2023A-09442-CHC-ROC Notice of Hearing and Packet MAILED

2023A-09442-CHC-ROC · Registrar of Contractors · 2024-01-10

REGISTRAR OF CONTRACTORS OF

Ashley Walach , Case No. 2023-09442

COMPLAINANT, Docket No. 2023A-09442-CHC-ROC

v. NOTICE OF HEARING ON CONTESTED CASE State 48 Construction & Remediation LLC License No. ROC 324311,

RESPONDENT.

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

HEARING INFORMATION The hearing is set for:

February 23, 2024 9:00 AM Tammy Eigenheer Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person.

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

You must attend this hearing. This is an adversarial hearing before an administrative law judge, and is conducted in a similar manner as judicial proceedings. Thus, you must be

prepared to present evidence, including witness testimony and documents, in support of your case.

STATEMENT OF LEGAL AUTHORITY AND JURISDICTION The State of Arizona has determined that the licensing and regulation of construction contractors is a proper state function, and has vested authority in the Registrar of Contractors to administer Title 32, Chapter 10 of the Arizona Revised Statutes. A.R.S. §§ 32-1101 et seq. All hearings for alleged violations of Title 32, Chapter 10 are conducted under Title 41,

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

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

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

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

complaint and citation, which were served on the Respondent on December 15, 2023. SHORT AND PLAIN STATEMENT OF THE MATTERS ASSERTED The complaint and citation allege that the Respondent committed the following act(s): Charge: 1 A.R.S. § 32-1154(A)(3) - R4-9-108(a)

Charge: 2 A.R.S. § 32-1154(A)(22)

THE PARTIES TO THE ADMINISTRATIVE HEARING

Because Respondent is a licensee and is charged with an act(s) or omission(s) that is cause for the suspension or revocation of a license, Respondent is a party to this case and will be a party to the hearing. Because Complainant alleged Respondent committed an act(s) or omission(s) that is cause for the suspension or revocation of a license, Complainant is a party to this case and will be a party to the hearing.

Respondent and Complainant, as the parties to the hearing, will present evidence and

argument to the administrative law judge.

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

RIGHT TO BE REPRESENTED The parties to the administrative hearing may choose to be represented by an attorney. A.R.S. § 41-1092.07(B). If one of the parties is a company, the company may be represented by an officer or employee if that person satisfies the conditions set forth in A.R.S. § 32- 1156(B).

CHANGE OF ADDRESS Each party must inform the Registrar and the Office of Administrative Hearings of any change of address within five (5) days of the change. A.R.S. § 41-1092.04.

HEARING PROCEDURES AND RULES The administrative hearing will be conducted in accordance with A.R.S. §§ 41-1092 to -1092.12, and A.A.C. R2-19-101 to -122. The parties should review the statutes, rules, and processes governing the administrative hearing. Copies of the statutes, rules, and articles regarding the administrative hearing process can be found at https://www.azoah.com/.

REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE The Registrar’s investigators, employees, and attorneys will appear at the hearing via video conference or telephone unless requested by a party to appear in-person. Requests for the Registrar’s investigators, employees, or attorneys to appear in-person must be filed with the Registrar and the Office of Administrative Hearings no later than seven (7) calendar days prior to the hearing date.

HEARING PACKET In the interests of administrative efficiency, the Registrar compiles and discloses

certain documents to the parties and the Office of Administrative Hearings. These documents

are attached to this Notice of Hearing as the “Hearing Packet.” If any party wishes to submit

additional evidence, they must do so during the hearing after completing a disclosure statement. See “Disclosure Statement” section below. SUBPOENAS FOR TESTIMONY FROM A WITNESS OR DOCUMENTS The parties to the hearing must be prepared to present evidence in support of their

case. If a party wants to obtain testimony from a witness or documents not in the party’s

possession, the party must prepare and file a written subpoena for the Administrative Law

Judge to review and sign, if approved. A.R.S. § 41-1092.07(C). Forms for requesting a

subpoena can be found on the Office of Administrative Hearings’ website at www.azoah.com. The party seeking a subpoena must serve notice on all the parties to the hearing, and on the Registrar. A.R.S. § 41-1092.04.

DISCLOSURE STATEMENT At least seven calendar days before the hearing, each party must prepare and serve a

disclosure statement on all other parties, and file it with the Office of Administrative Hearings.

A.A.C. R4-9-118; A.A.C. R2-19-108. The disclosure statement must include any exhibit the

party will use at the hearing. A party’s failure to timely disclose any witness or exhibit, without good cause, may result in the administrative law judge excluding those witnesses or exhibits from being used at the hearing. A.A.C. R4-9-118(C). A sample disclosure form is available on the Registrar’s website at https://roc.az.gov/forms/RC-L-800A%20- %20Prehearing%20Disclosure%20Statement%2020191007v4.pdf

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 January 11, 2024.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail January 11, 2024 to: Respondent(s) State 48 Construction & Remediation LLC 8444 E Lincoln Dr Scottsdale, AZ 85250

Michael W. Thal, Esq. 6730 N Scottsdale Rd Ste 101 Scottsdale, AZ 85253

Complainant(s) Ashley Walach 23908 N 74th Pl Scottsdale, AZ 85310

Copy sent electronically this same date to:

Respondent at email address on record with the Registrar Respondent’s Attorney at email address of record with Registrar Complainant at email address on record with the Registrar

Case No. 2023-09442 /

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

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Case No.: 2023-09442 Investigator: Steve Klein Inspection Date: October 13, 2023 Inspection Time: 10:00 AM

Complainant: Ashley Walach Respondent: State 48 Construction & Remediation LLC Jim Rana (QP)

Jobsite General Notes:

Complaint #1 Tile incomplete/missing/cracked under fireplace & fireplace installed bowed Inspector’s Observation: Fireplace is rigid, however the Respondent agreed to adjust the doors. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint #2 Purchased brand new doors and all are dinged and have chips and discoloration; Inspector’s Observation: Doors need paint touched up. Respondent should come back one time for paint touch up. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint #3 Shower knob rubbing causing scratch on the plate of the handle as well as shower head crooked and not mounted properly; Inspector’s Observation: Fixtures should be installed per manufactured specifications. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

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Complaint #4 Cabinets all crooked Inspector’s Observation: Verified door and drawer adjustments are needed. • Respondent shall correct by the appropriate means. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint #5 Cabinet handles installed at different levels. Inspector’s Observation: Verified handles were not even. Especially above the pantry door. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint #6 Cabinet doors are not flush/even Inspector’s Observation: Respondent agreed to door and drawer adjustments. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint #7 The inside of the cabinet doorway to hidden pantry incomplete with different texture and knicks; Inspector’s Observation: Verified paint sheen varies inside pantry door area. • Respondent shall correct by the appropriate means. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint #8 Nail sticking out of trim on master bathroom door; Inspector’s Observation: Verified. • Respondent shall correct by the appropriate means. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint # 9 Outlet under kitchen cabinet not covered, exposed wire.; Inspector’s Observation: Verified • Respondent shall correct by the appropriate means. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint # 10 Outlet is loose and moving by front entrance along with numerous crooked outlets; Inspector’s Observation: This appears to be an existing outlet that the Respondent did not install. Governing Rule: N/A

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Complaint #11 Scratch on guest bathroom medicine cabinet that was not there when originally installed; Inspector’s Observation: I can’t address scratches unless it was mentioned on an original walk through list or mentioned to the contractor in writing within the first 10 days of the job completion. Governing Rule: N/A

Complaint #12 Missing cabinet door stopper Inspector’s Observation: Respondent agreed to correct hinges. Lazy Susan Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint #13 The cabinet door is hitting other cabinet door handle causing chips.; Inspector’s Observation: Respondent agreed to correct hinges. Lazy Susan Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint #14 Double door to office are not level causing a gap at the top and for the doors to not align when closed. Inspector’s Observation: Verified the doors do not align at the bottom • Respondent shall correct by the appropriate means. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint #15 There are knicks and chips all over the house on the walls and baseboards ; Inspector’s Observation: Respondent should come back one time for drywall and paint touch ups. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint #16 Different texture on walls around medicine cabinets and in pantry; Inspector’s Observation: Respondent should come back one time for drywall and paint touch ups. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint #17 Kitchen cabinets wrong hinges on cabinets causing them to stick out and be unaligned; Inspector’s Observation: The hinges appeared to be the same to me and the contractor agreed adjust the doors and drawers. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

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Complaint #18 Fan hood above cooktop installed crooked and has uneven paint; Inspector’s Observation: Fan should be installed per the manufactures instructions and I verified the sheen varies on the finish. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint # 19 Sinks not caulked in bathrooms; Inspector’s Observation: Contractor should come back one time to finish and or touch up. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint # 20 Under cabinets in kitchen not completely finished, leaving an exposed corner and unpainted trim; Inspector’s Observation: The cabinet installation was completed per industry standards. Governing Rule: N/A

Complaint #21 Shower doors incomplete- guest bath has no shower door while master has only some glass; Inspector’s Observation: Respondent should complete the job per the original contract agreement. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint #22 Two drawers for spice racks in kitchen are different levels compared to all the other cabinets; Inspector’s Observation: Respondent agreed to adjust the cabinet doors and drawers Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint #23 Missing/stolen toolbox ; Inspector’s Observation: Inspector has no first-hand knowledge. / This is not a Title violation to which I can report on Governing Rule: N/A

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Complaint #24 Contractor performed unauthorized work that was never discussed in person nor written. We never were given a price before hand nor given a change order before work was performed. He gave us a massive change order after work was completed without discussion and expects payment for work we were never told about or authorized. Inspector’s Observation: This item involves a disputed money amount, not workmanship issues. This agency does not have the authority to resolve this issue. Governing Rule: N/A

Complaint #25 Contractor is past contract due date. He told me numerous times house is complete and told me numerous times the house will be done in "a couple weeks" or "in a week". I have written him a deadline of when the house needs to be complete and he still did not finish. He also did not give us a change order with new completion date. This has caused more payments for other residence that was not budgeted for. Plan was for 3 months, max 4 and was going on month 6. ; Inspector’s Observation: This is not a Title 32 violation to which I can report on Governing Rule: N/A

Complaint #26 Missing remote holder for the new fan that was installed in the living room; Inspector’s Observation: Inspector has no first-hand knowledge. / This is not a Title violation to which I can report on Governing Rule: N/A

Complaint #27 Sent inappropriate and unprofessional text with name calling regarding immigrant as well as slammed the garage door twice and walked out during a meeting. Inspector’s Observation: Inspector has no first-hand knowledge. / This is not a Title violation to which I can report on Governing Rule: N/A

Complaint #28 Barn door floor track is installed crooked in master bath; Inspector’s Observation: Verified the door guide is loose. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint # 29 Tip out tray in kitchen under sink is installed crooked; Inspector’s Observation: Respondent agreed to cabinet drawer adjustments. Governing Rule:

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Complaint # 30 cabinet handle screw on drawer under cooktop stripped, so the handle moves; Inspector’s Observation: Verified loose handle • Respondent shall correct by the appropriate means. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint #31 Contractor was rarely on site supervising employees. My father was there while work was being performed multiple occasions and no contractor was present. He even had to direct the employees what needed to be done because of lack of communication between contractor and employees. He mentioned he won’t babysit employees while in contract it states he is to supervise all work. Inspector’s Observation: This is not a Title 32 violation to which I can report on Governing Rule:

Complaint #32 Unfinished side of cabinet trim in laundry. Inspector’s Observation: Respondent agreed to correct. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint #33 Installed vanity light with cracked glass after knowing the glass is cracked; Inspector’s Observation: Respondent agreed to correct. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint #34 Front door stucco near the entrance is different than the rest of the wall. Inspector’s Observation: I’m unable to determine if this item is the Respondents responsibility. Governing Rule: N/A

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Complainant: Ashley Walach 23908 N 74th Pl Scottsdale, AZ 85310

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Respondent: State 48 Construction & Remediation LLC 8444 E Lincoln Dr Scottsdale, AZ 85250

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 August 16, 2023

Jobsite Inspection Notice Re: Complaint Number 2023-09442

Dear Complainant and Respondent:

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

A jobsite inspection is scheduled for October 13, 2023 at 10:00 AM. The Complainant is required to be present. The Respondent’s attendance is requested and encouraged. The Registrar encourages both parties to make a good faith effort to resolve this complaint prior to the jobsite inspection.

COMPLAINANT:

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

RESPONDENT:

1. Enclosed is a copy of the complaint. Under A.R.S. § 32-1155(D) you must be allowed, upon request, the opportunity to inspect the work complained of within fifteen days of the date of receipt of this notice. 2. To assist the assigned investigator in evaluating the merits of the complaint, please submit a response to the enclosed complaint to the assigned investigator prior to the scheduled inspection. 3. If you do not attend the jobsite inspection, your absence may negatively impact the investigation, and your interests. 4. If a building permit(s) was required for this project, please have the building permit information available at the jobsite inspection. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

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

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

Sincerely, /s/ Steve Klein #174 Steve Klein #174, Investigator 1700 W. Washington St. Ste 105 Phoenix, AZ 85007-2812 Phone: (602) 689-4987 E-mail: [email redacted]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Complainant: Ashley Walach 23908 N 74th Pl Scottsdale, AZ 85310

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Respondent: State 48 Construction & Remediation LLC 8444 E Lincoln Dr Scottsdale, AZ 85250

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 October 13, 2023

License No. ROC 324311

Re:Complaint No. 2023-09442

WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

After investigation, the Registrar determined that you failed to meet the requirements of A.R.S. § 32-1154(A), and now issues this Directive requiring you to take appropriate corrective action. Failure to comply with this Directive constitutes a violation of A.R.S. § 32-1154(A)(22) and may result in the issuance of a citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-1154(E) of up to $500.00. You must notify the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on November 13, 2023.

