CONSTRUCTION CONTRACT – GROUT WORKS OF HOUSTON, LLC INITIALS:

1. CONTRACTING PARTIES. This Contract is entered into the date of approval and specifies the terms of the Contract between the home owner listed on the estimate, residing at the provided address and GROUT WORKS OF HOUSTON, LLC, Texas limited liability company (“Contractor”), whose business address is 18907 White Horse Dr, Tomball, Texas 77377.

2. PROPERTY. The work contemplated by this Residential Construction Contract (“Contract”) shall be performed at address provided in the estimate (“Property”).

3. ESTIMATED TERM OF CONSTRUCTION PROJECT.

A. Notwithstanding unforeseen circumstances, construction shall begin on agreed date provided when job is booked

B. Contractor estimates, notwithstanding any unforeseen circumstances, that all the work that is required by this Contract and any attachments incorporated by reference hereto, should be completed on agreed (“Completion Date”). However, this anticipated Completion Date may not be an accurate estimate in the event Homeowner(s) requests any modifications and/or additions to the Contract subsequent to the signing of the Contract. Contractor reserves the right to revise Completion Date, in the event modifications and/or additions are requested by Homeowner(s).

4. WORK AND MATERIALS. Contractor shall furnish all materials and necessary equipment and perform all labor necessary to complete the Scope of Work described fully on the attached Addendum “A”, incorporated by reference herein for all purposes. Due to the nature of real wood, natural marble, granite and onyx, and cultures marble, granite and onyx, Homeowner(s) acknowledge and agree that Contractor is not responsible for providing, or warranting that, a final product will match the exact coloring or graining of its sample, nor is Contractor responsible for providing, or warranting that, multiple product pieces are the exact same in appearance.

5. ACCEPTANCE OF PROPOSAL AND RISK OF LOSS.

A. Homeowner(s) authorize Contractor to furnish all material, equipment and labor required to complete the Scope of Work.

B. Homeowner(s) shall bear the risk of loss resulting from damage to or destruction of any and/or all materials and products occurring at any time after Contractor has delivered such materials and/or products to the Property, regardless of whether the same are standard ordered, specially designed and/or custom built, unless such damage and/or destruction is the result of the intentional act or willful misconduct of Contractor.

6. CONTRACT PRICE.

Homeowner(s) agree to pay to Contractor the total price agreed upon in provided estimate (“Contract Price”), subject to modifications and/or additions for the material, equipment and labor furnished pursuant to this Contract.

 

7. CHANGES IN THE WORK.

A. A. Should the Homeowner(s) direct any change, modification and/or addition to the work covered by this Contract, the Contract Price shall be adjusted accordingly, if and only if, such change and adjustment in price be agreed upon by both parties.

i. This includes any and all materials, products, and/or labor services deemed necessary and/or requested because of any hidden or unknown contingencies discovered at the Property after the signing on this Contract.

ii. For purposes of this Contract, “any hidden or unknown contingencies” shall include, but is not limited to the following:

a) The inability to reuse existing water, vent, waste pipes, air shafts, ducts, grilles, louvers and registers;.

b) The relocation of concealed pipes, risers, wiring or conduits, the presence of which cannot be determined at the time of the signing of this Contract; or

c) Any imperfections, rotting or decay, including, but not limited to any mold damage in and to the Property, the presence of which cannot be determined at the time of the signing of this Contract. B.

B. Modification and/or addition to the Scope of Work shall be executed only when both the Homeowner(s) and the Contractor have signed a Contract Change Order, affecting a change in Contract Price. Homeowner(s) is aware that any change or modification requested may also extend the Completion Date. In the event Homeowner(s) cause any change, modification and/or addition to the work covered by this Contract by requesting such through a sub-contractor and without first obtaining Contractor’s approval under a Contract Change Order, then in addition to the payment for the cost of such change, Homeowner(s) shall be responsible to Contractor for the payment of an unauthorized change fee of fifty percent (50%) of the cost for such change.

