ) layers of existing roofing down to the roof deck. Westshore Roofing will remove the existing flashings, vents and pipe flashings on roof. Deck Preparation: Inspect entire roof deck before the installation of the new shingles. If you apply a shingle roof over a deck surface that is unacceptable to the manufacturer, and damage results, the warranty may not be honored. The manufacturer will not take the responsibility for: Poor deck design that causes damage to the roofing system or other parts of the house. Defects or damage caused by the materials used as a roofing base, over which the shingles are applied. Damage to the shingles caused by settlement, distortion, failure, or cracking of the roof deck. Defects, damage or failure caused by the application of the shingles not in strict adherence within written instructions of the manufacturer. Application over wood that has hard projections, such as partially driven nails, which can cause damage to the shingles or underlayment applied above. Perimeter Edge Flashing (Drip Edge): Rake Drip Edge Flashing: Install 26gauge painted steel drip edge on all rake edges to protect against wind driven rain. Underlayment: Step1 Winterguard Leak Barrier Install around all pipe penetrations, chimney and skylights, roof slopes less than 18 degrees. A long lasting self - sticky modified asphalt on a glass reinforcement. Winterguard is warranted against leaks and is not destroyed when nails are driven thru it, because it seals around nails as they are driven. Underlayment: Step2 Underlayment shall consist of ( 1 ) layer of Rex Synthetic Underlayment secured to the roof deck. Palisade ids designed with high grade polymers that deliver 30X greater tear strength than asphalt felt underlayment. Palisade contains an advanced flame retardant polymer formation and is CLASS A FIRE RATED. Palisade is designed with COOL BLUE color technology delivering low surface temperature and low energy absorption to keep attic temperatures lower during the summer months. Flashing: Paint all flashings to match color of roof. All flashings will and be installed according to the manufactures approved specifications Install New Painted Metal Valley Install New edge Metals Install New Roof Jack Flashings Install ( 1 ) New Chimney Saddle Flashing Install ( ) New Skylight Saddle Flashing Install ( ) ft Rain Diverter All flashings will and be installed according to the manufactures approved specifications 5

6 Fasteners for Roofing Application: Nailing locations vary by shingle style and roof slope. It is critical to fasten the shingles in the proper locations in order to achieve designed performance. Improperly fastened shingles may blow off or slip out of place. Nails shall be barbed or rough shanked and must be corrosion resistant. Nails shall be a minimum of 11-gauge and nail head diameter shall be a minimum of 3/8. Nail shanks must be long enough to penetrate the roofing and then go ¾ into solid wood, plywood or non-veneer wood decking, or through the thickness of the decking, which ever is less. It is Westshore Roofing policy not to staple shingles to the roofing deck. Ventilation: All insulated attic spaces shall be ventilated with openings to the exterior of not less than 1 square foot of ventilation for every 300 square feet of attic floor space. This must be balanced equally between the soffit and the ridge of your home. All ventilation shall be designed to prevent the entry of rain and snow and insects Good ventilation creates a cooler attic in the summer and a drier attic in the winter. In a home with poor ventilation the heat in the attic may eventually reach 140 degrees on a 90-degree day. Also, an overheated attic, combined with moisture, can be damaging to the roof decking and roofing shingles, causing them to distort and deteriorate prematurely. In the winter, the moist warm air from the lower portions of your home rise through the ceiling area into the attic. In the cold attic the warm moist air condenses on the cold surface of the rafters, the nails and other metal, and the attic side of the roof deck. The condensation can swell the roof deck, causing waviness and buckling of both roof deck and shingles. This high level of condensing moisture may also promote a perfect mold-breeding environment which leads to replacing the affected roof decking and correcting the ventilation problem. The water can rot the roof deck and decrease nail-holding capability. Severe condensation can drip onto the insulation, reducing its effectiveness and seep through the ceiling. Good ventilation will move the hot air next to the roof deck out of the attic in the summer, and will dilute and remove the moist air in the winter before it causes damage. Also, proper ventilation and sufficient insulation helps keep a more uniform temperature on the underside of the roof deck in the winter. All Shingle Manufacturers state that proper ventilation must be installed according to their minimum requirements or shingle warranties may be null and void. Shingle vent II-7 ridge vent. Roof Shown: Certainteed Presidential Install ( 62 ) feet Provides ( 992 ) Square Inches Net Free ventilation 6

