2023A-07940-CHC-ROC Notice of Hearing and Packet MAILED

2023A-07940-CHC-ROC · Registrar of Contractors · 2023-10-12

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA Joshua Baldwin , Case No. 2023-07940 COMPLAINANT, Docket No. 2023A-07940-CHC-ROC v. NOTICE OF HEARING ON CONTESTED CASE BPH Construction LLP License No. ROC 320710,

RESPONDENT.

This Notice of Hearing is issued under A.R.S. § 41-1092.05(D).

HEARING INFORMATION The hearing is set for:

November 22, 2023 1:00 PM Sondra Vanella 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 September 25, 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)(3) - R4-9-108(a)

Charge: 2 A.R.S. § 32-1154(A)(22)

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. The Registrar’s assigned investigator will appear as a witness at the hearing.

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 October 12, 2023.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors

Copy mailed via USPS First Class mail October 12, 2023 to:

Respondent(s) BPH Construction LLP 29064 N 69th Pl Scottsdale, AZ 85266-8539

Complainant(s) Joshua Baldwin 5250 E Deer Valley Dr. Unit #356 Phoenix, AZ 85054 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. 2023-07940 /

Douglas A. Ducey, Governor Jeffrey L. Fleetham, 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

Douglas A. Ducey, Governor Jeffrey L. Fleetham, 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

Douglas A. Ducey, Governor Jeffrey L. Fleetham, 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

Complainant: Joshua Baldwin 5250 E Deer Valley Dr. Unit #356 Phoenix, AZ 85054

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Respondent: BPH Construction LLP 29064 N 69th Pl Scottsdale, AZ 85266-8539

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 July 17, 2023

Jobsite Inspection Notice Re: Complaint Number 2023-07940

Dear Complainant and Respondent:

A formal complaint has been filed with the Arizona Registrar of Contractors.

A jobsite inspection is scheduled for August 10, 2023 at 9:30 AM. The Complainant is required to be present. The Respondent’s attendance is requested and encouraged. The Registrar encourages both parties to make a good faith effort to resolve this complaint prior to the jobsite inspection.

COMPLAINANT: 1. Under A.R.S. § 32-1155(D)(1), the Respondent must be allowed, upon request, the opportunity to inspect the work complained of within fifteen (15) days of receiving this notice. If Respondent is not provided an opportunity to inspect the work within the fifteen (15) day time period, the Registrar may be prohibited from taking further action on this complaint. 2. The Registrar may also be precluded from taking further action on this complaint, if the work that is the subject of the complaint is subject to neglect, modification, or abnormal use. A.R.S. § 32-1155(D)(2) 3. You must provide safe access to any area to be inspected. If access to a roof or other elevated area is required, you must provide a means to safely access the area (ladder or manlift as appropriate). Additionally, please secure any animals.

RESPONDENT: 1. Enclosed is a copy of the complaint. Under A.R.S. § 32-1155(D) you must be allowed, upon request, the opportunity to inspect the work complained of within fifteen days of the date of receipt of this notice. 2. To assist the assigned investigator in evaluating the merits of the complaint, please submit a response to the enclosed complaint to the assigned investigator prior to the scheduled inspection. 3. If you do not attend the jobsite inspection, your absence may negatively impact the investigation, and your interests. 4. If a building permit(s) was required for this project, please have the building permit information available at the jobsite inspection.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 If either party needs to reschedule the jobsite inspection, please notify the assigned investigator at least three business days prior to the inspection date to schedule a new date and time.

If the parties resolve the complaint prior to the inspection, please notify the assigned investigator in writing and by phone as soon as possible.

Sincerely, Robert Di Alto Robert Di Alto Investigator 602 7716758 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 A Guide to Jobsite Inspections

Purpose of the Jobsite Inspection When the Registrar receives a complaint against a contractor’s license alleging poor workmanship, the Registrar generally schedules a Jobsite Inspection. The Jobsite Inspection serves two purposes: 1. To give the contractor an opportunity to inspect the complaint items; and 2. To give the Registrar an opportunity to determine if the contractor’s work violates Arizona law.

Jobsite Inspection Rights and Responsibilities Access to inspect: The property owner has complete control over who they allow on the property. However, if the Registrar’s investigator or the contractor cannot inspect the work, the Registrar will not move forward with a citation.

Cooperation: Arizona law enables injured parties to seek relief for damages through several paths. When dealing with a licensed contractor, the Registrar of Contractors’ administrative complaint process may serve as one of those possible paths. However, in order to use that path, the Registrar relies on the cooperation of all parties to a complaint.

Minimum workmanship: The Registrar investigates workmanship complaints for compliance with minimum workmanship and professional industry standards. The Registrar does not issue citations for work that meets these standards.

Scope: The scope of the Jobsite Inspection is limited to items listed in the complaint filed with the Registrar’s office. It is the complainant’s responsibility to point out the complaint item(s) and the Investigators role to review the item(s). If the complainant identifies additional workmanship items not listed in the original complaint, they must file an addendum to the complaint. The Registrar’s Investigator may identify additional administrative violations by the contractor (e.g. work performed out of scope of the license and failure to provide a contract that meets requirements set by Arizona law) at the time of the inspection.

The Role of the Investigator At the Jobsite Inspection, the Registrar’s investigator will: ● Only investigate the items listed on the complaint form filed with the Registrar. ● Will gather evidence to make an informed decision about the complaint items.

What to expect after a Jobsite Inspection After doing a Jobsite Inspection, the Registrar’s Investigator will leave the jobsite and review the evidence provided during the inspection. Generally, the investigator does not make any determination at the time of the jobsite inspection regarding whether the allegations listed in the complaint are supported. ● If the allegations are confirmed, the Registrar’s Investigator may issue a Written Directive telling the contractor to correct the poor or incomplete work. ● If the allegations are not confirmed, the Registrar’s Investigator will close the complaint.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 If you have not filed a complaint yet or have not been assigned an investigator, you can reach the Registrar’s compliance department at (877) 692-9762.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 A Guide to Written Directives Purpose of the Jobsite Inspection When the Registrar receives a complaint against a contractor’s license, the Registrar generally schedules a Jobsite Inspection. The Jobsite Inspection serves two purposes: 1. To give the contractor an opportunity to inspect the complaint items; and 2. To give the Registrar an opportunity to determine if the contractor’s work violates Arizona law.

What to expect after a Jobsite Inspection After doing a Jobsite Inspection, the Registrar’s Investigator will determine whether the allegations listed in the complaint are supported. ● If the allegations are confirmed, the Registrar’s Investigator may issue a Written Directive telling the contractor to correct the poor or incomplete work. ● If the allegations are not confirmed, the Registrar’s Investigator will close the complaint.

Written Directives Access: In order to use the administrative process offered by the Registrar, a property owner must provide reasonable access to allow the contractor to fix their work as directed by the Registrar in a Written Directive. Complainants may not put any additional, unnecessary restrictions on the Respondent above and beyond the initial contract requirements agreed upon at the beginning of the project. Respondents are required to make repairs on items identified on any Written Directive, not otherwise restricted by local code or HOA limitations. Complainants must make access available to the Respondent to make the required repairs and failure to provide reasonable access may result in the Registrar dismissing the complaint.

