2023A-10211-CHC-ROC Notice of Hearing and Packet MAILED

2023A-10211-CHC-ROC · Registrar of Contractors · 2023-12-29

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Jeremy Underwood , Case No. 2023-10211 COMPLAINANT, Docket No. 2023A-10211-CHC-ROC v. NOTICE OF HEARING ON CONTESTED CASE Bjelde Construction LLC License No. ROC 260364,

RESPONDENT.

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

HEARING INFORMATION The hearing is set for:

February 8, 2024 9:00 AM

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 November 28, 2023.

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

Charge: 1 A.R.S. § 32-1154(A)(1)

Charge: 2 A.R.S. § 32-1154(A)(3) - R4-9-108(a)

Charge: 3 A.R.S. § 32-1154(A)(22)

THE PARTIES TO THE ADMINISTRATIVE HEARING Because Respondent is a licensee and is charged with an act(s) or omission(s) that is

cause for the suspension or revocation of a license, Respondent is a party to this case and will

be a party to the hearing.

Because Complainant alleged Respondent committed an act(s) or omission(s) that is cause for the suspension or revocation of a license, Complainant is a party to this case and will be a party to the hearing. Respondent and Complainant, as the parties to the hearing, will present evidence and argument to the administrative law judge. The Registrar’s assigned investigator will appear as a witness at the hearing.

RIGHT TO BE REPRESENTED The parties to the administrative hearing may choose to be represented by an attorney. A.R.S. § 41-1092.07(B). If one of the parties is a company, the company may be represented

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

1156(B).

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

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

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

to -1092.12, and A.A.C. R2-19-101 to -122. The parties should review the statutes, rules, and processes governing the administrative hearing. Copies of the statutes, rules, and articles

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

REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE

The Registrar’s investigators, employees, and attorneys will appear at the hearing via

video conference or telephone unless requested by a party to appear in-person. Requests for

the Registrar’s investigators, employees, or attorneys to appear in-person must be filed with the Registrar and the Office of Administrative Hearings no later than seven (7) calendar days prior to the hearing date.

HEARING PACKET In the interests of administrative efficiency, the Registrar compiles and discloses certain documents to the parties and the Office of Administrative Hearings. These documents are attached to this Notice of Hearing as the “Hearing Packet.” If any party wishes to submit additional evidence, they must do so during the hearing after completing a disclosure statement. See “Disclosure Statement” section below.

SUBPOENAS FOR TESTIMONY FROM A WITNESS OR DOCUMENTS The parties to the hearing must be prepared to present evidence in support of their case. If a party wants to obtain testimony from a witness or documents not in the party’s possession, the party must prepare and file a written subpoena for the Administrative Law Judge to review and sign, if approved. A.R.S. § 41-1092.07(C). Forms for requesting a subpoena can be found on the Office of Administrative Hearings’ website at www.azoah.com. The party seeking a subpoena must serve notice on all the parties to the hearing, and on the Registrar. A.R.S. § 41-1092.04.

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

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

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

party will use at the hearing. A party’s failure to timely disclose any witness or exhibit, without good cause, may result in the administrative law judge excluding those witnesses or exhibits from being used at the hearing. A.A.C. R4-9-118(C). A sample disclosure form is available on the Registrar’s website at https://roc.az.gov/content/prehearing-disclosure- statement.

CHANGING THE HEARING DATE

The date of the hearing may only be advanced or delayed on the agreement of the parties or on a showing of good cause. A.R.S. § 41-1092.05(C). The date of the hearing may be changed by filing a written agreement of the parties to change the date of the hearing. The written agreement must be filed with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmitted to the Registrar and all other parties. The assigned Administrative Law Judge may be found on the Office of Administrative Hearings’ web portal at www.azoah.com If a party would like to move the date of the hearing without agreement of all parties, the party must file a written motion with the Office of Administrative Hearings, directed to the

assigned Administrative Law Judge, and transmit a copy to the Registrar and all other parties.

The motion must state in detail good cause for why the date of the hearing should be advanced

or delayed, and the position of all other parties regarding the advancement or delay.

A party may also file a motion asserting a right to an expedited hearing upon a showing of extraordinary circumstances or the possibility of irreparable harm. A.R.S. § 41-1092.05(E).

