2023A-08597-NPC-ROC Notice of Hearing and Packet MAILED

2023A-08597-NPC-ROC · Registrar of Contractors · 2023-09-21

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Crawford Mechanical Services (C M S) LLC, Case No. 2023-08597 COMPLAINANT, Docket No. 2023A-08597-NPC-ROC v. NOTICE OF HEARING ON Sigma Contracting Inc CONTESTED CASE License No. ROC 070784,

RESPONDENT.

This Notice of Hearing is issued under A.R.S. § 41-1092.05(D). HEARING INFORMATION The hearing is set for: November 7, 2023 1:00 PM Adam Stone 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 August 28, 2023.

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

Charge: 1 A.R.S. § 32-1154(A)(10)

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

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

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

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

1156(B).

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

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

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

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

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

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

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

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

CHANGING THE HEARING DATE

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

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

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

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

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

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

web portal at www.azoah.com

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

RESOLUTION SHORT OF ADJUDICATION

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

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

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

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

Complaints – Resolved/Settled/Withdrawn.”

Dated September 21, 2023.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail September 21, 2023 to: Respondent(s) Sigma Contracting Inc 9019 E Bahia Dr Ste 102 Scottsdale, AZ 85260 Complainant(s) Crawford Mechanical Services (C M S) LLC 408 S. Hamilton Ct. Gilbert, AZ 85233

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. 2023-08597 /

Katie Hobbs, Governor Martin Quezada, Director

Hearing Packet FAQ What is the Hearing Packet?

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

Who gets the Hearing Packet?

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

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

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

What is in the Hearing Packet?

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

● Original complaint;

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

Katie Hobbs, Governor Martin Quezada, Director

● Citation; and ● Answer.

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

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

What if there are documents missing from the Hearing Packet?

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

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

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

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

Katie Hobbs, Governor Martin Quezada, Director

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

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

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

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

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

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

August 4, 2023

Complainant Via U.S. Mail and Email Crawford Mechanical Services (C M S) LLC 408 S. Hamilton Ct. Gilbert, AZ 85233

Respondent Via U.S. Mail and Email Sigma Contracting Inc. 9019 E Bahia Dr. Ste. 102 Scottsdale, AZ 85260

Re: Complaint No. 2023-08597

Dear Complainant and Respondent:

The Registrar received a complaint filed against Sigma Contracting Inc. for non- payment of materials or services rendered. This complaint is complete and will be substantively reviewed by the Registrar.

Respondent is free to raise any issue or affirmative defense to this complaint by filing a response with the Registrar by: August 11, 2023. Please reference the complaint number listed above if you file a response. Respondent may file a response by: Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Email: [email redacted]

The Registrar will not issue a citation before August 11, 2023 and will review Respondent’s response, if one is submitted.

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

Sincerely,

/s/ Gail Mathews Gail Mathews Legal Assistant II Legal Department Arizona Registrar of Contractors

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

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

Person Filing Complaint (Payee) Business Name Full Name (First Middle Last) ROC License Number(s) (if any) Crawford Mechanical Services (C M Bryan Crawford ROC 178298 S) LLC Street Address City State Zip Code 408 S Hamilton Ct Gilbert Arizona 85233 Phone Number Email Address (480) 722-1267 [email redacted] I consent to receive communications electronically in connection with this case

Name of Attorney (if any)

Attorney’s Street Address City State Zip Code

Attorney’s Phone Number Attorney’s Email Address

Licensee Information (Payer) Name (as shown on contracts, invoices, etc.) ROC License Number(s) Sigma Contracting Inc ROC 070784 Street Address City State Zip Code

Phone Number Email Address

Name of Person(s) Representing License Daniel Hinkson;Jerry Patterson ;John Russell;Austin D'Ambrosio Complaint Information Principal Amount Due (excluding interest and fees) Contract Date (if applicable) $64,043.37 February 15, 2023 Have you filed a civil complaint?

List all specific invoices which have not been paid. Attach additional pages if necessary. Payment Application #13 Collection Attempts Demand Letter Request for Info & Resolution Contract

Certification I certify, upon information and belief, that the above-named licensee has failed to pay monies in excess of seven hundred fifty dollars when due for materials or services rendered in connection with the licensee’s operations as a contractor. I further certify, upon information and belief, that the above-named licensee has the capacity to pay, or has received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased. A.R.S. § 32-1154(A)(10). Printed Name Signature Date Bryan Crawford Declaration & Signature I am the Complainant in this Complaint Form or Complainant’s duly authorized representative. I declare under penalty of perjury that the information contained in this Form is true and correct to the best of my knowledge. I further certify that any documents submitted in support of this complaint are true and correct copies of the originals and are accurate to the best of my knowledge. I will assist in the investigation or in the prosecution of the contractor or other parties, and will, if necessary, attend hearings and testify to facts. Printed Name Signature Date Bryan Crawford AIA Document A401™ - 2017 ®

Standard Form of Agreement Between Contractor and Subcontractor

AGREEMENT made as of the Thirtieth day of August in the year Two Thousand And Twenty One (In words, indicate day, month and year.)

BETWEEN the Contractor: (Name, legal status, address and other information)

Sigma Contracting 9019 E. Bahia Drive | Suite #102 Scottsdale, Arizona 85260

and the Subcontractor: (Name, legal status, address and other information)

Crawford Mechanical Services LLC 408 S. Hamilton Court Gilbert, Arizona 85233

The Contractor has made a contract for construction (hereinafter, the Prime Contract) dated:

with the Owner: (Name, legal status, address and other information)

Pavasime, LLC 20100 N. 51st Avenue, Suite F 620 Glendale, Arizona 85308

for the following Project: (Name, location and detailed description)

Arrowhead Endoscopy Center 17438 N. 71st Drive Glendale, Arizona 85308

The Prime Contract provides for the furnishing of labor, materials, equipment and services in connection with the construction of the Project. A copy of the Prime Contract, consisting of the Agreement between Owner and Contractor (from which compensation amounts may be deleted) and the other Contract Documents enumerated therein, has been made available to the Subcontractor.

The Architect for the Project: (Name, legal status, address and other information)

TriARC Architecture and Design 1934 East Camelback Road Suite 200 Phoenix, Arizona 85016

The Contractor and the Subcontractor agree as follows.

AIA Document A401™ - 2017. Copyright © 1915, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967, 1972, 1978, 1987, 1997, 2007 and 2017 by The American Institute of Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in 1 severe civil and crimnal penalties, and will be prosecuted to the maximum extent possible under the law. User Notes: TABLE OF ARTICLES

THE SUBCONTRACT DOCUMENTS

MUTUAL RIGHTS AND RESPONSIBILITIES

CONTRACTOR

SUBCONTRACTOR

CHANGES IN THE WORK

CLAIMS AND DISPUTES

TERMINATION, SUSPENSION OR ASSIGNMENT OF THE SUBCONTRACT

THE WORK OF THIS SUBCONTRACT

DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION

SUBCONTRACT SUM

PAYMENTS

INSURANCE AND BONDS

TEMPORARY FACILITIES, SERVICES, EQUIPMENT AND WORKING CONDITIONS

MISCELLANEOUS PROVISIONS

ENUMERATION OF SUBCONTRACT DOCUMENTS

ARTICLE 1 THE SUBCONTRACT DOCUMENTS § 1.1 The Subcontract Documents consist of (1) this Agreement; (2) the Prime Contract, consisting of the Agreement between the Owner and Contractor and the other Contract Documents enumerated therein; (3) Modifications to the Prime Contract, whether issued before or after the execution of this Agreement, in accordance with the provisions of Article 5; (4) other documents listed in Article 15 of this Agreement; and (5) Modifications to this Subcontract issued after execution of this Agreement, in accordance with the provisions of Article 5. These form the Subcontract, and are as fully a part of the Subcontract as if attached to this Agreement or repeated herein.

§ 1.2 The Subcontract Documents form the Subcontract for Construction. The Subcontract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations, or agreements, either written or oral. An enumeration of the Subcontract Documents, other than Modifications to the Prime Contract or Modifications to this Subcontract issued subsequent to the execution of this Agreement, appears in Article 15.

§ 1.3 Except to the extent of a conflict with a specific term or condition contained in the Subcontract Documents, the General Conditions governing this Subcontract shall be the AIA Document A201™–2017, General Conditions of the Contract for Construction.

§ 1.4 The Subcontract may be amended or modified only by a Modification to this Subcontract. A Modification to this Subcontract is a written amendment to this Agreement signed by both parties, or as otherwise described in, and in accordance with the provisions of, Article 5.

§ 1.5 The Subcontract Documents shall not be construed to create a contractual relationship of any kind (1) between the Architect and the Subcontractor, (2) between the Owner and the Subcontractor, or (3) between any persons or entities other than the Contractor and Subcontractor.

ARTICLE 2 MUTUAL RIGHTS AND RESPONSIBILITIES The Contractor and Subcontractor shall be mutually bound by the terms of this Agreement and, to the extent that the provisions of AIA Document A201–2017 apply to this Agreement pursuant to Section 1.3 and provisions of the Prime Contract apply to the Work of the Subcontractor, the Contractor shall assume toward the Subcontractor all obligations and responsibilities that the Owner, under such documents, assumes toward the Contractor, and the Subcontractor shall assume toward the Contractor all obligations and responsibilities that the Contractor, under such documents, assumes toward the Owner and the Architect. The Contractor shall have the benefit of all rights, remedies, and redress against the Subcontractor that the Owner, under such documents, has against the Contractor, and the Subcontractor shall have the benefit of all rights, remedies, and redress against the Contractor that the Contractor, under such documents, has against the Owner, insofar as applicable to this Subcontract. Where a provision of such documents is inconsistent with a provision of this Agreement, this Agreement shall govern.

ARTICLE 3 CONTRACTOR § 3.1 General § 3.1.1 The Contractor is the person or entity identified as such in this Agreement and is referred to throughout the Subcontract Documents as if singular in number. The Contractor shall designate in writing a representative who shall have express authority to bind the Contractor with respect to all Project matters requiring the Contractor’s approval or authorization. The term “Contractor” means the Contractor or the Contractor’s authorized representative.

§ 3.1.2 The Contractor shall render decisions in a timely manner and in accordance with the Contractor’s construction schedule.

§ 3.2 Services Provided by the Contractor § 3.2.1 The Contractor shall cooperate with the Subcontractor in scheduling and performing the Contractor’s Work to avoid conflicts or interference in the Subcontractor’s Work and shall review, and expedite written responses to, submittals made by the Subcontractor in accordance with Section 4.2.3 and Article 5. Promptly after execution of this Agreement, the Contractor shall provide the Subcontractor with copies of the Contractor’s construction schedule and schedule of submittals, together with such additional scheduling details as will enable the Subcontractor to plan and perform the Subcontractor’s Work properly. The Contractor shall promptly notify the Subcontractor of subsequent changes in the construction and submittal schedules and additional scheduling details.

§ 3.2.2 The Contractor shall provide suitable areas for storage of the Subcontractor’s materials and equipment during the course of the Work. Except as previously agreed upon, additional costs to the Subcontractor resulting from relocation of such storage areas at the direction of the Contractor shall be reimbursed by the Contractor.

§ 3.3 Communications § 3.3.1 The Contractor shall promptly make available to the Subcontractor information, including information received from the Owner, that affects the performance of this Subcontract and that becomes available to the Contractor subsequent to execution of this Subcontract.

