2023A-05701-NPC-ROC Notice of Hearing and Packet MAILED

2023A-05701-NPC-ROC · Registrar of Contractors · 2023-08-24

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Walker Plumbing LLC, Case No. 2023-05701 COMPLAINANT, Docket No. 2023A-05701-NPC-ROC v. NOTICE OF HEARING ON Collaborative Construction Solutions LLC CONTESTED CASE License No. ROC 335094,

RESPONDENT.

This Notice of Hearing is issued under A.R.S. § 41-1092.05(D). HEARING INFORMATION The hearing is set for: September 29, 2023 1:00 PM Tammy Eigenheer Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person.

If you have requested to appear in-person at the hearing, the hearing will be held at 1740 W Adams Street, Phoenix, AZ 85007.

You must attend this hearing. This is an adversarial hearing before an administrative law judge, and is conducted in a similar manner as judicial proceedings. Thus, you must be prepared to present evidence, including witness testimony and documents, in support of your case.

STATEMENT OF LEGAL AUTHORITY AND JURISDICTION The State of Arizona has determined that the licensing and regulation of construction

contractors is a proper state function, and has vested authority in the Registrar of Contractors

to administer Title 32, Chapter 10 of the Arizona Revised Statutes. A.R.S. §§ 32-1101 et seq.

All hearings for alleged violations of Title 32, Chapter 10 are conducted under Title 41,

Chapter 6, Article 10. A.R.S. § 32-1156.

The statutes and rules governing the hearing can be found at: Arizona Revised

Statutes §§ 41-1092 to -1092.12, and Arizona Administrative Code R2-19-101 to -122.

PARTICULAR ARIZONA STATUTES AND RULES INVOLVED The statutes and rules the Respondent is alleged to have violated are cited in the

complaint and citation, which were served on the Respondent on June 14, 2023.

SHORT AND PLAIN STATEMENT OF THE MATTERS ASSERTED The complaint and citation allege that the Respondent committed the following act(s):

Charge: 1 A.R.S. § 32-1154(A)(10)

THE PARTIES TO THE ADMINISTRATIVE HEARING Because Respondent is a licensee and is charged with an act(s) or omission(s) that is cause for the suspension or revocation of a license, Respondent is a party to this case and will be a party to the hearing. Because Complainant alleged Respondent committed an act(s) or omission(s) that is cause for the suspension or revocation of a license, Complainant is a party to this case and will be a party to the hearing. Respondent and Complainant, as the parties to the hearing, will present evidence and argument to the administrative law judge.

RIGHT TO BE REPRESENTED The parties to the administrative hearing may choose to be represented by an attorney.

A.R.S. § 41-1092.07(B). If one of the parties is a company, the company may be represented

by an officer or employee if that person satisfies the conditions set forth in A.R.S. § 32-

1156(B).

CHANGE OF ADDRESS Each party must inform the Registrar and the Office of Administrative Hearings of

any change of address within five (5) days of the change. A.R.S. § 41-1092.04.

HEARING PROCEDURES AND RULES The administrative hearing will be conducted in accordance with A.R.S. §§ 41-1092

to -1092.12, and A.A.C. R2-19-101 to -122. The parties should review the statutes, rules, and

processes governing the administrative hearing. Copies of the statutes, rules, and articles

regarding the administrative hearing process can be found at https://www.azoah.com/.

REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE The Registrar’s investigators, employees, and attorneys will appear at the hearing via video conference or telephone unless requested by a party to appear in-person. Requests for the Registrar’s investigators, employees, or attorneys to appear in-person must be filed with the Registrar and the Office of Administrative Hearings no later than seven (7) calendar days prior to the hearing date. HEARING PACKET In the interests of administrative efficiency, the Registrar compiles and discloses certain documents to the parties and the Office of Administrative Hearings. These documents are attached to this Notice of Hearing as the “Hearing Packet.” If any party wishes to submit additional evidence, they must do so during the hearing after completing a disclosure statement. See “Disclosure Statement” section below.

SUBPOENAS FOR TESTIMONY FROM A WITNESS OR DOCUMENTS The parties to the hearing must be prepared to present evidence in support of their case. If a party wants to obtain testimony from a witness or documents not in the party’s possession, the party must prepare and file a written subpoena for the Administrative Law Judge to review and sign, if approved. A.R.S. § 41-1092.07(C). Forms for requesting a subpoena can be found on the Office of Administrative Hearings’ website at www.azoah.com. The party seeking a subpoena must serve notice on all the parties to the hearing, and on the Registrar. A.R.S. § 41-1092.04. DISCLOSURE STATEMENT At least seven calendar days before the hearing, each party must prepare and serve a disclosure statement on all other parties, and file it with the Office of Administrative Hearings. A.A.C. R4-9-118; A.A.C. R2-19-108. The disclosure statement must include any exhibit the party will use at the hearing. A party’s failure to timely disclose any witness or exhibit, without good cause, may result in the administrative law judge excluding those witnesses or exhibits from being used at the hearing. A.A.C. R4-9-118(C). A sample disclosure form is available on the Registrar’s website at https://roc.az.gov/content/prehearing-disclosure- statement.

CHANGING THE HEARING DATE

The date of the hearing may only be advanced or delayed on the agreement of the

parties or on a showing of good cause. A.R.S. § 41-1092.05(C). The date of the hearing may

be changed by filing a written agreement of the parties to change the date of the hearing. The

written agreement must be filed with the Office of Administrative Hearings, directed to the

assigned Administrative Law Judge, and transmitted to the Registrar and all other parties. The

assigned Administrative Law Judge may be found on the Office of Administrative Hearings’

web portal at www.azoah.com

If a party would like to move the date of the hearing without agreement of all parties, the party must file a written motion with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmit a copy to the Registrar and all other parties. The motion must state in detail good cause for why the date of the hearing should be advanced or delayed, and the position of all other parties regarding the advancement or delay. A party may also file a motion asserting a right to an expedited hearing upon a showing of extraordinary circumstances or the possibility of irreparable harm. A.R.S. § 41-1092.05(E).

RESOLUTION SHORT OF ADJUDICATION

In any case which is resolved or settled by the parties, or which is withdrawn by the

Complainant without objection from Respondent after the Notice of Hearing is issued, the

parties must notify the Office of Administrative Hearings of the resolution or settlement. Any

such cases will be listed on the Registrar’s website and its records under the category: “Closed

Complaints – Resolved/Settled/Withdrawn.”

