Construction Contract This agreement is made on the date written above our signatures between Contractor Name: __________________________________ (Contractor) and Owner Name: _____________________________________ (Owner). Contractor Contractor Name: __________________________________ Address __________________________________________ Address __________________________________________ City _________________________________________, State:____________ Zip:__________ Work Phone Number: ___________________________________________ Cell Phone Number: ____________________________________________ Fax Number: __________________________________________________ Email Address: ________________________________________________ License Number: _______________________________________________ Contractor Name: __________________________________ will be referred to as Contractor throughout this agreement. Owner Owner Name: _____________________________________ Address: _________________________________________ Address: _________________________________________ City: ___________________________________, State: _______________ Zip: ___________ Day Phone Number: ___________________________________________ Cell Phone Number: ___________________________________________ Fax Number: _________________________________________________ Email Address: _______________________________________________ Owner Name: _____________________________________ will be referred to as Owner throughout this agreement. The Construction Site Address: _________________________________________ Address: _________________________________________ City: __________________________________________, Texas Zip: ___________

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I.

Project Description

A. For a price identified below, Contractor agrees to complete remodeling work (identified as the Project in this agreement) for Owner. B. Description of the work, materials and equipment to be installed: ____________________________________________________________________________________ ____________________________________________________________________________________ _________________________________________________________________________________ II.

Contract Price

A. In addition to any other charges specified in this agreement, Owner agrees to pay Contractor $________________ for completing the Work described as the Project. III.

Scheduled Start of Construction

A. Work under this agreement will begin any time after this contract is signed by Contractor and Owner. IV. A.

Scheduled Completion of Construction

Work under this agreement will be Substantially Complete on or before ___/___/_____. V.

Documents Incorporated

A. This agreement incorporates by reference certain disclosures and notices required by federal and state law. The following documents are incorporated as though included in full as part of this agreement. Disclosure Statement Required by Texas Property Code Section 53.255 Disclosure of Subcontractors and Suppliers Notice of Right to Cancel under Regulation Z (in quadruplicate) VI.

Scope of Work

A. Contractor shall supervise and direct the Work and accepts responsibility for construction means, methods, techniques, sequences and procedures required to complete the Project in compliance with the Contract Documents. B. Except for materials expressly designated otherwise in the Contract Documents, Contractor warrants that all materials and equipment furnished under this contract shall be of good quality and new. VII.

Cutting and Patching

A. The color, texture and planes between existing and new materials might not match exactly. Contractor will use due diligence to create the best match possible. Owner acknowledges that patched surfaces may be detectable when construction is complete. VIII. Compliance with Law A. Contractor and Owner mutually commit to use reasonable care to meet the Requirements of state, federal and local Law when discharging their responsibilities under this agreement. IX.

Owner's Responsibilities

A. Owner shall have sole responsibility to secure financing for the Project and shall pay all fees, charges, or other costs of such financing, including Inspection fees charged by any lender. The nonperformance of any lender shall not affect the obligation of Owner to Contractor. Owner hereby authorizes and directs any lender on the Project to furnish Contractor with full information on Page 2

undisbursed loan proceeds when requested by Contractor. B. 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. X.

Representations by Contractor

A. Owner has reported to Contractor all conditions known to Owner which may not be apparent to Contractor and which might significantly increase 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 Defective Work of others, latent Defects in the Plans or Specifications, earlier attempts to do Similar or related Work, and obligations imposed by government. XI.

Disclaimer by Owner, Reliance by Contractor

A. Owner has provided Contractor with information on subsurface or concealed conditions at the Job Site. Except to the extent that Contractor knows this information to be false, Contractor is entitled to rely on the accuracy of this information. XII.

Payment Plan

A. Owner will pay to Contractor the Contract Price in 2 installments, an initial payment and a final payment on completion of the Work. XIII. Initial Payment A. Upon execution of this agreement, Owner shall pay to Contractor $_____________ as an advance on the Contract Price. B. Except as otherwise provided in this agreement, Contractor may retain $_____________ from the initial payment as a non-refundable deposit if this contract is terminated for any reason other than default by Contractor. XIV. Interest A. Payments due and not paid under the Contract Documents shall bear interest from the date payment is due at the rate of __________ percent per month. B. When payment is withheld pending settlement of a bona fide dispute on the quantity, quality, or timeliness of the Work, interest shall accrue only on the amount ultimately paid. C. Payment of interest does not abrogate or replace any other rights Contractor may have under this agreement. XV.