§ 3.3.2 The Contractor shall not give instructions or orders directly to the Subcontractor’s employees or to the Subcontractor’s Sub- subcontractors or suppliers unless such persons are designated as authorized representatives of the Subcontractor.

§ 3.3.3 The Contractor shall permit the Subcontractor to request information directly from the Architect regarding the percentages of completion and the amount certified on account of Work done by the Subcontractor.

§ 3.3.4 If hazardous materials or substances are being used on the site by the Contractor, a subcontractor, or anyone directly or indirectly employed by them (other than the Subcontractor), and they are a type of hazardous material or substance of which an employer is required by law to notify its employees, the Contractor shall, prior to delivery to the Project site or exposure of the Subcontractor’s employees to such material or substance, give notice of the chemical composition thereof to the Subcontractor in sufficient detail and time to permit the Subcontractor’s compliance with such laws.

§ 3.3.5 The Contractor shall promptly notify the Subcontractor of any fault or defect in the Work under this Subcontract or nonconformity with the Subcontract Documents.

§ 3.3.6 The Contractor shall furnish to the Subcontractor within 30 days after receipt of a written request, or earlier if so required by law, information necessary and relevant for the Subcontractor to evaluate, give notice of or enforce mechanic’s lien rights. Such

§ 3.3.7 If the Contractor asserts a Claim against, or defends a Claim by, the Owner that relates to the Work of the Subcontractor, the Contractor shall promptly make available to the Subcontractor all information relating to the portion of the Claim that relates to the Work of the Subcontractor.

§ 3.4 Claims by the Contractor § 3.4.1 Liquidated damages, if provided for in the Prime Contract, shall be assessed against the Subcontractor only to the extent caused by the Subcontractor or any person or entity for whose acts the Subcontractor may be liable, and in no case for delays or causes arising outside the scope of this Subcontract.

§ 3.4.2 The Contractor’s Claims for the costs of services or materials provided due to the Subcontractor’s failure to execute the Work shall require .1 seven days’ notice prior to the Contractor’s providing services or materials, except in an emergency; and .2 written compilations to the Subcontractor of services and materials provided by the Contractor and charges for such services and materials no later than the fifteenth day of the month following the Contractor’s providing such services or materials.

§ 3.5 Contractor’s Remedies If the Subcontractor defaults or neglects to carry out the Work in accordance with this Agreement and fails within five working days after receipt of notice from the Contractor to commence and continue correction of such default or neglect with diligence and promptness, the Contractor may, without prejudice to other remedies the Contractor may have, remedy such default or neglect and withhold, in accordance with Section 11.1.7.2, the reasonable cost thereof from current or future payments due the Subcontractor. If payments due to the Subcontractor are not sufficient to cover such amounts, the Subcontractor shall pay the difference to the Contractor.

ARTICLE 4 SUBCONTRACTOR § 4.1 General The Subcontractor is the person or entity identified as such in this Agreement and is referred to throughout the Subcontract Documents as if singular in number. The Subcontractor shall be lawfully licensed, if required in the jurisdiction where the Project is located. The Subcontractor shall designate in writing a representative who shall have express authority to act on the Subcontractor’s behalf with respect to the Project. The term “Subcontractor” means the Subcontractor or the Subcontractor’s authorized representative.

§ 4.2 Execution and Progress of the Work § 4.2.1 For all Work the Subcontractor intends to subcontract, the Subcontractor shall enter into written agreements with Sub- subcontractors performing portions of the Work of this Subcontract by which the Subcontractor and the Sub-subcontractor are mutually bound, to the extent of the Work to be performed by the Sub-subcontractor, assuming toward each other all obligations and responsibilities that the Contractor and Subcontractor assume toward each other and having the benefit of all rights, remedies and redress each against the other that the Contractor and Subcontractor have by virtue of the provisions of this Agreement.

§ 4.2.2 The Subcontractor shall supervise and direct the Subcontractor’s Work, and shall cooperate with the Contractor in scheduling and performing the Subcontractor’s Work to avoid conflict, delay in, or interference with the Work of the Contractor, other subcontractors, the Owner, or Separate Contractors.

§ 4.2.3 Submittals § 4.2.3.1 The Subcontractor shall submit Shop Drawings, Product Data, Samples, and similar submittals required by the Subcontract Documents with reasonable promptness and in such sequence as to cause no delay in the Work or in the activities of the Contractor or other subcontractors.

§ 4.2.3.2 By submitting Shop Drawings, Product Data, Samples, and similar submittals, the Subcontractor represents to the Contractor that the Subcontractor has (1) reviewed and approved them; (2) determined and verified materials, field measurements, and field construction criteria related thereto, or will do so; and (3) checked and coordinated the information contained within such submittals with the requirements of the Work and of the Subcontract Documents.

§ 4.2.4 The Subcontractor shall furnish to the Contractor periodic progress reports on the Work of this Subcontract as mutually agreed, including information on the status of materials and equipment that may be in the course of preparation, manufacture, or transit.

§ 4.2.6 The Subcontractor shall pay for all materials, equipment, and labor used in connection with the performance of this Subcontract through the period covered by previous payments received from the Contractor, and shall furnish satisfactory evidence, when requested by the Contractor, to verify compliance with the above requirements.

§ 4.2.7 The Subcontractor shall take necessary precautions to properly protect the work of the Contractor, Separate Contractors, and other subcontractors from damage caused by operations under this Subcontract.

§ 4.2.8 The Subcontractor shall cooperate with the Contractor, other subcontractors, the Owner, and Separate Contractors whose work might affect the Subcontractor’s Work. The Subcontractor shall participate in the preparation of coordinated drawings in areas of congestion, if required by the Prime Contract, specifically noting and advising the Contractor of potential conflicts between the Work of the Subcontractor and that of the Contractor, other subcontractors, the Owner, or Separate Contractors.

§ 4.3 Permits, Fees, Notices, and Compliance with Laws § 4.3.1 The Subcontractor shall give notices and comply with applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities bearing on performance of the Work of this Subcontract. The Subcontractor shall secure and pay for permits, fees, licenses, and inspections by government agencies necessary for proper execution and completion of the Subcontractor’s Work, the furnishing of which is required of the Contractor by the Prime Contract.

§ 4.3.2 The Subcontractor shall comply with Federal, state, and local tax laws; social security acts; unemployment compensation acts; and workers’ compensation acts, insofar as applicable to the performance of this Subcontract.

§ 4.4 Safety Precautions and Procedures § 4.4.1 The Subcontractor shall take reasonable safety precautions with respect to performance of this Subcontract. The Subcontractor shall comply with safety measures initiated by the Contractor and with applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities, for the safety of persons and property, in accordance with the requirements of the Prime Contract. The Subcontractor shall notify the Contractor within three days of an injury to an employee or agent of the Subcontractor which occurred at the site.

§ 4.4.2 If hazardous materials or substances are being used on the site by the Subcontractor, the Subcontractor’s Sub-subcontractors, or anyone directly or indirectly employed by them, and they are a type of hazardous material or substance of which an employer is required by law to notify its employees, the Subcontractor shall, prior to delivery to the Project site or exposure of the Contractor, other subcontractors, and other employers on the site to such material or substance, give notice of the chemical composition thereof to the Contractor in sufficient detail and time to permit compliance with the laws by the Contractor, other subcontractors, and other employers on the site.

§ 4.4.3 If reasonable precautions will be inadequate to prevent foreseeable bodily injury or death to persons resulting from a hazardous material or substance, including but not limited to asbestos or polychlorinated biphenyl (PCB), encountered on the site by the Subcontractor, the Subcontractor shall, upon recognizing the condition, immediately stop Work in the affected area and promptly report the condition to the Contractor in writing. When the material or substance has been rendered harmless, the Subcontractor’s Work in the affected area shall resume upon written agreement of the Contractor and Subcontractor. The Subcontract Time shall be extended appropriately and the Subcontract Sum shall be increased in the amount of the Subcontractor’s reasonable additional costs of demobilization, delay, and remobilization, which adjustments shall be accomplished as provided in Article 5 of this Agreement.

§ 4.4.4 To the fullest extent permitted by law, the Contractor shall indemnify and hold harmless the Subcontractor, the Subcontractor’s Sub-subcontractors, and agents and employees of any of them from and against claims, damages, losses, and expenses, including but not limited to attorneys’ fees, arising out of or resulting from performance of the Work in the affected area if in fact the material or substance presents the risk of bodily injury or death as described in Section 4.4.3 and has not been rendered harmless, provided that such claim, damage, loss, or expense is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself) except to the extent that such damage, loss, or expense is due to the fault or negligence of the party seeking indemnity.

§ 4.4.5 The Subcontractor shall reimburse the Contractor for the cost and expense the Contractor incurs (1) for remediation of a hazardous material or substance brought to the site and negligently handled by the Subcontractor or (2) where the Subcontractor fails

§ 4.5 Cleaning Up § 4.5.1 The Subcontractor shall keep the premises and surrounding area free from accumulation of waste materials or rubbish caused by operations performed under this Subcontract. The Subcontractor shall not be held responsible for conditions caused by other contractors or subcontractors.

§ 4.5.2 As provided under Section 3.4.2, if the Subcontractor fails to clean up as provided in the Subcontract Documents, the Contractor may charge the Subcontractor for the Subcontractor’s appropriate share of cleanup costs.

§ 4.6 Warranty § 4.6.1 The Subcontractor warrants to the Owner, Architect, and Contractor that materials and equipment furnished under this Subcontract will be of good quality and new unless the Subcontract Documents require or permit otherwise. The Subcontractor further warrants that the Work will conform to the requirements of the Subcontract Documents and will be free from defects, except for those inherent in the quality of the Work the Subcontract Documents require or permit. Work, materials, or equipment not conforming to these requirements may be considered defective. The Subcontractor’s warranty excludes remedy for damage or defect caused by abuse, alterations to the Work not executed by the Subcontractor, improper or insufficient maintenance, improper operation, or normal wear and tear under normal usage. If required by the Architect and Contractor, the Subcontractor shall provide satisfactory evidence as to the kind and quality of materials and equipment furnished or to be furnished.

§ 4.6.2 All material, equipment, or other special warranties required by the Subcontract Documents shall be issued in the name of the Owner, or shall be transferable to the Owner, and shall commence in accordance with the Subcontract Documents.

§ 4.7 Indemnification § 4.7.1 To the fullest extent permitted by law, the Subcontractor shall indemnify and hold harmless the Owner, Contractor, Architect, Architect’s consultants, and agents and employees of any of them from and against claims, damages, losses, and expenses, including but not limited to attorney’s fees, arising out of or resulting from performance of the Subcontractor’s Work under this Subcontract, provided that any such claim, damage, loss, or expense is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself), but only to the extent caused by the negligent acts or omissions of the Subcontractor, the Subcontractor’s Sub-subcontractors, anyone directly or indirectly employed by them, or anyone for whose acts they may be liable, regardless of whether or not such claim, damage, loss, or expense is caused in part by a party indemnified hereunder. Such obligation shall not be construed to negate, abridge, or otherwise reduce other rights or obligations of indemnity which would otherwise exist as to a party or person described in this Section 4.7.

§ 4.7.2 In claims against any person or entity indemnified under this Section 4.7 by an employee of the Subcontractor, the Subcontractor’s Sub-subcontractors, anyone directly or indirectly employed by them, or anyone for whose acts they may be liable, the indemnification obligation under Section 4.7.1 shall not be limited by a limitation on the amount or type of damages, compensation or benefits payable by or for the Subcontractor, or the Subcontractor’s Sub-subcontractors under workers’ compensation acts, disability benefit acts, or other employee benefit acts.

