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CC - Item 4A - Award of Re-Roofing Dinsmoor House• TO: HONORABLE MAYOR AND MEMBERS ROSEM CITY COUNCIL FROM: BILL C WE, CITY MANAGER • DATE: AWARD OF BID RE-ROOFING OF DINSMOOR HOUSE 9632 STEELE STREET At the regular meeting of December 27, 2005, the City Council awarded the bid to Ace Tek Roofing Co. provided that prevailing wages were paid. Their bid did not include prevailing wages and subsequently the second bidder, Devon Roof Co., declined to sign the contract. Staff dispensed with public bidding because it is an emergency repair the roof needs to be replaced before the next rains. We solicited and received the following bids: Ace Tek Roofing $26,700 Rey-Crest Roofing $27,400 Terrones Contracting $50,400 None of the bids included repair to the rafters. The Terrones bid included an additional $11,050 for the replacement of the north and south decks, and $7,840 for the repair and replacement of the rafter tails. The city has the option of awarding to the low bidder and using another contractor for the rafter repairs. Attached are the three bids received. RECOMMENDATION It is recommended that the City Council find pursuant to Public Contracts Code 22050 that the emergency will not permit a delay resulting from a competitive solicitation for bids and the action is necessary to respond to the emergency; and the Council by a four- fifths vote award the bid to Ace Tek Roofing Co. and authorize Terrones Contracting to make the necessary rafter repairs. COMM AGENDA 'FEBl42 ~ ITEM No. TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL V-4 / FROM: BILL C WE, CITY MANAGER 0 DATE: AWARD OF BID RE-ROOFING OF DINSMOOR HOUSE 9632 STEELE STREET At the regular meeting of December 27, 2005, the City Council awarded the bid to Ace Tek Roofing Co. provided that prevailing wages were paid. Their bid did not include prevailing wages and subsequently the second bidder, Devon Roof Co., declined to sign the contract. Staff dispensed with public bidding because it is an emergency repair the roof needs to be replaced before the next rains. We solicited and received the following bids: Ace Tek Roofing $26.700 Rey-Crest Roofing $27,400 Terrones Contracting $50,400 None of the bids included repair to the rafters. The Terrones bid included an additional $11,050 for the replacement of the north and south decks, and $7,840 for the repair and replacement of the rafter tails. The city has the option of awarding to the low bidder and using another contractor for the rafter repairs. Attached are the three bids received. RECOMMENDATION It is recommended that the City Council find pursuant to Public Contracts Code 22050 that the emergency will not permit a delay resulting from a competitive solicitation for bids and the action is necessary to respond to the emergency; and the Council by a four- fifths vote award the bid to Ace Tek Roofing Co. and authorize Terrones Contracting to make the necessary rafter repairs. • • AceTek Roofing Co. caa 020199 5830 Woodlawn Ave. Los Angeles, CA. 90003-1226 Tel : 323-231-6060 Job Number: 17356 Bidding Date 2/412006 Starting Date Last Name Donovan Complete Date First Name James Telephone 626-569-2131 Middle Name Fax 625-307-9218 Company City of Rosemead PROJECT SITE Address 8838 E. Valley Blvd Address 1 9632 Steele St. City Rosemead city Rosemead State CA State CA dip Code 91770 Zip rho Scope of Works: More detailed descriptions are attached. Roof Type 1 Tile T/.Q Project Size I T2,175 sf mount 1 $20,500.00 Mat'al Warranty 1 10 years Labor Warranty 1 10 years Roof Type 2 Modified Bitumen T/O Project Size 2F _ 918 sf mount 2 $3 200.00 Mat'al Warranty 2 10 years Labor Warranty 2 5 years Roof Type 3 Project Siie 3 sf mount 3 $0.00 Mat'al Warranty 3 years Labor Warranty 3 years Roof Type 4 Project Size 4 sf mount 41 - $0.00 Mat'al Warranty 4 years Labor Warranty 4 _ I's Type of Building Apartment Existing Roof Tile / SUR We propose to furnish material and labor, complete in accordance with above specification for the sum of $26,700.00 Payment to be made as follows: Down Payment $0.00 Progressive Payment $0,00 Progressive Payment $0.00 Upon Completion $26,700.00 ~~i , P ~ t.. * + n:i~ .y.i.N~` rir N•N ~a.vsi':~•:'y~y;.~'2 n RY~~ ,~~..,.MVii:l:':a•` M1 H.~ •rii a y I' . . ~ ? 5. :'s.:XT„y$.,Ti ~:'~S~'`}'STs ~..s.. ~s s+is , x.. . 