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

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

Complaint #1 Tile incomplete/missing/cracked under fireplace & fireplace installed bowed Inspector’s Observation: Fireplace is rigid, however the Respondent agreed to adjust the doors.

Complaint #2 Purchased brand new doors and all are dinged and have chips and discoloration; Inspector’s Observation: Doors need paint touched up. Respondent should come back one time for paint touch up.

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Complaint #3 Shower knob rubbing causing scratch on the plate of the handle as well as shower head crooked and not mounted properly; Inspector’s Observation: Fixtures should be installed per manufactured specifications.

Complaint #4 Cabinets all crooked Inspector’s Observation: Verified door and drawer adjustments are needed. • Respondent shall correct by the appropriate means.

Complaint #5 Cabinet handles installed at different levels. Inspector’s Observation: Verified handles were not even. Especially above the pantry door.

Complaint #6 Cabinet doors are not flush/even Inspector’s Observation: Respondent agreed to door and drawer adjustments.

Complaint #7 The inside of the cabinet doorway to hidden pantry incomplete with different texture and knicks; Inspector’s Observation: Verified paint sheen varies inside pantry door area. • Respondent shall correct by the appropriate means.

Complaint #8 Nail sticking out of trim on master bathroom door; Inspector’s Observation: Verified. • Respondent shall correct by the appropriate means.

Complaint # 9 Outlet under kitchen cabinet not covered, exposed wire. Inspector’s Observation: Verified • Respondent shall correct by the appropriate means.

Complaint #12 Missing cabinet door stopper Inspector’s Observation: Respondent agreed to correct hinges. Lazy Susan

Complaint #13 The cabinet door is hitting other cabinet door handle causing chips. Inspector’s Observation: Respondent agreed to correct hinges. Lazy Susan

Complaint #14 Double door to office are not level causing a gap at the top and for the doors to not align when closed. Inspector’s Observation: Verified the doors do not align at the bottom • Respondent shall correct by the appropriate means.

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Complaint #15 There are knicks and chips all over the house on the walls and baseboards; Inspector’s Observation: Respondent should come back one time for drywall and paint touch ups.

Complaint #16 Different texture on walls around medicine cabinets and in pantry; Inspector’s Observation: Respondent should come back one time for drywall and paint touch ups.

Complaint #17 Kitchen cabinets wrong hinges on cabinets causing them to stick out and be unaligned; Inspector’s Observation: The hinges appeared to be the same to me and the contractor agreed adjust the doors and drawers.

Complaint #18 Fan hood above cooktop installed crooked and has uneven paint; Inspector’s Observation: Fan should be installed per the manufactures instructions and I verified the sheen varies on the finish.

Complaint # 19 Sinks not caulked in bathrooms; Inspector’s Observation: Contractor should come back one time to finish and or touch up.

Complaint #21 Shower doors incomplete- guest bath has no shower door while master has only some glass; Inspector’s Observation: Respondent should complete the job per the original contract agreement.

Complaint #22 Two drawers for spice racks in kitchen are different levels compared to all the other cabinets; Inspector’s Observation: Respondent agreed to adjust the cabinet doors and drawers

Complaint #28 Barn door floor track is installed crooked in master bath; Inspector’s Observation: Verified the door guide is loose.

Complaint # 29 Tip out tray in kitchen under sink is installed crooked; Inspector’s Observation: Respondent agreed to cabinet drawer adjustments.

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Complaint # 30 cabinet handle screw on drawer under cooktop stripped, so the handle moves; Inspector’s Observation: Verified loose handle • Respondent shall correct by the appropriate means.

Complaint #32 Unfinished side of cabinet trim in laundry. Inspector’s Observation: Respondent agreed to correct.

Complaint #33 Installed vanity light with cracked glass after knowing the glass is cracked; Inspector’s Observation: Respondent agreed to correct.

ITEMS NOT REQUIRING CORRECTION

The following complaint items require no action by the Respondent:

Complaint # 10 Outlet is loose and moving by front entrance along with numerous crooked outlets; Inspector’s Observation: I’m unable to determine if this item is the Respondents responsibility.

Complaint #11 Scratch on guest bathroom medicine cabinet that was not there when originally installed; Inspector’s Observation: I can’t address scratches unless it was mentioned on an original walk through list or mentioned to the contractor in writing within the first 10 days of the job completion.

Complaint # 20 Under cabinets in kitchen not completely finished, leaving an exposed corner and unpainted trim; Inspector’s Observation: The cabinet installation was completed per industry standards.

Complaint #23 Missing/stolen toolbox ; Inspector’s Observation: Inspector has no first-hand knowledge. / This is not a Title violation to which I can report on

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Complaint #24 Contractor performed unauthorized work that was never discussed in person nor written. We never were given a price before hand nor given a change order before work was performed. He gave us a massive change order after work was completed without discussion and expects payment for work we were never told about or authorized. Inspector’s Observation: This item involves a disputed money amount, not workmanship issues. This agency does not have the authority to resolve this issue.

Complaint #25 Contractor is past contract due date. He told me numerous times house is complete and told me numerous times the house will be done in "a couple weeks" or "in a week". I have written him a deadline of when the house needs to be complete and he still did not finish. He also did not give us a change order with new completion date. This has caused more payments for other residence that was not budgeted for. Plan was for 3 months, max 4 and was going on month 6. ; Inspector’s Observation: This is not a Title 32 violation to which I can report on

Complaint #31 Contractor was rarely on site supervising employees. My father was there while work was being performed multiple occasions and no contractor was present. He even had to direct the employees what needed to be done because of lack of communication between contractor and employees. He mentioned he won’t babysit employees while in contract it states he is to supervise all work. Inspector’s Observation: This is not a Title 32 violation to which I can report on

Complaint #34 Front door stucco near the entrance is different than the rest of the wall. Inspector’s Observation: I’m unable to determine if this item is the Respondents responsibility.

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

Sincerely, /s/ Steve Klein #174 Steve Klein #174, Investigator 1700 W. Washington St. Ste 105 Phoenix, AZ 85007-2812 Phone: (602) 689-4987 E-mail: [email redacted]

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Complainant: Ashley Walach 23908 N 74th Pl Scottsdale, AZ 85310

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Respondent: State 48 Construction & Remediation LLC 8444 E Lincoln Dr Scottsdale, AZ 85250

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 October 13, 2023

License No. ROC 324311

Re:Complaint No. 2023-09442

WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

After investigation, the Registrar determined that you failed to meet the requirements of A.R.S. § 32-1154(A), and now issues this Directive requiring you to take appropriate corrective action. Failure to comply with this Directive constitutes a violation of A.R.S. § 32-1154(A)(22) and may result in the issuance of a citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-1154(E) of up to $500.00. You must notify the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on November 13, 2023.

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

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

Complaint #1 Tile incomplete/missing/cracked under fireplace & fireplace installed bowed Inspector’s Observation: Fireplace is rigid, however the Respondent agreed to adjust the doors.

Complaint #2 Purchased brand new doors and all are dinged and have chips and discoloration; Inspector’s Observation: Doors need paint touched up. Respondent should come back one time for paint touch up.

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Complaint #3 Shower knob rubbing causing scratch on the plate of the handle as well as shower head crooked and not mounted properly; Inspector’s Observation: Fixtures should be installed per manufactured specifications.

Complaint #4 Cabinets all crooked Inspector’s Observation: Verified door and drawer adjustments are needed. • Respondent shall correct by the appropriate means.

Complaint #5 Cabinet handles installed at different levels. Inspector’s Observation: Verified handles were not even. Especially above the pantry door.

Complaint #6 Cabinet doors are not flush/even Inspector’s Observation: Respondent agreed to door and drawer adjustments.

Complaint #7 The inside of the cabinet doorway to hidden pantry incomplete with different texture and knicks; Inspector’s Observation: Verified paint sheen varies inside pantry door area. • Respondent shall correct by the appropriate means.

Complaint #8 Nail sticking out of trim on master bathroom door; Inspector’s Observation: Verified. • Respondent shall correct by the appropriate means.

Complaint # 9 Outlet under kitchen cabinet not covered, exposed wire. Inspector’s Observation: Verified • Respondent shall correct by the appropriate means.

Complaint #12 Missing cabinet door stopper Inspector’s Observation: Respondent agreed to correct hinges. Lazy Susan

Complaint #13 The cabinet door is hitting other cabinet door handle causing chips. Inspector’s Observation: Respondent agreed to correct hinges. Lazy Susan

Complaint #14 Double door to office are not level causing a gap at the top and for the doors to not align when closed. Inspector’s Observation: Verified the doors do not align at the bottom • Respondent shall correct by the appropriate means.

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Complaint #15 There are knicks and chips all over the house on the walls and baseboards; Inspector’s Observation: Respondent should come back one time for drywall and paint touch ups.

Complaint #16 Different texture on walls around medicine cabinets and in pantry; Inspector’s Observation: Respondent should come back one time for drywall and paint touch ups.

Complaint #17 Kitchen cabinets wrong hinges on cabinets causing them to stick out and be unaligned; Inspector’s Observation: The hinges appeared to be the same to me and the contractor agreed adjust the doors and drawers.

Complaint #18 Fan hood above cooktop installed crooked and has uneven paint; Inspector’s Observation: Fan should be installed per the manufactures instructions and I verified the sheen varies on the finish.

Complaint # 19 Sinks not caulked in bathrooms; Inspector’s Observation: Contractor should come back one time to finish and or touch up.

Complaint #21 Shower doors incomplete- guest bath has no shower door while master has only some glass; Inspector’s Observation: Respondent should complete the job per the original contract agreement.

Complaint #22 Two drawers for spice racks in kitchen are different levels compared to all the other cabinets; Inspector’s Observation: Respondent agreed to adjust the cabinet doors and drawers

Complaint #28 Barn door floor track is installed crooked in master bath; Inspector’s Observation: Verified the door guide is loose.

Complaint # 29 Tip out tray in kitchen under sink is installed crooked; Inspector’s Observation: Respondent agreed to cabinet drawer adjustments.

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Complaint # 30 cabinet handle screw on drawer under cooktop stripped, so the handle moves; Inspector’s Observation: Verified loose handle • Respondent shall correct by the appropriate means.

Complaint #32 Unfinished side of cabinet trim in laundry. Inspector’s Observation: Respondent agreed to correct.

Complaint #33 Installed vanity light with cracked glass after knowing the glass is cracked; Inspector’s Observation: Respondent agreed to correct.

ITEMS NOT REQUIRING CORRECTION

The following complaint items require no action by the Respondent:

Complaint # 10 Outlet is loose and moving by front entrance along with numerous crooked outlets; Inspector’s Observation: I’m unable to determine if this item is the Respondents responsibility.

Complaint #11 Scratch on guest bathroom medicine cabinet that was not there when originally installed; Inspector’s Observation: I can’t address scratches unless it was mentioned on an original walk through list or mentioned to the contractor in writing within the first 10 days of the job completion.

Complaint # 20 Under cabinets in kitchen not completely finished, leaving an exposed corner and unpainted trim; Inspector’s Observation: The cabinet installation was completed per industry standards.

Complaint #23 Missing/stolen toolbox ; Inspector’s Observation: Inspector has no first-hand knowledge. / This is not a Title violation to which I can report on

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Complaint #24 Contractor performed unauthorized work that was never discussed in person nor written. We never were given a price before hand nor given a change order before work was performed. He gave us a massive change order after work was completed without discussion and expects payment for work we were never told about or authorized. Inspector’s Observation: This item involves a disputed money amount, not workmanship issues. This agency does not have the authority to resolve this issue.

Complaint #25 Contractor is past contract due date. He told me numerous times house is complete and told me numerous times the house will be done in "a couple weeks" or "in a week". I have written him a deadline of when the house needs to be complete and he still did not finish. He also did not give us a change order with new completion date. This has caused more payments for other residence that was not budgeted for. Plan was for 3 months, max 4 and was going on month 6. ; Inspector’s Observation: This is not a Title 32 violation to which I can report on

Complaint #31 Contractor was rarely on site supervising employees. My father was there while work was being performed multiple occasions and no contractor was present. He even had to direct the employees what needed to be done because of lack of communication between contractor and employees. He mentioned he won’t babysit employees while in contract it states he is to supervise all work. Inspector’s Observation: This is not a Title 32 violation to which I can report on

Complaint #34 Front door stucco near the entrance is different than the rest of the wall. Inspector’s Observation: I’m unable to determine if this item is the Respondents responsibility.

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

Sincerely, /s/ Steve Klein #174 Steve Klein #174, Investigator 1700 W. Washington St. Ste 105 Phoenix, AZ 85007-2812 Phone: (602) 689-4987 E-mail: [email redacted]

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Complainant: Ashley Walach 23908 N 74th Pl Scottsdale, AZ 85310

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Respondent: State 48 Construction & Remediation LLC 8444 E Lincoln Dr Scottsdale, AZ 85250

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Case No.: 2023-09442 Investigator: Steve Klein Inspection Date: December 11, 2023 Inspection Time: 10:00 AM

Compliance Findings:

The Following items have not been completed.