§ 4.8 Remedies for Nonpayment If the Contractor does not pay the Subcontractor through no fault of the Subcontractor, within seven days from the time payment should be made as provided in this Agreement, the Subcontractor may, without prejudice to any other available remedies, upon seven additional days’ notice to the Contractor, stop the Work of this Subcontract until payment of the amount owing has been received. The Subcontract Sum shall, by appropriate Modification, be increased by the amount of the Subcontractor’s reasonable costs of demobilization, delay, and remobilization.

§ 4.9 Professional Services Provided by Subcontractor § 4.9.1 The Subcontractor shall not be required to provide professional services that constitute the practice of architecture or engineering unless such services are specifically required by the Subcontract Documents or unless the Subcontractor is required to provide such services in order to carry out the Subcontractor's responsibilities for its own construction means, methods, techniques, sequences, and procedures. The Subcontractor shall not be required to provide professional services in violation of applicable law.

§ 4.9.2 If professional design services or certifications by a design professional related to systems, materials, or equipment are specifically required of the Subcontractor by the Subcontract Documents, the Contractor will provide all performance and design criteria that such services must satisfy to the extent the Contractor has received such performance and design criteria from the Owner and Architect under the terms of the Prime Contract.

§ 4.9.4 The Subcontractor shall be entitled to rely upon the adequacy, accuracy, and completeness of the performance and design criteria received from the Contractor under this Section 4.9.

§ 4.9.5 The Subcontractor shall cause the professional services performed under this Section 4.9 to be provided by a properly licensed design professional, whose signature and seal shall appear on all drawings, calculations, specifications, certifications, Shop Drawings, and other submittals prepared by such professional. Shop drawings and other submittals related to the Work designed by such design professional shall bear the professional's written approval when submitted to the Contractor. The Contractor shall be entitled to rely upon the adequacy, accuracy, and completeness of the services, certifications, and approvals performed or provided by the design professionals, provided the Contractor has provided to the Subcontractor all performance and design criteria required by this Section 4.9.

ARTICLE 5 CHANGES IN THE WORK § 5.1 The Owner may make changes in the Work by issuing Modifications to the Prime Contract. Upon receipt of a Modification to the Prime Contract issued subsequent to the execution of this Agreement, the Contractor shall promptly notify the Subcontractor of such Modification. Unless otherwise directed by the Contractor, the Subcontractor shall not thereafter order materials or perform Work that would be inconsistent with the changes made by the Modification to the Prime Contract.

§ 5.2 The Subcontractor may be ordered in writing by the Contractor, without invalidating this Subcontract, to make changes in the Work within the general scope of this Subcontract consisting of additions, deletions, or other revisions, including those required by Modifications to the Prime Contract issued subsequent to the execution of this Agreement, with the Subcontract Sum and the Subcontract Time adjusted accordingly. The Subcontractor, prior to the commencement of such changed or revised Work, shall submit promptly to the Contractor written copies of a Claim for adjustment to the Subcontract Sum and Subcontract Time for such revised Work in a manner consistent with requirements of the Subcontract Documents.

§ 5.3 The Subcontractor shall make all Claims promptly to the Contractor for additional cost, extensions of time and damages for delays, or other causes in accordance with the Subcontract Documents. A Claim which will affect or become part of a Claim which the Contractor is required to make under the Prime Contract within a specified time period or in a specified manner shall be made in sufficient time to permit the Contractor to satisfy the requirements of the Prime Contract. Such Claims shall be received by the Contractor not less than two working days preceding the time by which the Contractor’s Claim must be made. Failure of the Subcontractor to make such a timely Claim shall bind the Subcontractor to the same consequences as those to which the Contractor is bound.

ARTICLE 6 CLAIMS AND DISPUTES § 6.1 Mediation § 6.1.1 Claims, disputes, or other matters in controversy arising out of or related to this Subcontract, except those waived as provided for in Sections 6.4 and 11.3.2, shall be subject to mediation as a condition precedent to binding dispute resolution.

§ 6.1.2 The parties shall endeavor to resolve their Claims by mediation which, unless the parties mutually agree otherwise, shall be administered by the American Arbitration Association in accordance with its Construction Industry Mediation Procedures in effect on the date of the Agreement. A request for mediation shall be made in writing, delivered to the other party to this Subcontract and filed with the person or entity administering the mediation. The request may be made concurrently with the filing of binding dispute resolution proceedings but, in such event, mediation shall proceed in advance of binding dispute resolution proceedings, which shall be stayed pending mediation for a period of 60 days from the date of filing, unless stayed for a longer period by agreement of the parties or court order. If an arbitration is stayed pursuant to this Section 6.1.2, the parties may nonetheless proceed to the selection of the arbitrators(s) and agree upon a schedule for later proceedings.

§ 6.1.3 The parties shall share the mediator’s fee and any filing fees equally. The mediation shall be held in the place where the Project is located, unless another location is mutually agreed upon. Agreements reached in mediation shall be enforceable as settlement agreements in any court having jurisdiction thereof.

§ 6.2 Binding Dispute Resolution For any Claim subject to, but not resolved by mediation pursuant to Section 6.1, the method of binding dispute resolution shall be as follows:

[ X ] Arbitration pursuant to Section 6.3 of this Agreement

§ 6.3 Arbitration § 6.3.1 If the Contractor and Subcontractor have selected arbitration as the method of binding dispute resolution in Section 6.2, any Claim subject to, but not resolved by, mediation shall be subject to arbitration which, unless the parties mutually agree otherwise, shall be administered by the American Arbitration Association in accordance with its Construction Industry Arbitration Rules in effect on the date of this Agreement. The arbitration should be conducted in the place where the Project is located, unless another location is mutually agreed upon. A demand for arbitration shall be made in writing, delivered to the other party to the Subcontract, and filed with the person or entity administering the arbitration. The party filing a notice of demand for arbitration must assert in the demand all Claims then known to that party on which arbitration is permitted to be demanded.

§ 6.3.2 A demand for arbitration shall be made no earlier than concurrently with the filing of a request for mediation but in no event shall it be made after the date when the institution of legal or equitable proceedings based on the Claim would be barred by the applicable statute of limitations. For statute of limitations purposes, receipt of a written demand for arbitration by the person or entity administering the arbitration shall constitute the institution of legal or equitable proceedings based on the Claim.

§ 6.3.3 The award rendered by the arbitrator or arbitrators shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof.

§ 6.3.4 The foregoing agreement to arbitrate, and other agreements to arbitrate with an additional person or entity duly consented to by parties to the Agreement, shall be specifically enforceable under applicable law in any court having jurisdiction thereof.

§ 6.3.5 Consolidation or Joinder § 6.3.5.1 Subject to the rules of the American Arbitration Association or other applicable arbitration rules, either party may consolidate an arbitration conducted under this Agreement with any other arbitration to which it is a party provided that (1) the arbitration agreement governing the other arbitration permits consolidation; (2) the arbitrations to be consolidated substantially involve common questions of law or fact; and (3) the arbitrations employ materially similar procedural rules and methods for selecting arbitrator(s).

§ 6.3.5.2 Subject to the rules of the American Arbitration Association or other applicable arbitration rules, either party may include by joinder persons or entities substantially involved in a common question of law or fact whose presence is required if complete relief is to be accorded in arbitration, provided that the party sought to be joined consents in writing to such joinder. Consent to arbitration involving an additional person or entity shall not constitute consent to arbitration of a Claim, dispute, or other matter in question not described in the written consent.

§ 6.3.5.3 The Contractor and Subcontractor grant to any person or entity made a party to an arbitration conducted under this Section 6.3, whether by joinder or consolidation, the same rights of joinder and consolidation as the Contractor and Subcontractor under this Agreement.

§ 6.4 Waiver of Claims for Consequential Damages The Contractor and Subcontractor waive claims against each other for consequential damages arising out of or relating to this Subcontract, including without limitation, any consequential damages due to either party’s termination in accordance with Article 7. Nothing contained herein shall be deemed to preclude an award of liquidated damages, when applicable, in accordance with the requirements of this Agreement.

ARTICLE 7 TERMINATION, SUSPENSION OR ASSIGNMENT OF THE SUBCONTRACT § 7.1 Termination by the Subcontractor The Subcontractor may terminate the Subcontract for the same reasons and under the same circumstances and procedures with respect to the Contractor as the Contractor may terminate with respect to the Owner under the Prime Contract, or for nonpayment of amounts due under this Subcontract for 60 days or longer. In the event of such termination by the Subcontractor for any reason which is not the fault of the Subcontractor, the Subcontractor’s Sub-subcontractors, or their agents or employees or other persons or entities performing portions of the Work under contract with the Subcontractor, the Subcontractor shall be entitled to recover from the Contractor payment for Work executed and for proven loss with respect to materials, equipment, tools, and construction equipment and machinery, as well as reasonable overhead and profit on work not executed and costs incurred by reason of such termination.

§ 7.2 Termination by the Contractor § 7.2.1 Termination for Cause

AIA Document A401™ - 2007. Copyright © 1915, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967, 1972, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe 8 civil and crimnal penalties, and will be prosecuted to the maximum extent possible under the law. User Notes: ([number redacted]) If the Subcontractor repeatedly fails or neglects to carry out the Work in accordance with the Subcontract Documents or otherwise to perform in accordance with this Subcontract and fails within a ten-day period after receipt of notice to commence and continue correction of such default or neglect with diligence and promptness, the Contractor may, by notice to the Subcontractor and without prejudice to any other remedy the Contractor may have, terminate the Subcontract and finish the Subcontractor’s Work by whatever method the Contractor may deem expedient. If the unpaid balance of the Subcontract Sum exceeds the expense of finishing the Subcontractor’s Work and other damages incurred by the Contractor and not expressly waived, such excess shall be paid to the Subcontractor. If such expense and damages exceed the unpaid balance of the Subcontract Sum, the Subcontractor shall pay the difference to the Contractor.

§ 7.2.2 Termination for Convenience § 7.2.2.1 If the Owner terminates the Prime Contract for the Owner’s convenience, the Contractor shall promptly deliver notice to the Subcontractor.

§ 7.2.2.2 In case of such termination for the Owner’s convenience, the Subcontractor shall be entitled to receive payment for Work properly executed, costs incurred by reason of the termination, and reasonable overhead and profit on the Work not executed.

§ 7.2.2.3 Upon receipt of notice of termination, the Subcontractor shall .1 cease operations as directed by the Contractor in the notice; .2 take actions necessary, or that the Contractor may direct, for the protection and preservation of the Work; and .3 except for Work directed to be performed prior to the effective date of termination stated in the notice, terminate all existing Sub-subcontracts and purchase orders and enter into no further Sub-subcontracts and purchase orders.

§ 7.3 Suspension by the Contractor for Convenience § 7.3.1 The Contractor may, without cause, order the Subcontractor in writing to suspend, delay, or interrupt the Work of this Subcontract in whole or in part for such period of time as the Contractor may determine. In the event of suspension ordered by the Contractor, the Subcontractor shall be entitled to an equitable adjustment of the Subcontract Time and Subcontract Sum.