Dated August 23, 2023.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail August 23, 2023 to: Respondent(s) Collaborative Construction Solutions LLC 1710 W Main St Ste 110 Battle Ground, WA 98604 Matthew W Harrison Esq. 4365 East Pecos Rd., Ste. 139 Gilbert, AZ 85295 Complainant(s) Walker Plumbing LLC 2228 E Rose Garden Loop Phoenix, AZ 85024

Copy sent electronically this same date to: Respondent at email address on record with the Registrar Respondent’s Attorney at email address of record with Registrar Complainant at email address on record with the Registrar Case No. 2023-05701 /

Katie Hobbs, Governor Martin Quezada, Director

Hearing Packet FAQ What is the Hearing Packet?

The Hearing Packet is a packet of certain documents collected or issued by the Registrar over the course of its investigation.

Who gets the Hearing Packet?

The Hearing Packet is assembled and distributed to all parties and to the Office of Administrative Hearings (“OAH”) prior to an administrative hearing.

What types of cases does the Registrar prepare a Hearing Packet for?

The Registrar prepares a Hearing Packet for Complainant-Handled Cases and No-Pay Cases. Note: If the Docket Number on the Notice of Hearing contains a “CHC” or “NPC”, your case is a Complainant-Handled Case or a No-Pay Case.

What is in the Hearing Packet?

The Hearing Packet contains essential case-specific documents and at a minimum will include the following documents:

● Original complaint;

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ

Katie Hobbs, Governor Martin Quezada, Director

● Citation; and ● Answer.

The Hearing Packet will also contain the following documents (if applicable):

● Jobsite inspection notices, notes, and photos; ● Written directives; and ● Compliance inspection notices, notes, and photos.

What if there are documents missing from the Hearing Packet?

If there is any evidence you submitted to the Registrar that are not included in the Hearing Packet it is your responsibility to introduce that evidence at the administrative hearing. Note: The administrative law judge assigned to your case does not have access to the entire Registrar record.

If there is additional evidence you submitted to the Registrar during the investigation that you also want to introduce as evidence during your hearing, it is your responsibility to:

● Properly disclose that evidence to the other party; and ● Introduce the evidence during your hearing.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ

Katie Hobbs, Governor Martin Quezada, Director

How do I disclose evidence I intend to use at a Hearing?

You must properly disclose any and all documents and witnesses you intend to use at your hearing according to the Registrar’s Prehearing Disclosure Rules. See Arizona Administrative Code Section R4-9-118.

A sample prehearing disclosure form and instructions are provided to the parties by the Registrar.

How do I obtain documents I previously submitted to the Registrar?

If you previously submitted documents to the Registrar and need a copy of these documents, please contact the Registrar’s Legal Department or submit a public records request at https://roc.force.com/AZRoc/s/roc-public-request.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ

Katie Hobbs, Governor Martín Quezada, Director

May 18, 2023

Via U.S. Mail and Email Complainant Walker Plumbing LLC 2228 E. Rose Garden Loop Phoenix, AZ 85024

Respondent Collaborative Construction Solutions LLC 1710 W. Main St., Ste. 110 BATTLE GROUND, WA 98604

Re: Complaint No. 2023-05701

Dear Complainant and Respondent:

The Registrar received a complaint filed against Collaborative Construction Solutions LLC for non-payment of materials or services rendered. This complaint is complete and will be substantively reviewed by the Registrar.

Respondent is free to raise any issue or affirmative defense to this complaint by filing a response with the Registrar by May 25, 2023. Please reference the complaint number listed above if you file a response. Respondent may file a response by:

Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Fax: (602) 364-0416 Email: [email redacted]

The Registrar will not issue a citation before May 25, 2023 and will review Respondent’s response, if one is submitted.

Please be advised that a response to the complaint is not the same as a written answer. If the Registrar issues a citation Respondent must file a written answer to that citation in accordance with A.R.S. § 32-1155.

Sincerely,

By: /s/ Kyle Nelson Kyle Nelson Legal Assistant II Arizona Registrar of Contractors

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 Non-Payment Complaint Form Departmental Use Only Complaint Number: Mail to: Registrar of Contractors P.O. Box 18243 Phoenix, AZ 85005-8243

Person Filing Complaint (Payee) Business Name Full Name (First Middle Last) ROC License Number(s) (if any) Dustin Eugene Walker Street Address City State Zip Code 2228 E. Rose Garden Loop Phoenix Arizona 85024 Phone Number Email Address [number redacted] [email redacted] I consent to receive communications electronically in connection with this case

Name of Attorney (if any)

Attorney’s Street Address City State Zip Code

Attorney’s Phone Number Attorney’s Email Address

Licensee Information (Payer) Name (as shown on contracts, invoices, etc.) ROC License Number(s) Collaborative Construction Solutions LLC ROC 335094 Street Address City State Zip Code 1710 W Main St, Suite 110 Battle Ground WA 98604 Phone Number Email Address

Name of Person(s) Representing License Teresa Lamb Complaint Information Principal Amount Due (excluding interest and fees) Contract Date (if applicable) $64,369.98 April 1, 2022 Have you filed a civil complaint?

List all specific invoices which have not been paid. Attach additional pages if necessary. I submitted January 2022 pay application in January with conditional release from Walker Plumbing LLC, and have sent unconditional progress releases through January from my supply houses. The General Contractor is withholding my check from me for no apparent reason.