600/ZOO IA ONIJ008 N3133V 8986LCZCZC XVJ Cl Ol 900Z/bo/Zo • • +M4':~„"fi;~M544 Address: 9632 Steele St., Rosemead, CA Roof Area: 2,175 sq.ft. for tile roof and 918 sq.ft. for flat roof (Include Garage) Scope of Work (Project #1: Tile Roof) Remove existing tiles and underlayment and sweep the deck. Inspect for dry-rot or termite damaged roof sheathing on and replace where damaged Extra charge: $3.00/ft of 1x8 or 1x8 board and $45.00/sheet of 1/2" plywood Install 2x2 drip edge metal along the eave line. Apply peel and stick underlayment over the entire roof deck. Install new flashing for pipes. Reinstall removed tiles, replacing only damaged tiles. Seal all pipes and vents with roofing mastic. Clean up upon completion and remove all roofing related debris from the job site. Scope of Work (Project #2: Flat Roof) Tear-off existing roofing material and haul away. Inspect and replace dry-rot or termite damaged wood sheathing. (Extra Charge: $45.00/sheet of 1/2" plywood or $3.00/ft of 1x6 or 1x8 board) Apply 28 ibs fiberglass base sheet with 1" head cap nail. Install fiber cant strip on angle between roof deck and vertical sufaces. Starting from low area, torch apply modified bitumen membrane with smooth surface, lapping 3" on sides and 6" on ends. Install new galvanized scuppers for drains. Starting from low area, torch apply modified bitumen membrane with granule surface, lapping 3" on sides and 6" on ends. Seal all pipes, vents and roof penetration with roofing mastic. Clean up upon completion and remove all roofing related debris from the job site. Contractor's Signature: -2--V-06 Chris Kim All material Is guaranteed to be as specified. All work to be completed in a substantlal workmanlike manner according to specifications submitted, per standard practices. Any alteration or deviation from attached specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and attached estimate. All agreements contingent upon strikes, accidents or delay's beyond our control. Our workers are fully covered by Workmen's compensation. Insurance, Accepted By: James Donovan Damaged rafter tail replacement and special milling work Is to be done by others, " Bid price is based on prevailing wage rate. Old price Includes 100% Performance Bond. 600/coo [l 9NIJ008 N3130V 898CLCZCZC XV3 Et 0l 900Z/V0/Z0 Contractor's State License k 334758 REY CREST Roofing & Waterproofing Co. PROPOSAL Proposal Submitted To: Phone: Date: City of Rosemead 626-569-2131 December 29, 2005 Address: Job Name: Fax: 8838 E. Valley Blvd. House & Garage 626-307-9218 City, State, & Zip Code: Job Address: Rosemead, California 9632 Steele Ave. Attention: City, State & Zip Code: Mr. James Donovan Rosemead, California Cell- 562-900-3939 We hereby submit specifications and estimates for the following: Roof Replacement of House & Garage (Dinsmoor ) We shall furnish and install all labor and material necessary to complete the removal and Installation of new 2-ply undedayment and reinstallation of the Spanish tiles over the entire roof area as per present and as per the manufacturers specifications and recommendations. Garage roof, Rear & front roof decks to be removed and a new Manville 4-ply built-up Mineral surfaced capsheet system set in hot asphalt will be installed. All work to be completed in a neat and orderly manner and debris created from operations will be removed from premises. All labor to be warranted for a period of five years. Manufacturer will provide a 50 year limited warranty upon request. Exclusions: All wood and carpentry, plumbing. All carpentry work to be performed by others. Proposal is based on Prevailing Wage Rates We propose hereby to furnish material and labor to complete in accordance with above specifications, for the sum of- Twenty Seven Thousand Four Hundred and No ....................................$27,400.00 Payment to be made as follows: Progress payments t At Material Is guaranteed to be as specified All work to be Authorized completed in a worknmlike manner according to standard practices. Signature: George Reyes, Pr ident Any alteration or deviation from above specifications Involving extra cosh will be executed only upon written orders, and will Nose: This proposal nay be withdrawn by us If beconne an extra charge over and above the estimate. AN agreements not accepted within 3O Days. contingent upon strikes, accidents or delays beyond our control owner to carry fire, tornado. and other necessary Insurance. Our Failure by the Contractor wldxxA legal excuse workers are fully covered by Workers' Compensation Insurance. to cornn*nce substantially the above described Arty controversy, claim or dispute between the Contractor and the work within twenty (20) days of the appropriate Owner arising out of or relating to this contract or the broach date for commencement stated below consdhrtes Thereof. shall be resolved by arbitration in accordance with the a violation of the Contractors License Law. Rules of the Anarican Arbitrator Association then in effect, substantial consrancement of work pursuant to Oft unless the parties mutually agree otherwise. This Agreerrant to agreement will be deemed to occur when: srbllnts shall be specifically enforceable under the prevailing arbitration laws of California. An award rendered by any arbitration entered into by the parties shall be final, and judgment may be Late delinquent payments will be assessed a entered upon it In accordance with applicable law In any court delkhquant charge at amin an legally permissible rate. having jurisdiction thereof. Acceptance of Proposal-The Above prtcea, woctlratlans signature and conditions are satisfactory and are hereby accepted You are authorized to do the work as specified. Payment will be made as outlined above. SlgflBture 3065 VERDUGO ROAD e LOS ANGELES, CA 90065 e (323) 257-9329 e FAX (323) 223-2261 rime Construction Contract This agreement is between (Contractor): Terrones Contracting 3432 N. WAR AVE. ROSEMEAD, CA. 91770 P(626) 288-3392 F (626) 288-9634 LIC.#414288 And (Owner): Name: CITY OF ROSEMEAD Date: 2-2-06 Project name: DINSMOORE HERITAGE HOUSE Address: 9632 STEELE AVE. City, State, ZIP: ROSEMEAD, CA. 91770 Address: 8838 EAST VALLEY BLVD. City, State, ZIP: ROSEMEAD, CA. 91770 Contractor will ftimish all labor and materials to construct and complete the project described above in a good workmanlike manner: DINSMOORE HERITAGE HOUSE AND GARAGE In accordance with following contract documents: DINSMOORE HERITAGE HOUSE AND GARAGE 1 A ROOF HOUSE: Remove existing roofing down to sheathing. Replace any deteriorated plywood with 1/2" min. APA rated exterior plywood. Install galvanized flashing at all valleys and vertical intersections with walls or masonry if existing. Install 30 lb. felt underlayment and Bravo small S the with style "A" galvanized roof edging at entire perimeter. Properly seal and/or flash all pipes or vents extending through roof. Replace any existing deteriorated roof jacks. Replace all attachments that were removed. 1 B ROOF GARAGE: Remove existing roofing down to sheathing. Replace any deteriorated plywood with 1/2" min. APA rated exterior plywood. Install JOHN MANVILLE torch down system with a 12 year material guarantee $50,400.00 'A DFCK NORTH: Remove existing decking material down to plywood. Prepare approximately 63 sq. ft. for installation of water proofing membrane and texture. 2B DECK SOUTH: Remove existing decking material down to plywood. Prepare approximately 117 sq. ft. for installation of water proofing membrane and texture. $11,050.00 3. RAFTER TAILS: Remove 3 rafter tail ends and splice with existing. Repair 11 rafter tails with Abatron to match existing. $7,840.00 Owner agrees to pay Contractor`l'Re total sum of- Installments to be made as follows: Funds are to be disbursed by: Work shall commence: • PROGRESS PA%'MENI S DI T: UPON COMPLETION OF P.ACII NUMBERED OR LE971'ERE0 ITEM CITY OF ROSEMEAD and shall be complete within the following number of working days: Owner Contractor: Date signed: Date signed: Terrones Contracting • • 3432 Ivar Ave. Rosemead,CA 91770 626-288-3392 Fax 626-288-9634 License No. 414288 (COMPLIES WITH CALIFORNIA'S HOME IMPROVEMENT LAW) THIS AGREEMENT, Made as of 2-2-06 Between the Owner: CITY OF ROSEMEAD 8838 EAST VALLEY BLVD. ROSEMEAD, CA. 91770 And the Contractor: Terrones Contracting 3432 Ivar Ave. Rosemead, CA 91770 (626) 288-3392 Fax: (626) 288-9634 License No. 414288 For the Project: DINSMOORE HERITAGE HOUSE 9632 STEELE AVE. ROSEMEAD, CA. 91770 Construction Lender: N/A ARTICLE 1. CONTRACT DOCUMENTS 1.1 The contract documents consist of this agreement, general conditions, construction documents, specifications, allowances, finish schedules, construction draw schedule, information disclosure statement, all addenda issued prior to execution of this agreement and all change orders or modifications issued and agreed to by Terrones Contracting (hereafter "TC") and CITY OF ROSEMEAD ("Owner"). The Owner shall provide all documents noted herein to TC. These contract documents represent the entire agreement of both parties and supersede any prior oral or written agreement. ARTICLE 2. SCOPE OF WORK 2.1 The Owner agrees to purchase and TC agrees to perform the work specified herein at the above mentioned property on behalf of the Owner thereto in CITY OF ROSEMEAD according to the construction documents, allowances, finish schedules, all addenda, change orders, modifications and specifications set forth in the specification booklet. 