RESOLUTION SHORT OF ADJUDICATION

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

Complainant without objection from Respondent after the Notice of Hearing is issued, the parties must notify the Office of Administrative Hearings of the resolution or settlement. Any such cases will be listed on the Registrar’s website and its records under the category: “Closed Complaints – Resolved/Settled/Withdrawn.” Dated December 28, 2023.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail December 28, 2023 to:

Respondent(s) Bjelde Construction LLC PO Box 50962 Mesa, AZ 85208 Complainant(s) Jeremy Underwood 3542 E. Altadena Ave. Phoenix, AZ 85028

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. 2023-10211 /

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

Complainant: Jeremy Underwood 3542 E. Altadena Ave. Phoenix, AZ 85028

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Respondent: Bjelde Construction LLC 415 S 48th Street Suite# 111 Tempe, AZ 85281

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 September 29, 2023

Jobsite Inspection Notice Re: Complaint Number 2023-10211

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 2:30 PM. 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]

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

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

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

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

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

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

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

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

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

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 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.

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: Jeremy Underwood 3542 E. Altadena Ave. Phoenix, AZ 85028

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 Respondent: Bjelde Construction LLC 415 S 48th Street Suite# 111 Tempe, AZ 85281

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 October 3, 2023

Re: Complaint Number 2023-10211

Dear Complainant and Respondent:

Due to a conflict in scheduling of one of the parties, the jobsite inspection scheduled for October 13, 2023 at 2:30 PM has been rescheduled for November 3, 2023 at 10:00 AM.

If either party is unable to attend, the Registrar requires 36-hours advance notice for cancellation or continuance.

Complainant: Safe access is required to any area to be inspected.

Should you have any questions regarding the above, please contact me.

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 C010 04/21 Jobsite Inspection Notes

Case No.: 2023-10211 Investigator: Steve Klein Inspection Date: October 13, 2023 Inspection Time: 2:30 PM

Complainant: Jeremy Underwood Respondent: Bjelde Construction LLC Nils Bjelde

Jobsite General Notes:

Complaint #1 Contractor demolished our kitchen in April 2023 with no time frame for work commencement or completion, despite contract saying that upon start date, work was to be completed within 6-8 weeks.; Demolition of kitchen left my wife, child, and myself with no oven to prepare meals since the demotion included removing the oven, cabinets, and dishwasher. ; Demolition of kitchen left the ceiling in the kitchen open, exposed to the attic, throughout the hottest part of the summer, causing electricity bills to soar and uncomfortable temperatures inside the house.; The open ceiling in the kitchen allowed for old insulation to fall down and created a significant amount of dust and airborne particulates that have made us cough and sneeze.; The demolition created a gap in the kitchen window seal allowing pests and bugs into the house. Despite being promised that the kitchen cabinets had been ordered, the contractor never produced proof of the cabinet order, nor a timeline on installing the paid for cabinets.; The HVAC subcontractor for the general contractor damaged the living room ceiling when installing new duct work in the attic. ; The contractor has been unresponsive to numerous attempts to communicate both via phone, email, text messages, and the builder trend app.Edit Items Of Concern Inspector’s Observation: The job has not been completed. • Respondent shall complete project per original contract agreement, plans, specifications, properly executed change orders, verbal agreements, local building codes and manufacturer’s installation instructions. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

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

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

Received an addendum as a separate complaint 2023-11398 on 10-3-23 Closed 2023-11398

Complaint #2 The change order contract for electrical work to be completed was related to the overall kitchen and home remodel project that I contracted/paid Bjelde Construction LLC and Bjelde Electric LLC to perform. There were 3 different contracts/change orders related to the electrical portion of the remodel project. The electrical scope included Upgrading existing 150A panel service to new 200A panel. This was completed along with the related grounding , mass, etc. work. However, the other items were not completed, including: new outlet installation for new cabinets in kitchen, new can light installation, new 220v outlet for wall oven in kitchen, and raising outlets in living room after floor infill.-Bjelde Electric / Bjelde Construction has been unresponsive by email, phone, text messages, and app-message within buildertrend -No effort has been made to schedule the remaining electrical work that has already been paid for. -Unsafe electrical conditions in kitchen, including exposed/unsecured 110v and 220v outlets remain in kitchen -Electricians were aware of the unsecured hot outlets during and after the installation of the new 200A panel. -One of the change orders stated that the living room outlets would be raised, per code, after the living room infill. This has not been completed, despite the floor being raised for nearly 5 months. Inspector’s Observation: The job has not been completed. • Respondent shall complete project per original contract agreement, plans, specifications, properly executed change orders, verbal agreements, local building codes and manufacturer’s installation instructions. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

• Incomplete items from the contract below.