Certification I certify, upon information and belief, that the above-named licensee has failed to pay monies in excess of seven hundred fifty dollars when due for materials or services rendered in connection with the licensee’s operations as a contractor. I further certify, upon information and belief, that the above-named licensee has the capacity to pay, or has received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased. A.R.S. § 32-1154(A)(10). Printed Name Signature Date Dustin Eugene Walker Declaration & Signature I am the Complainant in this Complaint Form or Complainant’s duly authorized representative. I declare under penalty of perjury that the information contained in this Form is true and correct to the best of my knowledge. I further certify that any documents submitted in support of this complaint are true and correct copies of the originals and are accurate to the best of my knowledge. I will assist in the investigation or in the prosecution of the contractor or other parties, and will, if necessary, attend hearings and testify to facts. Printed Name Signature Date Dustin Eugene Walker UNCONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT (Pursuant to A.R.S. 33-1008)

Project: QUEEN CREEEK PAD B, 22460 E OCOTILLO RD, QUEEN CREEK___________ Job Number: 01191062___________

WALKER PLUMBING 2228 E. ROSE GARDEN LOOP PHOENIX, AZ 85024

The undersigned has been paid and has received a progress payment in the sum of (Amount of Check) $20607.00___________ for all labor, services, equipment or material furnished to the jobsite or to (Person with whom Undersigned Contracted) WALKER PLUMBING___________ on the job of (Owner) SIMONCRE GIBSON LLC___________ located at (Job Description) QUEEN CREEEK PAD B, 22460 E OCOTILLO RD, QUEEN CREEK_AZ_________

and does hereby release any mechanic's lien, any state or federal statutory bond right, any private bond right, any claim for payment and any rights under any similar ordinance, rule or statute related to claim or payment rights for persons in the undersigned's position that the undersigned has on the above referenced project to the following extent. This release covers a progress payment for all labor, services, equipment, or materials furnished to the jobsite or to (Person with whom Undersigned Contracted) WALKER PLUMBING___________ through (Date) 01/31/2023___________, only and does not cover any retention, pending modifications and changes or items furnished after that date.

The undersigned warrants that he/she either has already paid or will use the monies he/she receives from this progress payment to promptly pay in full all his laborers, subcontractors, materialmen, and suppliers for all work, materials, equipment, or services provided for or to the above referenced project up to the date of this waiver.

NOTICE: THIS DOCUMENT WAIVES RIGHTS UNCONDITIONALLY AND STATES THAT YOU HAVE BEEN PAID FOR GIVING UP THOSE RIGHTS. THIS DOCUMENT IS ENFORCEABLE AGAINST YOU IF YOU SIGN IT, EVEN IF YOU HAVE NOT BEEN PAID. IF YOU HAVE NOT BEEN PAID, USE A CONDITIONAL RELEASE FORM.

Company Name:Russell Sigler Inc DBA Sigler Dated: 04/18/2023___________ Wholesale Distributors

__________________________________ (Signature)

By: Amanda Phillips Title:Commercial Credit Analyst

Tracking# 90229804 Waiver ID 729308 UP AZ UNCONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT (Pursuant to A.R.S. 33-1008)

Project: QUEEN CREEK PAD C, 22460 E OCOTILLO RD, QUEEN CREEK___________ Job Number: 01191061___________

WALKER HVAC 2228 E ROSE GARDEN LOOP PHOENIX, AZ 85024

The undersigned has been paid and has received a progress payment in the sum of (Amount of Check) $16677.00___________ for all labor, services, equipment or material furnished to the jobsite or to (Person with whom Undersigned Contracted) WALKER HVAC___________ on the job of (Owner) SIMONERE GIBSON LLC___________ located at (Job Description) QUEEN CREEK PAD C, 22460 E OCOTILLO RD, QUEEN CREEK_AZ_________

and does hereby release any mechanic's lien, any state or federal statutory bond right, any private bond right, any claim for payment and any rights under any similar ordinance, rule or statute related to claim or payment rights for persons in the undersigned's position that the undersigned has on the above referenced project to the following extent. This release covers a progress payment for all labor, services, equipment, or materials furnished to the jobsite or to (Person with whom Undersigned Contracted) WALKER HVAC___________ through (Date) 01/31/2023___________, only and does not cover any retention, pending modifications and changes or items furnished after that date.

Company Name:Russell Sigler Inc DBA Sigler Dated: 04/18/2023___________ Wholesale Distributors

__________________________________ (Signature)

By: Amanda Phillips Title:Commercial Credit Analyst

Tracking# 11147560 Waiver ID 729311 UP AZ Received Legal 5/24/2023

Wednesday, May 24, 2023

Kyle Nelson Legal Assistant II Legal Department Arizona Registrar of Contractors 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812

Re: Complaint No. 2023-05701

Dear Kyle Nelson,

Collaborative Construction Solutions, LLC is contracted with Walker Plumbing, LLC for the complete HVAC and Plumbing systems for the Queen Creek Retail pads project. Walker plumbing has been making progress invoices for the project and has been receiving progress payments for the project.

In our subcontract agreement under Article 9 it clearly states what is an acceptable invoice and the required documentation that must accompany an invoice for it to be paid. Within this Article we clearly state our payment terms and conditions as required by the A.R.S.. In addition, it also clearly states conditions that would preclude the subcontractor from being paid as required by the A.R.S. Additional requirements are set forth upon our application for payment for the subcontractor to provide.

Walker Plumbing, LLC submitted an application for payment on January 25, 2023 which was 5 days past the deadline for a January invoice. All invoices are required to be submitted by the 20th of each month as stated under Article 9 of our agreement. This application for payment (see attached) was incorrectly completed and in addition was not accompanied by the required documentation required under Article 9 for an acceptable invoice.

Issues with application for payment:  Five days past the stated deadline.  Application did not include listed lower tier material suppliers or subcontractors.  Application did not include unconditional releases from prior suppliers or subcontractors.  The application included two change orders, 1 & 2 for a total value of $62,000.00. These change orders were never issued or awarded for this work, nor have they completed any of the work. In addition, they did not include a deductive change order in the amount of $21,000.00 that was issued on 7/1/2022. By listing these false change orders and not including the deductive change order the contract amount and remaining balance was incorrect on the front page, thus skewing the percentages owed and the remaining balance.

Walker plumbing LLC did not correct the issues with the application or provide the other required documentation until recently.

With the lack of lien releases we have a reasonable assumption that material suppliers are not getting paid. As of this application for payment, Walker Plumbing LLC is asserting that they were 100% complete with plumbing in two of the three buildings but has yet to provide a single lien release from a plumbing material supplier and has refused our request for lien releases from their suppliers. For the project we have received a total of $140,200.00 in pre-lien notices for Walker Plumbing from Russell Sigler Inc (dba Sigler) (HVAC supplier) and to the date of this application we had not received any releases for payments to Sigler although Walker Plumbing LLC had been paid $108,000.00 of their $180,000.00 scheduled value of the HVAC portion of their work. This would only leave

1710 W Main St., Ste 110, Battle Ground, WA 98604 Phone ⋅ (360) 723-5579 ⋅ Fax (360) 843-1130 Email [email redacted] ⋅ www.collabconst.com License OR # 212028, WA #COLLACS871JD, ID #RCE-35839, MT #204082, ND #50065, WY #2014-[number redacted], AZ #ROC335094 Received Legal 5/24/2023

$80,000.00 to pay $140,000.00 of the Sigler pre-lien amount. In addition, the Sigler Pre-lien amount only included pads B and C, there will still be additional amounts owed for Pad D.