Liens and Waivers

A. Within 7 calendar days after receipt of funds from Owner for Work done by a Subcontractor or materials provided by a Material Supplier, Contractor will either (1) Pay for that Work and those materials, or (2) Notify the Subcontractor or Material Supplier, in writing, of the intention to withhold all or some portion of the payment due and explain why payment is being withheld. XVI. Waivers of Lien A. All waivers of lien provided to Owner under this agreement are limited to Work completed. Conditional or partial waivers of lien do not become unconditional until payment has been received in full for Work described in the payment request.

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XVII. Final Payment A. Contractor will submit an application for final payment to Owner when the Work has been completed in compliance with the Contract Documents. If Owner agrees that Work has been completed, payment is due Contractor for the entire unpaid balance of the contract amount (including any Retainage). B. 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. C. If completion of the Work is delayed unreasonably at no fault of Contractor, Contractor shall be entitled to final payment for all Work completed (including Retainage) without prejudice to the right of Contractor to complete the Project at a later date and without prejudice to the right of Owner to make Claims against Contractor for Defects in Work completed. XVIII. Contractor Claims A. If Contractor claims that any instruction, Drawing, act or omission of Owner or any representative of Owner, or any agency of government, increases costs to Contractor, requires extra time or changes the Scope of Work, Contractor shall have the right to assert a Claim for such costs or time. XIX. Arbitration A. Any controversy or Claim arising out of or relating to this contract or contract warranty or the breach thereof which cannot be resolved by mediations shall be settled by arbitration administered by the American Arbitration Association under its Construction Industry Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. B. Anything in this contract notwithstanding, any Claim arising out of or relating to the Contract Documents or warranty or the breach thereof may, at the option of the Claimant, be filed in any Small Claims Court having jurisdiction, in lieu of an arbitration proceeding. XX. A.

Insurance

General Requirements

1. Contractor shall carry workers' compensation insurance and public liability insurance as required by Law and regulation for the protection of Contractor and Owner during progress of the Work. 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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Signatures This contract is for immediate acceptance. Any delay in acceptance beyond ___/___/_____ will require renegotiation of the terms of this agreement. 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. This agreement is entered into as of the date written below. Owner Name: _____________________________________, Owner (and spouse) ______________________________ (Signature)

________________ (Date)

______________________________ (Printed Name) ______________________________ (Signature)

________________ (Date)

______________________________ (Printed Name) Contractor Name: __________________________________, Contractor ______________________________ (Signature)