Contractor obligations: The Written Directive will set a deadline for compliance. This is the period of time determined by the Investigator as necessary to complete the items listed in the Directive. ● The deadline for compliance assumes the contractor will promptly begin working on the items listed in the Directive. ● Do not wait. Both parties should communicate quickly to schedule the work.

Extensions: If good cause exists to extend this deadline, either party may submit a written request to the Investigator. The Registrar will review requests for extension and determine if the Directive should be extended.

Manner and method of performance: The Registrar does not provide specific instructions for how to correct poor work. A licensed contractor is expected to have the skill and professionalism to complete the work. Moreover, the complainant may not dictate the manner of repair. If the contractor fails to appropriately correct the work according to the contract, the Registrar will issue a citation.

Compliance Inspection: After the Written Directive expires, the Registrar’s Investigator will contact the complainant to determine if the contractor performed any corrective work. ● If the contractor did corrective work, the Investigator may schedule a Compliance Inspection to determine if the poor work is corrected. ● If the contractor did not perform any corrective work, the Registrar’s Investigator will not do a Compliance Inspection and will determine whether to issue a citation based on the administrative record.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Work performed after the directive ends: After the Directive period ends, a property owner may choose to allow the contractor to continue its work. The Registrar encourages parties to work cooperatively, but cannot require a homeowner to continue to allow a contractor access to the property after the Directive period ends in order for the administrative process to continue. Denying access after the Directive ends is not grounds to close or dismiss a complaint.

Questions? If you have already filed a complaint and it was assigned to an investigator, you are encouraged to contact that investigator directly with the information listed in your jobsite inspection letter. If you have not filed a complaint yet or have not been assigned an investigator, you can reach the Registrar’s compliance department at (877) 692-9762.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Complaint #2023-07940 P 1 JSI Date 8/10/2023 at 9:30 AM JSI PHOTOS Complaint #2023-07940 P 2 JSI Date 8/10/2023 at 9:30 AM JSI PHOTOS Complaint #2023-07940 P 3 JSI Date 8/10/2023 at 9:30 AM JSI PHOTOS Complaint #2023-07940 P 4 JSI Date 8/10/2023 at 9:30 AM JSI PHOTOS Complaint #2023-07940 P 5 JSI Date 8/10/2023 at 9:30 AM JSI PHOTOS Complaint #2023-07940 P 6 JSI Date 8/10/2023 at 9:30 AM JSI PHOTOS Complaint #2023-07940 P 7 JSI Date 8/10/2023 at 9:30 AM JSI PHOTOS Complaint #2023-07940 P 8 JSI Date 8/10/2023 at 9:30 AM JSI PHOTOS Complaint #2023-07940 P 9 JSI Date 8/10/2023 at 9:30 AM JSI PHOTOS Complaint #2023-07940 P 10 JSI Date 8/10/2023 at 9:30 AM JSI PHOTOS Complaint #2023-07940 P 11 JSI Date 8/10/2023 at 9:30 AM JSI PHOTOS Complaint #2023-07940 P 12 JSI Date 8/10/2023 at 9:30 AM JSI PHOTOS Complaint #2023-07940 P 13 JSI Date 8/10/2023 at 9:30 AM JSI PHOTOS Complaint #2023-07940 P 14 JSI Date 8/10/2023 at 9:30 AM JSI 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Case No.: 2023-07940 Investigator: Robert Di Alto Inspection Date: August 10, 2023 Inspection Time: 9:30 AM

Complainant: Joshua Baldwin Respondent: BPH Construction Not Present: LLP Not Present:

Jobsite General Notes:

JSI photos taken with my Google Pixel Phone camera. JSI audio recorded with my Olympus Digital Voice Recorder model DM-720. JSI photos and audio have been placed into the ROC complaint file. The tile appears to be a rectified porcelain tile and is light white in color. The tile is installed in a straight lay pattern. Note: it is highly likely that the color/shade and caliber lot (size of tiles manufactured at the same time and run) will be available to match the existing installed tiles. This is highly probable due to the floor tile being installed almost 1 year ago. The Respondent ROC #320710 License is currently suspended for lack of bond 07/17/2023.

Complaint Item: 1. Cracked Tile. Investigator’s Observation: I observed a single cracked tile at the entryway hall that is approximately 4”-5” in length diagonally. There is insufficient evidence to determine that this complaint item was due to by poor workmanship by the Respondent and whether it was reported to the Respondent within 10 days of close of escrow or during walk thru. If the Complainant provides new evidence for this allegation, the Registrar may review and advise accordingly. No further action required by the Respondent. Governing Rule: N/A

Complaint Item: 2. Chipping of the Tile. Investigator’s Observation: I observed several small chips in a few tiles. One was in the center of a tile located in the center of the living area, and I also observed several small chips at tiles located at the back of the kitchen island. There is insufficient evidence to determine that this complaint item was due to poor by the Respondent and whether it was reported to the Respondent within 10 days of close of escrow or during

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

walk thru. If the Complainant provides new evidence for this allegation, the Registrar may review and advise accordingly. Governing Rule: N/A

Complaint Item: 3. Visible Pencil Cutting Lines remaining on Tiles. Investigator’s Observation: I observed what the Respondent referred to as required breaks/stress breaks, which were located at the entry closet door and hall bathroom door (four door jamb leg locations). I have observed this condition in prior projects and I have also observed projects where this condition does not exist. The installer’s skill and experience are variables that can attribute to this condition, as well as tile layout, visual location, tile characteristics, material waste factors, and the difficulty of cuts such as hockey stick or horse shoe type cuts in order to fit large format tiles. This would not typically be considered poor workmanship. No further action required by the Respondent. Governing Rule: N/A

Complaint Item: 4. Uneven/Lippage of Several Tiles. Investigator’s Observation: Verified. I observed large format porcelain tile with approximately 3/16”-1/4” grout joints. There is tile lippage present at several locations throughout the residence including the entry way, kitchen, living room, dining area, guest bedroom and hallways, which were +1/32”. I verified this condition using my ROC provided lippage verification card. The Respondent shall correct by the appropriate means. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 5. Chipped Back Splash Tile. Investigator’s Observation: I observed a full height mosaic tile backsplash at the kitchen walls. The mosaic consist of multiple tile types and includes some natural stone in the pattern. The chips are small in size and are typical to find in natural stone materials, when they are used in detailed mosaic tile patterns. No further action required by the Respondent. Governing Rule: N/A

Complaint Item: 6. Cracked grout lines between countertops and cabinets. Investigator’s Observation: I observed hairline cracks between the countertop and tall cabinets located in the kitchen that were -1/16’ in width and within industry standards. This is common where dissimilar materials meet and would not be considered a workmanship issue. No further action required by the Respondent. Governing Rule: N/A