§ 7.3.2 The Subcontract Time and Subcontract Sum shall be adjusted for increases in the cost and time caused by suspension, delay or interruption as described in Section 7.3.1. Adjustment of the Subcontract Sum shall include profit on the increased cost of performance caused by suspension, delay, or interruption. No adjustment shall be made to the extent that .1 performance is, was or would have been so suspended, delayed, or interrupted by another cause for which the Subcontractor is responsible; or .2 an equitable adjustment is made or denied under another provision of this Subcontract.

§ 7.4 Assignment of the Subcontract § 7.4.1 In the event the Owner terminates the Prime Contract for cause, this Subcontract is assigned to the Owner pursuant to Section 5.4 of AIA Document A201–2017 provided the Owner accepts the assignment by notifying the Contractor and Subcontractor.

§ 7.4.2 Without the Contractor’s written consent, the Subcontractor shall not assign the Work of this Subcontract, subcontract the whole of this Subcontract, or subcontract portions of this Subcontract.

ARTICLE 8 THE WORK OF THIS SUBCONTRACT The Subcontractor shall execute the following portion of the Work described in the Subcontract Documents, including all labor, materials, equipment, services and other items required to complete such portion of the Work, except to the extent specifically indicated in the Subcontract Documents to be the responsibility of others. (Insert a precise description of the Work of this Subcontract, referring where appropriate to numbers of Drawings, sections of Specifications and pages of Addenda, Modifications, and accepted alternates.)

See Article 16 for detailed information pertaining to Article 8

ARTICLE 9 DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION § 9.1 The date of commencement of the Subcontractor’s Work, shall be:

[ X ] The date of this Agreement.

If a date of commencement of the Subcontractor’s Work is not selected, then the date of commencement shall be the date of this Agreement.

§ 9.2 Subcontract Time

§ 9.2.2 Subject to adjustments of the Subcontract Time as provided in the Subcontract Documents, the Subcontractor shall achieve substantial completion of the Subcontractor’s Work:

See Section 9.2.3

§ 9.2.3 Subject to adjustments of the Subcontract Time as provided in the Subcontract Documents, if portions of the Subcontractor’s Work are to be completed prior to substantial completion of the Subcontractor’s Work, then the Subcontractor shall achieve earlier substantial completion of such portions by the following dates. (List all portions of the Subcontractor’s Work required to achieve substantial completion of the Subcontractor’s Portion of the Work.)

The following days and durations are allotted for this scope on the project: Underground plumbing 6 days Tue 11/2/21 Tue 11/9/21 HVAC duct 10 days Fri 2/18/22 Thu 3/3/22 Plumbing top out 8 days Fri 3/4/22 Tue 3/15/22 Med gas piping 8 days Fri 3/11/22 Tue 3/22/22 HVAC diffusers 5 days Thu 5/5/22 Wed 5/11/22 Trim plumbing 6 days Thu 5/5/22 Thu 5/12/22 Building finals 5 days Fri 6/10/22 Thu 6/16/22

It is hereby understood and mutually agreed that the date of beginning, the rate of progress and the time for completion of the Work to be done hereunder are essential conditions of this Subcontract; and it is further mutually understood and agreed that the Work embraced in this Subcontract shall be commenced on the date specified in the written above. It is further agreed that time is of this essence. If the Subcontractor shall neglect, fail or refuse to complete the Work to be done hereunder within the time specified, or any proper extension granted by the Architect, the Subcontractor acknowledges that Contractor will be damaged and that any damages that may be incurred by Contractor will be reimbursed by Subcontractor. Therefore, the Subcontractor agrees, in consideration for the award and execution of this subcontract by Contractor, to pay for damages attributable in part and/or in whole to the Subcontractor’s neglect, failure or refusal to complete the Work including but not limited to additional supervision, work force supplementation and liquidated damages equal to actual cost per calendar day as applies including punch list work.

§ 9.2.4 If the Subcontractor fails to achieve substantial completion as provided in this Section 9.2, liquidated damages, if any, shall be assessed as set forth in Section 3.4.

§ 9.3 With respect to the obligations of both the Contractor and the Subcontractor, time is of the essence of this Subcontract.

§ 9.4 No extension of time will be valid without the Contractor’s written consent after a Claim is made by the Subcontractor in accordance with Section 5.3.

ARTICLE 10 SUBCONTRACT SUM § 10.1 The Contractor shall pay the Subcontractor the Subcontract Sum in current funds for the Subcontractor’s performance of the Subcontract. The Subcontract Sum shall be Five Hundred Fifty-Nine Thousand Dollars And Zero Cents ($559,000.00), subject to additions and deductions as provided in the Subcontract Documents.

§ 10.2 Alternates § 10.2.1 Alternates, if any, included in the Subcontract Sum:

§ 10.2.2 Subject to the conditions noted below, the following alternates may be accepted by the Contractor following execution of this Agreement. Upon acceptance, the Contractor shall issue a Modification to this Subcontract: (Insert below each alternate and the conditions that must be met for the Contractor to accept the alternate.)

§ 10.3 Unit prices, if any: (Identify and state the unit price, and quantity limitations, if any, to which the unit price will be applicable.)

Item Units and Limitations Price Per Unit ($0.00)

ARTICLE 11 PAYMENTS § 11.1 Progress Payments § 11.1.1 Based upon Applications for Payment submitted to the Contractor by the Subcontractor, corresponding to Applications for Payment submitted by the Contractor to the Architect, and Certificates for Payment issued by the Architect, the Contractor shall make progress payments on account of the Subcontract Sum to the Subcontractor as provided below and elsewhere in the Subcontract Documents. Unless the Contractor provides the Owner with a payment bond in the full penal sum of the Contract Sum, payments received by the Contractor and Subcontractor for Work properly performed by their contractors and suppliers shall be held by the Contractor and Subcontractor for those contractors or suppliers who performed Work or furnished materials, or both, under contract with the Contractor or Subcontractor for which payment was made to the Contractor by the Owner or to the Subcontractor by the Contractor, as applicable. Nothing contained herein shall require money to be placed in a separate account and not commingled with money of the Contractor or Subcontractor, shall create any fiduciary liability or tort liability on the part of the Contractor or Subcontractor for breach of trust, or shall entitle any person or entity to an award of punitive damages against the Contractor or Subcontractor for breach of the requirements of this provision.

§ 11.1.2 The period covered by each Application for Payment shall be one calendar month ending on the last day of the month, or as follows:

§ 11.1.3 Provided an Application for Payment is received by the Contractor not later than the «20th » day of a month, the Contractor shall include the Subcontractor’s Work covered by that application in the next Application for Payment which the Contractor is entitled to submit to the Architect. The Contractor shall pay the Subcontractor each progress payment no later than seven working days after the Contractor receives payment from the Owner. If the Architect does not issue a Certificate for Payment or the Contractor does not receive payment for any cause which is not the fault of the Subcontractor, the Contractor shall pay the Subcontractor, on demand, a progress payment computed as provided in Sections 11.1.7, 11.1.8, 11.1.9 and 11.2.

§ 11.1.4 If the Subcontractor’s Application for Payment is received by the Contractor after the application date fixed above, the Subcontractor’s Work covered by it shall be included by the Contractor in the next Application for Payment submitted to the Architect.

§ 11.1.5 The Subcontractor shall submit to the Contractor a schedule of values prior to submitting the Subcontractor’s first Application for Payment. Each subsequent Application for Payment shall be based upon the most recent schedule of values submitted by the Subcontractor in accordance with the Subcontract Documents. The schedule of values shall allocate the entire Subcontract Sum among the various portions of the Subcontractor’s Work and be prepared in such form and supported by such data to substantiate its accuracy as the Contractor may require, and unless objected to by the Contractor, shall be used as a basis for reviewing the Subcontractor’s Applications for Payment.

§ 11.1.6 Applications for Payment submitted by the Subcontractor shall indicate the percentage of completion of each portion of the Subcontractor’s Work as of the end of the period covered by the Application for Payment.

§ 11.1.7 Subject to the provisions of the Subcontract Documents, the amount of each progress payment shall be computed as follows:

§ 11.1.7.1 The amount of each progress payment shall first include: .1 That portion of the Subcontract Sum properly allocable to completed Work: .2 That portion of the Subcontract Sum properly allocable to materials and equipment delivered and suitably stored at the site by the Subcontractor for subsequent incorporation in the Subcontractor’s Work or, if approved by the Contractor, suitably stored off the site at a location agreed upon in writing; and .3 The amount, if any, for changes in the Work that are not in dispute and have been properly authorized by the Contractor, to the same extent provided in the Prime Contract, pending a final determination by the Contractor of the cost of changes in the Subcontractor’s Work, even though the Subcontract Sum has not yet been adjusted.

§ 11.1.7.2 The amount of each progress payment shall then be reduced by: .1 The aggregate of previous payments made by the Contractor; .2 The amount, if any, for Work that remains uncorrected and for which the Contractor has previously withheld a Certificate for Payment as provided in Article 9 of AIA Document A201-2017 for a cause that is the fault of the Subcontractor;

§ 11.1.8 Retainage § 11.1.8.1 For each progress payment made prior to substantial completion of the Subcontractor’s Work, the Contractor may withhold the following amounts as retainage from the payment otherwise due: (Insert a percentage or amount to be withheld as retainage from each Application for Payment. The amount of retainage may be limited by governing law.)

10.0%

§ 11.1.8.1.1 The following items are not subject to retainage: (Insert any items not subject to the withholding of retainage, such as general conditions, insurance, etc.)

§ 11.1.8.2 Reduction or limitation of retainage, if any, shall be as follows: (If the retainage established in Section 11.1.8.1 is to be modified prior to substantial completion of the entire Work, including modifications for substantial completion of portions of the Subcontractor’s Work as provided in Section 9.2.3, insert provisions for such modification.)

§ 11.1.9 Upon the partial or entire disapproval by the Contractor of the Subcontractor’s Application for Payment, the Contractor shall provide notice to the Subcontractor. If the Subcontractor disputes the Contractor’s decision regarding a Subcontractor’s Application for Payment in whole or in part, the Subcontractor may submit a Claim in accordance with Article 6. When the basis for the disapproval has been remedied, the Subcontractor shall be paid the amounts withheld.

§ 11.1.10 Provided the Contractor has fulfilled its payment obligations under the Subcontract Documents, the Subcontractor shall defend and indemnify the Contractor and Owner from all loss, liability, damage, or expense, including reasonable attorney’s fees and litigation expenses, arising out of any lien claim or other claim for payment by any of the Subcontractor’s subcontractors, suppliers, or vendors of any tier. Upon receipt of notice of such lien claim or other claim for payment, the Contractor shall notify the Subcontractor. If approved by the applicable court, when required, the Subcontractor may substitute a surety bond for the property against which the lien or other claim for payment has been asserted.

§ 11.2 Substantial Completion When the Subcontractor’s Work or a designated portion thereof is substantially complete and in accordance with the requirements of the Prime Contract, the Contractor shall, upon application by the Subcontractor, make prompt Application for Payment for such Work. Within 30 days following issuance by the Architect of the Certificate for Payment covering such substantially completed Work, the Contractor shall, to the full extent allowed in the Prime Contract, make payment to the Subcontractor, deducting any portion of the funds for the Subcontractor’s Work withheld in accordance with the certificate to cover costs of items to be completed or corrected by the Subcontractor. Such payment to the Subcontractor shall be the entire unpaid balance of the Subcontract Sum if a full release of retainage is allowed under the Prime Contract for the Subcontractor’s Work prior to the completion of the entire Project. If the Prime Contract does not allow for a full release of retainage, then such payment shall be an amount which, when added to previous payments to the Subcontractor, will reduce the retainage on the Subcontractor’s substantially completed Work to the same percentage of retainage as that on the Contractor’s Work covered by the certificate.