Complaint #1 Tile incomplete/missing/cracked under fireplace & fireplace installed bowed Inspector’s Observation: Fireplace is rigid, however the Respondent agreed to adjust the doors. Compliance Inspection: Started, not completed

Complaint #3 Shower knob rubbing causing scratch on the plate of the handle as well as shower head crooked and not mounted properly; Inspector’s Observation: Fixtures should be installed per manufactured specifications. Compliance Inspection: The two fixtures operate, per the Complainant, but not consistent with each other. The escutcheon plate is scratched, I’m unable to determine if the handle caused the scratch. This issue raised in the complaint may not be the responsibility of the Respondent. This issue may be the responsibility of the product manufacturer. (Note: The Registrar makes no determination regarding the product manufacturer’s responsibility.)

Complaint #4 Cabinets all crooked Inspector’s Observation: Verified door and drawer adjustments are needed. • Respondent shall correct by the appropriate means. Compliance Inspection: The Respondent returned for the adjustments, however there’s a drawer next to the dishwasher that still has a reveal issue with the drawer below.

Complaint #5 Cabinet handles installed at different levels. Inspector’s Observation: Verified handles were not even. Especially above the pantry door. Compliance Inspection: The Respondent returned for the adjustments. This item has not been completed.

Complaint #12 Missing cabinet door stopper Inspector’s Observation: Respondent agreed to correct hinges. Lazy Susan Compliance Inspection: The Respondent returned for the adjustments. This item has not been completed.

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Complaint #14 Double door to office are not level causing a gap at the top and for the doors to not align when closed. Inspector’s Observation: Verified the doors do not align at the bottom • Respondent shall correct by the appropriate means. Compliance Inspection: Door is completed, still need touchups at the hinges.

Complaint #21 Shower doors incomplete- guest bath has no shower door while master has only some glass; Inspector’s Observation: Respondent should complete the job per the original contract agreement. Compliance Inspection: Complainant states the hall bath shower door isn’t per the contract. Hall bath shower door needs the door stop adjusted. M/bath shower glass is not even with the wall corner. Respondent offered credit. Note: The ROC does not interpret contracts.

Complaint #28 Barn door floor track is installed crooked in master bath; Inspector’s Observation: Verified the door guide is loose. Compliance Inspection: This item isn’t completed.

Note:

Please review the complaint items listed above. If any of the items have not been corrected at the time of the compliance inspection this complaint will be forwarded to the Registrar’s legal department and a citation may be issued.

If all items are corrected after receipt of this letter, please notify the Registrar’s legal department by sending a notice of compliance signed by the complainant to fax number (602) 364-0416 or by mail to: Arizona Registrar of Contractors, P.O. Box 18244, Phoenix, Arizona 85005-8244. Sincerely,

Sincerely, /s/ Steve Klein #174 Steve Klein #174, Investigator 1700 W. Washington St. Ste 105 Phoenix, AZ 85007-2812 Phone: (602) 689-4987 E-mail: [email redacted]

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Complainant: Ashley Walach 23908 N 74th Pl Scottsdale, AZ 85310

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Respondent: State 48 Construction & Remediation LLC 8444 E Lincoln Dr Scottsdale, AZ 85250

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Case No.: 2023-09442 Investigator: Steve Klein Inspection Date: December 11, 2023 Inspection Time: 10:00 AM

Compliance Findings:

The Following items have not been completed.

Complaint #1 Tile incomplete/missing/cracked under fireplace & fireplace installed bowed Inspector’s Observation: Fireplace is rigid, however the Respondent agreed to adjust the doors. Compliance Inspection: Started, not completed

Complaint #3 Shower knob rubbing causing scratch on the plate of the handle as well as shower head crooked and not mounted properly; Inspector’s Observation: Fixtures should be installed per manufactured specifications. Compliance Inspection: The two fixtures operate, per the Complainant, but not consistent with each other. I did not get in the shower to verify. The escutcheon plate is scratched, I’m unable to determine if the handle caused the problem.

Complaint #4 Cabinets all crooked Inspector’s Observation: Verified door and drawer adjustments are needed. • Respondent shall correct by the appropriate means. Compliance Inspection: The Respondent returned for the adjustments, however there’s a drawer next to the dishwasher that still has a revile issue with the drawer below.

Complaint #5 Cabinet handles installed at different levels. Inspector’s Observation: Verified handles were not even. Especially above the pantry door. Compliance Inspection: This item has not been completed.

Complaint #12 Missing cabinet door stopper Inspector’s Observation: Respondent agreed to correct hinges. Lazy Susan Compliance Inspection: This item has not been completed.

Complaint #14 Double door to office are not level causing a gap at the top and for the doors to not align when closed. Inspector’s Observation: Verified the doors do not align at the bottom • Respondent shall correct by the appropriate means. Compliance Inspection: Door is completed, need touchups at hinges.

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Complaint #21 Shower doors incomplete- guest bath has no shower door while master has only some glass; Inspector’s Observation: Respondent should complete the job per the original contract agreement. Compliance Inspection: Complainant states the hall bath shower door isn’t per the contract. Hall bath shower door needs the door stop adjusted. M/bath shower glass is not even with the wall corner. Respondent offered credit. Note: The ROC does not interpret contracts.

Complaint #28 Barn door floor track is installed crooked in master bath; Inspector’s Observation: Verified the door guide is loose. Compliance Inspection: This item isn’t completed.

Note:

Please review the complaint items listed above. If any of the items have not been corrected at the time of the compliance inspection this complaint will be forwarded to the Registrar’s legal department and a citation may be issued.

If all items are corrected after receipt of this letter, please notify the Registrar’s legal department by sending a notice of compliance signed by the complainant to fax number (602) 364-0416 or by mail to: Arizona Registrar of Contractors, P.O. Box 18244, Phoenix, Arizona 85005-8244. Sincerely,

Sincerely, /s/ Steve Klein #174 Steve Klein #174, Investigator 1700 W. Washington St. Ste 105 Phoenix, AZ 85007-2812 Phone: (602) 689-4987 E-mail: [email redacted]

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Ashley Walach, Case No. 2023-09442 COMPLAINANT, v. State 48 Construction & Remediation LLC CITATION License No. ROC 324311,

RESPONDENT.

The Registrar issues this Citation to State 48 Construction & Remediation LLC

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

December 30, 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 August 15, 2023, Ashley Walach (“Complainant”) filed a written complaint with the

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

A FORMAL STATEMENT OF THE CHARGES AGAINST RESPONDENT

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

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

with violating:

Charge :1 A.R.S. § 32-1154(A)(3) - R4-9-108(a) Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner. 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 Charge :2 A.R.S. § 32-1154(A)(22) Failure to take appropriate corrective action to comply with this chapter or with rules adopted pursuant to this chapter without valid justification within a reasonable period of time after receiving a written directive from the Registrar. The written directive shall set forth the time within which the contractor is to complete the remedial action. The time permitted for compliance shall not be less than fifteen days from the date of issuance of the directive. A license shall not be revoked or suspended nor shall any other penalty be imposed for a violation of this paragraph until after a hearing has been held.

If the matter proceeds to a hearing and the administrative law judge determines that any of the charges listed above are supported by a preponderance of the evidence, then Respondent’s license(s) may be subject to suspension or revocation, and Respondent may be subject to other penalties provided by law, including civil penalties under A.R.S. §§ 32-1154(E) and (F). FILING A WRITTEN ANSWER Respondent must appear by filing with the Registrar a written answer to the citation and complaint showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). Respondent’s written answer should contain the heading “Written Answer to Citation and Complaint” and should include the case number, which is Case No. 2023-09442. How to File a Written Answer: Respondent’s written answer may be submitted in the following ways: In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 Email: [email redacted] of 5

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 The Registrar’s normal office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday. If Respondent submits a written answer by mail, it is not filed with the Registrar until the Registrar actually receives it. Deadline for Filing a Written Answer: Respondent must file a written answer with the Registrar no later than December 30, 2023. This deadline is calculated under A.R.S. §§ 32-1155(A) and (B), which provides a deadline ten days after service of the Citation. Service of the Citation and Complaint is complete five days after the Registrar mails a copy of the Citation and Complaint to Respondent’s latest address of record in the Registrar’s office. Consequences for Failing to File a Written Answer: If Respondent fails to answer, Respondent’s failure may be deemed an admission of the act or acts charged in the written complaint. A.R.S. § 32-1155(C). The Registrar may then suspend or revoke Respondent’s license(s). THE ADMINISTRATIVE HEARING If Respondent files a timely written answer contesting any charges in the Complaint, then the Registrar will request the Office of Administrative Hearings set a date for an administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D). INVESTIGATOR’S APPEARANCE AS A WITNESS The Registrar’s assigned investigator will appear as a witness at the hearing. If either party demands the attendance at the hearing of any other person, that party must obtain and serve a subpoena in compliance with the rules and processes established by the Office of Administrative Hearings. RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an of 5

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations, are inadmissible in the administrative hearing. A.R.S. § 41-1092.06(B). RESPONDENT’S PRIOR RECORD Under A.A.C. R4-9-117, in determining the appropriate discipline, the administrative law judge and the Registrar may consider not only facts in the current case, but also facts in prior cases and any documents regarding Respondent on file with the Registrar. Respondent’s prior disciplinary record and current license(s) status may be considered as a mitigating or aggravating factor in determining the appropriate discipline. EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to the Citation and Complaint, showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). This Citation does not constitute proof that any charge or allegation in Complainant’s written complaint is in fact true. This Citation does not constitute proof that Respondent violated any statutory provision or rule adopted by the Registrar. of 5

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Dated December 15, 2023. By: /s/ Tedi Quezada Tedi Quezada Legal Assistant Legal Department Arizona Registrar of Contractors COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, December 15, 2023 to:

Respondent Certified Mail No: [number redacted]

State 48 Construction & Remediation LLC 8444 E Lincoln Dr. Scottsdale, AZ 85250 Copy mailed by USPS First Class mail this same date to:

Respondent State 48 Construction & Remediation LLC 8444 E Lincoln Dr. Scottsdale, AZ 85250

Complainant Ashley Walach 23908 N 74th Pl Scottsdale, AZ 85310

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. 2023-09442

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 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

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

Ashley Walach Mailing Address (Enter jobsite in Contract/Project section) City State Zip

23908 N 74th Pl Scottsdale Arizona 85255 Phone Number Email

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

Street Address of Attorney City State Zip

Phone Number of Attorney Email of Attorney

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

State 48 Construction & Remediation LLC ROC 324311 Street Address City State Zip

8444 E Lincoln Dr Scottsdale AZ 85250 Phone Number Email

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

James Rana Contract/Project Information Contract Date Contract Amount Amount Paid

February 28, 2023 $229,605.69 $220,000.00 Date Work Started Date Work Stopped Date Work Was Completed

March 13, 2023 August 15, 2023 Close of Escrow (New Home) Move-In Date (New-Home)

Jobsite Street Address City State Zip

23908 N 74th Pl Scottsdale AZ 85255 Name of Construction Site Owner Construction Site Name (if applicable)

Phone Number of Construction Site Owner Email of Construction Site Owner

This complaint is for Poor Work;Other I have contacted the contractor by Phone/Text Have you filed a complaint in court? No Has any work been corrected? No

RCC099 12/05/18 Page 1 of 3 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

The contract was Written All change orders were Written This project was Residential This project involved Remodel

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

- tile incomplete/missing/cracked under fireplace & fireplace installed bowed ; purchased brand new doors and all are dinged and have chips and discoloration; - shower knob rubbing causing scratch on the plate of the handle as well as shower head crooked and not mounted properly; cabinets all crooked and cabinet handle installed at different levels. Cabinet doors are not flush/even. The inside of the cabinet doorway to hidden pantry incomplete with different texture and knicks; nail sticking out of trim on master bathroom door; outlet under kitchen cabinet not covered, exposed wire.; outlet is loose and moving by front entrance along with numerous crooked outlets; scratch on guest bathroom medicine cabinet that was not there when originally installed; missing cabinet door stopper. The cabinet door is hitting other cabinet door handle causing chips.; double door to office are not level causing a gap at the top and for the doors to not align when closed. ; There are knicks and chips all over the house on the walls and baseboards ; different texture on walls around medicine cabinets and in pantry; kitchen cabinets wrong hinges on cabinets causing them to stick out and be unaligned; fan hood above cooktop installed crooked and has uneven paint; sinks not caulked in bathrooms; undercabinets in kitchen not completely finished, leaving an exposed corner and unpainted trim; shower doors incomplete- guest bath has no shower door while master has only some glass; drawers for spice racks in kitchen are different levels compared to all the other cabinets; missing/stolen toolbox ; contractor performed unauthorized work that was never discussed in person nor written. We never were given a price before hand nor given a change order before work was performed. He gave us a massive change order after work was completed without discussion and expects payment for work we were never told about or authorized.; contractor is past contract due date. He told me numerous times house is complete and told me numerous times the house will be done in "a couple weeks" or "in a week". I have written him a deadline of when the house needs to be complete and he still did not finish. He also did not give us a change order with new completion date. This has caused more payments for other residence that was not budgeted for. Plan was for 3 months, max 4 and was going on month 6. ; missing remote holder for the new fan that was installed in the living room; Sent inappropriate and unprofessional text with name calling regarding immigrant as well as slammed the garage door twice and walked out during a meeting ; barn door floor track is installed crooked in master bath; tip out tray in kitchen under sink is installed crooked; cabinet handle screw on drawer under cooktop stripped, so the handle moves; contractor was rarely on site supervising employees. My father was there while work was being performed multiple occasions and no contractor was present. He even had to direct the employees what needed to be done because of lack of communication between contractor and employees. He mentioned he wont babysit employees while in contract it states he is to supervise all work,.; unfinished side of cabinet trim in laundry ; installed vanity light with cracked glass after knowing the glass is cracked; front door stucco near the entrance is different than the rest of the wall.