Complaint Item: 7. Multiple colors/discoloration of Grout Lines. Investigator’s Observation: Verified. I observed excessive color variance in the floor tile grout throughout the residence. Some grout variation is inherent in all Portland cement based products, but excessive discoloration is unacceptable. The Respondent stated that the variation could be related to cleaning solutions and maintenance. He also stated that they did not apply sealer to the floor tile grout and suggested waiting a year 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

prior to sealing grout for proper grout cure. While waiting time prior to sealing tile grout can vary depending on the specific grout product used, as a general industry guideline it is recommended to wait at least 48 to 72 hours after grouting before applying sealer. The Respondent shall correct by the appropriate means. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 8. Spacing and Aligning Tile Wrong. Investigator’s Observation: Verified. I observed several areas where the centerlines of the grout joints are not straight or even in width. I also observed areas where the four corners of the tiles intersect are inconsistent in size and alignment. The Respondent shall correct by the appropriate means. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 9. Excess/Cracked/Separated Grout. Investigator’s Observation: Verified. I observed areas of missing or irregular grout at the sliding patio doors and at multiple locations where the floor tile abuts cabinet toe kicks and inside corner areas. The Respondent shall correct by the appropriate means. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 10. Crooked lines and corners not lined up. Investigator’s Observation: Verified. This complaint item is similar to complaint item#8. I observed this condition in several areas of the tile flooring. The tile surface should be straight and reasonably flat, allowing for individual characteristics of the tile. The Respondent shall correct by the appropriate means. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 11. Lifting of tiles. Investigator’s Observation: I was not able to identify the locations of this complaint item and the Complainant agreed that this may have been a duplicate of complaintitem#4. No further action required by the Respondent. Governing Rule: N/A

Complaint Item: 12. Incorrectly Cut Tile. Investigator’s Observation: Verified. I observed a single tile with no grout joint, that is located between the right side of the toilet and vanity cabinet in the guest bathroom. This appears to be the only locations where this occurs in the bathroom. Respondent shall correct by the appropriate means. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 13. Popping up or overhangs in corners. Investigator’s Observation: Verified. I observed several drain covers located at the 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

patio deck that appear to be bowed and are lifting at the ends. The covers do not lay flat on the surface of the patio tile and the fit is poor. The Respondent shall correct by the appropriate means. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 14. Excessive grouting in difficult areas like corners. Investigator’s Observation: Verified. I observed several areas where grout is excessively applied and not cleaned from adjacent surfaces. This includes toe kick areas at cabinetry (kitchen and bathrooms), inside corners, where tile abuts wall cabinets, ceiling, crown moldings and missing/poorly grouted locations at patio doors. Respondent shall correct by the appropriate means. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 15. Inconsistent/ugly grout lines (Floor, Fireplace, Bathroom & Kitchen Backsplash) Investigator’s Observation: Verified. This complaint item is similar to #14. I observed several areas where grout was poorly applied or missing. This includes toe kick areas at cabinetry (kitchen and bathrooms), inside corners, where tile abuts wall cabinets, ceiling, crown moldings and missing/poorly grouted locations at patio doors. Respondent shall correct by the appropriate means. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 16. Damaged/Uneven/Poorly Functioning Cabinets. Investigator’s Observation: Verified. I observed a loose top rail to right stile joint connection that is separated on the cabinet door at the Kitchen Island. I also observed a wall cabinet located to the left of the range hood appears to of had the stile (right) repaired and the damage is still visible. The Complainant also stated that there was an issue with the finish on the right side of the range hood that was repaired by applying a skin. An attempt was made to address the cabinet to the left of the range hood in the same manner, but due to a defect in the reveal of the stile the panel when installed would be proud (project pass) of the face frame and the edge of the skin would be visible. Respondent shall correct by the appropriate means. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 17. Large Scratches Visible on Multiple Sliding Glass Doors Investigator’s Observation: Verified. I observed scratches at the sliding patio door panels located at the living area patio doors. The scratches appear to be on the interior of the dual glazing. I also observed the same condition at the sliding patio doors located in the master bedroom. Respondent shall correct by the appropriate means. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

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Complaint Item: 18. Water puddles at the patio balcony and the drain covers do not sit flat on the tile. Investigators observation: Verified. I observed water had puddling at the south west corner of the patio. Complainant hosed the patio off approximately 1 hour prior to my arrival. I completed the JSI in approximately 30-40 minutes and the water had a diameter of approximately +36” and +1/4” in depth. I checked my phone and noted the temperature at the time was 101 degrees F. Water should run towards the drain system and not puddle on the patio deck. Standing water exceeding 3/32" is unacceptable. The Respondent shall correct by the appropriate means. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Complainant: Joshua Baldwin 5250 E Deer Valley Dr. Unit #356 Phoenix, AZ 85054

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Respondent: BPH Construction LLP 29064 N 69th Pl Scottsdale, AZ 85266-8539

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 August 22, 2023

License No. ROC 320710

Re:Complaint No. 2023-07940

WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

After investigation, the Registrar determined that you failed to meet the requirements of A.R.S. § 32-1154(A), and now issues this Directive requiring you to take appropriate corrective action. Failure to comply with this Directive constitutes a violation of A.R.S. § 32-1154(A)(22) and may result in the issuance of a citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-1154(E) of up to $500.00. You must notify the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on 09/11/2023.

RESTRICTIONS • You may not perform or hire other contractors to perform work that is outside the scope of your license. • If your license is currently suspended for administrative reasons 1, or is inactive, expired, or cancelled, you may not perform any corrective work nor contract in any manner, which includes hiring other contractors to perform work, until the suspension of your license(s) has been lifted or your license(s) has been reactivated.

DIRECTIVE REQUIREMENTS You are directed to remedy the following violations by the appropriate means:

Complaint Item: 4. Uneven/Lippage of Several Tiles. Investigator’s Observation: Verified. I observed large format porcelain tile with approximately 3/16”-1/4” grout joints. There is tile lippage present at several locations throughout the residence including the entry way, kitchen, living room, dining area, guest bedroom and hallways, which were +1/32”. I verified this condition using my ROC provided lippage verification card. The Respondent shall correct by the appropriate means, as required by ROC standards. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards.

This means the license is suspended for lack of qualifying party, lack of bond, nonrenewal, Recovery Fund payout, or for any reason listed in A.R.S. § 32-1124(F). 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Complaint Item: 7. Multiple colors/discoloration of Grout Lines. Investigator’s Observation: Verified. I observed excessive color variance in the floor tile grout throughout the residence. Some grout variation is inherent in all Portland cement based products, but excessive discoloration is unacceptable. The Respondent shall correct by the appropriate means, as required by ROC standards. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 13. Popping up or overhangs in corners. Investigator’s Observation: Verified. I observed several drain covers located at the patio deck that appear to be bowed and are lifting at the ends. The covers do not lay

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 flat on the surface of the patio tile and the fit is poor. The Respondent shall correct by the appropriate means. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards.

ITEMS NOT REQUIRING CORRECTION The following complaint items require no action by the Respondent:

Complaint Item: 2. Chipping of the Tile. Investigator’s Observation: Unverified. I observed several small chips in a few tiles. One was in the center of a tile located in the center of the living area, and I also observed several small chips at tiles located at the back of the kitchen island. There is insufficient evidence to determine that this complaint item was due to poor by the Respondent and whether it was reported to the Respondent within 10 days of close of escrow or during walk thru. If the Complainant provides new evidence for this allegation, the Registrar may review and advise accordingly. Governing Rule: N/A

Complaint Item: 3. Visible Pencil Cutting Lines remaining on Tiles. Investigator’s Observation: Unverified. I observed what the Respondent referred to as required breaks/stress breaks, which were located at the entry closet door and hall bathroom door (four door jamb leg locations). I have observed this condition in prior projects and I have also observed projects where this condition does not exist. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 The installer’s skill and experience are variables that can attribute to this condition, as well as tile layout, visual location, tile characteristics, material waste factors, and the difficulty of cuts such as hockey stick or horse shoe type cuts in order to fit large format tiles. This would not typically be considered poor workmanship. No further action required by the Respondent. Governing Rule: N/A

Complaint Item: 5. Chipped Back Splash Tile. Investigator’s Observation: Unverified. I observed a full height mosaic tile backsplash at the kitchen walls. The mosaic consist of multiple tile types and includes some natural stone in the pattern. The chips are small in size and are typical to find in natural stone materials, when they are used in detailed mosaic tile patterns. No further action required by the Respondent. Governing Rule: N/A

Complaint Item: 6. Cracked grout lines between countertops and cabinets. Investigator’s Observation: Unverified. I observed hairline cracks between the countertop and tall cabinets located in the kitchen that were -1/16’ in width and within industry standards. This is common where dissimilar materials meet and would not be considered a workmanship issue. No further action required by the Respondent. Governing Rule: N/A

Please direct all questions regarding this Directive to the undersigned Investigator.