§ 11.3 Final Payment § 11.3.1 Final payment, constituting the entire unpaid balance of the Subcontract Sum, shall be made by the Contractor to the Subcontractor when the Subcontractor’s Work is fully performed in accordance with the requirements of the Subcontract Documents, the Architect has issued a Certificate for Payment covering the Subcontractor’s completed Work and the Contractor has received payment from the Owner. If, for any cause which is not the fault of the Subcontractor, a Certificate for Payment is not issued or the Contractor does not receive timely payment or does not pay the Subcontractor within seven days after receipt of payment from the Owner, final payment to the Subcontractor shall be made upon demand. (Insert provisions for earlier final payment to the Subcontractor, if applicable.)

§ 11.3.2 Before issuance of the final payment, the Subcontractor, if required, shall submit evidence satisfactory to the Contractor that all payrolls, bills for materials and equipment, and all known indebtedness connected with the Subcontractor’s Work have been satisfied. Acceptance of final payment by the Subcontractor shall constitute a waiver of claims by the Subcontractor, except those previously made in writing and identified by the Subcontractor as unsettled at the time of final Application for Payment.

ARTICLE 12 INSURANCE AND BONDS § 12.1 Subcontractor’s Required Insurance Coverage § 12.1.1 The Subcontractor shall purchase and maintain the following types and limits of insurance, from a company or companies lawfully authorized to issue insurance in the jurisdiction where the Project is located, as will protect the Subcontractor from claims that may arise out of, or result from, the Subcontractor’s operations and completed operations under the Subcontract: (Specify each type of insurance, such as commercial general liability, automobile, worker’s compensation, employers’ liability, professional liability, and pollution, required to be carried by the Subcontractor, the limits of coverage for each type of insurance, and any other pertinent requirements.)

§ 12.1.2 Coverages, whether written on an occurrence or claims-made basis, shall be maintained without interruption from the date of commencement of the Subcontractor’s Work until the date of final payment and termination of any coverage required to be maintained after final payment to the Subcontractor, and, with respect to the Subcontractor’s completed operations coverage, until the expiration of the period for correction of Work or for such other period for maintenance of completed operations coverage as specified in the Prime Contract.

§ 12.1.3 If professional services are required under Section 4.9, the Subcontractor shall provide the professional liability insurance coverage required under this Section 12.1 for the following period after completion of the Work:

§ 12.1.4 Certificates of Insurance. The Subcontractor shall provide certificates of insurance acceptable to the Contractor evidencing compliance with the requirements in this Article 12 at the following times: (1) prior to commencement of the Subcontractor’s Work; (2) upon renewal or replacement of each required policy of insurance; and (3) upon the Contractor’s written request. An additional certificate evidencing continuation of liability coverage, including coverage for completed operations, shall be submitted with the final Application for Payment and thereafter upon renewal or replacement of such coverage until the expiration of the time required in this Article 12. The certificates shall show the Contractor and the Owner as additional insureds on the Subcontractor’s Commercial General Liability and any excess or umbrella liability policy.

§ 12.1.5 Deductibles and Self-Insured Retentions. The Subcontractor shall disclose to the Contractor any deductible or self-insured retentions applicable to any insurance required to be provided by the Subcontractor.

§ 12.1.6 Additional Insured Obligations. To the fullest extent permitted by law, the Subcontractor shall cause its commercial general liability coverage to include: (1) the Contractor, the Owner, the Architect, and the Architect’s consultants as additional insureds for claims caused in whole or in part by the Subcontractor’s negligent acts or omissions during the Subcontractor’s operations; and (2) the Contractor and Owner as additional insureds for claims caused in whole or in part by the Subcontractor’s negligent acts or omissions for which loss occurs during the Subcontractor’s completed operations. The additional insured coverage shall be primary and non- contributory to any of the Contractor’s and Owner’s general liability insurance policies and shall apply to both ongoing and completed operations. To the extent commercially available, the additional insured coverage shall be no less than that provided by Insurance Services Office, Inc. (ISO) CG 20 10 07 04, CG 20 37 07 04, and, with respect to the Architect and the Architect’s consultants, CG 20 07 04.

§ 12.1.7 Notice of Cancellation or Change in Coverage. Within three (3) business days of the date the Subcontractor becomes aware of an impending or actual cancellation or expiration of any insurance required by the Subcontract Documents, the Subcontractor shall provide notice to the Contractor of such impending or actual cancellation or expiration. Upon receipt of notice from the Subcontractor, the Contractor shall, unless the lapse in coverage arises from an act or omission of the Contractor, have the right to suspend the Work in accordance with this Agreement until the lapse in coverage has been cured by the procurement of replacement coverage by the Subcontractor. The furnishing of notice by the Subcontractor shall not relieve the Subcontractor of any contractual obligation to provide any required coverage.

§ 12.2 Subcontractor’s Required Performance Bond and Payment Bond - Not Applicable Unless Negotiated in the Contract § 12.2.1 The Subcontractor shall provide surety bonds, from a company or companies lawfully authorized to issue surety bonds in the jurisdiction where the Project is located, as follows: (Specify type and penal sum of bonds.)

§ 12.2.2 Upon the request of any person or entity appearing to be a potential beneficiary of bonds covering payment of obligations under this Agreement, the Subcontractor shall promptly furnish a copy of the bonds or shall permit a copy to be made.

§ 12.3 Contractor’s Insurance and Bond Obligations § 12.3.1 The Contractor shall furnish to the Subcontractor certificates of insurance evidencing insurance coverage required of the Contractor under the Prime Contract.

§ 12.3.2 The Contractor shall promptly, upon request of the Subcontractor, furnish a copy or permit a copy to be made of any bond covering payment of obligations arising under the Subcontract.

§ 12.4 Property Insurance § 12.4.1 When requested in writing, the Contractor shall provide the Subcontractor with copies of the property and equipment policies in effect for the Project, to the extent copies of the policies are available to the Contractor. The Contractor shall notify the Subcontractor if the required property insurance policies are not in effect.

§ 12.4.2 If the required property insurance is not in effect for the full value of the Subcontractor’s Work, then the Subcontractor shall purchase insurance for the value of the Subcontractor’s Work, and the Subcontractor shall be reimbursed for the cost of the insurance by an adjustment in the Subcontract Sum.

§ 12.4.3 Property insurance for the Subcontractor’s materials and equipment required for the Subcontractor’s Work, stored off site or in transit and not covered by the Project property insurance, shall be paid for through the Application for Payment process.

§ 12.5 Waivers of Subrogation The Contractor and Subcontractor waive all rights against (1) each other and any of their subcontractors, sub-subcontractors, agents, and employees, each of the other, and (2) the Owner, the Architect, the Architect’s consultants, and (3) Separate Contractors, if any, and any of their subcontractors, sub-subcontractors, agents, and employees for damages caused by fire or other causes of loss to the extent those losses are covered by property insurance provided under the Prime Contract or other property insurance applicable to the Work or to property at or adjacent to the Project site, except such rights as they may have to proceeds of such insurance held by the Owner as a fiduciary. The Subcontractor shall require similar written waivers in favor of the individuals and entities enumerated herein from the Subcontractor’s Sub-subcontractors, agents, and employees. The policies of insurance purchased and maintained by each person or entity agreeing to waive claims pursuant to this Section 12.5 shall not prohibit this waiver of subrogation, which shall be effective as to a person or entity (1) even though that person or entity would otherwise have a duty of indemnification, contractual or otherwise, (2) even though that person or entity did not pay the insurance premium directly or indirectly, or (3) whether or not the person or entity had an insurable interest in the property damaged.

ARTICLE 13 TEMPORARY FACILITIES, SERVICES, EQUIPMENT AND WORKING CONDITIONS § 13.1 The Contractor shall furnish and make the Contractor’s temporary facilities and services available to the Subcontractor at no cost, except as noted below:

§ 13.2 The Contractor’s equipment will be available to the Subcontractor only at the Contractor’s discretion and on mutually satisfactory terms, except as noted below:

§ 13.3 Specific working conditions as noted below: (Insert any specific arrangements or requirements concerning working conditions and labor matters applicable to the Subcontractor’s Work.)

ARTICLE 14 MISCELLANEOUS PROVISIONS § 14.1 Where reference is made in this Subcontract to a provision of another Subcontract Document, the reference refers to that provision as amended or supplemented by other provisions of the Subcontract Documents.

§ 14.2 The Contractor’s representative: (Name, address, email address and other information)

§ 14.3 The Subcontractor’s representative: (Name, address, email address and other information)

Dan Krueger Crawford Mechanical Services LLC Crawford Mechanical Service 408 S. Hamilton Court Gilbert, Arizona 85233

§ 14.4 Notice § 14.4.1 Except as otherwise provided in Section 14.4.2, where the Subcontract Documents require one party to notify or give notice to the other party, such notice shall be provided in writing to the designated representative of the party to whom the notice is addressed and shall be deemed to have been duly served if delivered in person, by mail, by courier, or by electronic transmission if a method for electronic notice is set forth in Section 14.4.3.

§ 14.4.2 Notice of Claims shall be provided in writing and shall be deemed to have been duly served only if delivered to the designated representative of the party to whom the notice is addressed by certified or registered mail, or by courier providing proof of delivery.

§ 14.4.3 Notice in electronic format, pursuant to Section 14.4.1, may be given in accordance with AIA Document E203™–-2013, Building Information Modeling and Digital Data Exhibit, if completed, or as otherwise set forth below: (If other than in accordance with AIA Document E203™–-2013, insert requirements for delivering notice in electronic format such as name, title, and email address of the recipient and whether and how the system will be required to generate a read receipt for the transmission.)

§ 14.5 Neither the Contractor’s nor the Subcontractor’s representative shall be changed without ten days’ prior notice to the other party.

§ 14.6 The invalidity of any provision of the Subcontract Documents shall not invalidate the Subcontract or its remaining provisions. If it is determined that any provision of the Subcontract violates any law or is otherwise invalid or unenforceable, then that provision shall be revised to the extent necessary to make that provision legal and enforceable. In such case, the Subcontract shall be construed, to the fullest extent permitted by law, to give effect to the parties' intentions and purposes in executing the Subcontract.

§ 14.7 The parties shall agree upon protocols governing the transmission and use of Instruments of Service or any other information or documentation in digital form. The parties will use AIA Document E203™–2013, Building Information Modeling and Digital Data Exhibit, to establish the protocols for the development, use, transmission, and exchange of digital data.

§ 14.7.1 Any use of, or reliance on, all or a portion of a building information model without agreement to protocols governing the use of, and reliance on, the information contained in the model and without having those protocols set forth in AIA Document E203™– 2013, Building Information Modeling and Digital Data Exhibit, and the requisite AIA Document G202™–2013, Project Building Information Modeling Protocol Form, shall be at the using or relying party’s sole risk and without liability to the other party and its contractors or consultants, the authors of, or contributors to, the building information model, and each of their agents and employees.

ARTICLE 15 ENUMERATION OF SUBCONTRACT DOCUMENTS § 15.1 This Agreement is comprised of the following documents: .1 AIA Document A401™–2017, Standard Form Agreement Between Contractor and Subcontractor; .2 Prime Agreement between the Owner and Contractor, including all exhibits thereto, attached as Exhibit A; .3 AIA Document E203™–2013, Building Information Modeling and Digital Data Exhibit, if not included in the Prime Agreement, dated as indicated below: (Insert the date of the E203–2013 incorporated into this Agreement.)