C. Any Change Order forms for changes, modifications and/or additions shall be incorporated in, and become a part of the Contract.

D. Labor to perform any work pursuant to a Change Order will be billed at our current rate of SEVENTY-FIVE AND NO/100ths ($75.00) DOLLARS unless agreed to otherwise in writing.

 

8. RESPONSIBILITIESOF THE PARTIES.

A. Contractor shall promptly notify the Homeowner(s) of unknown physical conditions differing materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Contract.

B. The Homeowner(s) are responsible to supply water, gas, sewer and electrical utilities unless otherwise agreed to in writing. Electricity and water to the site is necessary.

Homeowner(s) agree to allow and provide Contractor and his equipment access to the property.

C. Contractor is not responsible for performance or warranty of any material supplied by Homeowner(s) or the re-use thereof.

D. While working in and on the Property, Contractor will take all commercially reasonable precautions to keep disturbance to a minimum. i. Contractor is not responsible for any health issues that may arise as a result of the work done on the Property.

E. Homeowner(s) acknowledge that caulking is considered preventative maintenance that will separate and/or crack due to wall and floor movement and therefore, Contractor is not responsible for caulk separation or cracking.

F. The Homeowner(s) are responsible to remove or protect any of Homeowner(s)’ personal property.

9. DELAYS AND DELAY PENALTY.

A. Contractor agrees to start and diligently pursue Scope of Work through to the Completion Date, but shall not be responsible for delays for any of the following reasons:

i. acts of neglect or omission of Homeowner(s) or Homeowner(s)’ employees or Homeowner(s)’ agent, acts of God, stormy or inclement weather;

ii. strikes, lockouts, boycotts, or other labor union activities;

iii. change in Scope of Work by Change Order at the direction of Homeowner(s);

iv. acts of public enemy, riots or civil commotion;

v. inability to secure material through regular recognized channels, imposition of government priority or allocation of materials;

vi. failure of Homeowner(s) to make payments when due;

vii. for acts of independent contractors;

viii. federal holidays; or

ix. other causes beyond Contractor’s reasonable control.

B. Homeowner(s) agree not to delay or interfere with the progress of the Scope of Work. In the event Homeowner(s) cause delay or otherwise interfere with the progress of the Scope of Work for matters that are beyond their reasonable control or that Homeowner(s) are otherwise unable to prevent or overcome by the exercise of reasonable diligence said Homeowners shall be responsible for the additional payment of interest in an amount not to exceed twelve percent (12%) annum of the total amount due under this Contract, or the highest amount permitted by law, whichever is less, due and payable in daily Installments until the delay and/or interference has ceased and Contractors are permitted to return to their progression within the Scope of Work.

10. INSURANCE AND DEPOSITS. Contractor shall carry Worker’s Compensation insurance for the protection of Contractor’s employees during the Scope of Work, as well as commercial general liability insurance. Contractor shall not be responsible for Worker’s Compensation insurance covering subcontractor’s employees.

11. HOMEOWNER(S)’ DEFAULT. Each of the following constitutes a material breach of this Contract by Homeowner(s):

A. failing to fully and timely perform any covenant of Homeowner under this Contract;

B. making any representation to Contractor found to be materially false, misleading, or erroneous; and

C. a substantial breach of any of Homeowner(s)’ obligations under this Contract.

12. CONTRACTOR’S DEFAULT. Each of the following constitutes a material breach of this Contract by Contractor:

A. delaying the Scope of Work in such that the progress of the Completion Date falls more than thirty (30) days behind;

B. failing to fully and timely perform any covenant of Contractor under this Contract;

C. making any representation to Homeowner found to be materially false, misleading, or erroneous; and

D. a substantial breach of any of Contractor’s obligations under this Contract or required by applicable law.

13. REMEDIES.

A. If one (1) party defaults, and the default is not cured within thirty (30) days of written notice specifically describing the default, this Contract may be terminated by written notice from the non-defaulting party to the defaulting party.