7 Certainteed LandMark Lifetime Limited Warranty Lifetime Limited Transferable Warranty (Includes 20 year 3 Star Protection Plan) 5-year Installation Warranty/Workmanship Weight 2.3 lb. per sq.ft. Remove & Dispose _2 layers of existing roof Install Winterguard leak barrier over low slope section of roof. TOTAL COST $7, Install 1 Layer Palisade Synthetic felt Underlayment Install new jacks, vents, flashings, and painted enamel valley metal Install ( 1 ) new Chimney saddle flashing Install ( ) new Skylight saddle flashing Install ( ) ft Rain Diverter Paint all metal flashings to match roofing system Install new high definition Mountain Ridge trim on hips & ridges. UL Class A Fire Resistance Install 62 ft of Ridge Ventilation Shingle Vent 2 Exhaust Ventilation Certainteed LandMarkPro Lifetime Limited Warranty Lifetime Limited Transferable Warranty (Includes 20 year 3 Star Protection Plan) 5-year Installation Warranty/Workmanship Weight 2.7 lb. per sq.ft. Remove & Dispose _2 layers of existing roof Install Winterguard leak barrier over low slope section of roof. TOTAL COST $ 8, Install 1 Layer Palisade Synthetic felt Underlayment Install new jacks, vents, flashings, and painted enamel valley metal Install ( 1 ) new Chimney saddle flashing Install ( ) new Skylight saddle flashing Install ( ) ft Rain Diverter Paint all metal flashings to match roofing system Install new high definition Mountain Ridge trim on hips & ridges. UL Class A Fire Resistance Install 62 ft of Ridge Ventilation Shingle Vent 2 Exhaust Ventilation Certainteed LandMark Premium Lifetime Limited Warranty Lifetime Limited Transferable Warranty (Includes 20 year 3 Star Protection Plan) 5-year Installation Warranty/Workmanship Weight 3.0 lb. per sq.ft. Remove & Dispose _2 layers of existing roof Install Winterguard leak barrier over low slope section of roof. TOTAL COST $8, Install 1 Layer Palisade Synthetic felt Underlayment Install new jacks, vents, flashings, and painted enamel valley metal Install ( 1 ) new Chimney saddle flashing Install ( ) new Skylight saddle flashing Install ( ) ft Rain Diverter Paint all metal flashings to match roofing system Install new high definition Mountain Ridge trim on hips & ridges. UL Class A Fire Resistance Install_62 ft of Ridge Ventilation Shingle Vent 2 Exhaust Ventilation 7