.4 Other Exhibits incorporated into this Agreement: (Clearly identify any other exhibits incorporated into this Agreement.)

.5 Other documents:

SIGMA CONTRACTING CRAWFORD MECHANICAL SERVICES LLC

Jerry Patterson, Vice President Dan Krueger CONTRACTOR (Signature) SUBCONTRACTOR (Signature)

Dan Krueger, Director of Sales Jerry Patterson, Vice President (Printed name and title)

THE FOLLOWING SUPPLEMENTS, MODIFIES, DELETES, AND/OR ADDS TO THE A.I.A. A401 2017 EDITION. WHERE ANY ARTICLE, PARAGRAPH OR SUBPARAGRAPH IN THE GENERAL CONDITIONS IS SUPPLEMENTED BY ONE OF THE FOLLOWING PARAGRAPHS, THE PROVISIONS OF SUCH ARTICLE, PARAGRAPH OR SUBPARAGRAPH SHALL REMAIN IN EFFECT AND THE SUPPLEMENTARY PROVISIONS SHALL BE CONSIDERED AS ADDED THERETO. WHERE ANY ARTICLE, PARAGRAPH OR SUBPARAGRAPH IS AMENDED, VOIDED OR SUPERSEDED BY ANY OF THE FOLLOWING PARAGRAPHS, THE PROVISIONS OF SUCH ARTICLE, PARAGRAPH OR SUBPARAGRAPH NOT SO AMENDED, VOIDED OR SUPERSEDED SHALL REMAIN IN EFFECT.

COVER SHEET: revise language to state: The Prime contract provides for the furnishing of labor, materials, equipment and services in connection with the construction of the Project. A copy of the prime contract, consisting of the Agreement between the Owner and Contractor (from which compensation amounts may be deleted) and other contract documents enumerated therein is available to the subcontractor upon written request.

ARTICLE 3.2.1: Delete sentences 2 and 3.

ARTICLE 3.2.2: Delete in its entirety.

ARTICLE 3.3.5: Delete the word promptly.

ARTICLE 3.4.2: .1 replace seven days with 2 days.

ARTICLE 3.5: Replace 5 days with 1 day.

ARTICLE 4.2.7: Add, “The subcontractor agrees to pay for all costs of repairs to damaged properties or materials caused by its employees, its vendors or its subcontractors.”

ARTICLE 4.4.4: Delete in entirety.

ARTICLE 4.9.1: Delete in entirety.

ARTICLE 7.2.1: Replace with the following: If the subcontractor shall (a) fail or refuse to fully, and timely and properly perform any portion of the work in the manner provided in the subcontract or (b) fail to perform timely an covenant in the subcontract; or(c)make any general arrangement for the benefit of creditors, or become a debtor as defined in title 11 United States codes, section 101, or there is appointed a trustee or receiver to take possession of any asset of subcontractor or any such asset is attached or otherwise judicially seized; or (d) in the sole opinion of the contractor, fail to take such action or supply enough proper materials or equipment or properly skilled workman or fail to prosecute all work pursuant to the subcontract according to any progress schedule supplied by the contractor , or ( e) disregard laws, ordinances, rules, regulations, building codes, or orders from any public authority or agency having jurisdiction over the project; (f) have misrepresented any of subcontractor’ representations or warrantees; or (g) fail to make prompt payment to its subcontractors, employees, suppliers, or material men of any and all sums of any kind or nature required to be paid by subcontractor whether pursuant to the subcontract or otherwise or (h) fail to order materials in time so as to be on site when needed or fails to hire labor needed to perform within the time required(all of the events above “events of breach” )then Contractor may at its opinion but shall not be required to upon twenty four (24) hour notice (Notice of Breach), elect any one the following remedy’s ( Breach remedy)

A401, Article 17 for Subcontract Agreement Arizona Page 17 A. Assist subcontractor, as contractor deems advisable, in securing labor, material, equipment, services, etc for prosecution and completion for the work. B. With or without terminating the subcontract, take possession of the project site and all of the subcontractor’s equipment, material, tools, supplies, appliances, and complete the work by whatever methods Contractor may deem necessary, including the payment of overtime compensation or performance bonuses to expediate the work (for which purpose Subcontractor hereby assigns any rights to remove same from Project) C. File a claim against Subcontractors license with the Registrar of Contractors for Arizona which oversees contractors D. Terminate subcontract.

ARTICLE 8 THE WORK OF THIS SUBCONTRACT ON THE HVAC/PLUMBING/MED GAS The Subcontractor shall execute the following portion of the Work described in the Subcontract Documents, including all labor, materials, equipment, services and other items required to complete such portion of the Work, except to the extent specifically indicated in the Subcontract Documents to be the responsibility of others. The Subcontractor agrees to provide daily supervision, by its trained employee, all transportation and cartage necessary to complete all HVAC/Plumbing/Med Gas as described in the Plans and Specifications, including, but not specifically limited to the following:

HVAC

1. All safety requirements for the project as outlined in Local, State and National Laws and Ordinances are included. Subcontractor agrees that they are required to submit a Project Specific Safety Program addressing the needs of this project. 2. Submittals, shop drawings, samples, warranties and close out package materials as required 3. Protection of all existing and adjacent materials and others work. 4. Subcontractor responsible for receiving, handling, offloading, storage, hoisting and placement of all related materials. 5. Subcontractor shall provide all equipment, ladders, scaffolding, etc. as required to complete the scope of work. 6. Provide all required, anchors, flashings, and AC units, exhaust fans, smoke detectors with certified testing, and thermostats. 7. Condensate drains as shown and required. 8. Clean-up of all your related materials as required by SIGMA and needed to maintain a neat and orderly job-site. 9. Furnish and install bathroom and building exhaust fans, ducting, grilles, curbing and related components for a fully functional bathroom exhaust system, excluding electrical to be performed by others. 10. Furnish and install HVAC equipment, ducting, insulation, grilles, thermostats, smoke/fire dampers, duct detectors, temp sensors, unit heater, dryer vent, duct insulation, smoke certifications, start up and all related components, including testing and balance, as required to complete the HVAC system. 11. Provide layout, hangers, supports and bracing as required. 12. All smoke/fire dampers shall have built-in smoke detector sensor, low voltage connections and all other connections required for a complete installation of smoke/fire dampers if applicable. 13. Attendance at the weekly coordination and safety meetings held onsite by Sigma's Superintendent. 14. Clean-up of all your materials as required by SIGMA and needed to maintain a neat and orderly job-site. 15. Weekly safety meetings to be conducted by all trades. 16. Subcontractor understands that the project requires work above 5 ft high and proper safety and fall protection will be observed by ALL trades as required to keep a safe work area. 17. Furnish & Install 1 ductless mini split

Plumbing

A401, Article 17 for Subcontract Agreement Arizona Page 18 1. All core drilling if needed, cutting, patching, hangers, fittings, valves, anchors, adhesives, accessories, parts and pieces required to provide a complete and operational system. 2. Provide all tests and certifications required by governing municipal codes and regulations including system sterilization 3. All required pipe insulation and labeling as required 4. All site and building layout or related layout required for underfloor and finish work to be by this subcontractor 5. Install all new sanitary waste and vents. 6. Supply & install vents as per plumbing schematic in contract documents 7. Supply and install plumbing fixtures as per the contract documents 8. Water heater’s as per contract documents. 9. Hook up owner supplied equipment if necessary 10. All safety requirements for the project as outlined in Local, State and National Laws and Ordinances are included. Subcontractor agrees that they are required to submit a Project Specific Safety Program addressing the needs of this project. 11. Submittals, shop drawings, samples, warranties and close out package materials as required 12. Protection of all existing and adjacent materials and others work. 13. Subcontractor responsible for receiving, handling, offloading, storage, hoisting and placement of all related materials. 14. Subcontractor shall provide all equipment, ladders, scaffolding, etc. as required to complete the scope of work.

Med Gas

The Contractor and the Subcontractor agree that the Work to be completed by the Subcontractor and its Sub- subcontractors specifically excludes the following items:

§ 9.3 The Work of this Subcontract shall be completed in accordance with the maximum durations noted below in calendar days for each portion of Work subject to adjustments of this Subcontract Time as provided in the Subcontract Documents. The value of Liquidated Damages shall be the same as those noted in the Prime contract between the Contractor and the Owner and are based on calendar days. Liquidated Damages on this Project shall be per calendar day.

A401, Article 17 for Subcontract Agreement Arizona Page 19 § 10.4 Allowances included in the Subcontract Sum, if any: These Allowances include the following: ( ) Labor and Benefits ( ) Materials ( ) Equipment ( ) Other _____________________ ( ) Subcontractor’s Overhead and Profit

These Allowances exclude the following: ( ) ___________ ( ) ___________ ( ) ___________

ARTICLE 11.1.3: delete Last sentence

ARTICLE 11.4: Delete in entirety.

ARTICLE 12.3: Insert “upon written request” After the word Shall.

§ 13.1 The Subcontractor shall purchase and maintain insurance of the following types of coverage and limits of liability as will protect the Subcontractor from claims that may arise out of, or result from, the Subcontractor’s operations and completed operations under the Subcontract. Refer to Attachment “A”, Insurance Requirements, for a listing of the required insurances and insurance requirements.

A401, Article 17 for Subcontract Agreement Arizona Page 20 From: AP Sent: Wednesday, February 15, 2023 11:44 AM To: Sandy Jordan <[email redacted]> Subject: Arrowhead Endoscopy - Final

Good morning Sandy,

Attached is the final pay application for the Arrowhead project. Please review and let me know should you need anything else.

Thank you!

Heather Garcia | Accounting Specialist Crawford Mechanical Services, LLC 408 S. Hamilton Ct. | Gilbert, AZ 85233 480-722-1267 o | 480-899-7349 f [email redacted] | www.cmsaz.com

This message is for the designated recipient only and may contain privileged, proprietary, or otherwise private information. If you have received it in error, please notify the sender immediately and delete the original. Any other use of this email by you is prohibited.

 Please consider the environment before printing this e - mail. From: Alena Avnukov Sent: Thursday, July 27, 2023 3:56 PM To: [email redacted]; [email redacted]; [email redacted] Cc: Bryan Crawford; Erin Fleegle; Frederick Ouellette Subject: Sigma Contracting - Arrowhead Endoscopy Demand Letter Attachments: SigmaCMS Agreement.pdf

Importance: High

BREACH OF CONTRACT NOTICE CONFIDENTIAL – FOR SETTLEMENT PURPOSES ONLY

From: Crawford Mechanical Services (CMS), LLC 408 South Hamilton Court DISPUTED AMOUNT IS NOW $64,043.37 Gilbert, AZ 85233

VIA ELECTRONIC MAIL

07/27/2023

Dear Sigma Contracting,

Pursuant to the contract titled “Standard Form of Agreement Between Contractor and Subcontractor for the Arrowhead Endoscopy Center project” and dated 08/30/2021 (“Agreement”) a copy of which is attached hereto, you have conducted yourself in such a way that has breached this Agreement and Arizona prompt payment laws due to the following actions: Failure to pay for the final retention in the amount of $53,129.45 which you have held despite having received funds from the Owner. Crawford Mechanical Services has made multiple good faith attempts at collecting the aforementioned amount.

