TERMS & CONDITIONS
Agreements made between Kitchen Concepts (Contractor), California General Contractors License No. 1118313, located at 5779 Winfield Blvd. Unit A1, San Jose, CA 95123 (“Kitchen Concepts”) and the Undersigned Customer (“Owner”), are pursuant to the following terms:
Section 1: Description of the Project
For a price set forth in the Payment Schedule, Kitchen Concepts agrees to perform for the Owner the work described and to provide the materials to be supplied per this Agreement.
Section 2: Price
Owner agrees to pay Kitchen Concepts as specified above according to the Payment Schedule for completion of the work described herein (the “Remodel”).
Section 3: Allowances
Materials specified in this proposal reflect standard selections and allowances. Any upgrades, substitutions, or materials selected beyond those specified shall be handled via a Change Order and added to the total Price in this Agreement. Any modifications, additions, or changes to the scope of work requested by the Owner after approval of thisAgreement shall be addressed via a Change Order and added to the total Price in this Agreement.
Section 4: Cutting and Patching
Contractor will ensure that cutting and patching required to make building parts fit together properly is performed by those skilled in the trade. Work completed by Kitchen Concepts will have theneatly finished appearance characteristic of professional grade construction. The color, texture and planes between existing and new materials may not match exactly. Contractor will use due diligence to create the best match possible. Owner acknowledges and hereby accepts thatpatched surfaces, including wood and other flooring types, may be detectable when construction is complete.
Section 5: Permits and Fees
Contractor shall secure all permits, licenses and renewals required by government authority to complete construction of the Remodel. Owner shall assist Contractor in responding to requests for information from the permit-issuing authority. Contractor shall provide Owner a copy of each permit, license and renewal issued by government authority for theRemodel. Owner will pay the building permit fees, plan check fees, and charges levied by any government authority for testing, inspection, and re-inspection of the Remodel.
Section 6: Owner's Representations
Owner will respond in writing and with reasonable promptness to written requests from Contractor for information relevant to completion of the Work. Owner shall inform Contractor of any significant change in the availability of funds committed to make payments required under the Agreement. Failure of Owner to comply with the terms of this paragraph shall relieve Contractor of the obligation to begin or continue the Work. Owner will not interfere with or permit others to interfere with, stop, hinder, or delay completion of the Work by Contractor or Subcontractors except as provided under this Agreement. All materials to be furnished by Owner under the Agreement shall be on hand and available at the location specified when required in the normal course of construction. Contractor makes no warranty that materials furnished by Owner are suitable for use in the Work and may reject such materials if installation would materially increase the cost of construction or substantially delay completion of the Work. Owner has reported to Contractor all conditions known to Owner which may not be apparent to Contractor and which might significantly increase the cost of the Work or delay completion. These concealed conditions include, but are not limited to, hazards on the Job Site, unsuitable soil conditions, prior work and defective work of others, latent defects in the plans or specifications, earlier attempts to perform similar or related work, and obligations or demands imposed by government officials.
Section 7: Representations by Contractor
Contractor shall use skill and due care to complete the Work in a timely manner consistent with this Agreement. Kitchen Concepts affirms that it is financially solvent, properly licensed, experienced, competent, and possesses the resources necessary to complete the Work in compliance with this Agreement.
Section 8: Payment Plan
Owner will pay Contractor the Price in installments consisting of a down payment, initial blueprint payment, progress payments, and a final payment upon completion of the Work.
Section 9: Interest
Payments due and not paid under thisAgreement shall bear interest from the due date at a monthly rate of 1.5 percent. When payment is withheld pending settlement of a bona fide dispute regarding the quantity, quality, or timeliness of the Work, work shall cease immediately and interest shall accrue only on the amount ultimately paid or ordered due by an arbitrator or judicial officer. Payment of interest shall not replace or limit any other rights Contractor may have under this Agreement.
Section 10: Down Payment
The down payment is $1,000.00. THE DOWN PAYMENT SHALL NOT EXCEED $1,000 OR TEN PERCENT (10%) OF THE PRICE, WHICHEVER ISLESS. Upon execution of this Agreement, Owner shall pay Kitchen Concepts $1,000.00 as an advance toward the Price.
Section 11: Progress Payments Schedule
The schedule of progress payments must specifically describe each phase of work, including the type and amount of work or services to be provided in each phase and the amount of each proposed progress payment. IT IS AGAINST THE LAW FOR A CONTRACTOR TO COLLECT PAYMENT FOR WORK NOT YET COMPLETED OR FOR MATERIALS NOT YET DELIVERED; HOWEVER,A CONTRACTOR MAY REQUIRE A DOWN PAYMENT. Progress payments are due as each phase of the Work is completed.
Progress Payment 1: Measurement of home, design, and initial drafting of blueprints. Amount due when delivered for Owner approval: forty percent (40%).
Progress Payment 2: Cabinet and materials delivery. Amount due upon completion: thirty percent (30%). Completion occurs upon delivery of cabinets and other materials.
Progress Payment 3: Countertop installation. Amount due upon completion: twenty percent (20%).
Final Invoice: Project completion. Amount due upon completion: ten percent(10%). Change Orders shall modify the payment schedule. Any Change Order shall be due when signed. Owner acknowledges that refusal to sign a Change Order may result in delays or interruptions of work. In the event of a dispute regarding a Change Order, the parties agree to promptly attempt mediation through a Judicial Arbitration Mediation Services construction mediator, with fees and costs shared equally.