Signature

RCC099 12/05/18 Page 2 of 3 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

I declare under penalty of perjury that the information and documents contained on this Complaint Form, included with this complaint, or hereafter submitted in support of this complaint are true and accurate to the best of my knowledge. I will assist in the investigation or in the prosecution of the contractor or other parties, and will, if necessary, attend hearings and testify to facts. Printed Name Signature Date

Ashley Walach \complainant1\ \complainantd1\

RCC099 12/05/18 Page 3 of 3 CONSTRUCTION AGREEMENT THIS CONSTRUCTION AGREEMENT (hereinafter “Agreement”) is effective as of this __28th__ day of

_______________February_____, _2023____, and is hereby made and entered into by and between State Construction & Remediation, LLC (hereinafter “Contractor”) and _________________Ashley Walach____________________ (hereinafter “Owner”).

ARTICLE 1: DEFINITIONS

Contractor: State 48 Construction & Remediation, LLC 8444 E Lincoln Dr Scottsdale, AZ, 85250 (480) 710-8186 [email redacted] ROC#: 324311

Owner: Ashley Walach

Project: 23908 North 74TH Place Scottsdale AZ, 85255

Owner warrants that they own this property and are authorized to enter this Contract.

Owner and Contractor agree as follows:

ARTICLE 2: THE CONTRACT DOCUMENTS

2.1 The Contract Documents consist of this Agreement, the Scope of Work attached as Exhibit A, any budget (the “Budget”) prepared by Contractor, Construction, Drawings by _________Jimmy Rana/State 48 Construction and Remediation_________ dated _____2/28/2023________, Specifications, Addenda issued prior to execution of this Agreement, and other documents listed in this Agreement; these form the Contract, and are as fully a part of the Contract as if attached to this Agreement or repeated herein. The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations or agreements, either written or oral.

ARTICLE 3: THE WORK OF THIS CONTRACT

3.1 Contractor will provide all labor, materials, equipment and services for the work as described in the Scope of Work attached as Exhibit A (the “Work”), except to the extent specifically indicated in the Contract Documents to be the responsibility of others. All prices listed in the Scope of Work or the Budget are merely estimates. Owner understands that the actual

construction cost may be higher or lower than as set forth on the Budget, and Owner acknowledges that Owner is responsible for the actual cost of the construction, plus the Builder Fee of 20% of the actual cost of the construction not to exceed $___229,605.69__________, as set forth in Exhibit A and/or the Budget. Changes to Scope of Work that occur after the approved set of plans or if specialty items are specified by the interior designer that creates additional modifications that require removing or replacing work already completed will also be subject to the Builder’s Fee of 20% of actual cost of the change to the Scope of Work.

3.2 Contractor shall perform the Work in accordance with the Contract Documents. Owner may request modifications in writing to the Contract Documents in accordance with Article 7 of this Agreement. If Contractor determines the requested modifications are improper for whatever reason, Contractor shall give timely written notice to Owner and shall not proceed with said modifications without further instructions from Owner. If Contractor is then instructed in writing to proceed with the requested modifications without acceptance of recommendations proposed by Contractor, Owner shall be solely responsible for and hold Contractor harmless from any resulting loss or damage.

3.3 Contractor shall supervise and direct the Work, using Contractor’s best skill and attention. Contractor shall be solely responsible for and have control over construction means, methods, techniques, sequences and procedures and for coordinating all portions of the Work under the Contract, unless the Contract Documents give other specific instructions concerning these matters. If Contractor determines that such means, methods, techniques, sequences or procedures may not be safe, Contractor shall give timely written notice to Owner and shall not proceed with that portion of the Work without further written instructions from Owner. If Contractor is then instructed in writing to proceed with the required means, methods, techniques, sequences or procedures without acceptance of changes proposed by Contractor, Owner shall be solely responsible for and hold Contractor harmless from any resulting loss or damage.

3.4 If conditions at the job site are (1) conditions which are materially different from the conditions identified in the Contract Documents, or (2) unusual or unknown conditions that are materially different than conditions typically encountered in the work provided for in the Contract Documents, Contractor shall immediately cease working and notify Owner in writing of said condition. Contractor shall not be required to perform any further work unless and until the parties reach a mutual written agreement with respect to the unknown condition and any changes in the Contract Sum resulting therefrom.

ARTICLE 4: TIME; COMMENCEMENT DATE AND SUBSTANTIAL COMPLETION

4.1 GENERAL

4.1.1 Unless otherwise provided herein, Contract Time is the period of time, including authorized adjustments, allotted in the Contract Documents for Substantial Completion of the Work.

4.1.2 The Contract Time shall be measured from the Commencement Date.

4.1.3 Time is of the essence of this Agreement.

4.2 COMMENCEMENT DATE: 03/13/2023

4.2.1 Commencement of construction by Contractor shall occur within one week after the issuance of the appropriate building permit by the applicable city or political subdivision of the state in which the Project takes place. The construction of the Project shall be completed in substantial compliance with plans and specifications on file with Contractor and any applicable city/county/town and/or HOA requirements.

4.3 SUBSTANTIAL COMPLETION

4.3.1 Contractor shall achieve Substantial Completion within ____Four___ months from the day we start demolition. Contractor shall provide a schedule prior to the commencement of work to demonstrate how Contractor intends to obtain substantial completion in a timely manner. From time to time, Contractor shall update the schedule as necessary and provide same to Owner or Owner’s designee/representative.

4.3.2 The Substantial Completion Date shall be that date when the Work is sufficiently complete in accordance with the Contract Documents so Owner can or does occupy or utilize the Project for its intended use.

4.3.3 Owner acknowledges and agrees that prior to Substantial Completion, Owner shall be responsible for all injury and damage to persons or property suffered by Owner or Owner's permittees ("Owner's Permittees"), including but not limited to the owner of the subject property, if such persons visit the Project, and Owner shall indemnify, defend and hold harmless Contractor, affiliates, subcontractors, employees and agents for, from and against any and all claims, liability, damage, loss, injury, causes of action, costs (including attorneys' fees and court costs and litigation related expenses), and expenses in connection with Owner's or Owner's Permittees' entry onto or near the Project prior to Substantial Completion. Owner shall not interfere with the work of construction personnel.

4.4 DELAYS AND EXTENSIONS OF TIME

4.4.1 If Contractor is delayed at any time in the commencement or progress of the Work by any act or neglect of Owner or Lender, or of an employee of either, or of a separate contractor employed by Owner, or by changes ordered in the Work, or by labor disputes, fire, unusual delay in deliveries, supply-chain disruptions, unavoidable casualties or other causes beyond Contractor’s control, then the Contract Time shall be extended by Change Order for such reasonable time as Contractor may determine.

4.4.1.1 If any delays, work stoppages or modifications to the Project are caused by the actions or efforts of a homeowner association, committee of homeowners, special interest group or the like, Owner shall indemnify and hold Contractor harmless for any and all damages or losses suffered by Contractor as a result thereof including damages for delay in achieving completion of the Project providing Contractor complies with all HOA rules and regulations.

4.4.2 If any of the delays so identified in Article 4.4.1 or 4.4.1.1. cause a delay in the commencement or progress of the Work in excess of thirty (30) days, Contractor will have the right to terminate this Contract and receive any and all funds due and owing up to the date of termination.

ARTICLE 5: PUNCH LIST

5.1 It is expressly agreed that the Project, though completed, may be subject to certain "punch list" items for additional work which Owner makes known to Contractor as set forth below. Notwithstanding that additional work may be required to resolve the "punch list" items, if a Certificate of Occupancy has been issued, then the existence of such "punch list" items will not render the Project incomplete or permit Owner to refuse to pay any amounts due under the Contract. Owner expressly understands that such non-material corrective work or changes shall not render the Project "non-livable".

5.2 Within a reasonable period of time following the completion of the Project, Contractor shall so

advise Owner and the parties will promptly meet and prepare a "punch list" in a walk-through inspection which will be scheduled by Contractor and Owner within ten (10) business days after Contractor indicates to Owner that the Project is complete. Contractor shall use commercially reasonable efforts to correct the "punch list" items within thirty (30) days after the walkthrough unless Contractor and Owner agree to a different period in writing.

5.3 After Completion, Contractor shall have no further or continuing responsibility for periodic inspection, replacement, maintenance or repair of improvements, except for remaining "punch list" items or as may be covered by Contractor's limited warranty as described in this Agreement. There will be no funds held back for "punch list" items other than Retention as described in Article 9.1.2 below.

ARTICLE 6: CONTRACT SUM

6.1 Owner agrees to pay Contractor the actual cost of construction of those items listed in the Scope of Work and/or the Budget, even if the actual cost of construction is greater than the amount listed therein (for any reason, including escalating material costs, changes in quality or quantity by Owner, acts of God, etc.), plus any applicable taxes and pro-rated share of Contractor’s Liability Insurance for this Project. Contractor shall use its best efforts to obtain favorable pricing for the materials included in the Scope of Work and the Budget and to provide appropriate consultation with Owner to cost-effectively maximize quality.

ARTICLE 7: CHANGES IN THE WORK

7.1 GENERAL

7.1.1 Changes in the Work may be accomplished after execution of the Contract, and without invalidating the Contract, by Change Order, subject to the limitations stated in this Article 6 and elsewhere in the Contract Documents.

7.1.2 A Change Order shall be based upon written agreement between Owner and Contractor.

7.1.3 Contractor is not obligated, at any time, to enter into or honor a Change Order unless so executed by its designated representative. Similarly, Owner are not obligated, at any time, to enter into or honor a Change Order unless so executed by Owner’s designated representative.

7.1.4 If Contractor agrees to execute a Change Order, Owner shall make payment of fifty percent (50%) of the related adjustment to the Contract Sum as per Article 8.2 to Contractor before Contractor shall commence performance of said Change Order.

7.1.5 Owner will be liable for any restocking charges levied by vendors for return of previously ordered product that cannot be used as a result of an owner-directed change in the Work, or, if the product which has already been ordered prior to the requested change cannot be returned or reused by the use of reasonable commercial efforts by Contractor, the full cost of the product.

7.1.6 If Owner demands changes in the work that in Contractor’s reasonable estimation could materially alter the structural soundness of the Project, Contractor shall provide notice to Owner of such fact. If Owner directs completion of the change after such notice, Contractor shall not warrant the Owner-directed change, and Owner shall indemnify and hold harmless the Contractor from any demand, claim, loss or damage arising from or connected to such change.

8.2 CHANGE ORDERS

8.2.1 A Change Order is a written instrument prepared by Contractor and signed by Owner and Contractor stating their agreement upon all of the following:

.1 Change in the Work;

.2 The amount of the adjustment in the Contract Sum; and

.3 The extent of the adjustment in the Contract Time.

8.3 COSTS AND ALLOWANCES

8.3.1 Certain items in the Scope of Work or the Budget are designated as an allowance item (an “Allowance”). An Allowance is defined as an agreed upon budget line item, e.g., cabinetry, plumbing fixtures, flooring, etc. Increases to the amount of the allowance shall be agreed to in writing and signed by both Contractor and Owner. In the event the actual cost is less than the budget amount, Owner shall be entitled to a credit in the amount of the savings, together with a corresponding decrease in sales tax. If Owner’s selection is more expensive than the Allowance, Contractor will issue a written change order, to be agreed to and signed by Owner, increasing the Contract Sum by the overage.

ARTICLE 9: PAYMENTS

9.1 PROGRESS PAYMENTS

9.1.1 Based upon monthly Applications for Payment submitted to Owner by Contractor for work performed by Contractor, materials purchased by Contractor, work performed by Subcontractors, deposits for materials or subcontractors, the contractor’s monthly fee, changes and allowance adjustments, and appropriate sales tax, through the end of each month. Such pay applications shall be submitted to the Owner on the first day of the succeeding month for work performed through the final day of the prior month. Such pay applications shall contain the actual costs incurred by Contractor in the prior month, as well as a pro-rated portion of the Builder’s Fee. All payment applications shall be subject to the terms and conditions of Owner’s construction lender. Lien releases shall be provided for all work for which a payment application has been submitted prior to any payment to Contractor.

9.1.2 Owner may withhold a ten percent (10%) retention from each pay application to be paid upon Final Completion as described in Article 9.2 (“Retention”).

9.1.3 Owner shall have fourteen days in which to provide written objection to any such draw request for any of the reasons stated in Arizona’s prompt pay statutes, A.R.S. § 32-1181, et seq. All pay applications submitted by Contractor to Owner are certified due and owing fourteen (14) days after Contractor submits them to Owner, unless Owner submits written objection before that time as to specific items in dispute. Thus, if Owner fails to respond to a pay application within fourteen days for any reason, the pay application shall be deemed certified. Payment shall be made to Contractor via wire transfer from the Construction Lender, if applicable (otherwise, from Owner), within seven (7) days after the date that pay applications are certified. If Owner does not cause any such disbursement or draw to be timely made, Contractor is authorized to request Lender to release the funds without Owner’s signature within seven (7) business days after the date of Contractor’s original request. Owner shall, as requested by Contractor and from time to time, deliver to Contractor written authorizations to the foregoing effect. Owner agrees that receipt of draw requests from Lender is not a condition precedent to Owner’s obligation to pay Contractor, and Owner

agrees that whether or not Lender funds all or any of the Contract Sum hereunder, Owner is liable to, and shall pay, Contractor for the entire Contract Sum hereunder. Owner further agrees that if it fails to make timely payment, including payment for approved change orders, interest shall accrue on any unpaid sums at the rate of 1.5% per month until paid.