8 Certainteed LandMark TL Lifetime Limited Warranty Lifetime Limited Transferable Warranty (Includes 20 year 3 Star Protection Plan) 5-year Installation Warranty/Workmanship Weight 3.05 lb. per sq.ft. Remove & Dispose _2 layers of existing roof Install Winterguard leak barrier over low slope section of roof. TOTAL COST $9, Install 1 Layer Palisade Synthetic felt Underlayment Install new jacks, vents, flashings, and painted enamel valley metal Install ( 1 ) new Chimney saddle flashing Install ( ) new Skylight saddle flashing Install ( ) ft Rain Diverter Paint all metal flashings to match roofing system Install new high definition Mountain Ridge trim on hips & ridges. UL Class A Fire Resistance Install 62 ft of Ridge Ventilation Shingle Vent 2 Exhaust Ventilation Certainteed Presidential Shake Lifetime Limited Warranty Lifetime Limited Transferable Warranty (Includes 20 year 3 Star Protection Plan) 5-year Installation Warranty/Workmanship Weight 3.5lb. per sq.ft. Remove & Dispose _2 layers of existing roof Install Winterguard leak barrier over low slope section of roof. TOTAL COST $9, Install 1 Layer Palisade Synthetic felt Underlayment Install new jacks, vents, flashings, and painted enamel valley metal Install ( 1 ) new Chimney saddle flashing Install ( ) new Skylight saddle flashing Install ( ) ft Rain Diverter Paint all metal flashings to match roofing system Install new high definition Mountain Ridge trim on hips & ridges. UL Class A Fire Resistance Install 62 ft of Ridge Ventilation Shingle Vent 2 Exhaust Ventilation Certainteed Presidential TL - Lifetime Warranty Lifetime Limited Transferable Warranty (Includes 20 year 3 Star Protection Plan) 5-year Installation Warranty/Workmanship Weight 4.8lb. per sq.ft. Remove & Dispose _2 layers of existing roof Install Winterguard leak barrier over low slope section of roof. TOTAL COST $10, Install 1 Layer Palisade Synthetic felt Underlayment Install new jacks, vents, flashings, and painted enamel valley metal Install ( 1 ) new Chimney saddle flashing Install ( ) new Skylight saddle flashing Install ( ) ft Rain Diverter Paint all metal flashings to match roofing system Install new high definition Mountain Ridge trim on hips & ridges. UL Class A Fire Resistance Install 62 ft of Ridge Ventilation Shingle Vent 2 Exhaust Ventilation 8

9 SAVE energy, money and more. With Low E Thermal Sheet, indoor temperatures stay more comfortable, and homeowners save money on heating and cooling costs. Some states even require radiant barrier on new homes to increase energy-efficiency. Radiant Heat from the sun penetrates the roof and walls of a house in the summer, but a radiant barrier blocks that radiant heat from entering the home. In the winter, a radiant barrier keeps indoor heat from escaping through the roof and walls and reflects it back into the house. As a result, your house stays cooler in the summer and warmer in the winter. Cost $1, (Optional) 9

10 Gutters & Down Spouts 5 ¼ straight Fascia Install ( 126 ) ft Seamless. Pre-painted, 5 ¼ Aluminum Install ( 5 ) 2 x3 corrugated pre-painted aluminum down spouts Cost $ All gutters are fastened to roof with 2 long screws and rubber grommets. We do not use nails, as these tend to become loose over time, causing the gutter to pull away from the roof eaves. This allows water intrusion to the roof deck and is a common cause of dry rot damage. Gutter Screens Install ( ) ft UltraFlow Steel Power Coated Gutters Screen $ Install ( ) ft Leaf Shelter. (Aluma Flow louver design) Gutters Screen $ Available in an assortment of colors. Soffit Screens. $35.00 each Sun Tunnels 10 Rigid Tube $ Rigid Tube $

11 SELECT ShingleMaster (SSM) - This is the top level CertainTeed roofing credential, and represents the highest standards of excellence, quality and knowledge in the shingle roofing industry. An SSM has shown extensive knowledge of shingle installation and quality through rigorous testing, and have provided CertainTeed with proof of workers' compensation and liability insurance. Only an SSM can offer you the highest level of SureStart PLUS extended warranty coverage when an Integrity Roof System is installed on your home. Choosing a GAF Master Elite contractor is your assurance that you ll be dealing with a quality, reputable, and dependable professional contractor. Because of GAF s stringent standards, only 3% of all roofing contractors have qualified as Master Elite contractors Standard Warranty - free Warranty Options: Non-Prorated Coverage - 1st 10 years Material replacement Labor Cost to reinstall shingles Certainteed 3 Star Warranty Protection - Included in Roof Price Non-Prorated Coverage - 1st 20 years Material replacement Labor Cost to reinstall shingles Removal Cost of defective material Certainteed 4 Star Warranty Protection & GAF Smart Choice Warranty - Cost $ Non-Prorated Coverage - 1st 50 years Material replacement Labor Cost to reinstall shingles Removal Cost of defective material Disposal Cost of material Certainteed 5 Star Warranty Protection & GAF Golden Pledge Warranty- Cost $ Non-Prorated Coverage - 1st 50 years Material replacement Labor Cost to reinstall shingles Removal Cost of defective material Disposal Cost of material Workmanship is covered by manufacture for 25 years 11

