PENNSYLVANIA BUILDERS ASSOCIATION INSTRUCTIONS TO HOME IMPROVEMENT MODEL CONTRACT STANDARD FORM Introduction

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1 PENNSYLVANIA BUILDERS ASSOCIATION INSTRUCTIONS TO HOME IMPROVEMENT MODEL CONTRACT STANDARD FORM Introduction Below are instructions for use with the Home Improvement Model Contract Standard Form, which applies to home improvements totaling more than $1000. This contract is provided by the Pennsylvania Builders Association ( PBA ) and is intended for use solely by its members in good standing. Contractors are strongly encouraged to consult with an attorney of their choice prior to using this contract, as the contract was not drafted to address the specific needs and home improvement projects of each contractor. This contract is intended to provide the minimum requirements of the Home Improvement Consumer Protection Act (hereinafter the Act ) presently in effect. The PBA makes no representations or warranties with respect to the enforceability, suitability, or legality of this contract and, as stated above, the contract provides only the basic provisions required for a home improvement contract according to the Act. In addition, the PBA disclaims any liability resulting from the use of this contract. This contract and accompanying commentary are for general information purposes only and are not intended to be legal advice. Instructions 1. Insert the date of the transaction. 2. Contractors must include their home improvement contractor registration number received from the Bureau of Consumer Protection ( BCP ), Office of Attorney General on all home improvement contracts and all other forms of advertisement for that matter. If you have not registered with the BCP, visit for an explanation on who should register and instructions on how to do so. 3. The BCP maintains a toll-free telephone number ( ) for the purpose of allowing callers to verify the registration of a contractor and to obtain information found on the BCP s website. The toll-free telephone number must be included in the contract. 4. Contractors must include their name, address* and telephone number. 5. Owner s contact information should be inserted including name, address and telephone numbers to assist in contacting the owner. 6. Identify the location of where the home improvement is to be performed by the contractor. 7. Include the estimated dates the contractor will start and complete work on the Project. 8. Contractor shall carefully describe the work to be performed under the contract. 9. The materials to be used by the contractor, including those requiring special order, must be identified in the contract. Special order materials must be listed on an attachment. {L }

2 10. The plans and work specifications describing the home improvements must be included in the contract by attachment. NOTE: THE WORK TO BE PERFORMED, THE MATERIALS TO BE USED, THE PLANS AND SPECIFICATIONS CANNOT BE CHANGED ABSENT A WRITTEN CHANGE ORDER SIGNED AND DATED BY CONTRACTOR AND OWNER AND MADE A PART OF THE CONTRACT BY ATTACHMENT. 11. Contractor may select the Price Adjustment Clause for Specified Materials and, if selected, must attach the completed (signed and dated) clause to the contract. 12. Include the total sales price due and separately identify any down payment/deposit, the cost (advanced) for special order materials and the total balance due. A payment schedule setting forth all applicable payment terms, including but not limited to, payment amounts, due dates and late fees should be attached to the contract. 13. Subcontractors to be used on the Project who are known at the time of signing the contract, must be identified by name, address*and telephone number in the contract. The trade or portion of work the subcontractor will be performing should also be included. The Act does not require a contractor to include the registration number of a subcontractor; however, the BCP interprets the Act as requiring subcontractors to register. 14. Contractors must agree to maintain liability insurance covering personal injury and property damage caused by a contractor performing home improvement work in an amount not less than $50,000 for each. Contractors must identify the current amount of coverage at the time the contract is signed. 15. The inclusion of special clauses in the contract such as Contractor s Limited Warranty, Notice of Claim and Right to Repair or Arbitration or any other special clause must be expressly indicated and attached to the contract. Each special clause should be signed and dated by Contractor and Owner(s). 16. Contractor and owner(s) must sign and date the contract in the presence of a witness evidencing their intent to be legally bound. Contractors must also provide owners with a copy of the contract and a copy of the Notice of Cancellation form at the time of signing the contract. 17. Contractors should be mindful of provisions and pages requiring the initials of contractor and owner and initial where necessary. *Address must be an address other than a post office box number i.e. physical address required PLEASE SEE THE HOME IMPROVEMENT MODEL CONTRACT GUIDELINES TO CONTRACTORS FOR A COMPREHENSIVE DISCUSSION OF THE HOME IMPROVEMENT MODEL CONTRACT STANDARD FORM PROVISIONS.