We contacted Sigler to find out how much was owed to them for the project in an effort to make a joint check as allowed within our subcontract agreement. Sigler has stated that they sent the information to Walker Plumbing, LLC and we would need to get the information from them. We have requested this information from Walker Plumbing LLC and they have not provided it to us.

Walker Plumbing had finally provided the required lien releases for their invoice at the end of April. They did not correct their schedule of values until just yesterday. As of today, 5/24/2023 by calculating lien releases to pre-liens Walker Plumbing and the project still owes Sigler $102,916.00. The majority of which was for material not delivered until March 2023. If CCS were to pay Walker Plumbing LLC directly for the January invoice it would not leave enough funds to pay their materialmen for all work and material installed after January 2023.

It is our intention to pay Walker Plumbing LLC for the amount of their January invoice as a joint check to Sigler and Walker Plumbing, LLC as allowed in our subcontract agreement. This payment will be issued out of our office Friday May 26th 2023 to ensure that their supplier is paid.

In addition to the above-mentioned issues, Walker Plumbing is not meeting their contractual obligations of the project and has caused significant delays and cost impacts to the project. Their remaining work for the project, corrections in their completed work and the amounts owed to their vendors well exceed their remaining contract value even prior to the January invoice.

Again, we ask Arizona Registrar of Contractors to understand the complexity of this situation and grant Collaborative Construction Solutions, LLC the grace of time to correctly pay the debts of the project to protect the owner of the property and ourselves.

Thank you,

Lauren Hale Member/President Collaborative Construction Solutions, LLC

Katie Hobbs, Governor Martín Quezada, Director

May 18, 2023

Via U.S. Mail and Email Complainant Walker Plumbing LLC 2228 E. Rose Garden Loop Phoenix, AZ 85024

Respondent Collaborative Construction Solutions LLC 1710 W. Main St., Ste. 110 BATTLE GROUND, WA 98604

Re: Complaint No. 2023-05701

Dear Complainant and Respondent:

Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Fax: (602) 364-0416 Email: [email redacted]

The Registrar will not issue a citation before May 25, 2023 and will review Respondent’s response, if one is submitted.

Sincerely,

By: /s/ Kyle Nelson Kyle Nelson Legal Assistant II Arizona Registrar of Contractors

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 Received Legal 5/24/2023

Non-Payment Complaint Form Departmental Use Only Complaint Number: Mail to: Registrar of Contractors P.O. Box 18243 Phoenix, AZ 85005-8243

Name of Attorney (if any)

Attorney’s Street Address City State Zip Code

Attorney’s Phone Number Attorney’s Email Address

Certification I certify, upon information and belief, that the above-named licensee has failed to pay monies in excess of seven hundred fifty dollars when due for materials or services rendered in connection with the licensee’s operations as a contractor. I further certify, upon information and belief, that the above-named licensee has the capacity to pay, or has received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased. A.R.S. § 32-1154(A)(10). Printed Name Signature Date Dustin Eugene Walker Declaration & Signature I am the Complainant in this Complaint Form or Complainant’s duly authorized representative. I declare under penalty of perjury that the information contained in this Form is true and correct to the best of my knowledge. I further certify that any documents submitted in support of this complaint are true and correct copies of the originals and are accurate to the best of my knowledge. I will assist in the investigation or in the prosecution of the contractor or other parties, and will, if necessary, attend hearings and testify to facts. Received Legal Printed Name Signature Date 5/24/2023 Dustin Eugene Walker Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 <$%($1&, ,- @@C>=

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. DD , -% !D@ Received UNCONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT Legal 5/24/2023 (Pursuant to A.R.S. 33-1008)

Project: QUEEN CREEK PAD C, 22460 E OCOTILLO RD, QUEEN CREEK___________ Job Number: 01191061___________

WALKER HVAC 2228 E ROSE GARDEN LOOP PHOENIX, AZ 85024

and does hereby release any mechanic's lien, any state or federal statutory bond right, any private bond right, any claim for payment and any rights under any similar ordinance, rule or statute related to claim or payment rights for persons in the undersigned's position that the undersigned has on the above referenced project to the following extent. This release covers a progress payment for all labor, services, equipment, or materials furnished to the jobsite or to (Person with whom Undersigned Contracted) WALKER HVAC___________ through (Date) 01/31/2023___________, only and does not cover any retention, pending modifications and changes or items furnished after that date.

Company Name:Russell Sigler Inc DBA Sigler Dated: 04/18/2023___________ Wholesale Distributors

__________________________________ (Signature)

By: Amanda Phillips Title:Commercial Credit Analyst

Tracking# 11147560 Waiver ID 729311 UP AZ Received Legal 5/24/2023

Late by 5 days

This is falsified by $83,000.00.

Actual remaining balance should state $45,874.22 which would not be enough to pay their vendors. Even if you add the remaining with the $64,369.98 it would be just enough to pay their supplier but not complete thier work.

Did not list suppliers or subcontractors Received Legal 5/24/2023

These change orders were never issued and/or awarded to them. They were only proposals.

Did not list deductive change order for 7/7/2022 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received

Copy of subcontract agreement Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received Legal 5/24/2023 Received 5/24/23, 4:34 PM State of Arizona Mail - RE: Complaint No 2023-05701 Legal 5/24/2023

Legal New Mail - AZROC <[email redacted]>

RE: Complaint No 2023-05701 Lauren Hale <[email redacted]> Wed, May 24, 2023 at 4:15 PM To: Kyle Nelson <[email redacted]>, "[email redacted]" <[email redacted]>

Please find attached our response to the complaint No. 2023-05701

Sincerely,

From: Kyle Nelson <[email redacted]> Sent: Thursday, May 18, 2023 10:34 AM To: Lauren Hale <[email redacted]> Cc: [email redacted] Subject: Kyle Nelson has shared a file "20230518 No Pay Complaint Notice 2023-05701 MAILED.pdf" with you

https://mail.google.com/mail/b/ADwNV_dHutOR7DrKNdXHsUPrXdMHeoViakbquBeYh4J4Hp43TEMQ/u/0/?ik=d3afebeda9&view=pt&search=all&perm… 1/3 Received 5/24/23, 4:34 PM State of Arizona Mail - RE: Complaint No 2023-05701 Legal 5/24/2023

Kyle has shared the following file with you:

This is a courtesy electronic copy of the Notice of Non Payment Complaint against Collaborative Construction Solutions LLC sent to you by the Registrar of Contractors.

