INSTALLATION TERMS, CONDITIONS OF SALE, NOTIFICATION & DISCLOSURE STATEMENTS

PAYMENT: The entire Invoice is due upon completion of described work. Any payment not received within 30 days from completion is subject to interest at the highest amount lawfully allowed by contract in the state of California in which the work was performed until paid. If applicable, sales tax is included in the price. If Bakers Heating and Air Conditioning commence employs attorneys to collect payment for any amount due from Customer/Property owner. Customer/Property owner agrees to pay reasonable costs and attorney fees which may be due.
COLLECTION COSTS: Customer agrees that it shall pay all expenses incurred by seller for the collection of any delinquent accounts including, but not limited to, actual attorney fees, filing fees and cost. Any and all disputes arising out of sale shall be interpreted under the laws of the state in which the work was performed.
COMPLETION OF SERVICES: Upon the completion of the HVAC services by Bakers Heating and Air Conditioning, Bakers Heating and Air Conditioning shall see to it that the Customer’s property is restored to the condition they were in prior to the entry by Bakers Heating and Air Conditioning, and Bakers Heating and Air Conditioning shall see to it that all portions used by the Bakers Heating and Air Conditioning during the term of this Contract shall be broom clean and free of debris.
WARRANTY: Bakers Heating and Air Conditioning shall provide its services and meet its obligations under this Contract in a timely and workmanlike manner, using knowledge and recommendations for performing the services which meet generally acceptable standards in Bakers Heating and Air Conditioning community and region, and will provide a standard of care equal to, or superior to, care used by service providers similar to Bakers Heating and Air Conditioning on similar projects. Bakers Heating and Air Conditioning further warrants that materials to be used are of good quality. Bakers Heating and Air Conditioning will maintain all manufacturers warranties. The customer is limited to the manufacturers warranties (unless an extended warranty has been purchased) for defects in the manufacture of equipment, components and materials. Bakers Heating and Air Conditioning warranties are limited to a period of no more than 365 days. Bakers Heating and Air Conditioning warranties are limited to the cost of labor and materials only, and exclude ordinary wear and tear or abuse by others.

RESTRICTION OF THE PERIOD LIMITATION OF ACTION

Any legal action relating to this Agreement or breach thereof shall be commenced within one (1) year from the date of the work. Customer shall be deemed to have accepted all delivered goods which the Customer has not rejected within three (3) days of receipt.

DEFAULT

The occurrence of any of the following shall constitute a material default under this Contract:

The failure to make a required payment when due.
The insolvency or bankruptcy of either party.
The subjection of any of either party's property to any levy, seizure, general assignment for the benefit of
creditors, application or sale for or by any creditor or government agency.
The failure to make available or deliver the Services in the time and manner provided for in this Contract.

REMEDIES

In addition to any and all other rights a party may have available according to law, if a party defaults by failing to substantially perform any provision, term or condition of this Contract (including without limitation the failure to make a monetary payment when due), the other party may terminate the Contract by providing written notice to the defaulting party. This notice shall describe with sufficient detail the nature of the default. The party receiving such notice shall have 30 days from the effective date of such notice to cure the default(s). Unless waived by a party providing notice, the failure to cure the default(s) within such time period shall result in the automatic termination of this Contract.

FORCE MAJEURE

If performance of this Contract or any obligation under this Contract is prevented, restricted, or interfered with by causes beyond either party's reasonable control ("Force Majeure"), and if the party unable to carry out its obligations gives the other party prompt written notice of such event, then the obligations of the party invoking this provision shall be suspended to the extent necessary by such event. The term Force Majeure shall include, without limitation, acts of God, fire, explosion, vandalism, storm or other similar occurrence, orders or acts of military or civil authority, or by national emergencies, insurrections, riots, or wars, or strikes, lock-outs, work stoppages, or other labor disputes, or supplier failures. The excused party shall use reasonable efforts under the circumstances to avoid or remove such causes of nonperformance and shall proceed to perform with reasonable dispatch whenever such causes are removed or ceased. An act or omission shall be deemed within the reasonable control of a party if committed, omitted, or caused by such party, or its employees, officers, agents, or affiliates.

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 prior to the commencement of any work covered by the new change order. The order must describe the scope of the extra work 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.

COMMERCIAL GENERAL LIABILITY INSURANCE (CGL):

Bakers Heating and Air Conditioning carries commercial general liability insurance.

WORKERS’ COMPENSATION INSURANCE

Bakers Heating and Air Conditioning carries workmans comp insurance.