Sincerely, Robert Di Alto Robert Di Alto Investigator 602 7716758 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Joshua Baldwin, Case No. 2023-07940 COMPLAINANT, v. BPH Construction LLP CITATION License No. ROC 320710, RESPONDENT.

The Registrar issues this Citation to BPH Construction LLP (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by October 10, 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 July 14, 2023, Joshua Baldwin (“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)(3) - R4-9-108(a) Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A of 5

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 contractor shall perform all work in a professional and workmanlike manner. Charge :2 A.R.S. § 32-1154(A)(22) Failure to take appropriate corrective action to comply with this chapter or with rules adopted pursuant to this chapter without valid justification within a reasonable period of time after receiving a written directive from the Registrar. The written directive shall set forth the time within which the contractor is to complete the remedial action. The time permitted for compliance shall not be less than fifteen days from the date of issuance of the directive. A license shall not be revoked or suspended nor shall any other penalty be imposed for a violation of this paragraph until after a hearing has been held. 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. 2023-07940. 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 Email: [email redacted] of 5

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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 October 10, 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 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). INVESTIGATOR’S APPEARANCE AS A WITNESS The Registrar’s assigned investigator will appear as a witness at the hearing. If either party demands the attendance at the hearing of any other person, that party must obtain and serve a subpoena in compliance with the rules and processes established by the Office of Administrative Hearings. 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 of 5

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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 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. of 5

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Dated September 25, 2023. By: /s/ Erin Johnson Erin Johnson Legal Assistant II Legal Department Arizona Registrar of Contractors COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, September 25, 2023 to: Respondent Certified Mail No: [number redacted] BPH Construction LLP 29064 N. 69th Pl. Scottsdale, AZ 85266-8539

Copy mailed by USPS First Class mail this same date to: BPH Construction LLP 29064 N. 69th Pl. Scottsdale, AZ 85266-8539 Complainant Joshua Baldwin 5250 E. Deer Valley Dr. Unit #356 Phoenix, AZ 85054 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. 2023-07940 / EJ

of 5

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees 2023-07940

Person Filing Complaint Full Name (First Middle Last) Business Name (if a licensed contractor or supplier) ROC License Number(s) (if any)

Josh Baldwin Mailing Address (Enter jobsite in Contract/Project section) City State Zip

5250 E Deer Valley Dr. Unit #356 Phoenix Arizona 85054 Phone Number Email

[number redacted] [email redacted] I consent to receive communications electronically in connection with this case Name of Attorney (if any)

Street Address of Attorney City State Zip

Phone Number of Attorney Email of Attorney

Contractor Information Name (as shown on contract/invoice) ROC License Number(s)

BPH Construction LLP ROC 320710 Street Address City State Zip

29064 N 69th Pl Scottsdale AZ 85266-8539 Phone Number Email

[number redacted] [email redacted] Name of Person(s) Representing License

Allison Odea Contract/Project Information Contract Date Contract Amount Amount Paid

November 3, 2021 $897,672.26 $897,672.26 Date Work Started Date Work Stopped Date Work Was Completed

January 1, 2020 October 5, 2022 October 5, 2022 Close of Escrow (New Home) Move-In Date (New-Home)

October 5, 2022 October 5, 2022 Jobsite Street Address City State Zip

5250 E Deer Valley Dr. Phoenix AZ 85054 Name of Construction Site Owner Construction Site Name (if applicable)

Brent Hospelhorn Phone Number of Construction Site Owner Email of Construction Site Owner

[number redacted] [email redacted] This complaint is for Abandonment;Poor Work I have contacted the contractor by N/A Have you filed a complaint in court? No

RCC099 12/05/18 Page 1 of 2 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

Has any work been corrected? No

The contract was Written All change orders were N/A This project was Residential This project involved New Home

A building permit was obtained by Contractor # BLD 21036611 Phoenix/Maricopa List and briefly describe each complaint item (Please do not write "see attached" or use additional pages unless necessary to further describe issues or list more complaint items) (limited to 100 characters per line)

Cracked Tile Chipping of the Tile Visible Pencil Cutting Lines remaining on Tiles Uneven/Lippage of Several Tiles (5-10) Chipped Back Splash Tile Cracked grout lines between countertops and cabinets Multiple colors/discoloration of Grout Lines Spacing and Aligning Tile Wrong Excess/Cracked/Separated Grout Crooked lines and corners not lined up. Lifting of tiles. Incorrectly Cut Tile Popping up or overhangs in corners. Excessive grouting in difficult areas like corners. Inconsistent/ugly grout lines (Floor, Fireplace, Bathroom & Kitchen Backsplash) Damaged/Uneven/Poorly Functioning Cabinets Large Scratches Visible on Multiple Sliding Glass Doors

Signature I declare under penalty of perjury that the information and documents contained on this Complaint Form, included with this complaint, or hereafter submitted in support of this complaint are true and 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

Josh Baldwin \complainant1\ \complainantd1\

RCC099 12/05/18 Page 2 of 2 DocuSign Envelope ID: 4C918DC9-FDDE-417E-A77C-700DC7BF0314 PIONEER TITLE AGENCY, INC. 34597 N. 60th Street, Suite 106, Scottsdale, AZ 85266 Phone: (480) 595-3199 Fax: (866) 703-6587 Combined Settlement Statement Estimated Escrow No: Close Date: 10/05/2022 Proration Date: 10/05/2022 Date Prepared: 9/27/2022

Buyer(s)/Borrower(s): Joshua J.B. Baldwin Seller(s): The Luxe 6A, LP

Property: 5250 East Deer Valley Dr Unit 356 Phoenix, AZ 85054 Buyer Debit Buyer Credit Description Seller Debit Seller Credit TOTAL CONSIDERATION: Total Consideration ESCROW CHARGES Escrow Fee to Pioneer Title Agency, Inc. RECORDING FEES: Recording Fees to Pioneer Title Agency, Inc. Designated Parking Space to Pioneer Title Agency, Inc. ADDITIONAL CHARGES: New Account Set Up Fee to First Service Residential Months HOA Dues to Toscana at Desert Ridge Condo Reserve Fee to Toscana at Desert Ridge Condo Working Capital Fee to Toscana at Desert Ridge Months HOA Dues to The Luxe Reserve Fee to The Luxe Working Capital Fee to The Luxe 2022 Property Taxes to Maricopa County Treasurer PRORATIONS AND ADJUSTMENTS: County Taxes from 10/5/2022 to 1/1/2023 based on the Annual amount of $101.08 Desert Ridg Toscana The Luxe Wire Fee Wire Fee 88,946.60 Deposits Deposits PAYOFFS: Payoff to UMB Bank N.A. Partial Payoff Document Prep Fee Credit to The Luxe 6A Acciybt TITLE CHARGES: Owners Policy $889,466.00 to Pioneer Title Agency, Inc. Sub Totals Balance Due From Buyer 897,672.26 897,672.26 Totals