While we prepare to take a legal action against you for the mentioned claims, it is hopeful that a mutually acceptable resolution outside of a publicly filed litigation can be achieved.

The matters set forth herein are intended for settlement purposes only and are strictly confidential in all respects. They may not be used for any other purpose in any proceeding that may be commenced by either party in any court, tribunal, or arbitration, pursuant to the laws of the State of Arizona.

Unless the aforementioned issues are resolved, this letter formally places you on notice of the legal requirements concerning document retention and expect you and all affiliates to honor such requirements. You have a legal obligation to maintain and preserve any and all documents, materials, and information, in any form whatsoever, that may be potentially relevant to the subject matter, or discoverable in any potential action arising from, this breach.

It is in the best interest of both parties to resolve this matter as soon as possible. If there is no response by 07/28/23, then it shall be our right to pursue any and all available legal and equitable remedies, including, but

not limited to filing a lien against the property, filing a complaint with AZ ROC, and instituting formal litigation proceedings against you.

Sincerely,

Alena Avnukov | Risk Manager Crawford Mechanical Services, LLC 408 S. Hamilton Ct. | Gilbert, AZ 85233 480-722-1267 o | 480-698-3842 m [email redacted] | www.cmsaz.com

This message is for the designated recipient only and may contain privileged, proprietary, or otherwise private informa-on. If you have received it in error, please no-fy the sender immediately and delete the original. Any other use of this email by you is prohibited.

 Please consider the environment before prin ng this e - mail.

Attachments: CCO #3.pdf; CCO #5.pdf; CCO #6.pdf; CCO #7.pdf; CCO #8.pdf; CCO #9.pdf; CCO # 10.pdf; CCO #11.pdf; CCO #12.pdf

From: Sandy Jordan <[email redacted]> Sent: Monday, July 17, 2023 12:44 PM To: AP <[email redacted]> Subject: RE: Arrowhead Endoscopy - Final

Here are all the back charge change orders. I thought I send them, but maybe I only sent the link to Procore. I have sent a message to Jerry and John to find out if this is approved to be paid. John is on vacation, but should be back later this week.

Sandy Jordan – CSBA, LEED AP Assistant Project Manager Sigma Contracting, Inc. 9019 E. Bahia Dr., Suite 102 Sco4sdale, AZ 85260 P (602)788-7800 ext 118 [email redacted]

From: AP <[email redacted]> Sent: Monday, July 17, 2023 12:11 PM To: Sandy Jordan <[email redacted]> Cc: John Russell <[email redacted]> Subject: RE: Arrowhead Endoscopy - Final Importance: High

Good afternoon Sandy,

I am following back up on the email sent last week. Mr. Crawford is questioning why we haven’t received final retention payment on this project. Explained that I am still waiting for copies of the deductive change orders that you had sent to Oliver. Can you please send those over to me ASAP so that I can adjust our billing?

Also, can you please provide an update on when we can be expecting the retention payment that you stated previously of $53,129.45?

Thank you!

Heather Garcia | Accounting Specialist Crawford Mechanical Services, LLC 408 S. Hamilton Ct. | Gilbert, AZ 85233 480-722-1267 o | 480-899-7349 f [email redacted] | www.cmsaz.com

 Please consider the environment before printing this e - mail. From: AP Sent: Tuesday, July 11, 2023 2:58 PM To: Sandy Jordan <[email redacted]> Cc: John Russell <[email redacted]> Subject: RE: Arrowhead Endoscopy - Final

Good afternoon Sandy,

My apologies on following up on something so old. However, Oliver Kirkman is no longer with Crawford and I’m trying to get this job cleaned up. Could you please send me the PDF’s for the deductive change orders that you were going to resend to Oliver? The last email that I have from Oliver on this project was that he approved them and stated that the new contract value should be $629,519.83.

Will I need to resubmit a final billing for the $53,129.45 that you are showing as remaining balance to bill or will you be issuing payment soon on that?

Please advise.

Heather Garcia | Accounting Specialist Crawford Mechanical Services, LLC 408 S. Hamilton Ct. | Gilbert, AZ 85233 480-722-1267 o | 480-899-7349 f [email redacted] | www.cmsaz.com

 Please consider the environment before printing this e - mail. From: Sandy Jordan <[email redacted]> Sent: Wednesday, June 7, 2023 2:58 PM To: Oliver Kirkman <[email redacted]>; AP <[email redacted]> Cc: John Russell <[email redacted]> Subject: RE: Arrowhead Endoscopy - Final

I will convert them to PDF’s and resend them

Sandy Jordan – CSBA, LEED AP Assistant Project Manager Sigma Contracting, Inc. 9019 E. Bahia Dr., Suite 102 Scottsdale, AZ 85260 P (602)788-7800 [email redacted]

From: Oliver Kirkman <[email redacted]> Sent: Wednesday, June 7, 2023 2:50 PM To: Sandy Jordan <[email redacted]>; AP <[email redacted]> Cc: John Russell <[email redacted]> Subject: RE: Arrowhead Endoscopy - Final

Sandy did send the procore COs but I could not open them.

Oliver Kirkman | Construc'on Project Manager Crawford Mechanical Services, LLC 408 S. Hamilton Ct. | Gilbert, AZ 85233 480-722-1267 o | 602-762-7258 m [email redacted] | www.cmsaz.com

This message is for the designated recipient only and may contain privileged, proprietary, or otherwise private informa9on.

If you have received it in error, please no9fy the sender immediately and delete the original. Any other use of this email by you is prohibited.

 Please consider the environment before prin ng this e - mail. From: Sandy Jordan <[email redacted]> Sent: Wednesday, June 7, 2023 2:48 PM To: AP <[email redacted]>; Oliver Kirkman <[email redacted]> Cc: John Russell <[email redacted]> Subject: RE: Arrowhead Endoscopy - Final

I have not heard. John Russel is the guy that would know if it has been resolved.

Sandy Jordan – CSBA, LEED AP Assistant Project Manager Sigma Contracting, Inc. 9019 E. Bahia Dr., Suite 102 Scottsdale, AZ 85260 P (602)788-7800 [email redacted]

From: AP <[email redacted]> Sent: Wednesday, June 7, 2023 2:43 PM To: Oliver Kirkman <[email redacted]>; Sandy Jordan <[email redacted]> Subject: RE: Arrowhead Endoscopy - Final

Good afternoon Sandy,

Just following back up to see if there was any resolution on the discrepancies that you had on our final billing. I do not show that anything was provided to Oliver on this email so wasn’t sure if there was other communication.

Thank you,

Heather Garcia | Accounting Specialist Crawford Mechanical Services, LLC 408 S. Hamilton Ct. | Gilbert, AZ 85233 480-722-1267 o | 480-899-7349 f [email redacted] | www.cmsaz.com

 Please consider the environment before printing this e - mail.

From: Oliver Kirkman <[email redacted]> Sent: Thursday, May 18, 2023 8:07 AM To: AP <[email redacted]>; Sandy Jordan <[email redacted]> Subject: RE: Arrowhead Endoscopy - Final

Please provide all back up for change order #6-12. These were not approved.

Oliver Kirkman | Construction Project Manager Crawford Mechanical Services, LLC 408 S. Hamilton Ct. | Gilbert, AZ 85233 480-722-1267 o | 602-762-7258 m [email redacted] | www.cmsaz.com

 Please consider the environment before printing this e - mail. From: AP <[email redacted]> Sent: Wednesday, May 17, 2023 3:30 PM To: Sandy Jordan <[email redacted]> Cc: Oliver Kirkman <[email redacted]> Subject: FW: Arrowhead Endoscopy - Final

Good afternoon Sandy,

It appears that the difference between what we submitted for final billing and your contract value is the total of change orders #6-12 totaling a deduct of $10,913.92. Were these change orders emailed over and executed? I’ve looped Oliver Kirkman in on this email as he is the PM for the project. Hopefully he can shed some light for us.

Thank you,

Heather Garcia | Accounting Specialist Crawford Mechanical Services, LLC 408 S. Hamilton Ct. | Gilbert, AZ 85233 480-722-1267 o | 480-899-7349 f [email redacted] | www.cmsaz.com

 Please consider the environment before printing this e - mail.

From: Sandy Jordan <[email redacted]> Sent: Wednesday, May 17, 2023 3:14 PM To: AP <[email redacted]> Subject: RE: Arrowhead Endoscopy - Final

I am working on this, but I have a different balance then you do. I show your balance is $53,129.45. Am I missing something?

See attached pay application.

Sandy Jordan – CSBA, LEED AP Assistant Project Manager Sigma Contracting, Inc. 9019 E. Bahia Dr., Suite 102 Scottsdale, AZ 85260 P (602)788-7800 [email redacted]

From: AP <[email redacted]> Sent: Wednesday, May 17, 2023 11:29 AM To: Sandy Jordan <[email redacted]> Subject: Arrowhead Endoscopy - Final Importance: High

Good morning Sandy,

Looking to see if you can provide me with an update on payment for the final retention on this project for a total of $64,043.37. Can you please let me know if there is anything that may be holding up payment?

Thank you!

Heather Garcia | Accounting Specialist Crawford Mechanical Services, LLC 408 S. Hamilton Ct. | Gilbert, AZ 85233 480-722-1267 o | 480-899-7349 f [email redacted] | www.cmsaz.com

 Please consider the environment before printing this e - mail.

From: AP Sent: Wednesday, February 15, 2023 11:44 AM To: Sandy Jordan <[email redacted]> Subject: Arrowhead Endoscopy - Final

Good morning Sandy,

Attached is the final pay application for the Arrowhead project. Please review and let me know should you need anything else.

Thank you!

Heather Garcia | Accounting Specialist Crawford Mechanical Services, LLC 408 S. Hamilton Ct. | Gilbert, AZ 85233 480-722-1267 o | 480-899-7349 f [email redacted] | www.cmsaz.com

 Please consider the environment before printing this e - mail.

Erin Fleegle

From: Erin Fleegle Sent: Friday, July 28, 2023 2:46 PM To: John Russell Cc: Jerry Patterson; Dan Hinkson; Sandy Jordan; Melissa Pilnock; Bryan Crawford; Oliver Kirkman; Austin D'Ambrosio Subject: RE: Arrowhead Endoscopy Past Due Retention

Hi John,

Thank you for the reply. I’m sorry to hear this is your take on our requests to validate information and find resolution.

Erin Fleegle | GM & VP of Finance Crawford Mechanical Services, LLC 408 S. Hamilton Ct. | Gilbert, AZ 85233 480-722-1267 o | 480-899-7349 f [email redacted] | www.cmsaz.com

This message is for the designated recipient only and may contain privileged, proprietary, or otherwise private informa3on. If you have received it in error, please no3fy the sender immediately and delete the original. Any other use of this email by you is prohibited.

 Please consider the environment before prin ng this e - mail. From: John Russell <[email redacted]> Sent: Friday, July 28, 2023 2:06 PM To: Erin Fleegle <[email redacted]>; Austin D'Ambrosio <[email redacted]> Cc: Jerry Patterson <[email redacted]>; Dan Hinkson <[email redacted]>; Sandy Jordan <[email redacted]>; Melissa Pilnock <[email redacted]>; Bryan Crawford <[email redacted]>; Oliver Kirkman <[email redacted]> Subject: RE: Arrowhead Endoscopy Past Due Retention

I will not be tasked by Crawford Mechanical to produce anything further at this time. I can however spend a bunch of time pulling together a delay claim that goes far beyond the current request. We can get into trailer rental costs, temp power costs, fuel expenses for transportation, etc. I can also reach out to the owner ask them to write statement on their experience since the final inspection was achieved. I suggest Crawford works to find some ground on this immediately and stop trying to work upstream. Otherwise, I am sure you can find a way to spend costs far beyond what’s be requested if you so choose to on other routes of your choice.