Kyle Nelson Legal Assistant II Registrar of Contractors

20230518 No Pay Complaint Notice 2023-05701 MAILED.pdf

https://mail.google.com/mail/b/ADwNV_dHutOR7DrKNdXHsUPrXdMHeoViakbquBeYh4J4Hp43TEMQ/u/0/?ik=d3afebeda9&view=pt&search=all&perm… 2/3 Received 5/24/23, 4:34 PM State of Arizona Mail - RE: Complaint No 2023-05701 Legal 5/24/2023 Complaint No. 2023-05701 - CCS.pdf 4647K

https://mail.google.com/mail/b/ADwNV_dHutOR7DrKNdXHsUPrXdMHeoViakbquBeYh4J4Hp43TEMQ/u/0/?ik=d3afebeda9&view=pt&search=all&perm… 3/3 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Case No. 2023-05701 Walker Plumbing LLC,

COMPLAINANT, v. CITATION Collaborative Construction Solutions LLC License No. ROC 335094,

RESPONDENT.

The Registrar issues this Citation to Collaborative Construction Solutions LLC

(“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by June

June 29, 2023, then under A.R.S. § 32-1155(C), Respondent’s failure to answer may be

deemed an admission of the act or acts charged in the underlying complaint, and the Registrar

may then suspend or revoke Respondent’s license(s).

THE WRITTEN COMPLAINT

On May 17, 2023, Walker Plumbing LLC (“Complainant”) filed a written complaint

with the Registrar. A copy of that Complaint is attached to this Citation.

A FORMAL STATEMENT OF THE CHARGES AGAINST RESPONDENT

The Registrar investigated this matter and finds cause to charge Respondent with

violation(s) of Title 32, Chapter 10 of the Arizona Revised Statutes. Respondent is charged

with violating:

Charge 1: A.R.S. § 32-1154(A)(10)

Failure by a licensee or agent or official of a licensee to pay monies in excess of

$750 when due for materials or services rendered in connection with the

licensee's operations as a contractor unless the licensee proves that the licensee

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 lacks the capacity to pay and has not received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased. If the matter proceeds to a hearing and the administrative law judge determines that any of the charges listed above are supported by a preponderance of the evidence, then Respondent’s license(s) may be subject to suspension or revocation, and Respondent may be subject to other penalties provided by law, including civil penalties under A.R.S. §§ 32-1154(E) and (F). FILING A WRITTEN ANSWER Respondent must appear by filing with the Registrar a written answer to the citation and complaint showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). Respondent’s written answer should contain the heading “Written Answer to Citation and Complaint” and should include the case number, which is Case No. 2023-05701. How to File a Written Answer: Respondent’s written answer may be submitted in the following ways: In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 Fax: (602) 364-0416 Email: [email redacted] The Registrar’s normal office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday. If Respondent submits a written answer by mail, it is not filed with the Registrar until the Registrar actually receives it. Deadline for Filing a Written Answer: Respondent must file a written answer with the Registrar no later than June 29, 2023. This deadline is calculated under A.R.S. §§ 32-1155(A) and (B), which provides a deadline ten days after service of the Citation. Service of the Citation and Complaint is

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 complete five days after the Registrar mails a copy of the Citation and Complaint to Respondent’s latest address of record in the Registrar’s office. Consequences for Failing to File a Written Answer: If Respondent fails to answer, Respondent’s failure may be deemed an admission of the act or acts charged in the written complaint. A.R.S. § 32-1155(C). The Registrar may then suspend or revoke Respondent’s license(s). THE ADMINISTRATIVE HEARING If Respondent files a timely written answer contesting any charges in the Complaint, then the Registrar will request the Office of Administrative Hearings set a date for an administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D). RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations, are inadmissible in the administrative hearing. A.R.S. § 41-1092.06(B). RESPONDENT’S PRIOR RECORD of 5

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Under A.A.C. R4-9-117, in determining the appropriate discipline, the administrative law judge and the Registrar may consider not only facts in the current case, but also facts in prior cases and any documents regarding Respondent on file with the Registrar. Respondent’s prior disciplinary record and current license(s) status may be considered as a mitigating or aggravating factor in determining the appropriate discipline. EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to the Citation and Complaint, showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). This Citation does not constitute proof that any charge or allegation in Complainant’s written complaint is in fact true. This Citation does not constitute proof that Respondent violated any statutory provision or rule adopted by the Registrar. Dated June 14, 2023 By: /s/ Robert Stirling Robert Stirling Assistant Chief Counsel Legal Department Arizona Registrar of Contractors COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, June 14, 2023 to: Respondent Certified Mail No: [number redacted] Collaborative Construction Solutions LLC 1710 W. Main St., Ste. 110 Battle Ground, WA 98604

Copy mailed by USPS First Class mail this same date to: Collaborative Construction Solutions LLC of 5

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 1710 W. Main St., Ste. 110 Battle Ground, WA 98604

Complainant Walker Plumbing LLC 2228 E. Rose Garden Loop Phoenix, AZ 85024

Copy sent electronically this same date to: Respondent at email address on record with the Registrar Complainant at email address on record with the Registrar

Case No. 2023-05701 / KN

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Non-Payment Complaint Form Departmental Use Only Complaint Number: Mail to: Registrar of Contractors P.O. Box 18243 Phoenix, AZ 85005-8243

Name of Attorney (if any)

Attorney’s Street Address City State Zip Code

Attorney’s Phone Number Attorney’s Email Address

Project: QUEEN CREEEK PAD B, 22460 E OCOTILLO RD, QUEEN CREEK___________ Job Number: 01191062___________

WALKER PLUMBING 2228 E. ROSE GARDEN LOOP PHOENIX, AZ 85024

Company Name:Russell Sigler Inc DBA Sigler Dated: 04/18/2023___________ Wholesale Distributors

__________________________________ (Signature)

By: Amanda Phillips Title:Commercial Credit Analyst

Tracking# 90229804 Waiver ID 729308 UP AZ UNCONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT (Pursuant to A.R.S. 33-1008)

Project: QUEEN CREEK PAD C, 22460 E OCOTILLO RD, QUEEN CREEK___________ Job Number: 01191061___________

WALKER HVAC 2228 E ROSE GARDEN LOOP PHOENIX, AZ 85024

and does hereby release any mechanic's lien, any state or federal statutory bond right, any private bond right, any claim for payment and any rights under any similar ordinance, rule or statute related to claim or payment rights for persons in the undersigned's position that the undersigned has on the above referenced project to the following extent. This release covers a progress payment for all labor, services, equipment, or materials furnished to the jobsite or to (Person with whom Undersigned Contracted) WALKER HVAC___________ through (Date) 01/31/2023___________, only and does not cover any retention, pending modifications and changes or items furnished after that date.