2.2 Description of project: TC will furnish all labor, equipment, materials, scaffolding, sales taxes, hoisting, transportation, supervision, coordination and storage to complete in a good and workmanlike manner the following work: See attachment Exhibit "A". 2.3 If plans and specifications are prepared for this job, they shall be attached and become part of the agreement. ARTICLE 3. TIME OF COMPLETION 3.1 The approximate commencement date of the project shall be The approximate completion date of the project shall be 3.2 Commencement of work shall be defined as purchase of material. Page 2 of 11 is • ARTICLE 4. THE CONTRACT PRICE 4.1 The purchase price of the project shall be set at the sum of $ $69,290 subject to additions and deductions pursuant to authorized change orders and allowances 4.2 The Owner and TC acknowledge that the Owner will pay a sum of $ $69,290 upon signing of this contract and before construction begins as a deposit and part of the purchase price of the project. The balance of $ will be due upon completion. 4.3 TC shall perform the work described herein at the price quoted. In the event, however, that the price for any material and or insurance costs to be used in this work should increase by ten (10) percent in total or greater from the price at which said material and or insurance costs was available in TC locality at the time of submission of this contract. then the owner agrees that said price quote shall be changed to reflect the additional cost to TC of said material and or insurance costs. ARTICLE 5. PROGRESS PAYMENTS 5.1 The Owner will make payments to TC pursuant to the attached construction draw schedule as work required by said schedule is satisfactorily completed. Owner shall make draw payments to TC within Five (5) days after request by TC. Should the owner fail to make payment, TC may charge a penalty of 1.5% per month (18% per annum) upon the unpaid amount until paid. 5.2 If payment is not received by TC within Five (5) days after delivery of payment demand for work satisfactorily completed, TC shall have the right to stop work or terminate the contract at TC's option. Termination by TC under the provisions of this paragraph shall not relieve the Owner of the obligations of payments to TC for that part of the work performed prior to such termination. Termination by Owner under the provisions of this paragraph shall not relieve the Owner of the obligations of payments to TC for that part of the work performed prior to such termination. 53 Upon satisfactory payment being made for any portion of the work performed, TC shall, prior to any further payment being made, furnish to the Owner for the home improvement or swimming pool a full and unconditional release from any claim or mechanic's lien pursuant to section 3114 of the Civil Code for that portion of the work for which payment has been made. ARTICLE 6. DUTIES OF TC 6.1 All work shall be in accordance to the provisions of the plans and specifications. All systems shall be in good working order. 6.2 All work shall be completed in a workman like manner, and shall comply with all applicable national, state and local building codes and laws. 6.3 TC may subcontract portions of this work to properly licensed and qualified subcontractors. 6.4 In connection with the performance by TC of its duties pursuant to this agreement, TC shall obtain and pay for, at the sole expense of the owner, all permits and comply with the federal, state, county and local laws, ordinances and regulations 6.5 TC will remove from Owner's property debris and surplus materials created by its operation and leave it in a neat and broom clean condition. 6.6 Upon satisfactory payment being made for any portion of the work performed, TC shall furnish a full and unconditional release from any claim or mechanics' lien for that portion of the work for which payment has been made. 6.7 TC shall pay all valid charges for labor and material incurred by TC and used in the construction or repair of the project. TC is excused from this obligation for bills received in any period during which the owner is in arrears in making progress payments to TC Page 3 of I I is • ARTICLE 7. OWNER 7.1 The Owner shall communicate with sub-contractor's only through TC. 7.2 The Owner will not assume any liability or responsibility, nor have control over or charge of construction means, methods, techniques, sequences, procedures, or for safety precautions and programs in connection with the project, since these are soley TC responsibility 7.3 The Owner is responsible to supply water, gas, sewer and electrical utilities unless otherwise agreed to in writing. Electricity and water to the site is necessary. 