Printed by Melissa Offenburger on 9/27/2022 - 1:17:46PM Page 1 of 2 DocuSign Envelope ID: 4C918DC9-FDDE-417E-A77C-700DC7BF0314 PIONEER TITLE AGENCY, INC. 34597 N. 60th Street, Suite 106, Scottsdale, AZ 85266 Phone: (480) 595-3199 Fax: (866) 703-6587 Combined Settlement Statement Estimated Escrow No: Close Date: 10/05/2022 Proration Date: 10/05/2022 Date Prepared: 9/27/2022

It is agreed by the undersigned that the foregoing statement may change if a change in the escrow closing occurs or if other unforeseen contingencies arise. In the event changes in the statement become necessary, you are nevertheless authorized to close this escrow. It is understood that we will receive a final statement of account if the above totals are changed.

9/29/2022 APPROVED AND ACCEPTED THIS __________________ DAY OF ________________________________________________________

Buyer(s)/Borrower(s):

Joshua J.B. Baldwin

Seller(s): The Luxe 6A, LP By: C2S Management, Inc. an Arizona Corporation As General Partner

Alana Mann, President

Printed by Melissa Offenburger on 9/27/2022 - 1:17:46PM Page 2 of 2 DocuSign Envelope ID: 4C918DC9-FDDE-417E-A77C-700DC7BF0314

Pioneer Title Agency, Inc. Commitment to Service 34597 N. 60th Street Suite 106, Scottsdale, AZ 85266 Phone: (480) 595-3199 Ÿ Fax: (866) 703-6587

WIRING INSTRUCTIONS

WHEN WIRING FUNDS INTO PIONEER TITLE AGENCY, INC. ESCROW ACCOUNT, THE FOLLOWING INFORMATION MUST BE INCLUDED:

DATE: June 20, 2022

IMPORTANT NOTE: ACH payments are NOT accepted.

WIRE FUNDS TO: ZIONS BANCORPORATION, N.A. DBA NATIONAL BANK OF ARIZONA

ACCOUNT NUMBER ROUTING #

ACCOUNT HOLDER: PIONEER TITLE AGENCY, INC.

PLEASE REFERENCE: ESCROW NO.: FOR THE BENEFIT OF: Joshua J.B. Baldwin

PLEASE INCLUDE: SENDING PARTY'S NAME AND ACCOUNT FROM WHICH FUNDS ARE BEING TRANSFERRED.

THANK YOU.

FOREIGN WIRES International Wires require additional information. Please contact your Escrow Officer for alternate Wiring Instructions if you wish to send an International Wire Transfer.

Please contact our office to verbally verify wire instructions prior to sending funds.

IMPORTANT NOTICE: Never trust wiring instructions sent via email. Cyber criminals are hacking email accounts and sending emails with fake wiring instructions. These emails are convincing and sophisticated. Never wire money without double-checking that the wiring instructions are correct. Always independently confirm wiring instructions in person or via a telephone call to a trusted and verified phone number. DocuSign Envelope ID: 4C918DC9-FDDE-417E-A77C-700DC7BF0314

Pioneer Title Agency, Inc. “Commitment to Service”

TERMS AND CONDITIONS OF ESCROW ESCROW NO.:

The undersigned hereby employ Pioneer Title Agency, Inc. to act as Escrow Agent in closing the above-referenced escrow. They understand and agree, and instruct Escrow Agent, as follows: 1. Deposit of Documents and Funds by Parties. They will deposit with Escrow Agent the necessary documents to complete the sale as established by the terms of the parties’ real estate purchase contract (“Purchase Contract”) and all monies payable under the Purchase Contract unless otherwise specified. All foreign funds must be wire transferred in the form of U.S. Dollars. 2. Disbursement of Funds. They instruct Escrow Agent to pay from funds held for said purpose, amounts necessary to procure the documents and to pay charges and obligations necessary to consummate this transaction, in accordance with the Purchase Contract. Escrow Agent shall be under no obligation to disburse any funds deposited by check/ draft until advised by the bank that the check/ draft has been honored. In the event any check/draft given by, or on behalf of, buyer is subsequently dishonored, Seller agrees to refund any remittance made to Seller by Escrow Agent. 3. Completion, Recording and Delivery of Documents. They authorize Escrow Agent to execute and record on their behalf the Affidavit of Real Property Value, using the total consideration for the established value, unless instructed by the undersigned to the contrary. They acknowledge that deposit of Buyer’s final closing funds into escrow, and Seller’s deposit of all documents required for closing shall constitute authorization to Escrow Agent to close this transaction upon fulfillment of any additional escrow/title requirements. At that time, Escrow Agent shall deliver to the proper person/entity or file/record in the appropriate public office, all necessary documents, disburse all funds and issue the title insurance policy. They agree to accept electronic delivery of documents, including the policy of title insurance, if email addresses have been provided to Escrow Agent. 4. Deed Compliance. Seller authorizes Escrow Agent to change Buyer’s vesting information on the executed deed if instructed by Buyer or Buyer’s lender, said vesting information to include Buyer’s exact name, marital status, manner of holding title and/or trust ownership. Changes may be made on the deed itself or on a replacement first page. 5. Deposit of Funds by Escrow Agent. All monies deposited with Escrow Agent in connection with this escrow will be deposited into one or more non-interest bearing escrow trust accounts of Escrow Agent with a financial institution (the “Funds Depository”) whose deposits are covered by FDIC insurance. The parties acknowledge that funds so deposited are insured only to the limit provided by the FDIC and therefore release Escrow Agent from any liability for loss which may result from a lack of insurance as guaranteed by the current coverage of FDIC. The parties may request that any funds they deposit be placed in an interest-bearing account in accordance with instructions and fees as set forth in their Escrow Deposit Receipt. 6. Written Instructions. Escrow Agent shall not be bound by, nor be obligated to act upon, any instruction, demand or notice not in writing and signed by the party or his/her/its agent delivering such instruction, demand or notice. 7. Payoff Statements. They authorize Escrow Agent to act upon any statement furnished by a lienholder, payee or collection agent for a lienholder or payee related to the payoff of any lien against, or charge or assessment related to, the property, without liability or responsibility for the accuracy thereof. Any adjustment necessary because of a discrepancy between the statement furnished to Escrow Agent and an amount later determined to be correct shall be settled between the parties outside of escrow. 8. Taxes/Assessments. Real property taxes and assessments, if applicable, are to be prorated based on the latest tax/assessment bill(s) available to Escrow Agent at the close of escrow. Escrow Agent is not liable in the event a subsequent tax/assessment bill is different from that used as the basis for the proration. Any adjustment necessary because of a change reflected in a later tax bill shall be settled between the parties outside of escrow. Seller and Buyer agree that all prorations required in this escrow shall be calculated on the basis of a 365 day year (366 day year during leap years) unless otherwise instructed. 9. Escrow Fees and Other Charges. For clarification purposes, should the Purchase Contract state that escrow company fees will be split equally between the parties or “as customary,” Buyer and Seller agree to allocate such fees as are applicable as follows: a. Escrow Company’s Basic Escrow Rate: To be split equally between Seller and Buyer. Terms and Conditions - Page 1 of 4 DocuSign Envelope ID: 4C918DC9-FDDE-417E-A77C-700DC7BF0314