3 HOME IMPROVEMENT MODEL CONTRACT STANDARD FORM TOTAL SALES PRICE MORE THAN $1000 All Contractors are encouraged to have this Contract reviewed by an Attorney. HOME IMPROVEMENT MODEL CONTRACT HOME IMPROVEMENT CONTRACT (the Contract ) date:. A. PARTIES TO THE CONTRACT Home Improvement Contractor Registration Number: PAOAGHIC C Attorney General Bureau of Consumer Protection Toll Free Number: Contractor: Mailing Address: Physical Address: City: State: Zip: Telephone Number: ( ) - Owner Name: Owner Name: Mailing Address: City: State: Zip: Telephone Number: ( ) - Telephone Number: ( ) - Project Location: B. HOME IMPROVEMENTS 1. START AND COMPLETION OF WORK a. The approximate starting date of the home improvement work (hereinafter the Project ) is. The approximate completion date of the Project is. The Contractor and Owner hereby acknowledge that the approximate starting and completion dates may differ due to any of the items listed below in (b) of this section. b. Owner acknowledges that Contractor will not be responsible to Owner for delays in starting or completion due to factors including, but not limited to: 1. changes by the Owner in the work to be performed, specifications or materials to be used; 2. delays in receiving the materials to be used under the Contract or any Written Change Order; 3. delays resulting from acts of God or adverse weather conditions; 1 Contractor Owner {L } Initials Initials

4 4. delays caused by shortages of labor, availability of materials or equipment; 5. delays caused by the failure of Owner to perform any of Owner s obligations under this Contract; 6. delays caused by concealed conditions or discovered hazardous materials; and 7. other causes reasonably beyond Contractor s control. 2. DESCRIPTION OF WORK; MATERIALS; PLANS AND SPECIFICATIONS Contractor will furnish all material and perform all labor in a good workmanlike manner with respect to the Project at the Owner s Property. The work specifications for the Project are described below. a. Description of the work to be performed: b. The following materials will be furnished and used by the Contractor in performance of the Project subject to availability. If the materials to be used are discontinued or difficult to obtain due to unforeseen circumstances, the Contractor may use materials of like-kind and quality. Materials: SPECIAL ORDER MATERIALS ARE NON-STOCK ITEMS THAT CANNOT BE RETURNED ONCE ORDERED BY CONTRACTOR. Any special order materials for the project are listed on Attachment, which is made a part of the Contract, and the agreed to payment terms are as follows: When Contractor orders the materials, Owner shall, if required by Contractor, no later than business days after receipt of Contractor s invoice pay the entire amount of special order materials in addition to the 1/3 deposit already received. Owner acknowledges that special order materials cannot be returned once ordered by Contractor and Owner is solely responsible for the cost of the materials whether or not they are used for the Project. If the Contract is canceled for any reason, the cost of special order materials will not be refunded by Contractor and the materials will be given to Owner. The special order materials will not be ordered before expiration of the Owner s 3-day Right of Cancellation. c. Plans and Specifications. 1. The plans for the Project, if applicable, are attached hereto and made a part of the Contract as Attachment. Owner Initials 2 Contractor Owner L } Initials Initials