________________ (Date)

______________________________ (Printed Name and Title)

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Disclosure Statement Required by Texas Property Code Section 53.255 KNOW YOUR RIGHTS AND RESPONSIBILITIES UNDER THE LAW. You are about to enter into a transaction to build a new home or remodel existing residential property. Texas law requires your contractor to provide you with this brief overview of some of your rights, responsibilities, and risks in this transaction. CONVEYANCE TO CONTRACTOR NOT REQUIRED. Your contractor may not require you to convey your real property to your contractor as a condition to the agreement for the construction of improvements on your property. KNOW YOUR CONTRACTOR. Before you enter into your agreement for the construction of improvements to your real property, make sure that you have investigated your contractor. Obtain and verify references from other people who have used the contractor for the type and size of construction project on your property. GET IT IN WRITING. Make sure that you have a written agreement with your contractor that includes: (1) a description of the work the contractor is to perform; (2) the required or estimated time for completion of the work; (3) the cost of the work or how the cost will be determined; and (4) the procedure and method of payment, including provisions for statutory retainage and conditions for final payment. If your contractor made a promise, warranty, or representation to you concerning the work the contractor is to perform, make sure that promise, warranty, or representation is specified in the written agreement. An oral promise that is not included in the written agreement may not be enforceable under Texas law. READ BEFORE YOU SIGN. Do not sign any document before you have read and understood it. NEVER SIGN A DOCUMENT THAT INCLUDES AN UNTRUE STATEMENT. Take your time in reviewing documents. If you borrow money from a lender to pay for the improvements, you are entitled to have the loan closing documents furnished to you for review at least one business day before the closing. Do not waive this requirement unless a bona fide emergency or another good cause exists, and make sure you understand the documents before you sign them. If you fail to comply with the terms of the documents, you could lose your property. You are entitled to have your own attorney review any documents. If you have any question about the meaning of a document, consult an attorney. GET A LIST OF SUBCONTRACTORS AND SUPPLIERS. Before construction commences, your contractor is required to provide you with a list of the subcontractors and suppliers the contractor intends to use on your project. Your contractor is required to supply updated information on any subcontractors and suppliers added after the list is provided. Your contractor is not required to supply this information if you sign a written waiver of your rights to receive this information. MONITOR THE WORK. Lenders and governmental authorities may inspect the work in progress from time to time for their own purposes. These inspections are not intended as quality control inspections. Quality control is a matter for you and your contractor. To ensure that your home is being constructed in accordance with your wishes and specifications, you should inspect the work yourself or have your own independent inspector review the work in progress. MONITOR PAYMENTS. If you use a lender, your lender is required to provide you with a periodic statement showing the money disbursed by the lender from the proceeds of your loan. Each time your contractor requests payment from you or your lender for work performed, your contractor is also required to furnish you with a disbursement statement that lists the name and address of each subcontractor or supplier that the contractor intends to pay from the requested funds. Review these statements and make sure that the money is being properly disbursed. CLAIMS BY SUBCONTRACTORS AND SUPPLIERS. Under Texas law, if a subcontractor or supplier who furnishes labor or materials for the construction of improvements on your property is not paid, you may become liable and your property may be subject to a lien for the unpaid amount, even if you have not contracted directly with the subcontractor or supplier. To avoid liability, you should take Page 6

the following actions: (1) If you receive a written notice from a subcontractor or supplier, you should withhold payment from your contractor for the amount of the claim stated in the notice until the dispute between your contractor and the subcontractor or supplier is resolved. If your lender is disbursing money directly to your contractor, you should immediately provide a copy of the notice to your lender and instruct the lender to withhold payment in the amount of the claim stated in the notice. If you continue to pay the contractor after receiving the written notice without withholding the amount of the claim, you may be liable and your property may be subject to a lien for the amount you failed to withhold. (2) During construction and for 30 days after final completion, termination, or abandonment of the contract by the contractor, you should withhold or cause your lender to withhold 10 percent of the amount of payments made for the work performed by your contractor. This is sometimes referred to as 'statutory retainage.' If you choose not to withhold the 10 percent for at least 30 days after final completion, termination, or abandonment of the contract by the contractor and if a valid claim is timely made by a claimant and your contractor fails to pay the claim, you may be personally liable and your property may be subject to a lien up to the amount that you failed to withhold. If a claim is not paid within a certain time period, the claimant is required to file a mechanic's lien affidavit in the real property records in the county where the property is located. A mechanic's lien affidavit is not a lien on your property, but the filing of the affidavit could result in a court imposing a lien on your property if the claimant is successful in litigation to enforce the lien claim. SOME CLAIMS MAY NOT BE VALID. When you receive a written notice of a claim or when a mechanic's lien affidavit is filed on your property, you should know your legal rights and responsibilities regarding the claim. Not all claims are valid. A notice of a claim by a subcontractor or supplier is required to be sent, and the mechanic's lien affidavit is required to be filed, within strict time periods. The notice and the affidavit must contain certain information. All claimants may not fully comply with the legal requirements to collect on a claim. If you have paid the contractor in full before receiving a notice of a claim and have fully complied with the law regarding statutory retainage, you may not be liable for that claim. Accordingly, you should consult your attorney when you receive a written notice of a claim to determine the true extent of your liability or potential liability for that claim. OBTAIN A LIEN RELEASE AND A BILLS-PAID AFFIDAVIT. When you receive a notice of claim, do not release withheld funds without obtaining a signed and notarized release of lien and claim from the claimant. You can also reduce the risk of having a claim filed by a subcontractor or supplier by requiring as a condition of each payment made by you or your lender that your contractor furnish you with an affidavit stating that all bills have been paid. Under Texas law, on final completion of the work and before final payment, the contractor is required to furnish you with an affidavit stating that all bills have been paid. If the contractor discloses any unpaid bill in the affidavit, you should withhold payment in the amount of the unpaid bill until you receive a waiver of lien or release from that subcontractor or supplier. OBTAIN TITLE INSURANCE PROTECTION. You may be able to obtain a title insurance policy to insure that the title to your property and the existing improvements on your property are free from liens claimed by subcontractors and suppliers. If your policy is issued before the improvements are completed and covers the value of the improvements to be completed, you should obtain, on the completion of the improvements and as a condition of your final payment, a 'completion of improvements' policy endorsement. This endorsement will protect your property from liens claimed by subcontractors and suppliers that may arise from the date the original title policy is issued to the date of the endorsement.