John Russell

Sr. Project Manager

602-788-7800 fax 602-788-4577 Mobile 602-502-5977

[email redacted]

Building Arizona Since 1983

From: Erin Fleegle <[email redacted]> Sent: Friday, July 28, 2023 11:41 AM To: John Russell <[email redacted]>; Austin D'Ambrosio <[email redacted]> Cc: Jerry Patterson <[email redacted]>; Dan Hinkson <[email redacted]>; Sandy Jordan <[email redacted]>; Melissa Pilnock <[email redacted]>; Bryan Crawford <[email redacted]>; Oliver Kirkman <[email redacted]> Subject: RE: Arrowhead Endoscopy Past Due Retention

Guys,

At this point I think it’s best to refer you back to the email from Alena Avnukov regarding retention and ask you to please respond to the notice so next steps can take place. I will also keep an eye out today for back up on all deductive change orders on this project. We now consider them to be a part of the disputed amount and will be adding them into the amount that needs to be resolved.

Thank you,

Erin Fleegle | GM & VP of Finance Crawford Mechanical Services, LLC 408 S. Hamilton Ct. | Gilbert, AZ 85233 480-722-1267 o | 480-899-7349 f [email redacted] | www.cmsaz.com

 Please consider the environment before prin ng this e - mail. From: John Russell <[email redacted]> Sent: Thursday, July 27, 2023 6:18 PM To: Erin Fleegle <[email redacted]>; Austin D'Ambrosio <[email redacted]> Cc: Jerry Patterson <[email redacted]>; Dan Hinkson <[email redacted]>; Sandy Jordan <[email redacted]>; Melissa Pilnock <[email redacted]>; Bryan Crawford <[email redacted]>; Oliver Kirkman <[email redacted]> Subject: Re: Arrowhead Endoscopy Past Due Retention

If that was the case the ownership wouldn't be withholding $50k currently. Excessive issues door to inadequate workmanship doesn't equate to warranty work.

John Russell SIGMA Contracting 602-502-5977 [email redacted]

From: Erin Fleegle <[email redacted]> Sent: Thursday, July 27, 2023 6:12:07 PM To: Austin D'Ambrosio <[email redacted]>; John Russell <[email redacted]> Cc: Jerry Patterson <[email redacted]>; Dan Hinkson <[email redacted]>; Sandy Jordan <[email redacted]>; Melissa Pilnock <[email redacted]>; Bryan Crawford <[email redacted]>; Oliver Kirkman <[email redacted]> Subject: RE: Arrowhead Endoscopy Past Due Retention

Hi Austin,

Thanks for your reply. It sounds like you are acknowledging our current time on site as warranty work, which would not be a basis for withholding funds, especially if it’s in the process of being addressed. However, withholding payment for work that has been performed once you have already received payment from the owner for that same work in most circumstances is breaking the law, as well as contractual and ethical boundaries. There are methods in which we are all expected to give timely and proper notice if there is some type of failure, just as there is an expectation transparency. As I understand it, this site and the equipment has been fully operational for quite some time. In fact, procedures and surgeries are actively being performed.

We would have no problem working through any concern you may have. If I can share my concern with you, it’s the failure to notify us of your receipt of payment earlier this year and withholding payment without communication. Additionally, I am concerned that you are echoing John’s statement that you will be compiling your backup. How accurate is a back charge that was sent prior to compiling back up? I am assuming you can also show records of putting us on notice with amounts for back charges. I am hoping you can also include what work was performed through the extension of supervision, dates, hours, and names.

At this time, I would also like to request back up for all deductive change orders related to this project.

Thank you,

Erin Fleegle | GM & VP of Finance Crawford Mechanical Services, LLC 408 S. Hamilton Ct. | Gilbert, AZ 85233 480-722-1267 o | 480-899-7349 f [email redacted] | www.cmsaz.com

 Please consider the environment before printing this e - mail. From: Austin D'Ambrosio <[email redacted]> Sent: Thursday, July 27, 2023 4:52 PM To: Erin Fleegle <[email redacted]>; John Russell <[email redacted]> Cc: Jerry Patterson <[email redacted]>; Dan Hinkson <[email redacted]>; Sandy Jordan <[email redacted]>; Melissa Pilnock <[email redacted]>; Bryan Crawford <[email redacted]>; Oliver Kirkman <[email redacted]> Subject: Re: Arrowhead Endoscopy Past Due Retention

Erin, I am unsure of your familiarity with this project, but Bryan and Oliver are very aware of the issues at hand. The matters regarding Monday's meeting are from continuing issues with the HVAC not working, and the owner's requested someone be there, since the warranty work hasn't been resolved. We will be compiling our backup, and will be getting it over to you.

Thank you, Austin D’Ambrosio Superintendent Sigma Contracting 602-425-8136

From: Erin Fleegle <[email redacted]> Sent: Thursday, July 27, 2023 4:39:16 PM To: John Russell <[email redacted]> Cc: Jerry Patterson <[email redacted]>; Dan Hinkson <[email redacted]>; Austin D'Ambrosio <[email redacted]>; Sandy Jordan <[email redacted]>; Melissa Pilnock <[email redacted]> Subject: RE: Arrowhead Endoscopy Past Due Retention

Thanks John. I’ll let the others have an opportunity to speak into the reasons for being on site (i.e. possible punch work). In the meantime, can I ask that you forward me whatever daily logs, notices, appropriate time records/payroll backup, etc. you compiled to determine the amount of the back charge since it sounded like you were just reviewing it all today prior to emailing me?

Thank you,

Erin Fleegle | GM & VP of Finance Crawford Mechanical Services, LLC 408 S. Hamilton Ct. | Gilbert, AZ 85233 480-722-1267 o | 480-899-7349 f [email redacted] | www.cmsaz.com

 Please consider the environment before printing this e - mail. From: John Russell <[email redacted]> Sent: Thursday, July 27, 2023 4:02 PM To: Erin Fleegle <[email redacted]> Cc: Jerry Patterson <[email redacted]>; Dan Hinkson <[email redacted]>; Austin D'Ambrosio <[email redacted]>; Sandy Jordan <[email redacted]>; Melissa Pilnock <[email redacted]> Subject: RE: Arrowhead Endoscopy Past Due Retention

Erin,

No problem, we will get back to you on that but, the fact that my superintendent is meeting your team out there this upcoming Monday is a continuation of what we trying to recover.

Regards,

John Russell Sr. Project Manager 602-788-7800 fax 602-788-4577 Mobile 602-502-5977 [email redacted]

Building Arizona Since 1983

From: Erin Fleegle <[email redacted]> Sent: Thursday, July 27, 2023 3:37 PM To: John Russell <[email redacted]> Cc: Jerry Patterson <[email redacted]>; Dan Hinkson <[email redacted]>; Austin D'Ambrosio <[email redacted]>; Sandy Jordan <[email redacted]>; Melissa Pilnock <[email redacted]> Subject: RE: Arrowhead Endoscopy Past Due Retention

Hi John,

Thank you sending this my way. I have forwarded it on for review, but I did not see any backup to substantiate the amounts, hours, or dates. Can you please email me your documentation?

Thank you,

Erin Fleegle | GM & VP of Finance Crawford Mechanical Services, LLC 408 S. Hamilton Ct. | Gilbert, AZ 85233 480-722-1267 o | 480-899-7349 f [email redacted] | www.cmsaz.com

 Please consider the environment before printing this e - mail. From: John Russell <[email redacted]> Sent: Thursday, July 27, 2023 2:27 PM To: Erin Fleegle <[email redacted]> Cc: Jerry Patterson <[email redacted]>; Dan Hinkson <[email redacted]>; Austin D'Ambrosio <[email redacted]>; Sandy Jordan <[email redacted]>; Melissa Pilnock <[email redacted]> Subject: RE: Arrowhead Endoscopy Past Due Retention

Erin,

Looking forward to putting this one behind us as I am sure your firm is as well. Please see the attached supervision we are recovering associated with only Crawfords scope.

Thank you,

John Russell Sr. Project Manager 602-788-7800 fax 602-788-4577 Mobile 602-502-5977 [email redacted] Building Arizona Since 1983

From: Erin Fleegle <[email redacted]> Sent: Thursday, July 27, 2023 1:57 PM To: John Russell <[email redacted]> Subject: Arrowhead Endoscopy Past Due Retention

Hi John,

Thank you for taking my call just now about the past due retention funds at Arrowhead Endoscopy. Please include me on the email you plan on sending today, once you finish putting together your requested back charge for extended supervision.

Thank you,

Erin Fleegle | GM & VP of Finance Crawford Mechanical Services, LLC 408 S. Hamilton Ct. | Gilbert, AZ 85233 480-722-1267 o | 480-899-7349 f [email redacted] | www.cmsaz.com

 Please consider the environment before printing this e - mail.

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Crawford Mechanical Services (C M S) LLC, Case No. 2023-08597 COMPLAINANT, v. CITATION Sigma Contracting Inc., License No. ROC 070784, RESPONDENT.

The Registrar issues this Citation to Sigma Contracting Inc., (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by September 12, 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 28, 2023, Crawford Mechanical Services (C M S) LLC (“Complainant”) filed a written complaint with the Registrar. A copy of that Complaint is attached to this Citation. A FORMAL STATEMENT OF THE CHARGES AGAINST RESPONDENT The Registrar investigated this matter and finds cause to charge Respondent with violation(s) of Title 32, Chapter 10 of the Arizona Revised Statutes. Respondent is charged with violating: Charge :1 A.R.S. § 32-1154(A)(10) — Failure by a licensee or agent or official of a licensee to pay monies in excess of $750 when due for materials or services rendered in connection with the licensee's operations as a contractor unless the of 5

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 licensee proves that the licensee lacks the capacity to pay and has not received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased. If the matter proceeds to a hearing and the administrative law judge determines that any of the charges listed above are supported by a preponderance of the evidence, then Respondent’s license(s) may be subject to suspension or revocation, and Respondent may be subject to other penalties provided by law, including civil penalties under A.R.S. §§ 32-1154(E) and (F). FILING A WRITTEN ANSWER Respondent must appear by filing with the Registrar a written answer to the citation and complaint showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). Respondent’s written answer should contain the heading “Written Answer to Citation and Complaint” and should include the case number, which is Case No. 2023-08597. 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] 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 September 12, 2023. This deadline is calculated under A.R.S. §§ 32-1155(A) and (B), which provides a of 5

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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). RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE

Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations, are of 5

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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. Dated August 28, 2023. By: /s/ Chance Peterson Chance Peterson General Counsel Legal Department Arizona Registrar of Contractors COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, August 28, 2023 to:

Respondent Certified Mail No: [number redacted]

Sigma Contracting Inc. 9019 E Bahia Dr. Ste. 102 Scottsdale, AZ 85260-1553 of 5

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Copy mailed by USPS First Class mail this same date to: Respondent Sigma Contracting Inc. 9019 E Bahia Dr. Ste. 102 Scottsdale, AZ 85260-1553 Complainant Crawford Mechanical Services (C M S) LLC 408 S. Hamilton Ct. Gilbert, AZ 85233 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. 2023-08597 / GM

of 5

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

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