5 2. The work specifications for the Project are attached hereto and made a part of the Contract as Attachment. Owner Initials d. Written Change Order(s). Any alteration or deviation from the original work to be performed, plans, specifications and materials used and furnished by Contractor as provided in this section must be carried out upon written change order signed and dated by both the Owner and the Contractor. This includes any change in price and additional time needed to complete the Project due to the change. Change Orders, when signed, are made a part of this Contract at Attachment. If there is more than one Owner, each Owner authorizes, by the signing of this Contract, the other Owner(s) to sign any written change order on his/her behalf as if it were signed by all other Owner(s). Owner Initials e. Price Adjustment. If checked, see Price Adjustment Clause For Specified Materials attached as Attachment and made a part of the Contract. C. TOTAL SALES PRICE; PAYMENT 1. The Total Sales Price of the Project is $. After the Deposit* of $, paid at the signing of this Contract, less Advance of $ for the purchase of Special Order Materials, the balance due to Contractor is $. *See Instructions for deposit limitations. 2. Payment Schedule. Attached and marked as Attachment is a Payment Schedule made a part of the Contract which shall be followed by Contractor and Owner. All payments are due within days of invoice. Payments received days after the due date may be subject to the interest rate set forth in the payment schedule. Owner s failure to make any payment when due shall excuse Contractor from continuing with performance of the Project. D. SUBCONTRACTORS 1. The following subcontractors are expected to work on the Project: a. Name: Street address*: Telephone: b. Name: Street address*: Telephone: If the above is left blank, there are no known subcontractors on the Project. 3 Contractor Owner L } Initials Initials

6 2. The subcontractor information above does not bind the Contractor and other subcontractors may be used and substituted at anytime by the Contractor. Owner shall not contract for any work for the Property directly with any subcontractor. *A Post Office box alone is an insufficient address. E. LIABILITY INSURANCE At the time of signing this Contract, Contractor maintains the following amount of insurance coverage: $ (personal injury liability insurance) and $ (property liability insurance). Contractor may reduce the amount of coverage during the Contract not to an amount less than $50,000, in which event Contractor will notify Owner in writing within ten (10) days following any such change. F. SPECIAL CLAUSES Special clauses intended by Contractor and Owner to be made a part of this Contract shall be checked below and are identified as follows: Contractor s Limited Warranty Attachment Notice of Claim and Right to Repair Attachment Arbitration Attachment Additional special clauses are specified below: G. MISCELLANEOUS 1. ENTIRE AGREEMENT This Contract, including any amendments agreed to and signed by Contractor and Owner and the notices and supplements which are attached and made a part of this Contract, constitutes the entire agreement between Contractor and Owner. This Contract supersedes all previous proposals, representations, understandings and communications among the parties, whether written or oral. No changes, additions or amendments to this Contract whatsoever are binding absent a writing signed by Contractor and Owner. 2. LEGAL COMPLIANCE AND GOVERNING LAW This Contract shall be governed by the laws of the Commonwealth of Pennsylvania. 4 Contractor Owner L } Initials Initials

7 Therefore, the Project shall be completed in compliance with all laws, ordinances, rules and regulations of the applicable Commonwealth government. 3. ASSIGNMENTS This Contract shall not be assigned by the Owner without first receiving the Contractor s written consent, which may be denied in the Contractor s sole discretion. 4. MEMBERSHIP ACKNOWLEDGMENT Contractor by signing this Contract confirms membership in good standing in the Pennsylvania Builders Association. H. NOTICE OF RIGHT OF CANCELLATION*: YOU, THE OWNER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION WITHOUT PENALTY REGARDLESS OF WHERE THE CONTRACT WAS SIGNED. SEE THE ATTACHED NOTICE OF CANCELLATION** FORM FOR AN EXPLANATION OF THIS RIGHT. *This provision is inapplicable in transactions where emergency work is authorized under the Unfair Trade Practices and Consumer Protection Law and the proper form is signed by Contractor and Owner. **The Notice of Cancellation is attached to this Contract, marked as Attachment and made a part of the Contract. Contractor and Owner, intending to be legally bound hereby, have caused this Contract to be duly signed the day and year first above written. BY SIGNING THIS CONTRACT, OWNER(S) ACKNOWLEDGE THAT THEY HAVE CAREFULLY READ AND UNDERSTAND THE ENTIRE CONTRACT, HAVE BEEN PROVIDED THE OPPORTUNITY TO REVIEW THE CONTRACT WITH AN ATTORNEY OR OTHER ADVISOR AND ARE NOT RELYING ON ANY ORAL REPRESENTATIONS OF CONTRACTOR. OWNER S SIGNATURE BELOW SHALL SERVE AS ACKNOWLEDGEMENT AND RECEIPT OF A COPY OF THIS CONTRACT. 5 Contractor Owner L } Initials Initials