B. In the event of such termination, the following formula is agreed on as a reasonable and fair way to assess the actual damages, without the expense and delay associated with other forms of dispute resolution:

i. Damages to Contractor. If termination resulted from an act of default of Homeowner(s), Homeowner(s) will pay to Contractor, within thirty (30) days of written notice from Contractor, an amount equal to all amounts due and owing at the time of the termination, including payment for Change Order, plus fifty percent (50.0%) of the remaining Contract Price to compensate Contractor for the lost profit and for the difficulty and burden of locating other work for the Contractor’s sub-contractors to prevent hardship on them and the loss of loyalty resulting from such hardship.

ii. Damages to Homeowner(s). If termination resulted from an act of default of Contractor, damages recoverable by Homeowner(s) from Contractor will be in accordance with Texas Property Code chapter 27 (the Residential Construction Liability Act), if applicable. If the Residential Construction Liability Act does not apply, Contractor will pay to Homeowner(s) liquidated damages in an amount equal to one-half ( ½ ) the profit and overhead previously paid to Contractor to compensate Homeowner(s) for the time and expense associated with obtaining another contractor to complete the Scope of Work. It is agreed by the parties that this liquidated damages amount is a reasonable estimate of the consequential damages actually incurred by Homeowner(s). Payment by Contractor will be delivered to Homeowner(s) on the earlier of:

a) payment of all amounts due to Contractor, with a right of offset to Homeowner(s) for unpaid damages under this section;

b) completion of construction of the Scope of Work; or

c) the expiration of thirty (30) days from written notice from Homeowner(s).

14. CLEAN UP. Contractor will remove from Homeowner(s)’ property debris created by this project and leave it in a neat and broom clean condition.

15. LIMITATIONS. No 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 four (4) years after completion of the project or cessation of work under this Contract.

16. COMPLIANCE WITH LAWS. Contractor shall comply with all federal, state, county and local laws, ordinances and regulations.

17. ATTORNEY FEES. In the event there is any litigation or arbitration arising out of this Contract, the prevailing party shall be entitled to its reasonable attorney fees and costs.

18. ASBESTOS, MOLD AND HAZARDOUS WASTE. A. UnlesstheContractspecifically callsfor the removal disturbance, or transportation of asbestos, mold or other hazardous substances, the parties acknowledge thatsuch work requiresspecial procedures, precautions, and/orlicenses. Therefore, unless the Contract specifically calls for same, if Contractor encounters such substances. Contractorshall immediately stopwork and allow theHomeowner(s)to obtain a duly qualified asbestos and/or hazardous material contractor to perform the work or the Contractor may perform the work at Contractor’s option. Said work will be addressed under a Change Order executed by both Contractor and Homeowner(s).

19. LIMITED WARRANTY. Contractor hereby warrants its work will be performed in a good and workmanlike manner for a period of one (1) year after the Completion Date, against any defects in workmanship or material and such warranty is fully transferable. THIS LIMITED WARRANTY IS IN LIEU OF ANY OTHER WARRANTY, EXPRESS OR IMPLIED, WHICH ARE EXPRESSLY DISCLAIMED, INCLUDING THE WARRANTY OF HABITABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR MERCHANTABILITY.

20. AGREEMENT TO INDEMNIFY. For the Consideration stated, Homeowner agrees and represents to Contractor as follows:

A. Contractor was not involved in any remediation of the environmental damage or the contracting of services for the same;

B. Any remediation work was contracted with and completed by a third party prior to or contemporaneously with the signing of this Disclaimer and the Construction Contract;

C. Homeowner understands and agrees the remediation work must be completed prior to Contractor commencing the Work Performed;

D. Homeowner shall defend, indemnify, and hold harmless Contractor and its affiliates and their officers, directors, employees, agents, successors and assigns from and against all losses, damages, liabilities, deficiencies, actions, judgments, interest, awards, penalties, fines, or expenses of any kind (including reasonable attorneys’ fees) arising out of or resulting from any previous environmental damage and/or any remediation work done by third parties;