7.4 The Owner agrees to allow and provide TC and its equipment access to the property. 7.5 The Owner is responsible for having sufficient funds to comply with this agreement. This is a cash transaction unless otherwise specified 7.6 The Owner is responsible to remove and protect any personal property and contractor is not responsible for same nor for any carpets, drapes, furniture, driveways, lawn, shrubs etc. 7.7 The Owner will point out and warrant the property lines to TC. 7.8 Taxes, permits, fees, and assessments of all descriptions will be paid by the owner. 7.9 Owner shall provide ample funds to acquire any and all necessary permits on a timely basis. Owner will pay assessments and charges required by public bodies and utilities for financing or repaying the cost of sewers, storm drains, water service, school and school facilities, other utilities, hookup charges and the like. ARTICLE 8. CHANGES IN THE WORK AND CONCEALED AND EXISTING CONDITIONS 8.1 Should the owner, construction lender, or any public body or inspector direct any modification or addition to the work covered by this contract, the contract price should be adjusted accordingly. Modification or addition to the work shall be executed only when an Additional Work Authorization has been signed by both the owner and TC. The change in the contract price caused by such additional work authorization shall be agreed to in writing, or if the parties are not in agreement as to the change in contract price, TC's actual cost of all labor, equipment, subcontracts and materials, plus 33% for its overhead and profit, shall be the change in contract price. The change order may also increase the time within which the contract is to be completed. TC shall promptly notify the owner of: (a) latent physical conditions at the site differing materially from those indicated in this contract, or (b) unknown physical conditions differing materially from those ordinarily encountered and generally recognized as inherent in the work of the character provided for in this contract. Any expense incurred due to such conditions shall be paid for by Owner as added work. No extra or change order work hall be required to be performed without prior written authorization of the person contracting for the construction of the home improvement. Any additional work authorization forms or changes or extra work shall be incorporated in, and become part of the contract. However, in the event that the building department or other governing body requires a change or modification then TC may make changes prior to receiving written authorization and there after negotiate the effect of that change with the owner. Payment for extra work will be make as extra work progresses, concurrently with progress payments. 8.2 TC calls attention to the Owner limitations of patching plaster and stucco, matching existing roofing materials, paint, texture and/or any finished products. TC will make every effort to match existing conditions, i.e., textures and colors, however exact duplication is not promised or guaranteed. ARTICLE 9. INSURANCE 9.1 Owner will procure at owners own expense and before commencement of any work here under, "all risk" insurance with course of construction, vandalism, and malicious mischief clauses attached, such insurance to be the sum at least equal to the contract price with loss, if any, payable to any beneficiary under any deed of trust covering the project. Page 4 of I1 • • ARTICLE 10. WEATHER AND OTHER DAMAGE 10.1 TC will attempt to keep the project reasonably covered during the construction. However, owner understands that unexpected weather conditions can arise that might cause damage to the project and its contents. TC shall not be responsible for any such damage beyond its reasonable control. ARTICLE 11. HAZARDOUS MATERIALS, WASTE AND ASBESTOS 11.1 Unless the contract specifically calls for the removal, disturbance, or transportation of asbestos, mold, polychlorinated biphenyl (PCB), or other hazardous substances, the parties acknowledge that such work requires special