Section 12: Processing of Progress Payments
At least two (2) calendar days prior to each progress payment due date, Contractor shall provide Owner with an invoice consistent with generally accepted trade practices. Subsequent phases of work shall not proceed until the applicable progress payment has been received. Owner acknowledges that Progress Payments include payment for materials purchased for the project. Although ownership of such materials transfers to Owner, Owner requests that Contractor store these items until installation. Contractor shall store the materials on Owner’s behalf and Owner waives any claim of non-receipt. If payment is not received within seven (7) days of a demand for payment for satisfactorily completed work, Contractor may stop work or terminate this Agreement. Termination shall not relieve Owner ofthe obligation to pay for work performed prior to termination.
Section 13: Contract Allowances
The Price includes all contract allowance items identified herein. Allowance amounts are preliminary estimates made prior to Owner’s final selections. Contractor does not guarantee that any allowance item can be furnished and installed for the allowance price. If Contractor’s cost exceeds the allowance amount, the Price shall be adjusted by Change Order. Owner selections must be submitted in writing. Delays caused by Owner’s selections shall extend the Contract Completion Date accordingly, and Contractor may recover costs associated with such delay.
Section 14: Miscellaneous Provisions
Entire Agreement. This Agreement represents the complete and final agreement between the parties and supersedes all prior negotiations or representations, whether oral or written. Liens and Waivers. 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. For ways to prevent liens, visit CSLB's Web site at
www.cslb.ca.gov or call CSLB at 800-321-CSLB (2752). Notice required by California Business and Professions Code § 7159(c)(4): When payment is made for any portion of the work performed, Contractor releases Owner from any claim or mechanics' lien pursuant to § 8410 of the Civil Code for that portion of the work for which payment has been made. If Owner agrees that Work has been completed, payment is dueContractor for the entire unpaid balance of the contract amount. Making of final payment constitutes waiver of all Claims by Owner against Contractor except those Claims previously made in writing and delivered to Contractor and those obligations otherwise provided by this Agreement or by operation of Law. The acceptance of final payment by Contractor constitutes a complete and unconditional waiver and release of any and all Claims by Contractor of whatever nature, and regardless of whether they are then known or unknown, and a complete and unconditional release of Owner, and every person for whom Owner is responsible, for any and all matters related to the contract or otherwise, except those Claims which have been made in writing and identified by Contractor as not having been settled at that time. If completion of the Work is delayed unreasonably at no fault of Contractor, Contractor shall be entitled to final payment for all Work completed without prejudice to the right ofContractor to complete the Remodel at a later date and without prejudice to the right of Owner to make Claims against Contractor for Defects in Work completed. Cooperation of the Parties. Both Contractor and Owner agree to conduct their relationship with courtesy, professionalism, and mutual respect. Owner agrees to timely provide guidance, assistance, and payment when due. Contractor agrees to perform the Remodel in a manner consistent with the intent and requirements of this Agreement.
Section 15: Insurance General Requirements
Contractor shall maintain workers’ compensation insurance and general liability insurance as required by applicable law during performance of the Work. Commercial General Liability Insurance (CGL). Contractor maintains commercial general liability insurance.Insurance coverage may be verified through National Specialty Insurance Company. Workers’ Compensation Insurance. Contractor maintains workers’ compensation insurance for all employees.
Section 16: Changes in the Scope of Work
Contractor is authorized to make minor changes to the scope of work that benefit Owner, do not materially alter quality or performance, and do not affect cost or schedule, provided such changes comply with applicable laws. Contractor will attempt to notify Owner of any such changes. All extra work or changes must be documented in a written Change Order signed by both parties prior to commencement.
Section 17: Contractor Claims
If Contractor determines that any instruction, action, or omission by Owner or a governmental authority increases costs, requires additional time, or alters the scope of work, Contractor may assert a claim for such additional costs or time.
Section 18: Arbitration
Any dispute or claim arising out of or related to this Agreement that cannot be resolved through mediation shall be resolved by arbitration administered by Judicial Arbitration and Mediation Services under its Construction Industry Arbitration Rules. The arbitrator shall apply California law. Either party may elect to pursue claims within the jurisdiction of Small Claims Court in lieu of arbitration.
Section 19: Warranty
Contractor warrants the original consumer purchaser a one (1) year warranty on finishes, free from defects in materials and workmanship under normal use. This warranty applies only to residential installations within the United States and is non-transferable. Contractor may elect to repair or replace defective materials at its discretion. This warranty excludes hinges, appliances, plumbing fixtures, and labor for removal or reinstallation. Natural material variations, normal wear and tear, and environmental effects are not covered. All other products supplied by Contractor carry a one-year limited warranty pursuant to California Civil Code § 900. Owner is entitled to a fully completed and signed copy of this Agreement prior to commencement of work.
Section 20: Notice of Three-Day Right to Cancel
You, the buyer, have the right to cancel this contract within three business days. You may cancel by emailing, mailing, faxing, or delivering a written notice to the contractor at the contractor's place of business by midnight of the third business day after you received a signed and dated copy of the contract that includes this notice. Include your name, your address, and the date you received the signed copy of the contract and this notice. If you cancel, the contractor must return to you anything you paid within 10 days of receiving the notice of cancellation. For your part, you must make available to the contractor at your residence, in substantially as good condition as you received it, any goods delivered to you under this contract or sale. Or, you may, if you wish, comply with the contractor's instructions on how to return 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 20 days of the date of your notice of cancellation, you may keep them 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, email a signed and dated copy of the Notice of Cancellation, or any other written notice to: Tyler@kitchenconceptsca.com.