Company Name:Russell Sigler Inc DBA Sigler Dated: 04/18/2023___________ Wholesale Distributors

__________________________________ (Signature)

By: Amanda Phillips Title:Commercial Credit Analyst

Tracking# 11147560 Waiver ID 729311 UP AZ Received 06/29/2023 ROC Legal

Matthew W. Harrison (018798) HARRISON LAW, PLLC 4365 East Pecos Road, Suite 139 Gilbert, Arizona 85295 Telephone: (480) 320-2310 Facsimile: (480) 320-2059 E-mail: [email redacted] Attorney for Respondent

REGISTRAR OF CONTRACTOS OF THE STATE OF ARIZONA Walker Plumbing, LLC, Case No.: 2023-05701

COMPLAINANT, RESPONDENT WRITTEN vs. ANSWER TO CITATION AND COMPLAINT Collaborative Construction Solutions LLC, License No. ROC 335094 RESPONDENT.

Respondent Collaborative Construction Solutions, LLC (hereinafter “CCS”), pursuant to A.R.S §32-1155(A) and the Registrar of Contractor’s Citation dated June 14, 2023, hereby file their Written Answer to the Citation and Complaint as follows: 1. As to the allegations in the Complaint, CCS admits that a Pay Application was submitted in January 2023 with waivers only from Walker Plumbing and denies all other remaining allegations. CCS asserts that the Pay Application was properly rejected, in accordance with ARS § 32-1183, based on the following: the Pay Application was not in compliance with the parties’ subcontract, the Pay Application included incorrect waivers and releases and lacked the required waivers and releases, disputed work, unsatisfactory job

progress, a reasonable belief that Walker Plumbing failed to make timely Received 06/29/2023 ROC Legal

payments to material suppliers due to a lack of lien releases, and reasonable evidence that the subcontract could not be completed for the unpaid balance of the subcontract price. 2. CCS incorporates the following details and timeline into its’ Written Answer: 3. On or about January 25, 2023, Walker Plumbing submitted a Pay Application on the Project in question. 4. The Pay Application was both incomplete and riddled with multiple errors.

These problems which caused CCS to withhold payment pursuant to ARS §

32-1183 included, but are not limited to, the following:

a. Pay Application included the incorrect waiver for the pay application

submitted.

b. The amounts listed were incorrect and did not comply with either the subcontract amount or change orders submitted by Walker Plumbing on the Project. c. Pay Application included requests for payment on change orders that had not been submitted or were previously rejected for multiple reasons. d. Pay Application did not include recognition of a deductive change order agreed to and signed by the parties. e. Pay Application did not include the required conditional waivers and releases from the sub-subcontractors and suppliers utilized by Walker Plumbing. f. Calculating the difference between pre-lien releases and lien releases, there was reasonable belief that the subcontract would not be completed for the unpaid balance, despite CCS fulfilling all payments up to this point. For example, at the date of the Pay Application, the Project HVAC Supplier, Russell Sigler Inc. (Sigler), had supplied CCS with $140,200 Received 06/29/2023 ROC Legal

of pre-lien notices. CCS had already paid $108,000 out of $180,000 of HVAC work to Walker Plumbing yet had not received any releases indicating payment to Sigler. The remaining HVAC balance would not be sufficient to settle the amount owed to Sigler pursuant to the pre-lien notices nor the remaining subcontract balance. 5. More specifically, regarding Walker Plumbing’s non-compliance with the subcontract:

a. Pay Application was delinquent (9.2.1).

b. Pay Application did not include information regarding the sub-

subcontractors used for January of 2023 or conditional waivers and

releases from sub-subcontractors/vendors (9.2.1(a)).

c. Pay Application did not include unconditional releases from prior suppliers or sub-subcontractors (9.6(b)); and d. Pay Application included two change orders that were never agreed upon in writing (or performed) pursuant to Article 8 of the subcontract. See Copy of Subcontract Agreement attached to CCS Answer dated May 24, 2023. 6. On or about January 26, 2023, CCS communicated with Walker Plumbing, rejecting the Pay Application, and listing the multiple problems/errors throughout. 7. On or about January 26, 2023, Walker Plumbing emailed CCS one corrected waiver for the Pay Application. However, it did not submit a corrected Pay Application and did not correct the errors and other issues throughout including providing waivers and releases for sub-subcontractors and vendors and other items required for a Pay Application.

Received 06/29/2023 ROC Legal

8. On or about January 26, 2023, CCS responded to the email containing the one corrected waiver outlining the need for the remaining items corrected/supplied and submitting a corrected/revised Pay Application. 9. Walker Plumbing did not do so. 10. From January 26, 2023, to April 3, 2023, CCS communicated with Walker Plumbing multiple times requesting a revised/corrected Pay Application and the missing required items. Walker Plumbing did not supply the requested

items.

11. Due to the delay and non-responsiveness by Walker Plumbing, on or about

April 3, 2023, to April 18, 2023, CCS began to individually contact the Sub-

subcontractors and suppliers of Walker Plumbing to obtain the missing

releases. 12. CCS was successful in obtaining one release, but not the others. 13. From March 29, 2023, to May 9, 2023, CCS repeatedly attempted to communicate with Walker Plumbing about the missing releases. It was not until April 19, 2023, that Walker Plumbing began to sporadically respond to CCS requests. 14. Finally, from April 19, 2023, to May 23, 2023, Walker Plumbing began to occasionally assist CCS in obtaining the missing releases. However, their assistance was sporadic and certain subcontractors and suppliers would not communicate with Walker Plumbing. 15. On May 23, 2023, CCS received notification of Walker Plumbing’s Complaint. 16. Because of the Complaint and the fact that Walker Plumbing had yet to submit an accurate Pay Application with the correct subcontract balance, lists of lower tier suppliers or sub-subcontractors that were used in the month of Received 06/29/2023 ROC Legal

January, and all required waivers and releases, CCS again made multiple efforts to obtain these required releases. 17. Because of the issues with Walker Plumbing, its sub-subcontractors, and suppliers, on or about June 1, 2023, CCS issued payment on the Pay Application, which included a joint check (payable to both Walker Plumbing and Sigler) for the amounts in the Pay Application. 18. On June 9, 2023, Walker Plumbing acknowledged payment and supplied their

unconditional waiver.