procedures, precautions, and/or licenses. Therefore, unless the contract specifically calls for the same, if TC encounters such substances, TC shall immediately stop work and allow the owner to obtain a duly qualified asbestos, mold and/or hazardous material contractor to perform the work, or TC may perform the work itself at TC option. Said work will be treated as an extra under this contract. ARTICLE 12. ARBITRATION OF DISPUTES 12.1 ARBITRATION OF DISPUTES ANY CONTROVERSY OR CLAIM ARISING OUT OF OR RELATED TO THIS CONTRACT, OR THE BREACH THEREOF, SHALL BE SETTLED BY BINDING ARBITRATION IN ACCORDANCE WITH THE CONSTRUCTION INDUSTRY ARBITRATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION, AND JUDGMENT UPON THE AWARD RENDERED BY THE ARBITRATION(S) MAY BE ENTERED IN ANY COURT HAVING JURISDICTION THEREOF, CLAIMS WITHIN THE MONETARY LIMIT OF THE SMALL CLAIMS COURT SHALL BE LITIGATED IN SUCH COURT AT THE REQUEST OF EITHER PARTY, SO LONG AS BOTH PARTIES LIMIT THEIR RIGHT TO RECOVERY TO THE JURISDICTION OF THE SMALL CLAIMS COURT. ANY CLAIM FILED IN SMALL CLAIMS COURT SHALL NOT BE DEEMED TO BE A WAIVER OF THE RIGHT TO ARBITRATION, AND IF A COUNTER CLAIM IN EXCESS OF THE JURISDICTION OF TIRE SMALL CLAIMS COURT IS FILED IN THE MUNICIPAL OR SUPERIOR COURT, THEN THE PARTY FILING IN SMALL CLAIMS COURT MAY DEMAND ARBITRATION PURSUANT TO THIS PARAGRAPH. 12.2 NOTICE: BY INITIALING THIS 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 OF 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 AND DISPUTES' PROVISION TO NEUTRAL ARBITRATION. I agree to arbitration I agree to arbitration (Initials of Owner) ARTICLE 13. WARRANTY (Initials of TC) 13.1 THE LIMITED WARRANTY PROVIDED BY TC IS LIMITED TO THE SEPARATE "LIMITED WARRANTY" DOCUMENT PROVIDED TO THE OWNER AND INITIALED BY TC. NO OTHER WARRANTY EXPRESS OR IMPLIED, IS INCLUDED IN TIHS CONTRACT. IN THE EVENT THAT THE MANUFACTURER OF ANYTHING INSTALLED HEREIN OFFERS A DIFFERENT WARRANTY, THEN CUSTOMER SHOULD LOOK TO MANUFACTURER FOR HIS/HER RIGHTS UNDER THE WARRANTY AND NOT TC Page 5 of 1 1 • 0 ARTICLE 14. TERMINATION OF THE CONTRACT 14.1 Should the Owner or TC fail to carry out this contract, with all of its provisions, the following options and stipulations shall apply: 14.1.1 If the Owner or TC shall default on the contract, the non-defaulting party may declare the contract is in default and proceed against the defaulting party for the recovery of all damages incurred as a result of said breach of contract, including a reasonable attorney's fee. In the case of a defaulting Owner, the Earnest money herein mentioned shall be applied to the legally ascertained damages. 14.1.2 In the event of a default by the Owner or TC, the non-defaulting party may state his intention to comply with the contract and proceed for specific performance. 14.1.3 In the case of a defaulting Owner, TC may accept, at TC's option the earnest money as shown herein as liquidated damages, should earnest money not cover the expenses to date, TC may make claim to the Owner for all work executed and for proven loss with respect to equipment, materials, tools, construction equipment and machinery, including reasonable overhead, profit and damages applicable to the property less the earnest money. ARTICLE 15. ATTORNEY FEES AND LIMITATIONS 15.1 In the event of any arbitration or litigation relating to the project, project performance or this contract, the prevailing party shall be entitled to reasonable attorney fees, costs and expenses. 15.2 No such action of any character arising from or related to this contract, or the performance thereof, shall be commenced by either party against the other more than two years after completion or cessation of work under this contract. 15.3 In case one or more of the provisions of this agreement 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. ARTICLE 16. ACKNOWLEDGMENTS 16.1 Owner acknowledges receipt of a Notice To Owner, the content of which is incorporate herein, a notice required by Business and Professions Code section 7030, a notice of cancellation, as well as the separated Limited Warranty. CONTRACTOR'S ARE REQUIRED BY LAW TO BE LICENSED AND REGULATED BY THE CONTRACTOR'S STATE LICENSE BOARD WHICH HAS JURISDICTION TO INVESTIGATE COMPLAINTS AGAINST CONTRACTORS IF A COMPLAINT REGARDING A PATENT ACT OR OMISSION IS FILED WITHIN FOUR YEARS OF THE DATE OF THE ALLEGED VIOLATION. A COMPLAINT REGARDING A LATENT ACT OR OMISSION PERTAINING TO STRUCTURAL DEFECT MUST BE FILED WITHIN 10 YEARS OF THE DATE OF THE ALLEGED