1. Remove popcorn ceiling in dining room and kitchen ceiling and haul away. Finish same ceiling and texture. 2. Remove pocket door and reframe opening 26" from East kitchen wall. New opening to be 36" wide opening. 3. Install new refrigerator water line to new location. 4. Install six LED can lights where needed in ceiling. 5. Update existing outlets and install new outlets where needed for new kitchen layout (including 220v outlet for wall oven at new location). 6. Repair drywall where needed. 7. Apply quality paint to ceiling and kitchen walls. 8. Install new white shaker cabinetry per renderings. 9. Install new cabinet door and drawer pulls where needed. Pull allowance $6 each 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

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

10. Install new quartz or granite countertops per renderings. Two slabs needed with a $750 per slab allowance. 11. Update plumbing as needed and install new 3/4 hp garbage disposal. 12. Install new farm sink, sink allowance $500. 13. Install new kitchen faucet, faucet allowance $250 14. Install new tile backsplash where needed around kitchen, tile allowance: $8/sq. ft. 15. Daily clean up and haul away debris 16. Raise electrical outlets in living room--after sunken living room was raised 17. Repair ceiling of living room--after HVAC subcontractors damaged it.

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

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

Complainant: Jeremy Underwood 3542 E. Altadena Ave. Phoenix, AZ 85028

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: Bjelde Construction LLC 415 S 48th Street Suite# 111 Tempe, AZ 85281

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 November 6, 2023

License No. ROC 260364

Re:Complaint No. 2023-10211

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 23, 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:

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 The demolition created a gap in the kitchen window seal allowing pests and bugs into the house. Despite being promised that the kitchen cabinets had been ordered, the contractor never produced proof of the cabinet order, nor a timeline on installing the paid for cabinets.; The HVAC subcontractor for the general contractor damaged the living room ceiling when installing new duct work in the attic. The contractor has been unresponsive to numerous attempts to communicate both via phone, email, text messages, and the builder trend app.Edit Items Of Concern Inspector’s Observation: The job has not been completed. • Respondent shall complete project per original contract agreement, plans, specifications, properly executed change orders, verbal agreements, local building codes and manufacturer’s installation instructions. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

Complaint #2 The change order contract for electrical work to be completed was related to the overall kitchen and home remodel project that I contracted/paid Bjelde Construction LLC and Bjelde Electric LLC to perform. There were 3 different contracts/change orders related to the electrical portion of the remodel project. The electrical scope included Upgrading existing 150A panel service to new 200A panel. This was completed along with the related grounding, mass, etc. work. However, the other items were not completed, including: new outlet installation for new cabinets in kitchen, new can light installation, new 220v outlet for wall oven in kitchen, and raising outlets in living room after floor infill. Bjelde Electric / Bjelde Construction has been unresponsive by email, phone, text messages, and app-message within builder trend. No effort has been made to schedule the remaining electrical work that has already been paid for. Unsafe electrical conditions in kitchen, including exposed/unsecured 110v and 220v outlets remain in kitchen. Electricians were aware of the unsecured hot outlets during and after the installation of the new 200A panel. One of the change orders stated that the living room outlets would be raised, per code, after the living room infill. This has not been completed, despite the floor being raised for nearly 5 months. Inspector’s Observation: The job has not been completed. • Respondent shall complete project per original contract agreement, plans, specifications, properly executed change orders, verbal agreements, local building codes and manufacturer’s installation instructions. Governing Rule: Violation of Any Rule Adopted By the Registrar 32-1154 A-3 Namely Rule R4-9-108.