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Disclosure of Subcontractors and Suppliers IN COMPLIANCE WITH TEXAS PROPERTY CODE SECTION 53.256, CONTRACTOR INTENDS TO USE THE FOLLOWING SUBCONTRACTORS AND SUPPLIERS ON PROJECT: NOTICE: THIS LIST OF SUBCONTRACTORS AND SUPPLIERS MAY NOT BE A FINAL LISTING. UNLESS YOU SIGN A WAIVER OF YOUR RIGHT TO RECEIVE UPDATED INFORMATION, THE CONTRACTOR IS REQUIRED BY LAW TO SUPPLY UPDATED INFORMATION, AS THE INFORMATION BECOMES AVAILABLE, FOR EACH SUBCONTRACTOR OR SUPPLIER USED IN THE WORK PERFORMED ON YOUR RESIDENCE Name _______________________________ Address ______________________________ City ______________________________, Texas Zip ____________________ Phone Number: Phone ____________________

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NOTICE OF RIGHT TO CANCEL UNDER REGULATION Z (12 CFR 226.15(b) requires that each owner receive two copies of this notice.) To: Owner Re: Your right to cancel Project You are entering into a transaction that will result in a security interest being placed on your home. You have a legal right under federal law to cancel this transaction, without cost, within three business days from whichever of the following events occurs last: (1) The date of the transaction, which is _________________________________, or (2) The date you receive your Truth in Lending disclosures, or (3) The date you receive this notice of your right to cancel. If you cancel this transaction, the security interest is also cancelled. Within 20 calendar days after we receive your notice, we must take the steps necessary to reflect the fact that the security interest on your home has been cancelled, and we must return to you any money or property you have given us or to anyone else in connection with this transaction. You may keep any money or property we have given you until we have done the things mentioned above, but you must then offer to return the money or property. If it is impractical or unfair for you to return the property, you must offer its reasonable value. You may offer to return the property at your home or at the location of the property. Money must be returned to the address below. If we do not take possession of the money or property within 20 calendar days of your offer, you may keep it without further obligation. How to cancel: If you decide to cancel this transaction, you may do so by notifying us in writing at: Contractor Name: __________________________________ Address __________________________________________ Address __________________________________________ City _________________________________________, State:_________ Zip:__________ ___________________________________________ You may use any written statement that is signed and dated by you and states your intention to cancel, or you may use this notice by dating and signing below. Keep one copy of this notice because it contains important information about your rights. If you cancel by mail or telegram, you must send the notice no later than midnight of _______________________ (midnight of the third business day following the latest of the three events listed above). If you send or deliver your written notice to cancel some other way, it must be delivered to the above address no later than that time. I WISH TO CANCEL. ______________________________ Signature

________________ Date

See the next page for important information about what happens if this agreement is cancelled.

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Notice Required by 12 Code of Federal Regulation Section 226.15(d), Effects of Rescission (1) When a consumer rescinds a transaction, the security interest giving rise to the right of rescission becomes void, and the consumer shall not be liable for any amount, including any finance charge. (2) Within 20 calendar days after receipt of a notice of rescission, the creditor shall return any money or property that has been given to anyone in connection with the transaction and shall take any action necessary to reflect the termination of the security interest. (3) If the creditor has delivered any money or property, the consumer may retain possession until the creditor has met its obligation under paragraph (d)(2) of this section. When the creditor has complied with that paragraph, the consumer shall tender the money or property to the creditor or, where the latter would be impracticable or inequitable, tender its reasonable value. At the consumer's option, tender of property may be made at the location of the property or at the consumer's residence. Tender of money must be made at the creditor's designated place of business. If the creditor does not take possession of the money or property within 20 calendar days after the consumer's tender, the consumer may keep it without further obligation.