8 WITNESS: WITNESS: OWNER: Print Name Print Name CONTRACTOR: Print Name OWNER SHALL IMMEDIATELY UPON SIGNING BE PROVIDED WITH A COPY OF THE CONTRACT AND ALL REQUIRED NOTICES. This Contract has been given Plain Language Approval by the Commonwealth of Pennsylvania Office of Attorney General. In the opinion of the Office of Attorney General, a preapproved consumer contract meets the Test of Readability under 73 P.S of the Plain Language Consumer Contract Act. Preapproval of a consumer contract by the Office of Attorney General only means that simple, understandable and easily readable language is used. It is not an approval of the contents or legality of the contract. 6 Contractor Owner L } Initials Initials

9 ATTACHMENT SPECIAL ORDER MATERIALS [SEE FOLLOWING PAGE] Contractor Initials Owner Initials {L }

10 HOME IMPROVEMENT MODEL CONTRACT CHANGE ORDER ATTACHMENT CHANGE ORDER # Home Improvement Contractor Registration Number: PAOAGHIC C Attorney General Bureau of Consumer Protection Toll Free Number: Contractor: Mailing Address: Physical Address: City: State: Zip: Telephone Number: ( ) - Owner Name: Owner Name: Mailing Address: City: State: Zip: Telephone Number: ( ) - Telephone Number: ( ) - This Change Order applies to the Contract dated between Contractor and Owner identified above. Its purpose is to alter or amend the original work to be performed, plans, specifications or materials (including special order materials) to be used and furnished by Contractor as follows: Due to the change in the Contract, the New Total Sales Price is $. The Old Total Sales Price was $. The New Total Sales Price consists of base price $ less down payment $ (due ) plus advances for special order materials $ (due ). Full payment is due to the Contractor on or before. Based on this Change Order, the new approximate completion date of the Project is. OWNER: Print Name CONTRACTOR: Print Name Print Name CONTRACTOR WILL NOT PROCEED ON THIS CHANGE ORDER UNLESS SIGNED & DATED BY OWNER(S). {L }

11 ATTACHMENT PAYMENT SCHEDULE [SEE FOLLOWING PAGE] Contractor Initials {L } Owner Initials

12 HOME IMPROVEMENT MODEL CONTRACT NOTICE OF CLAIM AND RIGHT TO REPAIR ATTACHMENT NOTICE OF CLAIM AND RIGHT TO REPAIR Contractor and Owner agree to be bound by the following procedure in the resolution of any home improvement defect claim for which Owner contends Contractor should be liable or responsible under any express warranty provision, any statutory warranty requirement, any implied warranty, including an implied warranty of habitability or an implied warranty of workmanlike construction, under any allegation of negligence, breach of contract, misrepresentation or fraud, or any other asserted grounds. Not later than thirty (30) days after discovery of an asserted home improvement defect, Owner shall serve Contractor with written notice of an asserted home improvement defect, and shall specify the nature of the asserted defect. Any additions to the description of the asserted defect(s) shall require the service of a separate timely written notice, as provided in this agreement. Upon service of the written notice, Owner shall provide Contractor with reasonable and timely access to the Project location for inspection of the asserted defect(s). Inspection shall be undertaken not more than days from the date of service. Contractor shall respond to Owner in writing not more than days from the date of inspection. Contractor s written response shall include either an offer to remedy or repair the asserted defect, and/or an offer to settle the claim by monetary payment, or a denial of liability or responsibility for the asserted claim. The failure of Contractor to inspect and/or respond as provided in this agreement, or the denial by Contractor of liability or responsibility, shall permit Owner to take immediate action to resolve any asserted home improvement defect claim set forth in the written notice, in accordance with the Contract. {L }