12 Fascia Gutter Style Options. Choose one Single Line Double Line Broad Band This Proposal is based upon current 12

13 material and labor cost. This Proposal may be withdrawn if not accepted within thirty (30) days. OPTIONS & ACCESSORIES INVESTMENT Roof $ Gutters $ ACCEPTED AND AGREED: The prices, specifications and conditions contained herein this Agreement are satisfactory and hereby accepted. You are authorized to perform the work as specified. OWNER: DATE: Notice of cancellation for Home Solicitation Agreement: To the extent this transaction constitutes a home solicitation contract or offer as defined in California Civil Codes Section , this paragraph shall constitute notice to the buyer concerning his rights of cancellation. To the extent this transaction falls within Civil Codes Section , etc., contractor notifies the buyer as follows: You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. Attorney s Fee: If contractor is required to hire an attorney to take any steps to collect any money owing to Contractor for work or supplies provided, owner agrees to pay contractor all attorneys fees and expenses incurred in such collection efforts without regard to any court fee schedule. Acknowledgement of Receipt: Owner hereby acknowledges receipt of a copy of this agreement bearing his signature. OWNER: DATE: We at Westshore Roofing like to thank you in advance for this opportunity to review and prepare this proposal for your home. We are totally committed to providing 100% Customer Satisfaction before, during and after your roofing project. We have taken pains to make sure this proposal is suited to meet your needs for now and in the future. Please call me at your convenience if you have any questions at all. We look forward to working with you. TOTAL TERMS: 10% DEPOSIT (MAX $1,000) $ 60% upon delivery of Materials $ 30% Upon Completion 13

14 TERMS AND CONDITIONS Note about extra work and change orders: Extra work and change orders become part of the Contract once the order is prepared in writing and signed by the parties. The order must describe the scope of the extra or change, the cost to be added or subtracted from the Contract, and the effect the order will have on the schedule of progress payments. Change orders required by the building department at the job site shall be considered incorporated into the Contract without being signed by both parties. This proposed agreement is not binding until accepted and approved at Contractor's (not the salesperson's) execution here of. Should work not commence within 100 days from approximate start date on front of this Agreement, contractor shall have the right to cancel this Agreement. Contractor is not responsible for TV antennas, guy wires, cable service or adjustment of rooftop equipment. Contractor is not responsible for re-pitching, re-sloping, or correcting existing roof surfaces to eliminate ponding or collection of water unless expressly stated herein. Contractor is not responsible for pre-existing conditions or damages (such as cracked driveways, or sagging roof members) resulting therefore; or for damages caused by prior roof leaks, or the repair of any such damage. Contractor agrees to use reasonable care when moving, raising or lifting any existing objects such as solar panels, gutters, conduits, signs, skylights, air conditioners, etc. but shall assume no responsibility for the operation of, or damage to, any such objects. Payments: All payments are due within five days of billing. Finance Charge. Over due payments will bear 18% percent interest per annum. Contractor shall be deemed to have substantially commenced work at the earlier of (1) the time materials or equipment are delivered to the job site, or (2) the time removal or modification of any existing roof covering begins. Contractor's failure, without lawful excuse to substantially commence work within 20 days from the approximate date specified in this contract when work will begin is a violation of the Business and Professions Code Sect Contractor shall have the right to stop work and keep the job idle if payments are not made to Contractor when due. If Contractor stops work for non-payment, Owner/Buyer shall be responsible for any damage, delay weather damage, property damage, loss or injury to materials or equipment, additional work, or re-work resulting during or from such delay. Any controversy or claim arising out of or related 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 upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. Disputes within the monetary limit of the Small Claims Court shall be litigated in such court at the request of either party. In case one or more of the provisions of this Contract 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. Any damages for which Contractor may be liable to Homeowner shall not in any event exceed the cash price of this Contract. Asbestos and Hazardous Materials. Homeowner represents that the property being remodeled does not contain asbestos and/or other hazardous materials. This Contract does not contemplate the removal of, testing for, disturbances, or disposal of asbestos, asbestos material, or other hazardous substances. If such items are found, Contractor may cease work and request additional compensation from Homeowner for appropriate corrective work and any other additional expenses incurred in connection with the corrective work. Any Surplus materials left over after this contract has been completed are the property of Contractor and will be removed by WSR, Inc. No credit is due Owner on returns for any surplus materials because this contract is based upon a complete job. All salvage resulting from work under this contract is the property of Contractor. Upon completion, and after removing all debris and surplus materials, wherever possible, Contractor will leave premises in a neat, broom clean condition. Any debris consisting of dust, dirt, asphalt, or small bits of materials that settle into attics, garage areas being worked over with open beam ceilings or no attic, is unavoidable and Contractor shall not be responsible for this cleanup. Contractor recommends that Owner lay out drop cloths to protect such areas wherever owner discovers debris infiltration. Initial Date 14