b. Other Escrow Charges: (i) To be charged to Buyer: Recording fees for deeds and deeds of trust; courier/express mail charges for documents sent to Buyer or Buyer’s lender, mortgage broker, realtor or any other person/ entity pertaining to Buyer; e-mail fees for loan document(s); and wire fees for funds received or disbursed on Buyer’s behalf or as directed by Buyer. (ii) To be charged to Seller: Recording fees for Affidavits of Disclosure, releases and other documents needed to clear title; courier/express mail charges for documents or payment sent to Seller or Seller’s realtor, lienholders/payees or any other person/entity pertaining to Seller; reconveyance tracking fees; and wire fees for loan payoffs, Seller’s proceeds and any other funds as directed by the Seller. (iii) Other fees or charges: Allocated to Seller and/or Buyer according to which party incurred the particular fee or charge; if applicable, the seller carryback loan tie in fee will be split equally between Seller and Buyer, unless otherwise specified. 10. Personal Property. Any transfer of personal property called for in the terms of this transaction may be evidenced by a bill of sale deposited with Escrow Agent for delivery to Buyer. Escrow Agent assumes no liability as to the sufficiency of the bill of sale or the physical condition or legal status of the personal property. 11. Lender Requirements. Escrow Agent is authorized to furnish a copy of the Settlement Statement and any other information which may be required to Buyer’s proposed lender in order to induce said lender to furnish the loan required by the Purchase Contract. 12. Designation of Trustee. If a portion of the purchase price is to be paid by means of a promissory note secured by a deed of trust, the trustee named in the deed of trust shall be Pioneer Title Agency, Inc., unless otherwise specified by the parties. 13. Promissory Note. If the parties herein execute a note with the dates left blank in the manner of payment section, Buyer and Seller herein authorize Pioneer Title Agency, Inc. to insert said dates in the original executed Note at close of escrow in accordance with the terms of the purchase contract or other specific written agreement. 14. Indemnification. Seller and Buyer will indemnify and hold harmless Escrow Agent against all costs, damages, attorney’s fees, expenses and liabilities which it may incur or sustain arising out of or in connection with this transaction or these Terms and Conditions unless the same is determined to have been caused by the gross negligence or willful misconduct of Escrow Agent. 15. Resignation. At any time and in its sole discretion, Escrow Agent can resign as escrow agent by sending written notice to Seller and Buyer. Unless otherwise instructed by the parties, all money and documents held by Escrow Agent will be returned to the party who delivered them into escrow (except documents signed by both parties, which will be retained in Escrow Agent’s file), less any applicable charges, without further liability. 16. Excluded Matters. The following matters will be handled by the parties direct and outside escrow and Escrow Agent shall have no liability or responsibility therefore: Possession of the property; transfer or payment of utilities (including but not limited to electric, gas, propane, telephone, water, sewer or irrigation); collection of cancellation premiums from Seller’s homeowners/fire/hazard insurance policy; renewal, procurement, assignability or effectiveness of flood insurance or any other policies of insurance; procurement of fire, casualty or other hazard insurance for a cash transaction; payment of personal property taxes (other than for mobile homes); and treatment of wood infestation. 17. Counterpart and Facsimile Signatures. Any documents pertaining to this escrow which are signed in counterpart shall constitute one document, including but not limited to, escrow instructions, supplements, deeds, acceptances, Affidavits of Value and Affidavits of Affixture. Escrow Agent may accept these Terms and Conditions and any escrow instructions with facsimile signatures and such instructions shall be considered contractually binding between the parties whether or not the originals are received by Escrow Agent. 18. Remote Online Notarization ("RON"). RON is a notarial act in which the signer appears before a notary public at the time of notarizing a document, instrument or other real-estate transaction-related material ("Transaction Document") using audio-visual technology over the Internet rather than having the signer appear physically before the notary in the same room. RON is authorized by Arizona law and can be used to notarize a signature on any Transaction Document whether signed digitally, electronically or on paper. Your execution of these Terms and Conditions constitutes your (a) consent to the use of RON by any party to the above-referenced escrow transaction for any deeds, notes, security instruments, agreements, addendums and other Transaction Documents requiring notarized signatures and (b) acknowledgment that you will not raise any defense or invoke regulatory or statutory claims attempting to invalidate the enforceability of any Transaction Document notarized using RON. Should you desire at any time to withdraw your consent to your use of RON, you may do so at any time.

Terms and Conditions - Page 2 of 4 DocuSign Envelope ID: 4C918DC9-FDDE-417E-A77C-700DC7BF0314