13 HOME IMPROVEMENT MODEL CONTRACT NOTICE OF CLAIM AND RIGHT TO REPAIR Owner agrees to accept any reasonable offer made by Contractor to remedy, repair and/or pay such monetary damages where the damage may be closely caused by the asserted home improvement defect. The failure of Owner to accept a reasonable offer made by Contractor, shall limit any recovery by Owner to the express terms of Contractor s reasonable offer. Upon acceptance by Owner, Contractor shall have days to comply with the terms of the accepted offer. Owner agrees to take no action to initiate arbitration or litigation, whichever is agreed to under the Contract, against the Contractor pertaining to any home improvement defect claim, unless and until the above stated procedures have been followed and the prescribed time periods have expired without a resolution as provided in this agreement. Failure to adhere to these procedures and the prescribed time periods shall serve as ground for summary dismissal, without prejudice, of any arbitration or judicial proceeding filed by Owner against Contractor pertaining to any home improvement defect claim. Any applicable statute of limitations shall be tolled for the period of time necessary to comply with the procedures and prescribed time periods set forth above. Those provisions shall not, however, further extend any warranty period. It is specifically agreed that any and all efforts by Contractor to remedy or repair any asserted home improvement defect shall not operate to extend any applicable statute of limitations, shall not cause a new statute of limitations period to commence from the date of any repair, and shall not cause a new statute of limitations to commence or be created on account of any remedy or repair effort. It is specifically agreed that any and all efforts by Contractor to remedy or repair any asserted home improvement defect shall not operate to extend any existing warranty period, and shall not operate to create a new period of warranty. {L }

14 HOME IMPROVEMENT MODEL CONTRACT NOTICE OF CLAIM AND RIGHT TO REPAIR OWNER: CONTRACTOR: {L }

15 HOME IMPROVEMENT MODEL CONTRACT ARBITRATION CLAUSE ATTACHMENT ARBITRATION IMPORTANT NOTE: THIS IS AN AGREEMENT TO ARBITRATE, MEANING THAT IF A DISPUTE ARISES BETWEEN CONTRACTOR AND OWNER, CONTRACTOR OR OWNER SHALL BE REQUIRED TO SUBMIT ALL SUCH CLAIMS FOR DETERMINATION TO INDIVIDUAL(S) IN ACCORD WITH THIS ARBITRATION CLAUSE. ARBITRATION IS AN ALTERNATIVE TO FILING AN ACTION AND HAVING IT DECIDED BY A COURT. THIS BINDING ARBITRATION CLAUSE SHALL NOT BE EFFECTIVE UNLESS SIGNED AND DATED BY CONTRACTOR AND OWNER(S); THE DATE BEING THE SAME ON WHICH THE CONTRACTOR AND OWNER(S) SIGNED THE HOME IMPROVEMENT CONTRACT. DEMAND FOR ARBITRATION. IF CONTRACTOR OR OWNER DECIDES TO PURSUE ARBITRATION AFTER CONCLUDING THAT FURTHER NEGOTIATIONS WILL BE UNLIKELY TO LEAD TO A RESOLUTION OF THE DISPUTE, CONTRACTOR OR OWNER SHALL SUBMIT A WRITTEN NOTICE TO THE OTHER BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED (THE DEMAND ), DEMANDING BINDING ARBITRATION. THE DEMAND SHALL SPECIFICALLY DESCRIBE EACH ELEMENT THAT MAKES UP THE CLAIM, THE REMEDY AND/OR RELIEF SOUGHT AND THE CONTACT INFORMATION FOR THE INDIVIDUAL MAKING DEMAND AND HIS/HER COUNSEL, IF REPRESENTED. THE INDIVIDUAL RECEIVING THE DEMAND MAY WITHIN FIFTEEN (15) DAYS AFTER RECEIPT, SEND A DETAILED WRITTEN RESPONSE INCLUDING ANY CLAIMS HE/SHE MAY WISH TO RAISE AND/OR PROPOSED RESOLUTION. ARBITRATOR. THE DISPUTE SHALL BE DECIDED BY A SINGLE ARBITRATOR UNLESS THE DEMAND BY CONTRACTOR OR OWNER, OR THE WRITTEN RESPONSE TO THE DEMAND MADE WITHIN FIFTEEN (15) BUSINESS DAYS AFTER RECEIPT OF THE DEMAND, REQUESTS THAT A THREE-ARBITRATOR PANEL BE USED INSTEAD OF A SINGLE ARBITRATOR. THE ARBITRATOR(S) SHALL BE A PERSON WHO HAS WORKED IN THE AREAS OF RESIDENTIAL CONSTRUCTION FOR AT LEAST FIFTEEN (15) YEARS. WITHIN TWENTY (20) DAYS OF RECEIPT OF THE DEMAND, THE INDIVIDUAL RECEIVING THE DEMAND SHALL FORWARD THE NAMES OF AT LEAST TEN (10) POTENTIAL ARBITRATORS. THE INDIVIDUAL MAKING DEMAND SHALL SELECT, WITHIN TEN (10) DAYS AFTER RECEIPT OF THE LIST OF POTENTIAL ARBITRATORS, THE ARBITRATOR OR THREE ARBITRATOR PANEL FROM THE LIST PROVIDED. IF AN ARBITRATOR IS NOT ABLE TO SERVE, THE INDIVIDUAL MAKING DEMAND SHALL SELECT, FROM THE LIST PROVIDED BY THE OTHER, ANOTHER ARBITRATOR WITHIN TEN (10) DAYS AFTER ANY RESIGNATION, DISABILITY, INABILITY, OR OTHER FAILURE OF AN ARBITRATOR TO SERVE AS ARBITRATOR. WHEN THE PANEL CONSISTS OF MORE THAN ONE ARBITRATOR, A MAJORITY OF THE ARBITRATORS MUST MAKE ALL DECISIONS. {L } 1