VIOLATION. ANY QUESTIONS CONCERNING A CONTRACTOR MAY BE REFERRED TO THE REGISTRAR, CONTRACTORS' STATE LICENSE BOARD, P.O. BOX 26000, SACRAMENTO, CALIFORNIA 95826. YOU, THE HOME OWNER (BUYER) OR TENANT HAVE THE RIGHT TO REQUIRE THE CONTRACTOR TO FURNISH YOU WITH A PERFORMANCE AND PAYMENT BOND, HOWEVER THE CONTRACTOR CAN REQUIRE YOU TO PAY FOR THAT BOND. Page 6 of II YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION. OR IF THIS IS A CONTRACT FOR THE REPAIR OF DAMAGES RESULTING FROM AN EARTHQUAKE, FLOOD, FIRE, HURRICANE, RIOT, STORM, TIDAL WAVE, OR OTHER SIMILAR CATASTROPHIC OCCURRENCE FOR WHICH A STATE OF EMERGENCY HAS BEEN DECLARED, YOU THE BUYER MAY CANCEL THIS TRANSACTION AT ANYTIME PRIOR TO MIDNIGHT OF THE SEVENTH BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT. WITNESS our hand and seal on this DAY OF 20 Terrones Contracting 3432 Ivar Ave. Rosemead, CA 91770 626-288-3392 FAX 626-288-9634 Contractor's License No. 414288 By: Bv: Terrones Contracting Signature Owner Signature By (Second Owner): Second Owner Signature Page 7 of I 1 . 0 SEPARATE STATEMENT REQUITED BY BUSINESS AND PROFESSIONS CODE § 7030 STATE LAW REQUIRES ANYONE WHO CONTRACTS TO DO CONSTRUCTION WORK TO BE LICENSED BY THE CONTRACTOR'S 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 THE 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. PLEASE CHECK THE GOVERNMENT PAGES OF THE WHITE PAGES FOR THE OFFICE NEAREST YOU OR CALL 1-500-321-CSLB FOR MORE INFORMATION. Page 8 of 1 I • NOTICE OF CANCELLATION (Not to be Used Following a Declaration of Disaster) Date You may cancel this transaction, without any penalty or obligation, within three 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 10 days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.lf you do make the goods available to the seller and the seller does not pick them up within 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 seller, or if you agree to return the goods to the seller 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: Terrones Contracting at 3432 Ivar Ave. Rosemead, CA 91770 not later than midnight of (date) I hereby cancel this transaction. (date) (Buyer's signature) on (Buyer) hereby acknowledge that (Date) I was provided this document entitled "Notice of Cancellation." (Buyer's Signature) Page 9 of I1 9 0 NOTICE TO OWNER 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 or her 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 that 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 a notice since you are aware of their existence as an owner. A preliminary notice is not 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 you project. TO INSURE 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 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. The payment and performance bond will usually cost from 1-5 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. (2) Require that payments be made directly to subcontractors and material suppliers through a joint control. Funding services may be available, for a fee, in your area which will establish voucher or other means of payment to your contractor. These services may also provide you with lien waivers and other forms of protection. Any join control agreement should include the addendum approved by the registrar. (3) Issue joint checks for payment, made out to both your contractor and subcontractors or material suppliers involved in the project. The joint checks should be made payable to the persons or entities which send preliminary notices to you. Those persons or entities 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. (4) 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 material 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 those persons or entities who have filed preliminary notices with you. If you are not certain of the 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 file a mechanics' lien 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 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 and and all such liens are removed. You should consult an attorney in a lien is filed against your property. (Owner's Signature) Page 10 of I1 9 0 PAYMENT SCHEDULE THIS AGREEMENT, Made as of 2-2-06 Between the Owner: CITY OF ROSEMEAD 8838 EAST VALLEY BLVD. ROSEMEAD, CA. 91770 And the Contractor: Terrones Contracting 3432 Ivar Ave. Rosemead, CA 91770 626-288-3392 FAX 626-288-9634 Contractors' License No. 414288 For the Project: DINSMOORE HOUSE 9632 STEELE AVE. ROSEMEAD, CA. 91770 Construction