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 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: Jeremy Underwood 3542 E. Altadena Ave. Phoenix, AZ 85028

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: Bjelde Construction LLC 415 S 48th St Ste 111 Tempe, AZ 85281

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Directive Compliance Inspection 11-27-23

Case No.: 2023-10211 Investigator: Steve Klein

No Compliance inspection was performed. I received an email from the Complainant stating the contractor did not address the Directive

Compliance Findings:

Complaint #1 Contractor demolished our kitchen in April 2023 with no time frame for work commencement or completion, despite contract saying that upon start date, work was to be completed within 6- weeks.; Demolition of kitchen left my wife, child, and myself with no oven to prepare meals since the demotion included removing the oven, cabinets, and dishwasher. ; Demolition of kitchen left the ceiling in the kitchen open, exposed to the attic, throughout the hottest part of the summer, causing electricity bills to soar and uncomfortable temperatures inside the house.; The open ceiling in the kitchen allowed for old insulation to fall down and created a significant amount of dust and airborne particulates that have made us cough and sneeze.; The demolition created a gap in the kitchen window seal allowing pests and bugs into the house. Despite being promised that the kitchen cabinets had been ordered, the contractor never produced proof of the cabinet order, nor a timeline on installing the paid for cabinets.; The HVAC subcontractor for the general contractor damaged the living room ceiling when installing new duct work in the attic. The contractor has been unresponsive to numerous attempts to communicate both via phone, email, text messages, and the builder trend Inspector’s Observation: The job has not been completed. • Respondent shall complete project per original contract agreement, plans, specifications, properly executed change orders, verbal agreements, local building codes and manufacturer’s installation instructions.

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Unsafe electrical conditions in kitchen, including exposed/unsecured 110v and 220v outlets remain in kitchen. Electricians were aware of the unsecured hot outlets during and after the installation of the new 200A panel. One of the change orders stated that the living room outlets would be raised, per code, after the living room infill. This has not been completed, despite the floor being raised for nearly 5 months. Inspector’s Observation: The job has not been completed. • Respondent shall complete project per original contract agreement, plans, specifications, properly executed change orders, verbal agreements, local building codes and manufacturer’s installation instructions.

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

Jeremy Underwood, Case No. 2023-10211 COMPLAINANT, v. Bjelde Construction LLC CITATION License No. ROC 260364,

RESPONDENT.

The Registrar issues this Citation to Bjelde Construction LLC (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by December 13, 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 September 20, 2023, Jeremy Underwood (“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)(1) Abandonment of a contract or refusal to perform after submitting a bid on work without legal excuse for the abandonment or refusal. Charge :2 A.R.S. § 32-1154(A)(3) - R4-9-108(a) of 5

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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. Charge :3 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. 2023-10211. 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 13, 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 of 5

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations, are inadmissible in the administrative hearing. A.R.S. § 41-1092.06(B). RESPONDENT’S PRIOR RECORD 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 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 Registrar. Dated November 28, 2023. By: /s/ Shaquira Adebule Shaquira Adebule Legal Assistant II Legal Department Arizona Registrar of Contractors COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, November 28, 2023 to: Respondent Certified Mail No: [number redacted] Bjelde Construction LLC 415 S 48th St Ste 111 Tempe, AZ 85281

Copy mailed by USPS First Class mail this same date to: Respondent Bjelde Construction LLC 415 S 48th St Ste 111 Tempe, AZ 85281 Complainant Jeremy Underwood 3542 E. Altadena Ave. Phoenix, AZ 85028 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. 2023-10211

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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 1740 W Adams St., Lower Level, 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

BJELDE CONSTRUCTION, LLC 415 S. 48th St. Suite 111 Tempe Az 85281 Office/Fax: (480) 288-7512 Email: [email redacted] Licensed • Bonded • Insured • ROC# 260364 Proposal/Contract Date: 6-17-22 Job # 22716 Client Phone: 623-271-4762 Client Email: [email redacted]

BJELDE Construction, LLC. (hereinafter referred to as Contractor) hereby agrees to sell and Jeremy Underwood, hereinafter referred to as Buyer, of 3542 E. Altadena Ave., Phoenix, Arizona 85028, hereby agrees to purchase from the Contractor the following described goods and services:

All work will completed to building plan specifications and adhere to all local building code requirements.