19. Settlement Statements. Seller and Buyer understand that a combined HUD-1 Settlement Statement and/or Closing Statement may be provided to each party and their agents to facilitate this transaction. 20. Personal Identifying Information. Escrow Agent may, in its sole discretion, delete or make unreadable personal identifying information (such as social security or driver’s license numbers) contained on documents to be recorded, unless such information is necessary for a document’s validity or in order for it to be recorded. 21. Conflicting Demands. In the event conflicting demands are made upon Escrow Agent concerning these instructions or this escrow, Escrow Agent is authorized to hold any money and documents deposited hereunder until it receives mutual, written instructions or a final, non-appealable court order determining the rights of all parties. Alternatively, Escrow Agent may, at its discretion and at any time, commence a civil action to interplead any conflicting demands to a court of competent jurisdiction. In accordance with the Indemnification Paragraph, the parties will pay any expenses, costs and attorneys’ fees incurred by Escrow Agent in connection with the interpleader action and any appeal. They therefore authorize and direct Escrow Agent to deduct all such expenses, costs and attorney’s fees from any escrowed funds before depositing those funds into court. 22. Unclaimed Funds Charges. A. Funds Held Pending Dispute Resolution: If for any reason funds remain in an escrow after the closing date due to a dispute wherein Escrow Agent has given Seller and Buyer at least thirty (30) days notice that said charge will accrue, Escrow Agent will deduct a monthly charge of $30.00 from those funds as custodian for maintaining the funds in its escrow account. The deductions will occur on a monthly basis until (i) the entire sum in the escrow has been exhausted or (ii) the dispute has been resolved by mutual, written agreement or a final, non-appealable court order, whereupon Escrow Agent will distribute the remainder as directed in the agreement or court order. B. Stale Dated Checks: If for any reason a check from Escrow Agent is not cashed within six (6) months from the date of issuance, a $30.00 charge shall be assessed by Escrow Agent for re-issuance of the check. C. Escheat: If for any reason a check from Escrow Agent is not cashed for one year or more, Escrow Agent shall deduct a charge of $30.00 per month from the funds as custodian for maintaining the funds in its account until the entire sum of said uncashed check has been exhausted or a claim has been made for the remainder. In the event three (3) years elapses, any unclaimed remainder will be sent to the State of Arizona escheat fund. 23. Governing Law/Jurisdiction. These Terms and Conditions shall be governed by, construed and enforced in accordance with the internal substantive laws of the State of Arizona (without reference to choice of law principles). Any suit, action or other proceeding (collectively, the “Proceedings”) brought to interpret, enforce or construe these Terms and Conditions or Escrow Agent’s obligations relating thereto or to the transaction which is the subject of this Agreement shall be commenced and maintained solely in an appropriate court of the State of Arizona. In furtherance thereof, with regard to said Proceedings, the undersigned (i) irrevocably submit to the process, jurisdiction and venue of said Arizona courts and (ii) waive and agree not to assert by way of motion, defense, complaint or otherwise any claim that a party is not personally subject to the jurisdiction of said Arizona courts, or that the forum or venue of such Proceedings in Arizona is inconvenient or improper. STATUTORY DISCLOSURES 1. Purchaser Dwelling Actions. Pursuant to Arizona Revised Statutes (“A.R.S”) §12-1363.L, notice is hereby provided to the buyer of a dwelling of the provisions of A.R.S. §§12-1361, 1362 and 1363. These statutory sections set forth the requirements to be met by a buyer prior to bringing an action against the seller of a dwelling arising out of or related to the design, construction, condition or sale of the dwelling. “Dwelling” means a single or multifamily unit designed for residential use and common areas and improvements owned or maintained by an association or its members. “Seller” means any person, firm, partnership, corporation, association or other organization engaged in the business of designing, constructing, or selling dwellings. The complete statutory sections (located in Title 12, Article 14) can be viewed on the Arizona State Legislature’s website: www.azleg.gov/ArizonaRevisedStatutes.asp. 2. Closing Protection Letters. Pursuant to A.R.S. §6-841.02.A, if you are a buyer or seller of a residential dwelling and a title insurance policy is to be issued by a title insurer through which Escrow Agent is underwritten, disclosure is hereby made that the title insurer shall offer on request a closing protection letter that provides protection for the loss of escrow monies due to fraud or dishonesty of the escrow agent. A “residential dwelling” is defined as an owner occupied structure or an investment property that is designated for residential use by four or fewer families. (A.R.S. 6-841.02.C). 3. Uninsured Monies. Pursuant to A.R.S. §6-841.03, if you are a buyer or seller of a residential dwelling (as defined in Paragraph 2, Closing Protection Letters, above), disclosure is hereby made that monies deposited in an Terms and Conditions - Page 3 of 4 DocuSign Envelope ID: 4C918DC9-FDDE-417E-A77C-700DC7BF0314

escrow account are not insured against loss from fraud or theft by the State of Arizona or the United States government. 4. Good Funds Law. All parties are aware and understand that Arizona Revised Statutes §6-843 requires that an escrow agent disburse money from an escrow account only if funds are deposited and available for withdrawal. Availability of funds is determined as follows: (i) ELECTRONIC TRANSFERS (“wired funds”) are available for disbursement THE SAME DAY AS RECEIVED. (ii) CASHIER’S CHECKS, CERTIFIED CHECKS, OFFICIAL CHECKS AND TELLER’S CHECKS are available for disbursement THE SAME DAY AS DEPOSITED. In order to avoid delays of two days or more, please use the above methods of payment whenever possible. 5. Arizona’s Notary Laws. Under Arizona law, “satisfactory evidence of identity” for purposes of a notary’s acknowledging signatures or performing jurats includes, but is not limited to: (i) a driver’s license issued by a state or territory of the U.S.; (ii) a U.S. passport , (iii) an identification card issued by any branch of the U.S. armed forces; or (iv) an identification card issued by the U.S., or a state or tribal, government containing the individual’s photograph, signature and physical description. For purposes of a real estate conveyance or financing, such evidence may also include (i) a passport issued by a foreign government if accompanied by a visa or other documentation issued by the U.S. government to establish the individual’s legal presence in the U.S. or (ii) identification deemed acceptable by the U.S. Department of Homeland Security to establish the individual’s legal presence in the U.S. and any supporting documents required by said Department. All forms of identification must be unexpired. To avoid any delays in closing your transaction, you should determine as soon as possible what form(s) of identification you have. If you do not have one of the forms specified herein, you should apply for and obtain an appropriate form of identification prior to closing. 6. PROFESSIONAL/LEGAL/TAX REVIEW. Seller and Buyer understand that Escrow Agent’s employees are not licensed real estate agents or attorneys and are prohibited from giving legal, real estate or investment advice and will not negotiate the transaction. They further acknowledge that Escrow Agent has made no representations, either orally or through these Escrow Instructions, as to the legal effect of the transaction described herein under any applicable federal or state laws or regulations, including but not limited to tax or contract laws, or laws otherwise affecting the rights and responsibilities of the parties. By executing these instructions, Seller and Buyer acknowledge that they have been given sufficient opportunity to have these instructions reviewed by professional, legal and tax advisors of their choice and have satisfied themselves as to the legal and tax effects, consequences and risks that may be imposed by this transaction. THE UNDERSIGNED HEREBY ACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTAND THE MATTERS CONTAINED IN THESE TERMS AND CONDITIONS. THEY FURTHER UNDERSTAND THAT ESCROW AGENT IS RELYING UPON THIS ACKNOWLEDGMENT IN CLOSING THE SUBJECT ESCROW. Dated: June 20, 2022 SELLER: BUYER:

9/29/2022

The Luxe 6A, LP Date Joshua J.B. Baldwin Date

Terms and Conditions - Page 4 of 4 DocuSign Envelope ID: 4C918DC9-FDDE-417E-A77C-700DC7BF0314

Pioneer Title Agency, Inc. “Commitment to Service”

June 20, 2022

Buyer Receipt for Commitment

Pioneer Title Agency, Inc. 34597 N. 60th Street Suite 106 Scottsdale, AZ 85266

RE: Escrow No.: Seller/Buyer: The Luxe 6A/Baldwin Property Address:

The undersigned Buyers in the above-referenced escrow do hereby acknowledge receipt of the Commitment for Homeowners Title Insurance Policy including the documents listed in Schedule B, Part II.

9/29/2022

Joshua J.B. Baldwin Date DocuSign Envelope ID: 4C918DC9-FDDE-417E-A77C-700DC7BF0314

Pioneer Title Agency, Inc. “Commitment to Service”

BUYER’S REQUIRED INFORMATION To expedite the handling of your escrow, please complete the following information:

Escrow No.: List all Buyer’s names as you would like them to appear on the Deed: Joshua J.B. Baldwin Name: o Male o Female Single Marital Status: ______________If married, spouse’s name: Current Mailing Address:

Home phone: Work phone: Cell phone: Fax: E-mail:

Name: o Male o Female Marital Status: ______________If married, spouse’s name: Current Mailing Address:

Home phone: Work phone: Cell phone: Fax: E-mail:

By providing your email address you authorize the Company to provide documents electronically, including the policy of title insurance.

I: NEW PROPERTY INSURANCE INFORMATION: If you know who your insurance company will be, please complete the following. If you haven’t decided yet, please provide the information prior to close of escrow. ("Not Applicable on Vacant Land") Insurance Company Agents Name: Policy No.: Phone No.: Fax No.:

II: NEW PROPERTY: Is new property residential? Yes o X No o If yes, how will the property be used? X o Primary Residence (Cannot have a homestead exemption for another home, even in another state.) o Rented to someone other than a “qualified family member” o Non-primary Residence or Secondary Residence X Abbreviated definition of “qualified family member” of taxpayer: child (natural, adopted, step or in-law) or descendant of child, parent (natural, step or in-law), or sibling (natural or adopted). For full definition see Affidavit of Property Value, Statutes and Exemptions page.