PERFORMANCE OF EXTRA OR CHANGE-ORDER WORK NOTICE

The customer may make changes to the scope of the work from time to time during the term of this Contract. However, any such change or modification shall only be made by written "Change Order" signed by both parties. Such Change Orders shall become part of this Contract. The Customer agrees to pay any increase in the cost of the HVAC services as a result of a Change Order. In the event the cost of a Change Order is not known at the time a Change Order is executed, Bakers Heating and Air Conditioning shall estimate the cost thereof and the Customer shall pay the actual cost whether or not it is in excess of the estimated cost.

ARBITRATION OF DISPUTES:

ANY CONTROVERSIES OR DISPUTES ARISING OUT OF OR RELATING TO THIS CONTRACT SHALL BE RESOLVED BY BINDING ARBITRATION IN ACCORDANCE WITH THE THEN-CURRENT COMMERCIAL ARBITRATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION.

THE PARTIES SHALL SELECT A MUTUALLY ACCEPTABLE ARBITRATOR KNOWLEDGEABLE ABOUT ISSUES RELATING TO THE SUBJECT MATTER OF THIS CONTRACT. IN THE EVENT THE PARTIES ARE UNABLE TO AGREE TO SUCH A SELECTION, EACH PARTY WILL SELECT AN ARBITRATOR AND THE TWO ARBITRATORS IN TURN SHALL SELECT A THIRD ARBITRATOR, ALL THREE OF WHOM SHALL PRESIDE JOINTLY OVER THE MATTER. THE ARBITRATION SHALL TAKE PLACE AT A LOCATION THAT IS REASONABLY CENTRALLY LOCATED BETWEEN THE PARTIES, OR OTHERWISE MUTUALLY AGREED UPON BY THE PARTIES.

ALL DOCUMENTS, MATERIALS, AND INFORMATION IN THE POSSESSION OF EACH PARTY THAT ARE IN ANY WAY RELEVANT TO THE DISPUTE SHALL BE MADE AVAILABLE TO THE OTHER PARTY FOR REVIEW AND COPYING NO LATER THAN 10 DAYS AFTER THE NOTICE OF ARBITRATION IS SERVED. THE ARBITRATOR(S) SHALL NOT HAVE THE AUTHORITY TO MODIFY ANY PROVISION OF THIS CONTRACT OR TO AWARD PUNITIVE DAMAGES.

THE ARBITRATOR(S) SHALL HAVE THE POWER TO ISSUE MANDATORY ORDERS AND RESTRAINT ORDERS IN CONNECTION WITH THE ARBITRATION. THE DECISION RENDERED BY THE ARBITRATOR(S) SHALL BE FINAL AND BINDING ON THE PARTIES, AND JUDGMENT MAY BE ENTERED IN CONFORMITY WITH THE DECISION IN ANY COURT HAVING JURISDICTION.

THE AGREEMENT TO ARBITRATION SHALL BE SPECIFICALLY ENFORCEABLE UNDER THE PREVAILING ARBITRATION LAW. DURING THE CONTINUANCE OF ANY ARBITRATION PROCEEDING, THE PARTIES SHALL CONTINUE TO PERFORM THEIR RESPECTIVE OBLIGATIONS UNDER THIS CONTRACT.

NOTICE: BY SIGNING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE BUSINESS AND PROFESSIONS CODE OR OTHER APPLICABLE LAWS. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY.” “WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION TO NEUTRAL ARBITRATION.

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 ‘20-day 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 website at www.cslb.ca.gov or call CSLB at 1-800-321-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.

INFORMATION ABOUT THE CONTRACTORS STATE LICENSE BOARD (CSLB)

CSLB is the state consumer protection agency that licenses and regulates construction contractors. Contact CSLB for information about the licensed contractor you are considering, including information about disclosable complaints, disciplinary actions and civil judgments that are reported to CSLB. Use only licensed contractors. If you fi le a complaint against a licensed contractor within the legal deadline (usually four years), CSLB has authority to investigate the complaint. If you use an unlicensed contractor, CSLB may not be able to help you resolve your complaint. Your only remedy may be in civil court, and you may be liable for damages arising out of any injuries to the unlicensed contractor or the unlicensed contractor’s employees.

For more information:

VISIT CSLB’s website at www.cslb.ca.gov

CALL CSLB at 1-800-321-CSLB (2752)

WRITE CSLB at P.O. Box 26000, Sacramento, CA 95826