9.2 FINAL PAYMENT

9.2.1 Final payment, constituting the entire unpaid balance of the Contract Sum, including all sums held as Retention, shall be made by Owner to Contractor upon the occurrence of the completion of all of the following events:

.1 Contractor has fully performed the Contract;

.2 A Final Application for Payment has been issued by Contractor;

.3 Contractor shall provide unconditional lien release including lien releases for any subcontractors or suppliers that have filed preliminary notices; and/or

.4 The issuance of a Certificate of Occupancy.

9.2.2 Owner’s final payment to Contractor shall be made no later than five (5) days after the occurrence of the events identified in Article 9.2.1 above.

ARTICLE 10: DEFAULT; REMEDIES

10.1 DEFAULT

10.1.1 Should Owner fail to make timely payments of amounts due to Contractor pursuant to this Agreement, Contractor shall have the right to stop work following forty-eight (48) hours written notice to Owner. If Owner does not make said payments within seventy-two (72) hours of receipt of notice, Contractor shall have the right to terminate this Contract. If Owner does make said payments, Contractor shall have five (5) days to mobilize after payment is received. If Contractor elects to suspend performance, Owner further agrees that Owner shall pay to Contractor all costs of remobilization, including subcontractor costs, and Contractor shall be entitled to a time extension equal to the number of days of contract suspension, plus three days for remobilization.

10.1.2 The Contract Time shall be extended that period of time work stopped pursuant to Article 4.4.1 above.

ARTICLE 11: WARRANTY

11.1 Contractor guarantees all work performed for the Project against defective workmanship and materials for a period of two (2) years from the Completion Date as evidenced by a Certificate of Occupancy, if applicable, or creation of the punchlist if no Certificate of Occupancy will be issued, except for "structural defects" (as currently interpreted by the Arizona Registrar of Contractors) in the Project which are warranted by Contractor for a period of two (2) years from the Completion Date. Contractor, during normal business hours and at its own expense, will make any and all necessary repairs and replacement required as a result of defective workmanship or materials. Contractor's obligations under this warranty and under this Agreement are limited to repair or replacement, as Contractor deems necessary. No steps taken by Contractor to correct defects shall extend the warranty period

beyond that set forth herein except as extended by Arizona law and/or Registrar of Contractor rules and regulations. This warranty is applicable only to matters reported in writing to Contractor before the expiration of the applicable warranty period.

11.2 CONTRACTOR’S WARRANTIES HEREUNDER SHALL NOT APPLY FOR ANY DEFECTS CAUSED BY, OR ARISING FROM, CLIMATIC CONDITIONS WHICH MAY AFFECT NORMAL CHARACTERISTICS OF CERTAIN BUILDING MATERIALS, EXPANSION, CONTRACTION, MOISTURE, HUMIDITY OR ANY CHANGE OR ALTERATION RESULTING FROM NEGLIGENCE, IMPROPER MAINTENANCE OR ABNORMAL USE OF THE PROJECT. CONTRACTOR MAKES NO WARRANTY OR REPRESENTATION HEREUNDER AS TO PRESENCE OR ABSENCE OF RADON OR OTHER NATURALLY OCCURRING HAZARDOUS ENVIRONMENTAL CONDITIONS, OR TO THE EFFECT OF ANY SUCH CONDITION ON THE PROPERTY OR OWNER. ALL OTHER EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, HABITABILITY AND WORKMANSHIP WHICH EXCEED THE FOREGOING OBLIGATIONS ARE HEREBY DISCLAIMED AND THE SAME ARE EXCLUDED FROM THIS AGREEMENT. ADDITIONALLY, ANY IMPLIED WARRANTY WHICH MAY EXIST DESPITE THE ABOVE DISCLAIMER IS HEREBY LIMITED TO THE APPLICABLE ONE (1) OR TWO (2) YEAR DURATION OF THE EXPRESS WARRANTY OTHER THAN AS PROHIBITED BY ARIZONA LAW WHICH CANNOT BE WAIVED.

11.3 This Contractor’s Warranty is intended to protect Owner from faulty construction and defective materials used in the construction of the Project and does not apply to defects caused by acts or events beyond the control of Contractor. Notwithstanding the foregoing, Contractor’s warranty shall in no event extend to any products included in the Project that are considered “consumer products” as defined by the Federal Trade Commission for the purposes of the Magnuson Moss Act (15 U.S.C. §§ 2301, et seq.) such as air conditioners, furnaces, water heaters, refrigerators, wine coolers and chillers, ranges and stove, dishwashers, freezers, plumbing fixtures and other appliances. The manufacturers of some products used in the Project may provide a manufacturer’s warranty. Contractor has no obligation or responsibility for the manufacturer’s performance, and Contractor does not warranty any of these items. If a manufacturer’s warranty has been issued to Contractor, Contractor hereby assigns to Owner, to be effective upon completion of the Project, and only to the extent assignable, without recourse to Contractor, all rights under said manufacturer’s warranties, as assignable, on any consumer products included in the Project.

11.4 Contractor’s warranty does not apply to (and Contractor shall have no liability for) defects or damage caused, by way of example and not as a limitation, by: (i) any defective design, work or materials supplied, performed or caused by, or installed at or under the direction of any person other than Contractor or Contractor’s subcontractors and suppliers; (ii) normal wear and tear or deterioration; (iii) any damage caused or made worse by the negligence, improper maintenance, improper operation or alteration of the Property by anyone other than Contractor or Contractor’s sub-contractor; iv) any loss or damage resulting from acts of God, natural disasters or other causes beyond the control of Contractor, including, but not limited to, fire; explosion; smoke; water; glass breakage; windstorm; hail; lightning; changes which are not reasonably foreseeable in the level of the underground water table; subsidence, expansion and/or resettling of soils; falling trees; aircraft; vehicles; and flood and earthquake; (v) insubstantial variances or defects; (vi) environmental conditions such as overhead, underground or above-ground power lines or facilities, radon or other naturally occurring hazardous environmental conditions; (vii) any swimming pool or spa (Owner hereby agreeing to look solely to the swimming pool/spa contractor); (viii) any structural damages caused by termites or wood destroying organisms; or (ix) damage or destruction to any plants included in any landscaping provided by Contractor, or to any irrigation systems or other item provided

by Contractor, Owner acknowledging and agreeing that Owner will care for such landscaping and utilize such systems in accordance with good practice and any instructions provided by Contractor, the parties providing the landscaping and/or the landscaping/irrigation improvements themselves.

11.5 OWNER UNDERSTANDS AND AGREES THAT CONTRACTOR'S LIABILITY, WHETHER IN CONTRACT OR OTHERWISE, IS LIMITED TO REPAIR OR REPLACEMENT AS SET FORTH ABOVE. NO ACTION OR ARBITRATION, REGARDLESS OF FORM, ARISING OUT OF THE TRANSACTIONS UNDER THIS CONSTRUCTION AGREEMENT OR THE CONTRACT MAY BE BROUGHT BY OWNER MORE THAN ONE (1) YEAR AFTER THE CAUSE OF ACTION HAS ACCRUED UNDER THE CONTRACTOR WARRANTY PROVISION HEREIN ABOVE PROVIDED.

11.6 No warranty shall be effective or honored until such time as Contractor has been paid in full, the entire Contract Sum, under this Contract.

ARTICLE 12: TERMINATION OF THE CONTRACT

12.1 TERMINATION BY THE CONTRACTOR

12.1.1 Contractor may terminate the Contract if the Work is stopped for a period of thirty (30) consecutive days through no act or fault of Contractor or a subcontractor, sub- subcontractor or their agents or employees or any other persons or entities performing portions of the Work under direct or indirect contract with Contractor, for any of the following reasons:

.1 The issuance of an order of a court or other public authority having jurisdiction which requires all Work to be stopped; or

.2 An act of government, such as a declaration of national emergency which requires all Work to be stopped;

.3 Owner has not made payment on an Application for Payment within the time stated in the Contract Documents.

12.1.2 Contractor may terminate the Contract, if, through no act or fault of Contractor or a subcontractor, sub-subcontractor or their agents or employees or any other persons or entities performing portions of the Work under direct or indirect contract with Contractor, repeated suspensions, delays or interruptions of the entire Work by Owner constitute in the aggregate more than 100 percent of the total number of days scheduled for completion, or 120 days in any 365-day period, whichever is less.

12.1.3 If one of the reasons described in Article 12.1.1 or 12.1.2 exists, Contractor may, upon seven (7) days written notice to Owner and Lender to cure the deficiencies, terminate the Contract and recover from Owner payment for Work executed and for proven loss with respect to materials, equipment, tools, and construction equipment and machinery, including reasonable overhead, profit and damages.

12.1.4. If the Work is stopped for a period of thirty (30) consecutive days through no act or fault of Contractor or a subcontractor or their agents or employees or any other persons performing portions of the Work under contract with Contractor because Owner have persistently failed to fulfill Owner’ obligations under the Contract Documents with respect to the matters

important to the progress of the Work, Contractor may, upon seven (7) additional days written notice to Owner and the Lender to cure the deficiencies, terminate the Contract and recover from Owner any and all sums due and owing to it.

12.2 TERMINATION BY THE OWNER FOR CAUSE

12.2.1 Owner may terminate the Contract if Contractor:

.1 Fails to supply enough properly skilled workers or proper materials;

.2 Fails to make payment to Subcontractors for materials or labor in accordance with the respective agreements between Contractor and the Subcontractors;

.3 Persistently disregards laws, ordinances, or rules, regulations or orders of a public authority having jurisdiction; or

.4 Otherwise is guilty of substantial breach of a provision of the Contract Documents.

12.2.2 When any of the above reasons exist, Owner may, without prejudice to any other rights or remedies of Owner, and after giving Contractor twenty (20) days written or email notice to cure any deficiencies identified in 12.2.1, may thereafter terminate employment of Contractor and may finish the Work by whatever reasonable method Owner may deem expedient. If Owner submits notice to cure, as described above, Contractor may cure any deficiencies within the applicable 20-day period. In the event that Contractor fails to cure the default within the applicable cure period or subsequently fails to comply with conditions described in 12.2.1 a second time, Owner may immediately terminate the contract.

12.2.3 When Owner terminates the Contract for one of the reasons stated in Subparagraph 12.2.1, Contractor shall not be entitled to receive further payment until the Work is finished.

ARTICLE 13: DISPUTE RESOLUTION

13.1 All claims relating to the Contract or the Work will be resolved by arbitration before a single arbitrator in Maricopa County, Arizona, in accordance with the prevailing Construction Industry Arbitration Rules of the AAA. All limitation periods are tolled during mediation.

13.2 In any dispute, legal suit, action, or proceeding arising out of or related to this Contract (in any forum, including administrative hearings), the prevailing party is entitled to an award of all costs and expenses, including without limitation, all reasonable attorneys’ fees incurred (including such costs, expenses and attorneys’ fees incurred on all appeals). If the forum where the dispute is resolved lacks jurisdiction to award attorneys’ fees and/or costs, the prevailing party may file a suit to collect those expenses.

13.3 Owner and Contractor agree that all remedies are cumulative, and waive any claims for consequential or punitive damages. Owner and Contractor further waive subrogation and any right to a jury trial.

13.4 Owner agrees that the liability of Contractor, its agents, and/or employees, in connection with the Work, resulting from any breach of this Contract, negligent acts, willful misconduct by Contractor, its agents, and/or employees (including attorneys’ fees) is limited to the total payments actually paid by Owner to Contractor under this Contract.

ARTICLE 14: INSURANCE

14.1 CONTRACTOR’S LIABILITY INSURANCE

14.1.2 Contractor shall purchase from and maintain in a company or companies lawfully authorized to do business in the State of Arizona such insurance as will protect Contractor from claims which may arise out of or result from Contractor’s operations under the Contract and for which Contractor may be legally liable, whether such operations be by Contractor or by a Subcontractor or by anyone directly or indirectly employed by any of them. This shall include general liability insurance with homeowner named as additional insured and worker’s compensation for all employees and subcontractors.

ARTICLE 15: MISCELLANEOUS PROVISIONS

15.1 IF THE OWNER PURCHASES ITEMS TO BE INSTALLED IN THE PROJECT DURING CONSTRUCTION (e.g., flooring, appliances, plumbing fixtures, etc.), OWNER IS RESPONSIBLE TO FIND AND PAY FOR SUITABLE STORAGE OF THE ITEMS UNTIL SUCH TIME AS THEY ARE REQUIRED BY CONTRACTOR. IF CONTRACTOR AGREES TO STORE SUCH ITEMS ON OWNER’S BEHALF, OWNER AGREES TO PAY CONTRACTOR A REASONABLE STORAGE FEE. OWNER FURTHER AGREES TO PROCURE PROPERTY DAMAGE INSURANCE COVERING ANY SUCH ITEMS STORED BY CONTRACTOR, WITH SUCH INSURANCE NAMING CONTRACTOR AS AN ADDITIONAL INSURED. IF OWNER IS USING A CONSTRUCTION LENDER, OWNER FURTHER ACKNOWLEDGES THAT CONTRACTOR HAS NO RESPONSIBILITY TO REIMBURSE OWNER FOR SUCH ITEMS UNTIL SUCH ITEMS ARE SUCCESSFULLY INCORPORATED INTO THE CONSTRUCTION AND THE CONSTRUCTION LENDER HAS ISSUED PAYMENT TO CONTRACTOR FOR THE INSTALLED ITEM (NOTE: LENDERS WILL NOT ISSUE DRAW PAYMENTS FOR ITEMS PRIOR TO THEIR SUCCESSFUL INCORPORATION INTO THE PROJECT). OWNER WILL ALSO BE SOLELY RESPONSIBLE FOR RESTOCKING CHARGES.