15 Contractor s Limited Warranty Contractor agrees to furnish the materials for the project and complete the work in a workmanlike manner. All materials furnished under this Contract shall be construction grade and meet industry standards. Where brand names have been specified, Contractor may, at his option, select substitutes when such substitutions are due to unavailability or other circumstances beyond Contractor s control. All substitutions shall be consistent in quality and character to the selections previously specified. THE LIABILITY OF THE CONTRACTOR FOR DEFECTIVE MATERIALS OR INSTALLATION IS HEREBY LIMITED TO THE REPLACEMENT OR CORRECTION OF THE DEFECTIVE MATERIAL AND/OR INSTALLATION, AND NO OTHER CLAIMS OR DEMAND WHATSOEVER SHALL BE MADE UPON OR ALLOWED AGAINST CONTRACTOR. THIS LIMITED WARRANTY EXTENDS ONLY TO OWNER AND IS NOT TRANSFERRABLE. THERE IS NO IMPLIED WARRANTY OF MERCHANTIBILITY NOR ANY IMPLIED WARRANTY OF FITNESS FOR ANY PARTICULAR PURPOSE. THERE ARE NO WARRANTIES EITHER EXPRESS OR IMPLIED WHICH EXTEND BEYOND THE DESCRIPTION WITHIN THIS PARAGRAPH. THIS WARRANTY SHALL TERMINATE FIVE YEARS FROM THE DATE OF COMPLETION. NOTE THAT EQUIPMENT, ASSEMBLIES, OR UNITS PURCHASED BY CONTRACTOR INCLUDED IN THIS CONTRACT ARE SOLD AND INSTALLED SUBJECT TO THE PROCESSOR S OR MANUFACTURER S GUARANTEE OR WARRANTIES, AND NOT CONTRACTOR S. TO THE EXTENT PERMITTED BY APPLICABLE LAW, ALL WARRANTIES GIVEN BY MANUFACTURER S PERTAINING TO MATERIALS USED BY CONTRACTOR IN CONNECTION WITH THIS PROJECT WILL BE PASSED THROUGH AND INURE TO THE BENEFIT OF OWNER. Notice to Owner Under the California Mechanics Lien Law any contractor, subcontractor, laborer, supplier or other person who helps to improve your property, but has not been paid for his 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 subcontractors, laborers or suppliers remain unpaid. To preserve their right to file a claim or lien against your property, certain claimants such as contractors or material suppliers are required to provide you with a document entitled Preliminary Notice. Original (or prime) contractors or 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. TO ENSURE EXTRA PROTECTION FOR YOURSELF AND YOUR PROPERTY, YOU MAY WISH TO TAKE ONE OR MORE OF THE FOLLOWING STEPS: 1. Require your contractor to supply you with an 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 recorders office for your 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 the project. This will help to ensure 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 sign by each material supplier, Subcontractors and laborers 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 person signing these releases lost the right to file a claim against your property. In other types of construction this protection may still be important, but may not be complete. TO PROTECT YOURSELF UNDER THIS OPTION YOU MUST BE CERTAIN THAT ALL MATERIALS SUPPLIERS, SUBCONTRACTORS OR LABORERS HAVE SIGNED. Initial Date 15

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