16 HOME IMPROVEMENT MODEL CONTRACT ARBITRATION CLAUSE ATTACHMENT ALLOCATION OF FEE OF THE ARBITRATOR OR PANEL OF ARBITRATORS. THE COST OF THE ARBITRATION, INCLUDING WITHOUT LIMITATION THE ARBITRATOR OR ARBITRATORS COMPENSATION AND EXPENSES, SHALL BE PAID BY THE INDIVIDUAL (CONTRACTOR OR OWNER) WHOM THE ARBITRATOR DETERMINES HAS NOT PREVAILED IN SUCH PROCEEDING, OR SHALL BE PAID EQUALLY BY CONTRACTOR AND OWNER IF THE ARBITRATOR DETERMINES THAT NEITHER HAS PREVAILED. WHETHER OR NOT CONTRACTOR OR OWNER HAS PREVAILED SHALL BE DETERMINED BASED UPON WHETHER THE EITHER OBTAINED A FAVORABLE OR AN ADVERSE DECISION WITH RESPECT TO EACH COUNT OR CLAIM UNDER THE ARBITRATION. IF CONTRACTOR OR OWNER PREVAILS ONLY ON A PORTION OF THE TOTAL NUMBER OF COUNTS OR CLAIMS, THEN THE INDIVIDUAL THAT DOES NOT PREVAIL SHALL BE RESPONSIBLE FOR A PRO-RATA PORTION OF THE ARBITRATION COSTS. THE PORTION SHALL BE BASED ON THE NUMBER OF COUNTS OR CLAIMS FOR WHICH HE/SHE DID NOT PREVAIL AS COMPARED TO THE TOTAL NUMBER OF CLAIMS OR COUNTS RAISED. THE ARBITRATOR MAY REQUIRE CONTRACTOR OR OWNER TO PAY IN ADVANCE THE POTENTIAL COST OF THE ARBITRATION. ARBITRATION PROCEDURE. A. THE ARBITRATOR(S) SHALL CONDUCT A PRE-ARBITRATION TELEPHONE CONFERENCE WITH CONTRACTOR AND OWNER. NEITHER CONTRACTOR OR OWNER MAY HAVE DIRECT COMMUNICATION WITH THE ARBITRATOR(S) WITHOUT THE PARTICIPATION OF THE OTHER. IF ONE OR MORE ISSUES DIRECTLY OR INDIRECTLY RELATE TO ALLEGED DEFECTS IN DESIGN, MATERIALS OR CONSTRUCTION, THE ARBITRATOR(S) SHALL DIRECT THAT CONTRACTOR AND OWNER AND THEIR EXPERTS BE ALLOWED TO INSPECT, DOCUMENT (BY PHOTOGRAPH, VIDEOTAPE OR OTHERWISE) AND TEST THE ALLEGED DEFECTS. THE ARBITRATOR(S) SHALL HAVE THE AUTHORITY TO RESOLVE ANY DISPUTES RELATING TO THE INSPECTION, DOCUMENTATION AND TESTING OF THE ALLEGED DEFECTS. CONSISTENT WITH THE EXPEDITED NATURE OF ARBITRATION, THE ARBITRATOR(S) SHALL DIRECT: 1. THE PRODUCTION OF RELEVANT DOCUMENTS AND OTHER INFORMATION TO BE USED IN THE ARBITRATION (INCLUDING EXPERT REPORTS AND INFORMATION RELIED UPON BY THE EXPERTS); 2. THE NAME AND ADDRESS OF ANY WITNESSES TO BE CALLED; AND 3. A BRIEF SUMMARY OF THE TESTIMONY EXPECTED FROM EACH WITNESS. {L } 2