III: ARE THE BUYER AND SELLER RELATED? Yes o No oX If yes, state relationship:

IV: MAILING ADDRESS AFTER CLOSE OF ESCROW: Send my/our mail after close of escrow to the following address (provide P.O. Box, if applicable):

V: IF OBTAINING A NEW LOAN, COMPLETE THE FOLLOWING: New Lender: Contact Person: Phone No.: Fax No.: E-mail: DocuSign Envelope ID: 4C918DC9-FDDE-417E-A77C-700DC7BF0314

BUYER REQUIRED INFORMATION PAGE TWO

VI: VESTING INSTRUCTIONS: I/We do hereby elect to hold title to my/our new property as indicated in the checked box(es) below (Please contact your real estate agent if it is your intention to purchase the property in a different manner than the contract indicates.): Please select applicable box: o A married person as his/her Sole and Separate Property Please provide name of spouse: o An unmarried man o An unmarried woman (Married at one time) o A single man o A single woman (Never been married) o A widower o A widow o Husband and Wife o A Married Couple

If more than one party will hold title, please select the manner in which title will be vested (See enclosed Title Verification for explanation of ways to take title.): o Community Property with Right of Survivorship o Joint Tenants with Right of Survivorship o Community Property (NO right of survivorship) o Tenants in Common - Please provide percentage of interest for each party:

If the above choices do not apply, title to the property is to be taken in the following manner: o Other (Trust*/Partnership/LLC, etc.):

*NOTE: When vesting title in a Trust: If you are obtaining a new loan please verify that your lender will loan to your Trust. Please provide copies of the Trust Certification or Title and Signature pages of your Trust to assist in document preparation.

VII: ESCROW/TITLE DISCOUNTS AVAILABLE: Please indicate if any of the following apply as you may qualify to receive discounted escrow and/or title fees. NOTE: Minimum rates may apply. o Senior Citizen (age 60 or over) o Military (Active or Veteran) o Licensed Realtor o Employed by a Title Company o Public Servant (i.e. currently employed as a teacher, a policeman, a firefighter, or emergency medical personnel such as an EMT)

9/29/2022 Joshua J.B. Baldwin Date Page

Purchase Order No.

411

Date Ordered

08/03/2023

Date Required ASAP

To Ever ready Glass

Bill to Ship to

BPH Construction, LLP BPH Construction, LLP 9300 E. Raintree Drive Suite 100 5450 E. Deer Valley Drive, Scottsdale,AZ 85260 Phoenix, AZ. 85054

Qty Count Stock Description Unit Price Total Cost Property Job

$4,549.71 #356 Luxe (5) Tempered Insulated PATIO DOOR GLASS 34 X 90 plus labor B6 Received 10/6/23, 8:17 AM State of Arizona Mail - Case # 2023-07940 10/05/2023 ROC Legal

Answers - AZROC <[email redacted]>

Case # 2023-07940 message

Paul Hospelhorn <[email redacted]> Thu, Oct 5, 2023 at 8:54 AM To: "[email redacted]" <[email redacted]> Cc: "[email redacted]" <[email redacted]>

WRITTEN ANSWER TO Citation and Complaint Case # 2023-07940 ________________________________________

Charge 1:

BPH Construction was the GC on the project in question, Luxe B-6, which contracted with sub-contractors to perform different scopes of work. This case is a result of sub-trades performing substandard work in spite of BPH oversight and objection to the poor workmanship displayed by two finish trades. Prior to closing of the subject property, BPH did numerous inspections of the workmanship, provided punch lists to the appropriate trades, and the issues were never remedied despite all attempts to enforce quality standards. BPH/Statesman warranty people also provided deficiency lists to McDades flooring and Oakcraft Cabinetry after closing, making every effort to have remedial work completed to acceptable standards. These efforts continued after the ROC Inspection and are still ongoing, making every effort to comply with the ROC findings..... in which BPH is in total agreement with those results. BPH has performed tirelessly in pursuit of getting this work done. We have been in constant negotiations with McDades over these issues and have reached a settlement agreement in which the completion of quality / defective workmanship is a part. That agreement is included in the attachments. BPH has performed our duties in a professional and workmanlike manner and will continue to pursue completing these obligations under BPH and/or Statesman Devco which has taken over the project.

Charge 2:

After receipt of the Registrar Directive, immediate demand was sent out to the appropriate subcontractors relative to the findings and directive.

1. Scratched glass has been replaced by Eveready Glass Co. 2. Oakcraft has inspected the cabinetry and is waiting for the parts to perform the work as directed. Cabinet parts seem to have a long lead time. 3. Acid wash was done for the grout discolorization. 4. Tile issues are still unresolved but being addressed by JR McDade. Some tile is discontinued and the Homeowner is being difficult. JR McDade was advised to contact the ROC asking for an extension of time to locate appropriate products. 5. Please see email attached from Allison Odea (Warranty service mgr) concerning status of items relative to the ROC directive. Allison has been communicating with Robert from ROC.

BPH has taken the corrective action dictated by the ROC, but has minimal control over the timing of the subcontractors. BPH/Statesman Devco will continue to take actions necessary to complete the directive as timely as possible. The Settlement Agreement with McDades (attached) will work to expedite the required corrective actions as directed. Exhibit A included with that agreement outlines all the outstanding items to be corrected - which includes those items in the ROC directive.

Please contact me with any questions relative to the actions taken to remedy these issues.

Thank you for your consideration.

Sincerely,

Paul Hospelhorn Director of Construction BPH Construction LLP 602-980-8380 [email redacted]

https://mail.google.com/mail/b/AEoRXRQ2qXhP8YeXkACEPRpv3YkkzyBtYXKbLlmBZZMoG_07EKqG/u/0/?ik=581c53cf5c&view=pt&search=all&per… 1/2 Received 10/6/23, 8:17 AM State of Arizona Mail - Case # 2023-07940 10/05/2023 ROC Legal

-----Original Message----- From: Scanner <[email redacted]> Sent: Thursday, October 5, 2023 6:37 AM To: Paul Hospelhorn <[email redacted]> Subject: Message from "RNP58387905093A"

This E-mail was sent from "RNP58387905093A" (MP C3004ex).

Scan Date: 10.05.2023 06:36:50 (-0700) Queries to: [email redacted]

[number redacted].pdf 1328K

https://mail.google.com/mail/b/AEoRXRQ2qXhP8YeXkACEPRpv3YkkzyBtYXKbLlmBZZMoG_07EKqG/u/0/?ik=581c53cf5c&view=pt&search=all&per… 2/2 Received 10/05/2023 ROC Legal Received 10/05/2023 ROC Legal Received 10/05/2023 ROC Legal Received 10/05/2023 ROC Legal Received 10/05/2023 ROC Legal Received 10/05/2023 ROC Legal Received 10/05/2023 ROC Legal Received 10/05/2023 ROC Legal Received 10/05/2023 ROC Legal Received 10/05/2023 ROC Legal Received 10/05/2023 ROC Legal Received 10/05/2023 ROC Legal 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