15.2 OWNER ACKNOWLEDGES THAT, ABSENT PRIOR APPROVAL BY CONTRACTOR’S AUTHORIZED REPRESENTATIVE, OWNER WILL NOT INTERFERE WITH ANY SUBCONTRACTORS, SUPPLIERS, LABORERS AND THE LIKE WORKING ON THE PROJECT AND WILL DIRECT ALL COMMENTS, QUESTIONS, ETC. RELATING TO ANY OF THE FOREGOING THROUGH CONTRACTOR’S AUTHORIZED REPRESENTATIVE.

15.3 Owner shall furnish to Contractor within fifteen (15) days after the execution of this Agreement, all information necessary and relevant for Contractor to evaluate, give notice of or enforce mechanic’s lien rights. Such information shall include a correct statement of the record legal title to the property on which the Project is located, usually referred to as the site, Owner’ interest therein, and the name and location of the Lender.

15.3 Unless otherwise provided in the Contract Documents, Owner shall secure and pay for any and all building permits and other permits and governmental fees, licenses and inspections necessary for proper execution and completion of the Work. Owner acknowledge that the costs incurred in obtaining any of the foregoing may vary and any representations made by Contractor shall not be indicative of the actual cost. The costs of such permits shall not be

included as part of the Contract Sum.

15.4 Owner hereby appoints _____________________ as their representative who shall have express authority to bind Owner with respect to all matters requiring Owner’ approval or authorization. All communications and directives issued by Owner to Contractor shall be done so through this designated representative. Contractor is not responsible for any and all communications and directives issued by anyone other than this designated representative.

15.5 Contractor hereby appoints ____________________ as its representative who shall have express authority to bind Contractor with respect to all matters requiring Contractor’s approval or authorization. All communications or directives issued by Owner shall be done so through this designated representative. Owner are not responsible for any and all communications and directives issued by anyone other than this designated representative.

15.6 Neither Owner’ nor Contractor’s representative shall be changed without ten days written notice to the other party.

15.7 The validity, interpretation, and performance of this Agreement shall be controlled by and construed under the laws of the State of Arizona. The parties agree that any dispute arising out of this Agreement shall be litigated in the Maricopa County Superior Court.

15.8 This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their respective heirs, personal representatives, successors, and assigns.

15.9 Owner acknowledge having had an opportunity to review this Contract or have it reviewed by legal counsel.

15.10 No changes or modifications to the Agreement shall be enforceable unless they are in writing and signed by Contractor and Owner.

15.11 Under A.R.S. § 32-1155, a customer of a licensed contractor has the right to file a written complaint against the contractor with the Arizona Registrar of Contractors within two years of the commission of an act in violation of A.R.S. § 32-1154(A). Written material regarding the procedures of the Registrar of Contractors for resolution of disputes with licensed contractors or a copy of state law contained in A.R.S. § 32-1158.01 may be obtained by contacting the Arizona Registrar of Contractors, 3838 N. Central Ave, Suite 400, Phoenix, Arizona 85012-1946. The Registrar of Contractors may also be contacted by phone at (602) 542-1525, or on the web at www.azroc.gov.

WHEREFORE, This Agreement is entered into as of the day and year first written above and is executed in at least three original copies, of which one is to be delivered to Contractor, one to the Lender for use in the administration of the Contract, and the remainder to Owner.

STATE 48 CONSTRUCTION & REMEDIATION, LLC OWNER:

_______________________________________ ________________________________________ (Signature) (Signature)

State 48 Construction and Remediation 8485 E. McDonald Drive #306 Scottsdale, AZ 85250 [email redacted] www.state48remediation.com

Estimate ADDRESS SHIP TO ESTIMATE 1197 Ashley Walach Ashley Walach DATE 02/12/2023 23908 N. 74th Pl 23908 N. 74th Pl EXPIRATION 02/28/2023 Scottsdale, AZ 85255 Scottsdale, AZ 85255 DATE United States United States

DESCRIPTION QTY RATE AMOUNT

Demolition -Demo All Cabinets, Counters, Plumbing Fixtures, Flooring, 1 12,500.00 12,500.00T Baseboards, Doors and Jambs.

-Demo: -Master Bathroom: Shower, Tub and Wall Tile.

-Guest Bathroom: Floor to Ceiling Shower Tile and Wall Tile.

-Wall Tile at Powder Bathroom

-Remove Framed Walls and Drywall to create new layout at:

*Front Door/Transom Glass *Kitchen Arch and Drop Soffits *Dining Room Pillar Wall *Hallway Arch *Master Bathroom Vanity Wall *Master Closet *Master Bedroom Door and Transom/Glass *Office Door and Transom/Glass

Demo Fireplace -Demo Fireplace, Tile and Drywall at Living Room. 1 2,100.00 2,100.00T

-Demo Complete Fireplace at Master Bedroom. To Accommadate new Closet Layout.

*Estimated cost until we open up the Walls/Fireplace

Roof Repair Cap off Chimney at Master Bedroom by Qualified Roofer. 1 900.00 900.00T Estimated repair is $600.

-Repair Roof around new vent pipe needed for Master Vanity. $300

Fireplace Allowance -Supply and Install a 36" Electric Fireplace at Living Room. 1 3,000.00 3,000.00T

*Budget Price is $3,000

ROC # 324311, Class: KB-1

Decorative Wall Tile- -Supply Decorative Wall Tile at Fireplace in Living Room. 30 10.00 300.00T Material *Buget Price for Tile is $10.00

-There is approximately 30 SF estimated.

Decorative Wall Tile- -Install Decorative Wall Tile at Fireplace in Living Room. 30 22.50 675.00T Installation -Price Includes Thin-set and Grout.

-There is approximately 30 SF estimated.

Dumpster- Waste Supply Two 40 yard dumpsters for the disposal of all trash 2 800.00 1,600.00T Management associated with this project and haul-off to dump. *Weight limit of up to 4 tons each dumpster.

*Owner is responsible for any extra cost.

Saw-cut and pour back -Saw-cut and Demo existing slab at Master Shower for new 1 2,200.00 2,200.00 Shower Drain.

-Saw-cut Existing Slab at Master Bathroom to accommodate new Vanity Layout.

-Drill into existing concrete and install rebar with epoxy glue every 16" on center.

-Pour back existing trenches with 3000 psi or greater concrete after all new underground plumbing is installed.

Concrete Supply and Install new 4" Thick Concrete at Recessed Family 1 3,500.00 3,500.00T Room to be Flush with Dining room.

Family Room = 16x16=256 SF

Approximately 1,024 CF

-Drill into existing concrete and install rebar with epoxy glue every 16" on center to bond together and prevent future settling/cracks.

Rough Carpentry -Supply and install New 2 x 4 Framed Walls at: 1 5,750.00 5,750.00T

-Dining Room ~ For New Hidden Butler's Pantry

-Dining Room Window ~ Frame in existing Window to accommodate new layout per Butler's Pantry.

-Master Closet ~To extend wall approx. 4 FT to be flush with existing wall in Master Bedroom.

-Master Bathroom Vanity Wall to accommodate new layout.

-Master Bedroom and Office Transome/Doors

-Supply and Install new 2x6 Studs above Front Door to Accommodate new 8ft Opening

Interior Doors -Supply and Install New Pre-hung Interior Doors and Jambs 1 8,500.00 8,500.00T throughout home.

- (2) Sets of 8.0 Double Doors at Master Bedroom and Office. - (2) Sets of 6.8" Closet Sliding Doors

ROC # 324311, Class: KB-1

- (11) 6.8" Interior Doors

Price includes all labor and material.

Barn Door -Supply and Install 8.0" Barn Door at Master Bathroom. 1 950.00 950.00T

-Price Includes all Hardware.

*Budget Allowance for Door is $950

Barn Door -Supply and Install Mirrored Barn Door at Master Closet. 1 1,050.00 1,050.00T

-Price Includes all Hardware.

*Budget Allowance for Door is $1050

Trim Carpentry-Casing Supply and Install 460 LF of 3 1/4" Door Casing for all New 460 4.00 1,840.00T Interior Doors and the Existing Exterior Doors.

Trim Carpentry-Baseboard Supply and install new 5.5” baseboard throughout entire home. 700 4.50 3,150.00T

Approximate 700 LF

Corner Blocks for -Supply and Install Corner blocks to Each Rounded Corner. 45 9.50 427.50T Baseboard -This Will Provide a Smooth Transition Around the Corners of your Baseboards.

Will make a final count after new walls are framed up.

Door Hardware Supply and Install new Interior Door Handles throughout. Price 11 80.00 880.00T also includes new door stops.

-Color of hardware T.B.D.

Drywall Supply and Install New Half Inch Sheetrock to Accommodate 1 4,650.00 4,650.00T new Layouts.

*Kitchen *Dining Room (New Walls and Window Closure) *New Master Bathroom Vanity Wall *Master Bathroom (Exterior Door) *Master Closet *Ceilings for Arches.

-Patch/Repair all Holes Throughout.

-Price Includes To Hang, Tape and Texture new Walls and Match Existing Texture.

Drywall ****Optional Provide 90/10 Santa Fe texture Throughout Entire 1 0.00 0.00 Home. An Additional Charge of $13,000 will be added if you would like the walls to 90/10 Santa Fe.***

Caulking and Prep Supply and Install Caulking Throughout: 1 1,500.00 1,500.00

*Door Jambs *Baseboards *Door Casing

-Apply Painters Putty at Base and Trim To Cover All Finish Nails.

Interior Paint -Supply and Install (2) Coats of Primer at all new Drywall areas. 1 5,650.00 5,650.00T

-Supply and Install (2) Coats of Sherwin Williams Paint

ROC # 324311, Class: KB-1

throughout Interior of Home.

-Color T.B.D

Price Includes all Labor and Material.

Electrical -Supply and Install New Wiring and Switches for (26), 4" LED 1 7,500.00 7,500.00 Recessed Can Lights Throughout.

-Relocate outlets for all walls that are being removed or added.

-Install new outlets at future island.

-Install new junction box and wiring for living room ceiling; Install owner provided light at this location.

-Relocate j-box and light fixture at dining room after pantry wall is framed up.

-Install "wire-mold" outlets underneath upper kitchen cabinets for cleaner look.

-Supply and Install new Outlets at Pantry.

-Supply and Install New Under-Cabinet Lighting at Kitchen.

-Supply and Install a Motion Detection Light at Pantry.

-Supply and install 4 dimmer switches per owners desired location. *Kitchen *Master Bedroom *Master Bathroom *Living Room

Electrical - Puck Lighting -Supply and Install Puck Lighting in Upper Cabinets at Kitchen 1 750.00 750.00T that have Glass Doors.

-Price Includes Wiring, Lights and Labor.

Remove Exterior Window -Remove Large Dining Room Window, Master Bathroom 1 3,500.00 3,500.00T and Frame-In Window and Dispose.

-Supply and Install new 2x6 Studs to Frame in the opening.

-Supply and Install Plywood, Paper, Lath, Bead and Stucco.

*Stucco to Matching Existing.

-Supply and Install (2) Coats of Primer and (2) Coats of Paint to Repaired Area Only.

*Paint can be color matched. However, it might not match exactly as the existing due to the new paint.

Remove Exterior Door and -Remove Exterior Door at Master Bathroom and Frame-In. 1 2,500.00 2,500.00T Frame-In -Supply and Install new 2x6 Studs to Frame in the opening.

-Supply and Install Plywood, Paper, Lath, Bead and Stucco. *Stucco to Matching Existing.

-Supply and Install (2) Coats of Primer and (2) Coats of Paint to

ROC # 324311, Class: KB-1

Repaired Area Only.

*Paint can be color matched. However, it might not match exactly as the existing due to the new paint.

Exterior Windows Supply and install new windows at Master Bathroom 1 1,950.00 1,950.00T and Dining Room.

Insulation Supply and Install New Insulation at Dining Room Window and 1 700.00 700.00T Master Exterior Door.

-Install Blown-in Insulation at Attic where Soffits are Being Removed.

Plumbing Supply and install new Pex Waterlines at Master Bathroom for 1 6,500.00 6,500.00T Vanities and Shower.

-Supply and Install New Underground Waste Lines to Accommodate New Layout at Master Shower and Master Vanities.

-We will supply and install all new Supply Lines P-Trap’s and angle stops, along with new shower line.

-Install Owner Provided Bath Tub at Guest Bathroom.

Toilet Install Install (3) OWNER provided toilets. 3 85.00 255.00

Plumbing Fixtures Install Owner Provided Plumbing Fixtures At: 11 125.00 1,375.00 Installation -Master Bathroom (2) Faucets (2) Shower Heads (1) Shower Wand -Laundry Room (1) Faucet -Kitchen (1) Faucet -Guest Bathroom (2) Facets (1) Shower Fixture -Powder Bathroom (1) Faucet

Tile Flooring Installation Install Tile, Thin-set and Grout throughout the house. 2,700 4.95 13,365.00

Installation Price is $4.95/SF

Approximately 2700 SF

Cabinets -Supply and Install new Custom Cabinets to Accommodate New 1 46,450.00 46,450.00T Layout.