Lender: N/A 1. SCHEDULE - The Contractor shall commerce the work and shall completion time will be 60 working days. Price schedule does not reflect additional costs incurred (i.e. change orders, permit cost, etc.) Page II of I1 0 This Warranty shall accrue only to the benefit of the owner named herein, and it shall not accrue or inure to the benefit of any other party, including any subsequent buyer of the property, except with the written consent of CONTRACTOR. LIMITED WARRANTY: TC hereby warrants, subject to the terms and conditions set forth herein, that it will make all necessary repairs to leaks which result from defects in workmanship and materials furnished by TC at no cost to the owner when those leaks occur within the 5 five year term of this warranty. (In the absence of an indicated term in the preceding sentence the term of this "Limited Warranty' shall be (2) two years.) Such repairs are expressly agreed to be the owners exclusive remedy. This warranty is made under and subject to the following terms and conditions: (a) In order to obtain performance of any warranty obligation, the Owner must first provide written notice of a defect to TC promptly after a defect is experienced. TC shall make repairs as soon as practicable upon notification of reported defects. (b) Repairs made by anyone other than TC shall cancel this warranty. Any alterations, repairs or penetrations through the roof, made by anyone other than TC shall cancel this warranty unless such repairs are approved in writing by TC before such repairs are arranged. (c) TC shall not be liable in any respect for any damage to the Owners Building, or any contents thereof, including the roof decking, skylights, antennas, cable t.v. lines, or conditioning equipment, fascia, rafters and furniture. It is the responsibility of the owner to inspects ceilings and overhangs periodically for signs of leakage and report promptly any such leakage. TC shall not be liable for any incidental or consequential damages. (d) TC will not be responsible for any leaks caused by (1) lightning, gale, hurricane, tornado, hail, windstorm, or earthquake and other unusual phenomena of the elements or other acts of god; (2) structural deficiencies of the building, including but not limited to, cracking, unusual movement, settlement, unusual deflection, deterioration and decomposition of the roof deck, walls or foundations; (3) inadequate drainage, slope or other conditions beyond the control of TC which cause ponding or standing water on the roof; (4) parapet walls, coping, chimneys, skylights, vents, equipment supports, and other edge conditions and penetrations of the roofing work, unless the leak is caused by faulty installation of accessories which was performed by TC; (5) service to, or maintenance of, any rooftop or traffic of any nature on the roof; (6) abuse, misuse, fire, vandalism, intentional destruction, accident, or negligence by any person other than TC; or (7) plugged or slow roof drains and drain lines. (e) All alterations or additions to the roof surface after completion of installation by TC shall be approved in advance and in writing by TC, and TC will have its right to submit its recommendations of any roofing or flashing materials required. Failure of the owner to adhere to these recommendations will result in cancellation of this warranty. Should owner or tenant fail to comply with this paragraph, this warranty shall be deemed canceled. (f) Because ponding and standing of water are caused by such factors such as inadequate drainage, deflection and insufficient slope which are beyond the control of the roofing contractor, TC shall not be responsible for ponding or standing water on the roof. 1g) This warranty shall accrue only to the benefit of the owner named herein, and it shall not accrue o the benefit of any other party except with the written consent of TC. (h) TC shall have no obligation pursuant to this warranty until all bills for installation, supplies, and services in connection with the roofing covered by the warranty have been paid in full. (i) TC's obligation to make repairs to leaks during the term of this warranty is its sole obligation to the owner. This warranty and the contract of which this warranty is a part, constitute the entire agreement between TC and the owner, and no other representations or agreements pertaining to the work performed by TC have been made. TC shall have no obligation with respect to the roof upon the expiration of warranty period set forth above.