E. Homeowner acknowledges Contractor’s reliance on Homeowner’s indemnification without which Contractor would not agree to the Work to be Performed; and

F. By signing this Disclaimer, Homeowner employs Contractor for the Work Performed.

IMPORTANT NOTICE: YOU AND YOUR CONTRACTOR ARE RESPONSIBLE FOR MEETING THE TERMS AND CONDITIONS OF THIS CONTRACT. IF YOU SIGN THIS CONTRACT AND YOU FAIL TO MEET THE TERMS AND CONDITIONS OF THIS CONTRACT, YOU MAY LOSE YOUR LEGAL OWNERSHIP RIGHTS IN YOUR HOME. KNOW YOUR RIGHTS AND DUTIES UNDER THE LAW.

 

RESIDENTIAL CONSTRUCTION LIABILITY ACT (RCLA) NOTICE THIS CONTRACT IS SUBJECT TO CHAPTER 27 OF THE TEXAS PROPERTY CODE. THE PROVISIONS OF THAT CHAPTER MAY AFFECT YOUR RIGHT TO RECOVER DAMAGES ARISING FROM A CONSTRUCTION DEFECT.IF YOU HAVE A COMPLAINT CONCERNING A CONSTRUCTION DEFECT AND THAT DEFECT HAS NOT BEEN CORRECTED AS MAY BE REQUIRED BY LAW OR BY CONTRACT, YOU MUST PROVIDE THE NOTICE REQUIRED BY CHAPTER 27 OF THE TEXAS PROPERTY CODE TO THE CONTRACTOR BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, NOT LATER THAN THE 60TH DAY BEFORE THE DATE YOU FILE SUIT TO RECOVER DAMAGES IN A COURT OF LAW OR INITIATE ARBITRATION. THE NOTICE MUST REFER TO CHAPTER 27 OF THE TEXAS PROPERTY CODE AND MUST DESCRIBE THE CONSTRUCTION DEFECT. IF REQUESTED BY THE CONTRACTOR, YOU MUST PROVIDE THE CONTRACTOR AN OPPORTUNITY TO INSPECT AND CURE THE DEFECT AS PROVIDED BY SECTION 27.004 OF THE TEXAS PROPERTY CODE.

 

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Homeowner

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Homeowner

 

YOU, THE HOMEOWNER(S), MAY CANCEL THIS TRANSACTION AT ANY TIME BEFORE MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT.

 

GROUT WORKS OF HOUSTON, LLC

__________________________________________

Lee Coleman Aaron, Managing Member

 

CONSTRUCTION CONTRACT – GROUT WORKS OF HOUSTON, LLC

INITIALS: ______ | ______ | ______ PAGE 8 OF 9

 

NOTICE OF CANCELLATION

 

Date: _________________

 

YOU 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 MERCHANT OF YOUR CANCELLATION NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF THE TRANSACTION WILL BE CANCELED.

 

IF YOU CANCEL YOU MUST MAKE AVAILABLE TO THE MERCHANT 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 MERCHANT REGARDING THE RETURN SHIPMENT OF THE GOODS AT THE MERCHANT’S EXPENSE AND RISK.

 

IF YOU DO NOT AGREE TO RETURN THE GOODS TO THE MERCHANT OR IF THE MERCHANT DOES NOT PICK THEM UP WITHIN TWENTY DAYS OF THE DATE OF YOUR NOTICE OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE GOODS WITHOUT ANY FURTHER OBLIGATION.

 

TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE TO GROUT WORKS OF HOUSTON, LLC AT 18907 WHITE HORSE DR, TOMBALL, TEXAS 77377, NOT LATER THAN MIDNIGHT OF ___________________________, 20_____.

 

______________________________________________________________________________ I HEREBY CANCEL THIS TRANSACTION. Dated: _______________________, 20_____.

 

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Homeowner

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Homeowner