17 HOME IMPROVEMENT MODEL CONTRACT ARBITRATION CLAUSE ATTACHMENT B. AT LEAST FIVE (5) BUSINESS DAYS BEFORE THE HEARING, CONTRACTOR AND OWNER SHALL EXCHANGE COPIES OF ALL EXHIBITS, SWORN STATEMENTS AND ANY OTHER INFORMATION THEY INTEND TO SUBMIT AT THE HEARING, OTHER THAN EVIDENCE THAT WILL BE USED TO NEGATE A STATEMENT OR OTHER TYPE OF EVIDENCE (ALSO KNOWN AS REBUTTAL EVIDENCE). THE ARBITRATOR(S) IS AUTHORIZED TO RESOLVE ANY DISPUTES CONCERNING THE EXCHANGE OF INFORMATION OR OBJECTIONS TO SUCH INFORMATION. THERE SHALL BE NO OTHER DISCOVERY, EXCEPT AS INDICATED IN THIS SECTION OR AS ORDERED BY THE ARBITRATOR(S) IN EXTRAORDINARY CASES WHEN THE DEMANDS OF JUSTICE REQUIRE IT. C. THE ARBITRATION SHALL BE HELD WITHIN SIXTY (60) DAYS OF THE ARBITRATORS ACCEPTANCE OF THE APPOINTMENT. ARBITRATOR(S) SHALL SELECT THE DATE FOR THE ARBITRATION IN CONSULTATION WITH CONTRACTOR AND OWNER AND SHALL PROVIDE AT LEAST FOURTEEN (14) DAYS NOTICE OF THE HEARING. THE ARBITRATION HEARING SHALL TAKE PLACE AT THE PROPERTY, OR IN SUCH OTHER LOCATION WITHIN THE COUNTY WHERE THE PROPERTY IS LOCATED AS THE CONTRACTOR AND OWNER MAY MUTUALLY AGREE OR THE ARBITRATOR(S) SHALL ORDER. EITHER CONTRACTOR OR OWNER MAY BE REPRESENTED BY AN ATTORNEY AT THE HEARING PROVIDED THAT CONTRACTOR AND OWNER GIVE AT LEAST TEN (10) DAYS NOTICE TO THE OTHER AND TO THE ARBITRATOR(S). AWARD. THE ARBITRATOR(S) SHALL HAVE THE AUTHORITY TO AWARD ANY REMEDY OR RELIEF THAT A PENNSYLVANIA COURT COULD ORDER INCLUDING, WITHOUT LIMITATION, SPECIFIC PERFORMANCE OF ANY OBLIGATION CREATED UNDER THIS CONTRACT. JUDGMENT ON THE AWARD MAY BE ENTERED IN THE COURT OF COMMON PLEAS FOR THE COUNTY IN WHICH THE PROPERTY IS LOCATED, OR IN ANY OTHER COURT HAVING JURISDICTION. THE ARBITRATION AWARD SHALL BE BINDING AND NOT APPEALABLE TO ANY COURT ABSENT FRAUD OR OTHER IRREGULARITY. THE ARBITRATOR(S) SHALL APPLY THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA IN RESOLVING THE MATTER SUBMITTED TO ARBITRATION. THE ARBITRATOR(S) SHALL BE LIMITED TO INTERPRETATION OF THIS CONTRACT AND DISPUTES ARISING OUT OF THIS CONTRACT. THE AWARD SHALL BE MADE PROMPTLY BY THE ARBITRATOR, AND NO LATER THAN THIRTY (30) CALENDAR DAYS FROM THE DATE OF CLOSING THE HEARING, OR, IF ORAL HEARINGS HAVE BEEN WAIVED, FROM THE DATE OF THE TRANSMITTAL OF THE FINAL STATEMENTS AND PROOFS TO THE ARBITRATOR. CONTRACTOR AND OWNER SHALL ACCEPT AS NOTICE AND DELIVERY OF THE AWARD THE PLACING OF THE AWARD OR A TRUE COPY THEREOF IN THE MAIL ADDRESSED TO CONTRACTOR/OWNER OR THEIR REPRESENTATIVES AT THE LAST KNOWN ADDRESS, PERSONAL OR ELECTRONIC SERVICE OF THE AWARD, OR THE FILING OF THE AWARD IN ANY OTHER MANNER THAT IS PERMITTED BY LAW. WITHIN TWENTY (20) {L } 3