19. Throughout this process, Walker Plumbing did not submit a complete or

accurate Pay Application. It was timely rejected by CCS with a detailed

explanation of the reasoning for the rejection.

20. CCS made multiple attempts to obtain the information and required documentation from Walker Plumbing, most of these requests were either ignored or they did not supply the correct information to CCS. 21. Eventually CCS had no choice but to try to obtain the releases and other required information from sub-subcontractors and suppliers of Walker Plumbing and discovered the issues between Walker Plumbing and its entities. 22. CCS provided payment to Walker Plumbing and these other entities even though it never received a complete or accurate Pay Application from Walker Plumbing. 23. To this day, the remaining work to be done on the Project, corrections in completed work, and the amount still owed to sub-subcontractors and suppliers well exceed the remaining subcontract value.

Received 06/29/2023 ROC Legal

CCS requests that the ROC determine and adjudicate the following: A. The Complaint, and all Walker Plumbing’s claims alleged therein be dismissed. B. Walker Plumbing be awarded nothing; and C. CCS has shown cause as to why its license shall not be suspended or revoked. RESPECTFULLY SUBMITTED this 29th day of June, 2023.

HARRISON LAW, PLLC

By: /s/ Matthew W. Harrison Matthew W. Harrison Attorney for Respondent

*ORIGINAL/COPY of the foregoing emailed/mailed filed this 29th day June, 2023 to:

*Robert Stirling Assistant Chief Counsel Legal Department Arizona Registrar of Contractors 1700 W. Washington St., Ste. 105 Phoenix, Arizona 85007-2812 [email redacted] Walker Plumbing LLC 2228 E. Rose Garden Loop Phoenix, AZ 85024 Complainant

/s/ Harrison Law PLLC______________ Harrison Law PLLC

Received 6/29/23, 1:57 PM 06/29/2023 State of Arizona Mail - Walker Plumbing LLC v Collaborative Construction Solutions, LLC - Case No. 2023-05701 - RESPONDEN… ROC Legal

Answers - AZROC <[email redacted]>

Walker Plumbing LLC v Collaborative Construction Solutions, LLC - Case No. 2023- 05701 - RESPONDENT WRITTEN ANSWER TO CITATION & COMPLAINT message

Paralegal <[email redacted]> Thu, Jun 29, 2023 at 8:44 AM To: "[email redacted]" <[email redacted]> Cc: Matthew Harrison <[email redacted]>, Sarah Bauer <[email redacted]>

Good morning,

Attached is Respondent, Collaborative Construction Solutions, LLC, Written Answer to Citation & Complaint. The attached has also been sent regular mail to Complainant, Walker Plumbing this same date.

If you require any additional information, please contact this office.

Thank you.

Brandie Glazener

Paralegal

Power Ranch Professional Village

4365 East Pecos Road, Suite 139

Gilbert, AZ 85295

(480) 988-7407

www.harrisonlawaz.com

CONFIDENTIALITY NOTICE: This e-mail transmission, as well as the accompanying attachments, may contain confidential information belonging to Harrison Law, PLLC. This information is protected by the attorney-client privilege, and is intended only for the use of the intended recipient. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution, or the taking of any action as a result of the contents of this information is strictly prohibited. Any and all unauthorized interception of this transmission is illegal under the law. If this transmission has reached you in error, please notify Harrison Law, PLLC promptly by reply e-mail, then destroy all copies of the transmission.

https://mail.google.com/mail/b/ADwNV_fi0tEXUAwF0_yUWo-7Ujac7Lhpa0CR6fpTe5nLpCke6VG2/u/0/?ik=581c53cf5c&view=pt&search=all&permthid… 1/2 Received 6/29/23, 1:57 PM 06/29/2023 State of Arizona Mail - Walker Plumbing LLC v Collaborative Construction Solutions, LLC - Case No. 2023-05701 - RESPONDEN… ROC Legal 230629 CCS Answer Citation Complaint WP.pdf 96K

https://mail.google.com/mail/b/ADwNV_fi0tEXUAwF0_yUWo-7Ujac7Lhpa0CR6fpTe5nLpCke6VG2/u/0/?ik=581c53cf5c&view=pt&search=all&permthid… 2/2 Mediation Notice

Mediation Services Mediation services are available to the parties. What is Mediation? Mediation is a method of resolving disputes where the parties can end conflict without the expense and time associated with the full administrative process. Who Participates in During mediation, a mediator will attempt to help the Mediation? parties find an optimal solution to the conflict. Both parties must agree to participate in mediation, and both parties must bring a representative to mediation that has full authority to settle the entire matter. Mediation Is Not Neither the Registrar nor the Office of Administrative Mandatory Hearings will penalize a party for not agreeing to mediation. Where do the Parties The parties will meet at the Office of Administrative Meet for Mediation? Hearings to participate in mediation.

The Office of Administrative Hearings is located at 1400 West Washington, Suite 101, Phoenix, Arizona 85007. When does Mediation can occur after the Registrar issues a citation, but Mediation Occur? before the administrative hearing. Why Should Parties Mediation can be an alternative to the full administrative Consider Mediation? process. Mediation is beneficial because it is (1) time- efficient, (2) cost-effective, (3) confidential, and (4) capable of providing flexible solutions to complex problems. How to Request If the parties wish to mediate this case, they must file a Joint Mediation Request for Mediation with the Office of Administrative Hearings. A Joint Request for Mediation is included with this Mediation Notice. REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA _________________________ Case No. _______________ COMPLAINANT,

v. JOINT REQUEST FOR MEDIATION _________________________ RESPONDENT.