*Kitchen *Master Bathroom *Guest Bathroom *Laundry Room

*Original Price was $44,450, but that DID NOT include the Upper Glass Doors with Painted Interior.

-Additional cost for Glass Doors and Painted Interior is $3,000. However, we will absorb $1,000 of the cost if you want to move forward.

ROC # 324311, Class: KB-1

Countertops-Quartz -Supply and Install new Quartz Countertops 1 15,000.00 15,000.00T

*Kitchen *Master Bathroom *Guest Bathroom *Laundry Room

-Budget Price for all Quartz Countertops.

Additional Cabinets and Optional-Additional Cabinets and Quartz Countertop for 1 1,850.00 1,850.00T Quartz Countertops Bar/Nook.

Kitchen Backsplash -Install Owner Provided Tile for Kitchen Backsplash. 60 20.00 1,200.00

-Price includes Labor, Thin-Set and Grout.

-There is approximately (60) SF altogether.

Tile Showers -Supply and install all new Backer board, Waterproofing, Thin- 200 35.00 7,000.00T set, Tile, Grout and Mud deck, shower pan liner and curb wall

*Walk-in shower at Master bathroom

-There is approximately Walls-170 SF Shower Pan- 30 SF

Shower Bench Install all masonry and mortar for 16" tall bench at one end of 1 350.00 350.00 Master shower.

Price includes all labor and material.

Tile Showers -Supply and install all new Backer board, Waterproofing, Thin- 90 35.00 3,150.00T set, Tile, Grout.

*Guest Bathroom

-There is approximately 90 SF

*Owner Will Provide Tub

Shower Niches Frame out Shower Niches at Master and Guest Bathroom. 2 300.00 600.00T

Schluters Supply and Install 17 new Schluters (Trim for Edges) at: 17 35.00 595.00T

*Kitchen *Master Shower *Guest Shower *Fireplace

Custom Shower Doors Supply and Install New Custom Shower Doors at: 1 3,000.00 3,000.00T

-Guest Bathroom Budget price $1,150

-Master Bathroom Budget Price for Glass and Showe Door = $1,850.

*Glass will be clear, 3/8' thick and tempered.

Color of hardware TBD.

Trim Carpentry Supply and install new shelving throughout entire walk-in pantry. 1 1,250.00 1,250.00T

Material to be paint grade MDF wood.

ROC # 324311, Class: KB-1

Total labor and material = $1,250.

Cleaning Provide daily job site clean-up, one "rough clean" after drywall 1 2,500.00 2,500.00 and windows are completed, and one final "White Glove" clean upon completion of all remodel work.

10% Overhead 10% G.C.'S Overhead on the Pre-tax Subtotal Amount of 1 18,246.25 18,246.25 $182,462.50 = $18,246.25

10% Profit 10% G.C.'s Profit on the Pretax Subtotal Amount of $182,462.50 1 18,246.25 18,246.25 = $18,246.25

We Appreciate The Opportunity In Doing Business With You. SUBTOTAL 218,955.00 Payment Terms DISCOUNT -1,500.00 -Draw 1 = 30% -Draw 2 = 30% TAX 12,150.69 -Draw 3 = 30% -Draw 4 = 10%

TOTAL $229,605.69

Accepted By

Accepted Date

ROC # 324311, Class: KB-1

State 48 Construction and Remediation 8485 E. McDonald Drive #306 Scottsdale, AZ 85250 US [email redacted] www.state48remediation.com

INVOICE BILL TO SHIP TO INVOICE 1164 Ashley Walach Ashley Walach DATE 05/12/2023 23908 N. 74th Pl 23908 N. 74th Pl DUE DATE 05/12/2023 Scottsdale, AZ 85255 Scottsdale, AZ 85255

DESCRIPTION QTY RATE AMOUNT

Additional Demo -Remove Framing and Drywall at (2) Bedroom Door 1 450.00 450.00 Headers and (1) at Master Bathroom Commode to Allow for 8' Door Instead of 6’8”.

Upgraded Doors Upgrade (3) Doors From 6' 8" to 8'. 3 200.00 600.00T

(1) In Master Commode (2) At Bedrooms in Hallway

Framing and Supply and Install New Framing and Drywall at (3) Door 1 675.00 675.00T Drywall Openings That changed to 8’ Header Heights.

Framed Niches Supply and Install Recessed Framed Niches for (2) 2 75.00 150.00T Medicine Cabinets at Master Bathroom.

Additional Framing -Supply and Install Framing For Facing of New Jetted Tub 1 350.00 350.00T With A 3" Recessed Toe-Kick. Per Picture Provided.

Floor Prep and -Floor Grinding for Existing Cracks and Fill In With Epoxy. 1 1,250.00 1,250.00 Grinding -Grinded Floors Throughout Hallway, Laundry Room and Bathroom to Make Floors Level because the thin-set they used for the skate tile was floated out so thick.

Additional -Supply and Install (16) Additional Wiring and 4" LED 16 150.00 2,400.00T Electrical Recessed Can lights Throughout House.

*Original Contract Only Had (26) Can Lights Included. There are (42) LED Can Lights Total.

Additional Supply and Install Power to (2) Medicine Cabinets at 2 150.00 300.00T Electrical Master Bathroom.

Additional Supply and Install (1) Outlet at Master Bedroom for 1 100.00 100.00T Electrical Mounted TV.

Additional Provide a Dedicated Circuit and Power For New Jetted 1 165.00 165.00T Electrical Tub at Guest Bathroom

Low Voltage Relocate Cable Wire and box For Master Bedroom TV 1 85.00 85.00 from backside of bathroom wall to backside of closet wall.

ROC # 324311, Class: KB-1

10% Overhead 10% G.C.'S Overhead on the Pre-tax Subtotal Amount of 1 652.50 652.50 $6,525 = $652.50

10% Profit 10% G.C.'s Profit on the Pretax Subtotal Amount of $6,525 1 652.50 652.50 = $652.50

All work is completed and change order needs to be paid in full. SUBTOTAL 7,830.00

TAX 381.57

TOTAL 8,211.57

BALANCE DUE $8,211.57

ROC # 324311, Class: KB-1

State 48 Construction and Remediation 8485 E. McDonald Drive #306 Scottsdale, AZ 85250 US [email redacted] www.state48remediation.com

INVOICE BILL TO SHIP TO INVOICE 1174 Ashley Walach Ashley Walach DATE 07/26/2023 23908 N. 74th Pl 23908 N. 74th Pl DUE DATE 07/26/2023 Scottsdale, AZ 85255 Scottsdale, AZ 85255 Change Order #2

DESCRIPTION QTY RATE AMOUNT

Seal Grout Tile -Supply and Apply Grout Sealer to Backsplash at Kitchen. 1 125.00 125.00T

Seal Showers -Supply and Apply Grout Sealer to Master Shower Walls 1 325.00 325.00T and Pan. $200

-Supply and Apply Grout Sealer to Guest Bathroom Shower Walls. $125

Price Includes Labor and Material

Hood Vent Install -Raise up Hood Vent to Accommodate New Height of 1 350.00 350.00T Hood Vent. Price Includes Cutting a Hole into the Stucco Wall. $150

-Install Owner Provided Hood Vent After Cabinets are Installed. Price Includes Misc. Material for Venting. $200

Misc. Paint -Prime and Paint Existing Exhaust Fans. 5 20.00 100.00T

-Color to be White

Shiplap -Supply and Install New Shiplap and Trim above 1 1,183.00 1,183.00T Fireplace and at Front Entry Niche.

Shiplap Installation - -There is a Total of 100 LF with Waste at Niche and a Total of 92 LF at Fireplace. Total LF = 192 LF at $4.00 = $768.00

Shiplap Material - $415.00 -Supply 6 Trim Pieces at Sides and Top of Shiplap at Fireplace and Front Niche -Supply (18) 12 Ft Long Shiplap

Misc. Paint -Caulk and Prep Shiplap 1 250.00 250.00T

-Supply and Install Prime and Paint for Shiplap at Fireplace and Niche.

ROC # 324311, Class: KB-1

-Color to be Black

Additional Shower -Purchased an Additional (6) Cartons of Shower Tile (12 1 565.00 565.00T Tile- Material Pieces Total) For Master Bathroom and Guest Bathroom.

Additional Shower -Original Contract Included 170 SF of Master Bathroom 48 20.00 960.00 Tile - Installation Wall Tile. Actual was 218 SF.

-Install an Additional (48) SF of Shower Tile at Face of Pony Walls at Master Bathroom and From Shower Window to Ceiling.

Shower Bench Supply and Install Additional Shower Bench at Master 1 200.00 200.00T Shower.

Framed Niches -Supply and Install Shelf and Tile at Recessed Niche at 1 250.00 250.00T Guest Bathroom.

-Hexagon Tile at Back Wall. -Shower Tile on the Sides.

Mantle Installation -Install Owner Provided Fireplace Mantle at Living Room 1 150.00 150.00 above Fireplace.

-Price Includes 2x4 for Ledger for Mantle to Mount to.

Pop-Up Drains for -Supply (4) Black Pop-Ups Drains at Master Bathroom 4 100.00 400.00 Sinks and Guest Bathroom.

$400 total

Additional -Raise (4) Outlets at Front Family Room Where the Slab 1 325.00 325.00T Electrical Was Recessed by 4”, to Match Height of Dining Room.

-Raised Single Gang Switch on Family Room Wall Due to New Slab Height Being 4” Taller.

-Total Labor = $325

Additional -Supply and Install Additional Junction Box at Master 1 235.00 235.00T Electrical Bedroom For Future Chandelier.

-Price Includes Wire Box and Switch ($150).

-Supply and Install Owner Provided Chandelier at Master Bedroom Ceiling ($85).

Ceiling Fan Install Owner Provided Ceiling Fans. 3 85.00 255.00 Installation -Living Room -Bedroom #1 -Bedroom #2

Additional Drywall -Additional Drywall Repair at Family Room Where the 1 150.00 150.00 Repair Four Outlets and Switch Were Raised Up.

Additional Drywall -Additional Drywall Repair at Front Door 1 340.00 340.00 Repair

Stucco and Paint -Supply Stucco and Paint At Exterior Front Door. 1 1,110.00 1,110.00T

-Stucco Labor and Material = $750 -Exterior Primer and Paint = $360

*We are NOT charging to prime and paint the drywall

ROC # 324311, Class: KB-1

around inside of front door and new door casing around front door.

Additional Door Supply and Install new 3 1/4" Door Casing around front 1 0.00 0.00 Casing door. *NO CHARGE.

Remove old trim/casing around both attic access covers and dispose of. Supply and Install new 3 1/4" casing around both attic access covers. *NO CHARGE.

Trim Carpentry ADDITIONAL SHELVING at PANTRY- Supply and Install a 1 900.00 900.00T total of 5 shelves with brackets at pantry area with top shelf being 24" deep.

*We told you it would be $900 more then original quote and actual cost for labor and material was $1,300 more, but we will only charge the $900 since that was the verbal quote we gave you.

Total labor and material = $900.

*We also removed shelving in there to accommodate your full size fridge and did drywall repairs that we didn't charge for after the pantry was complete.

10% Overhead 10% G.C.'S Overhead on the Pre-tax Subtotal Amount of 1 817.30 817.30 $8,173 = $817.30.

10% Profit 10% G.C.'s Profit on the Pre-tax Subtotal Amount of 1 817.30 817.30 $8,173 = $817.30.

*All work per this Change Order has been completed. SUBTOTAL 9,807.60

TAX 476.41

TOTAL 10,284.01

BALANCE DUE $10,284.01

ROC # 324311, Class: KB-1

State 48 Construction and Remediation 8485 E. McDonald Drive #306 Scottsdale, AZ 85250 US [email redacted] www.state48remediation.com

INVOICE BILL TO SHIP TO INVOICE 1151 Ashley Walach Ashley Walach DATE 03/02/2023 23908 N. 74th Pl 23908 N. 74th Pl DUE DATE 03/02/2023 Scottsdale, AZ 85255 Scottsdale, AZ 85255 United States

DESCRIPTION QTY RATE AMOUNT

Demolition -Demo All Cabinets, Counters, Plumbing Fixtures, 1 12,500.0 12,500.00T Flooring, Baseboards, Doors and Jambs. 0

-Demo: -Master Bathroom: Shower, Tub and Wall Tile.

-Guest Bathroom: Floor to Ceiling Shower Tile and Wall Tile.

-Wall Tile at Powder Bathroom

-Remove Framed Walls and Drywall to create new layout at:

*Front Door/Transom Glass *Kitchen Arch and Drop Soffits *Dining Room Pillar Wall *Hallway Arch *Master Bathroom Vanity Wall *Master Closet *Master Bedroom Door and Transom/Glass *Office Door and Transom/Glass

Demo Fireplace -Demo Fireplace, Tile and Drywall at Living Room. 1 2,100.00 2,100.00T

-Demo Complete Fireplace at Master Bedroom. To Accommadate new Closet Layout.

*Estimated cost until we open up the Walls/Fireplace

Roof Repair Cap off Chimney at Master Bedroom by Qualified Roofer. 1 900.00 900.00T Estimated repair is $600.

-Repair Roof around new vent pipe needed for Master Vanity. $300

Fireplace -Supply and Install a 36" Electric Fireplace at Living 1 3,000.00 3,000.00T Allowance Room.

ROC # 324311, Class: KB-1

*Budget Price is $3,000

Decorative Wall -Supply Decorative Wall Tile at Fireplace in Living Room. 30 10.00 300.00T Tile-Material *Buget Price for Tile is $10.00

-There is approximately 30 SF estimated.