18 HOME IMPROVEMENT MODEL CONTRACT ARBITRATION CLAUSE ATTACHMENT CALENDAR DAYS AFTER THE TRANSMITTAL OF AN AWARD, THE ARBITRATOR ON HIS OR HER OWN, OR CONTRACTOR OR OWNER, UPON NOTICE TO THE OTHER, MAY REQUEST THAT THE ARBITRATOR CORRECT ANY CLERICAL, TYPOGRAPHICAL, TECHNICAL OR COMPUTATIONAL ERRORS IN THE AWARD. THE ARBITRATOR IS NOT EMPOWERED TO RE- DETERMINE THE MERITS OF ANY CLAIM ALREADY DECIDED. IF THE MODIFICATION REQUEST IS MADE BY A CONTRACTOR OR OWNER, THE OTHER SHALL BE GIVEN TEN (10) CALENDAR DAYS TO RESPOND TO THE REQUEST. THE ARBITRATOR SHALL DISPOSE OF THE REQUEST WITHIN TWENTY (20) CALENDAR DAYS AFTER TRANSMITTAL TO THE ARBITRATOR OF THE REQUEST AND ANY RESPONSE TO THE REQUEST. THE FACTS OF THE DISPUTE, RELATED DOCUMENTS AND THE ARBITRATOR S DECISION SHALL BE KEPT CONFIDENTIAL BY CONTRACTOR AND OWNER. OWNER: CONTRACTOR: {L } 4

19 ATTACHMENT NOTICE OF CANCELLATION of Transaction: You, Owner, may cancel this transaction, without any penalty or obligation, within three (3) business days from the above date. If you cancel, any property traded in, any payments made by you under the Contract or sale, and any negotiable instrument executed by you will be returned within ten (10) business days following receipt by the Contractor of your cancellation notice, and any security interest arising out of the transaction will be cancelled. If you cancel, you must make available to the Contractor at your residence in substantially as good condition as when received, any goods delivered to you under this Contract or sale; or you may, if you wish, comply with the instructions of the Contractor regarding the return shipment of the goods at the Contractor s expense and risk. If you do make the goods available to the Contractor and the Contractor does not pick them up within twenty (20) days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the Contractor, or if you agree to return the goods to the Contractor and fail to do so, then you remain liable for performance of all obligations under the Contract. To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice or any other written notice, or send a telegram, to (Contractor), at (address of Contractor s place of business) not later than midnight of (date). I hereby cancel this transaction. Owner s Owner s {L }

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