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NOTICE OF RIGHT TO CANCEL UNDER REGULATION Z (12 CFR 226.15(b) requires that each owner receive two copies of this notice.) To: Owner Re: Your right to cancel Project You are entering into a transaction that will result in a security interest being placed on your home. You have a legal right under federal law to cancel this transaction, without cost, within three business days from whichever of the following events occurs last: (1) The date of the transaction, which is _________________________________, or (2) The date you receive your Truth in Lending disclosures, or (3) The date you receive this notice of your right to cancel. If you cancel this transaction, the security interest is also cancelled. Within 20 calendar days after we receive your notice, we must take the steps necessary to reflect the fact that the security interest on your home has been cancelled, and we must return to you any money or property you have given us or to anyone else in connection with this transaction. You may keep any money or property we have given you until we have done the things mentioned above, but you must then offer to return the money or property. If it is impractical or unfair for you to return the property, you must offer its reasonable value. You may offer to return the property at your home or at the location of the property. Money must be returned to the address below. If we do not take possession of the money or property within 20 calendar days of your offer, you may keep it without further obligation. How to cancel: If you decide to cancel this transaction, you may do so by notifying us in writing at: Contractor Name: __________________________________ Address __________________________________________ Address __________________________________________ City _________________________________________, State:_________ Zip:__________ ___________________________________________ You may use any written statement that is signed and dated by you and states your intention to cancel, or you may use this notice by dating and signing below. Keep one copy of this notice because it contains important information about your rights. If you cancel by mail or telegram, you must send the notice no later than midnight of _______________________ (midnight of the third business day following the latest of the three events listed above). If you send or deliver your written notice to cancel some other way, it must be delivered to the above address no later than that time. I WISH TO CANCEL. ______________________________ Signature

________________ Date

See the next page for important information about what happens if this agreement is cancelled.

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Notice Required by 12 Code of Federal Regulation Section 226.15(d), Effects of Rescission (1) When a consumer rescinds a transaction, the security interest giving rise to the right of rescission becomes void, and the consumer shall not be liable for any amount, including any finance charge. (2) Within 20 calendar days after receipt of a notice of rescission, the creditor shall return any money or property that has been given to anyone in connection with the transaction and shall take any action necessary to reflect the termination of the security interest. (3) If the creditor has delivered any money or property, the consumer may retain possession until the creditor has met its obligation under paragraph (d)(2) of this section. When the creditor has complied with that paragraph, the consumer shall tender the money or property to the creditor or, where the latter would be impracticable or inequitable, tender its reasonable value. At the consumer's option, tender of property may be made at the location of the property or at the consumer's residence. Tender of money must be made at the creditor's designated place of business. If the creditor does not take possession of the money or property within 20 calendar days after the consumer's tender, the consumer may keep it without further obligation.

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Change Order Agreement Today's Date _____________________

Original contract date _____________________

Job Address _____________________

Original contract price $ ___________________

Job Address _____________________

Sum of previous changes $ _________________

City, ST, ZIP _____________________

Cost of this change $ ______________________

Contractor

Revised contract price $ ____________________

______________________

Description of this change __________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ A. Material and supplies cost:

$ ________________

B. Taxes and fees

$ ________________

C. Direct labor:

$ ________________

D. Indirect labor costs:

$ ________________

E. Equipment and tools:

$ ________________

F.

Subtotal: ........................................................................ $ ________________

G. Overhead at _____ % of line F:

$ ________________

H. Subcontracts:

$ ________________

I. Overhead at _____ % of line H:

$ ________________

J.

Subtotal: ............................................................................ $ ________________

K. Profit at _____ % of lines F and J: L.

$ ________________

Subtotal: ............................................................................ $ ________________

M. Total cost, lines F, J and L:

[ ] Add

[ ] Deduct

$ ________________

N. Items specifically excluded from this change: __________________________________________ _______________________________________________________________________________ Q. This proposal is valid for _____ days. R. We require _____ days extension of the contract time. [ ] We are proceeding with this work per your authorization. [ ] Please return a signed copy of this agreement as your acknowledgment of this change. This Change Order incorporates by reference the terms and conditions of the original contract and all change orders approved prior to the acceptance of this agreement. This Change Order is accepted by_____________________________ Date________________

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