Decorative Wall -Install Decorative Wall Tile at Fireplace in Living Room. 30 22.50 675.00T Tile-Installation -Price Includes Thin-set and Grout.

-There is approximately 30 SF estimated.

Dumpster- Waste Supply Two 40 yard dumpsters for the disposal of all trash 2 800.00 1,600.00T Management associated with this project and haul-off to dump. *Weight limit of up to 4 tons each dumpster.

*Owner is responsible for any extra cost.

Saw-cut and pour -Saw-cut and Demo existing slab at Master Shower for 1 2,200.00 2,200.00 back new Shower Drain.

-Saw-cut Existing Slab at Master Bathroom to accommodate new Vanity Layout.

-Drill into existing concrete and install rebar with epoxy glue every 16" on center.

-Pour back existing trenches with 3000 psi or greater concrete after all new underground plumbing is installed.

Concrete Supply and Install new 4" Thick Concrete at Recessed 1 3,500.00 3,500.00T Family Room to be Flush with Dining room.

Family Room = 16x16=256 SF

Approximately 1,024 CF

-Drill into existing concrete and install rebar with epoxy glue every 16" on center to bond together and prevent future settling/cracks.

Rough Carpentry -Supply and install New 2 x 4 Framed Walls at: 1 5,750.00 5,750.00T

-Dining Room ~ For New Hidden Butler's Pantry

-Dining Room Window ~ Frame in existing Window to accommodate new layout per Butler's Pantry.

-Master Closet ~To extend wall approx. 4 FT to be flush with existing wall in Master Bedroom.

-Master Bathroom Vanity Wall to accommodate new layout.

-Master Bedroom and Office Transome/Doors

-Supply and Install new 2x6 Studs above Front Door to Accommodate new 8ft Opening

ROC # 324311, Class: KB-1

Interior Doors -Supply and Install New Pre-hung Interior Doors and 1 8,500.00 8,500.00T Jambs throughout home.

- (2) Sets of 8.0 Double Doors at Master Bedroom and Office. - (2) Sets of 6.8" Closet Sliding Doors - (11) 6.8" Interior Doors

Price includes all labor and material.

Barn Door -Supply and Install 8.0" Barn Door at Master Bathroom. 1 950.00 950.00T

-Price Includes all Hardware.

*Budget Allowance for Door is $950

Barn Door -Supply and Install Mirrored Barn Door at Master Closet. 1 1,050.00 1,050.00T

-Price Includes all Hardware.

*Budget Allowance for Door is $1050

Trim Carpentry- Supply and Install 460 LF of 3 1/4" Door Casing for all 460 4.00 1,840.00T Casing New Interior Doors and the Existing Exterior Doors.

Trim Carpentry- Supply and install new 5.5” baseboard throughout entire 700 4.50 3,150.00T Baseboard home.

Approximate 700 LF

Corner Blocks for -Supply and Install Corner blocks to Each Rounded 45 9.50 427.50T Baseboard Corner.

-This Will Provide a Smooth Transition Around the Corners of your Baseboards.

Will make a final count after new walls are framed up.

Door Hardware Supply and Install new Interior Door Handles throughout. 11 80.00 880.00T Price also includes new door stops.

-Color of hardware T.B.D.

Drywall Supply and Install New Half Inch Sheetrock to 1 4,650.00 4,650.00T Accommodate new Layouts.

*Kitchen *Dining Room (New Walls and Window Closure) *New Master Bathroom Vanity Wall *Master Bathroom (Exterior Door) *Master Closet *Ceilings for Arches.

-Patch/Repair all Holes Throughout.

-Price Includes To Hang, Tape and Texture new Walls and Match Existing Texture.

Caulking and Prep Supply and Install Caulking Throughout: 1 1,500.00 1,500.00

*Door Jambs *Baseboards *Door Casing

ROC # 324311, Class: KB-1

-Apply Painters Putty at Base and Trim To Cover All Finish Nails.

Interior Paint -Supply and Install (2) Coats of Primer at all new Drywall 1 5,650.00 5,650.00T areas.

-Supply and Install (2) Coats of Sherwin Williams Paint throughout Interior of Home.

-Color T.B.D

Price Includes all Labor and Material.

Electrical -Supply and Install New Wiring and Switches for (26), 4" 1 7,500.00 7,500.00 LED Recessed Can Lights Throughout.

-Relocate outlets for all walls that are being removed or added.

-Install new outlets at future island.

-Install new junction box and wiring for living room ceiling; Install owner provided light at this location.

-Relocate j-box and light fixture at dining room after pantry wall is framed up.

-Install "wire-mold" outlets underneath upper kitchen cabinets for cleaner look.

-Supply and Install new Outlets at Pantry.

-Supply and Install New Under-Cabinet Lighting at Kitchen.

-Supply and Install a Motion Detection Light at Pantry.

-Supply and install 4 dimmer switches per owners desired location. *Kitchen *Master Bedroom *Master Bathroom *Living Room

Electrical - Puck -Supply and Install Puck Lighting in Upper Cabinets at 1 750.00 750.00T Lighting Kitchen that have Glass Doors.

-Price Includes Wiring, Lights and Labor.

Remove Exterior -Remove Large Dining Room Window, Master Bathroom 1 3,500.00 3,500.00T Window and Window and Dispose. Frame-In -Supply and Install new 2x6 Studs to Frame in the opening.

-Supply and Install Plywood, Paper, Lath, Bead and Stucco.

*Stucco to Matching Existing.

-Supply and Install (2) Coats of Primer and (2) Coats of Paint to Repaired Area Only.

ROC # 324311, Class: KB-1

*Paint can be color matched. However, it might not match exactly as the existing due to the new paint.

Remove Exterior -Remove Exterior Door at Master Bathroom and Frame- 1 2,500.00 2,500.00T Door and Frame-In In.

-Supply and Install new 2x6 Studs to Frame in the opening.

-Supply and Install Plywood, Paper, Lath, Bead and Stucco. *Stucco to Matching Existing.

-Supply and Install (2) Coats of Primer and (2) Coats of Paint to Repaired Area Only.

*Paint can be color matched. However, it might not match exactly as the existing due to the new paint.

Exterior Windows Supply and install new windows at Master Bathroom 1 1,950.00 1,950.00T and Dining Room.

Insulation Supply and Install New Insulation at Dining Room 1 700.00 700.00T Window and Master Exterior Door.

-Install Blown-in Insulation at Attic where Soffits are Being Removed.

Plumbing Supply and install new Pex Waterlines at Master 1 6,500.00 6,500.00T Bathroom for Vanities and Shower.

-Supply and Install New Underground Waste Lines to Accommodate New Layout at Master Shower and Master Vanities.

-We will supply and install all new Supply Lines P-Trap’s and angle stops, along with new shower line.

-Install Owner Provided Bath Tub at Guest Bathroom.

Toilet Install Install (3) OWNER provided toilets. 3 85.00 255.00

Plumbing Fixtures Install Owner Provided Plumbing Fixtures At: 11 125.00 1,375.00 Installation -Master Bathroom (2) Faucets (2) Shower Heads (1) Shower Wand -Laundry Room (1) Faucet -Kitchen (1) Faucet -Guest Bathroom (2) Facets (1) Shower Fixture -Powder Bathroom (1) Faucet

Tile Flooring Install Tile, Thin-set and Grout throughout the house. 2,700 4.95 13,365.00 Installation Installation Price is $4.95/SF

Approximately 2700 SF

ROC # 324311, Class: KB-1

Cabinets -Supply and Install new Custom Cabinets to 1 46,450.0 46,450.00T Accommodate New Layout. 0

*Kitchen *Master Bathroom *Guest Bathroom *Laundry Room

*Original Price was $44,450, but that DID NOT include the Upper Glass Doors with Painted Interior.

-Additional cost for Glass Doors and Painted Interior is $3,000. However, we will absorb $1,000 of the cost if you want to move forward.

Countertops- -Supply and Install new Quartz Countertops 1 15,000.0 15,000.00T Quartz 0 *Kitchen *Master Bathroom *Guest Bathroom *Laundry Room

-Budget Price for all Quartz Countertops.

Additional Optional-Additional Cabinets and Quartz Countertop for 1 1,850.00 1,850.00T Cabinets and Bar/Nook. Quartz Countertops

Kitchen -Install Owner Provided Tile for Kitchen Backsplash. 60 20.00 1,200.00 Backsplash -Price includes Labor, Thin-Set and Grout.

-There is approximately (60) SF altogether.

Tile Showers -Supply and install all new Backer board, Waterproofing, 200 35.00 7,000.00T Thin-set, Tile, Grout and Mud deck, shower pan liner and curb wall

*Walk-in shower at Master bathroom

-There is approximately Walls-170 SF Shower Pan- 30 SF

Shower Bench Install all masonry and mortar for 16" tall bench at one 1 350.00 350.00 end of Master shower.

Price includes all labor and material.

Tile Showers -Supply and install all new Backer board, Waterproofing, 90 35.00 3,150.00T Thin-set, Tile, Grout.

*Guest Bathroom

-There is approximately 90 SF

*Owner Will Provide Tub

Shower Niches Frame out Shower Niches at Master and Guest Bathroom. 2 300.00 600.00T

Schluters Supply and Install 17 new Schluters (Trim for Edges) at: 17 35.00 595.00T

*Kitchen

ROC # 324311, Class: KB-1

*Master Shower *Guest Shower *Fireplace

Custom Shower Supply and Install New Custom Shower Doors at: 1 3,000.00 3,000.00T Doors -Guest Bathroom Budget price $1,150

-Master Bathroom Budget Price for Glass and Showe Door = $1,850.

*Glass will be clear, 3/8' thick and tempered.

Color of hardware TBD.

Trim Carpentry Supply and install new shelving throughout entire walk-in 1 1,250.00 1,250.00T pantry.

Material to be paint grade MDF wood.

Total labor and material = $1,250.

Cleaning Provide daily job site clean-up, one "rough clean" after 1 2,500.00 2,500.00 drywall and windows are completed, and one final "White Glove" clean upon completion of all remodel work.

10% Overhead 10% G.C.'S Overhead on the Pre-tax Subtotal Amount of 1 18,246.2 18,246.25 $182,462.50 = $18,246.25 5

10% Profit 10% G.C.'s Profit on the Pretax Subtotal Amount of 1 18,246.2 18,246.25 $182,462.50 = $18,246.25 5

We Appreciate The Opportunity In Doing Business With You. SUBTOTAL 218,955.00 Payment Terms DISCOUNT -1,500.00 -Draw 1 = 30% -Draw 2 = 30% TAX 12,150.69 -Draw 3 = 30% -Draw 4 = 10% TOTAL 229,605.69

PAYMENT 206,788.43

BALANCE DUE $22,817.26

ROC # 324311, Class: KB-1

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-722( .."(2( 2/20'1'233!4560"8*789.403.%9- :.-34;142%22<8=)4 /) &#+=-& "= &-( , 020 Received Legal 12/22/2023

LANG THAL KING & HANSON PC 6730 N. SCOTTSDALE RD., SUITE 101 SCOTTSDALE, ARIZONA 85253 TELEPHONE (480) 534-4900 Please e-serve filings on: [email redacted] Please note new firm name and email addresses MICHAEL W. THAL, #023843 [email redacted] (not for e-service) MEGAN N. SCHANDLE, #037402 [email redacted] (not for e-service)

Attorneys for State 48 Construction & Remediation, LLC ARIZONA REGISTRAR OF CONTRACTORS Ashley Walach, Case No.: 2023-09442 Complainant, WRITTEN ANSWER TO CITATION v. State 48 Construction & Remediation, LLC, Respondent. Respondent State 48 Construction & Remediation, LLC (“Respondent”) disputes the allegations enumerated in the December 15, 2023 Citation issued in this matter and denies that it has violated the charges listed therein by the Registrar. Respondent also disputes any express or implied allegation of wrongdoing, liability, or violation of the Arizona contracting laws. Respondent neither committed nor omitted any acts in a manner that would constitute a violation justifying discipline of the license. Accordingly, Respondent respectfully requests that this matter be referred to a hearing before the Office of Administrative Hearings. Respondent reserves its right to raise all applicable legal and factual defenses at the hearing. 1797515 Received Legal 12/22/2023

DATED this 22nd day of December, 2023. LANG THAL KING & HANSON PC By: /s/ Megan N. Schandle Michael W. Thal Megan N. Schandle Attorneys for State 48 Construction & Remediation, LLC ORIGINAL filed via email with the Registrar of Contractors this 22nd day of December, 2023, Registrar of Contractors 1700 W. Washington Street, Suite 15 Phoenix, AZ 85007 [email redacted] COPY emailed this same day to: Ashley Walach 23908 N 74th Pl Scottsdale, AZ 85310 [email redacted] Appearing Pro Per By: /s/ Jennifer Fortner

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!811%%$11&11'()9* 9$*2+,-)+ $!)+!.)!.80 73290337* 90037/  %80 73290337* 900370 010 Mediation Notice

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

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

v. JOINT REQUEST FOR MEDIATION _________________________ RESPONDENT.

REQUEST

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

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

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

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

_____________________________________ _______________________ Respondent (or representative) Date

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

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

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

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

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

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

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

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

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

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

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

4. Subject Matter of Expected Testimony

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

4. Subject Matter of Expected Testimony

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

4. Subject Matter of Expected Testimony

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

4. Subject Matter of Expected Testimony

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

Exhibit Exhibit Name

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

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

Print Name Signature Date

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