REQUEST

The parties jointly request that this matter be referred to mediation in the Office of Administrative Hearings (OAH). ☐ This matter is set for hearing on __________________(date). ☐ This matter is not currently set for hearing. MEDIATION AGREEMENT By requesting this mediation and signing below, the parties understand, represent, and agree: 1. The parties are prepared to commence mediation and will be ready for mediation on _____________________(date); 2. The parties will participate in the mediation process in good faith; 3. This request for mediation is not intended to hinder or delay administrative proceedings; 4. No party will contend that the mediation limits the power of OAH and its administrative law judges to conduct an administrative hearing and issue decisions under A.R.S. §§ 41-1092 – 1092.12; 5. The parties will be courteous and respectful throughout the mediation process to all participants; 6. The mediation is completely voluntary and the principal purpose is to allow the parties a full and fair opportunity to discuss settlement; of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 7. The mediator may conduct joint and separate meetings with the parties and may suggest resolutions to the parties’ dispute, but the mediator has no authority to impose a settlement upon the parties; 8. The mediation process is confidential. Communications made, material created for or used during, and acts occurring during mediation are confidential and may not be discovered or admitted into evidence in any proceeding except as provided by A.R.S. § 12-2238; 9. The mediator is not subject to service of process or a subpoena to produce evidence or to testify regarding any evidence or occurrence relating to the mediation except as provided in A.R.S. § 12-2238(C); 10. Neither the mediator, nor the Registrar of Contractors, nor the Office of Administrative Hearings is subject to civil liability for any act or omission in connection with any mediation service or activity except for acts involving

intentional misconduct or reckless disregard of a substantial risk of injury to the rights of others; 11. Throughout the mediation process, each party must have a representative present who will have full settlement authority to settle all claims at issue in the administrative

proceeding. 12. The mediation process will terminate when: a. The parties reach settlement; b. The mediator determines that further efforts at mediation are no longer likely

to achieve a settlement; or c. One of the parties withdraws from mediation. _____________________________________ _______________________ Complainant (or representative) Date

_____________________________________ _______________________ Respondent (or representative) Date

of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 PREHEARING DISCLOSURE STATEMENT INSTRUCTIONS ***DO NOT SUBMIT THESE INSTRUCTIONS WITH THE PREHEARING DISCLOSURE FORM***

ADMINISTRATIVE RULES A copy of the Arizona Administrative Code’s Rules for the Registrar of Contractors can be located on the Registrar’s Website.

PREHEARING DISCLOSURE REQUIREMENT Under A.A.C. R4-9-118(A), before a hearing, the parties must prepare a disclosure statement. The disclosure statement must contain: • A list of all the witnesses the party will call to testify, including the witnesses’ contact information and a brief description of the subject matter of the witnesses’ expected testimony; and • A list of all the exhibits that the party will use at the hearing.

FILE PREHEARING DISCLOSURE STATEMENTS • The Prehearing Disclosure Statements and Exhibits may be submitted to the Arizona Office of Administrative Hearings using any of the following: • Electronically: https://portal.azoah.com/submission/ • In-Person or by Mail: 1740 West Adams Street, Lower Level, Phoenix, Arizona 85007

EXCHANGING DISCLOSURE STATEMENTS AND EXHIBITS Under A.A.C. R4-9-118(B) (effective November 5, 2017), a party to the hearing must serve on every other party and file with the Office of Administrative Hearings a copy of: • The disclosure statement; and, • Any exhibit that the party will use at the hearing. Service: The disclosure statement and exhibits must be served on all parties in accordance with Arizona Administrative Code R2-19-108 Filing Documents. Under A.A.C. R2-19-108, service is completed by: • Personal delivery; • 1st class, certified or express mail; or • Facsimile. Timing: The disclosure statement and the exhibits must be served and filed not less than seven calendar days before the date of the hearing. Under A.A.C. R2-19-108, a document is served on a party: • On the date it is personally served; • Five days after it is mailed by express or 1st class mail; • On the date of the return receipt if it is mailed by certified mail; or • On the date indicated on the facsimile transmission.

CONSEQUENCES FOR FAILING TO DISCLOSE Under A.A.C. R4-9-108(C), if a witness or an exhibit is not timely disclosed as required the rules, and good cause for the failure to disclose is not shown, then the administrative law judge may: • Order that certain witnesses or exhibits not be used at the hearing; • Order that a particular fact is or is not established for the record; or, • Order that a charge, a defense, a claim, or some portion thereof, be dismissed.

Form RC-L-800A Prehearing Disclosure Statement Rev. 10/08/2019 Instructions Form PREHEARING DISCLOSURE STATEMENT FORM RC-L-800A

PART 1: WITNESS LIST DOCKET NO. Under A.A.C. R4-9-118(A), before a hearing, a party must prepare a disclosure statement containing a list of all the witnesses the party will call to testify, including the witnesses’ contact information and a brief description of the subject matter of the witnesses’ expected testimony. If you need additional space to list all witnesses, complete and attach additional Witness Lists. Example 1. Name 2. Telephone Number 3. Email Address

John Doe (123) 456-7890 [email redacted] 4. Subject Matter of Expected Testimony

John Doe will testify regarding the poor workmanship and poor installation of the Garage Door. Mr. Doe will also testify regarding the invoices and change orders for the project.

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 1 of 3 PART 2: EXHIBIT LIST DOCKET NO. Under A.A.C. R4-9-118(A), before a hearing, a party must prepare a disclosure statement containing a list of all the exhibits that the party will use at the hearing. Note: All exhibits listed below must be provided to all parties to the hearing. See A.A.C. R4-9-118(B). If you need additional space to list all witnesses, complete and attach additional Exhibit Lists. Example Contract for new garage door. Invoice #10001 – Cost for garage door replacement.

Exhibit Exhibit Name

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 2 of 3 PART 3: ACKNOWLEDGEMENT & SIGNATURE I certify that the above information is true and correct and that I will serve a copy of this disclosure statement and any exhibits listed in Part 2 to all parties to the hearing in accordance with A.A.C. R4-9-118. I acknowledge and understand that if I fail to properly disclose a witness or exhibit, the administrative law judge may: • Order that certain witnesses or exhibits not be used at the hearing; • Order that a particular fact is or is not established for the record; or, • Order that a charge, a defense, a claim, or some portion thereof, be dismissed.

I am the (check one):  Complainant  Respondent Docket No.

Print Name Signature Date

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 3 of 3