Scope of Work to Complete Kitchen Remodel and Interior Remodeling:

1. Remove kitchen faucet, sink, countertops and cabinets and haul away. 2. Remove soffits and ductwork in kitchen ceiling and haul away. 3. Remove popcorn ceiling in dining room and kitchen ceiling and haul away. Finish same ceiling and texture. 4. Remove pocket door and reframe opening 26” from East kitchen wall. New doorway opening to be 36” wide. Finish opening. Modify railing as needed. 5. Form and pour new angled slab for new door opening. 6. Install new refrigerator line to new location. 7. Install six LED can lights where needed in ceiling. 8. Update existing outlets and install new outlets where needed for new kitchen layout. 9. Connect to trunkline and install flex duct in attic for three new ceiling vents. Install new vent covers. 10. Repair drywall where needed. 11. Apply quality paint to ceiling and kitchen walls. 12. Install new white shaker cabintry per renderings. 13. Install new cabinet door and drawer pulls where needed. Pull allowance: $6.00 each 14. Install new quartz or granite countertops per renderings. Two slabs needed with a $750.00 per slab allowance. 15. Update plumbing as needed and install new ¾ hp garbage disposal. 16. Install new farm sink, sink allowance: $500.00. 17. Install new kitchen faucet, faucet allowance: $250.00. 18. Install new tile backsplash where needed around kitchen, tile allowance: $8.00 per sq. ft. 19. Daily clean up and haul away all debris.

Note: Homeowner to complete flooring.

Total contract amount $40,692.00

50% Due upon signing $20,346.00 (less $15,000.00 = $5,346.00)

20% Due upon starting $8,138.00

20% Due after cabinets installed $8,138.00

5% Due pre-punchlist $2,035.00

5% Balance due upon completion $2,035.00

BUYER’S RIGHT TO CANCEL If this agreement was solicited at your residence and you do not want to goods or services you may cancel this agreement by mailing a notice to the Contractor. The notice must say that you do not want the goods or services and must be mailed before midnight on the third business day after the date of the transaction.

This contract is subject to all the terms and conditions set forth on the reverse side. Buyer acknowledges receipt of a completed copy of this contract, including NOTICE OF CANCELLATION form.

Signed this ___________________ day of ________________________ You, the Buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. witness____________________________________________________ See the attached notice of cancellation form for an explanation of this right. Accepted by the Contractor: ________________________________________________________ BJELDE CONSTRUCTION, LLC Signature of Buyer By ________________________________________________________ ________________________________________________________ Signature of Buyer

ADDITIONAL TERMS AND PROVISIONS OF CONTRACT

1. Contractor shall not be liable for delays caused by strikes, weather conditions, or delay in obtaining materials or causes beyond its control.

2. If there is more than one Buyer, they shall be jointly and severely liable hereon. This Contract shall bind Contractor and Buyer, their respective heirs, personal representative, successors and assigns.

3. This written Contract is the only and entire Contract covering the subject matter hereof. No person is authorized to vary or alter the terms and conditions of this contract. Buyer shall be solely responsible for providing verification of cash payments upon the request of Contractor.

4. After the expiration of the time of the BUYER’S RIGHT TO CANCEL, stated elsewhere in this Contract, if the Contract is cancelled by the Buyer, Buyer shall pay to Contractor, as liquidated damages and not as penalty, twenty-five (25%) of the Contract price at the sole option of the Contractor. Contractor may elect instead to pursue legal action to collect the entire amount of the purchase price stated in the contract.

5. Contractor shall have the right to transfer this contract to anyone of the Contractor’s choice. If the Contractor should do so, Buyer’s obligations to such Transferee or Holder will continue in full force.

6. If any provisions of this Contract are held invalid or unenforceable for any reason, no other provision shall be affected, and this Contract shall be construed as if such invalid or unenforceable provision had never been contained herein.

7. Work to be performed by a Licensed Contractor.

8. Estimated time of completion after start date is: 6 to 8 weeks

a. Covid Clause – During the Pandemic and the aftermath of the Pandemic our estimated time of completion may be adjusted by a change order, due to the labor and material shortages.

9. Payments can be accepted by Visa, Mastercard or Discover with an added convenience fee of 2.8%. Payments by American Express can be accepted with an added convenience fee of 2.8% plus the additional American Express fee. No exceptions.

10. Job prices are contingent upon continuous work, barring any act of God or delay by vendors subcontracted by this general contractor. Any customer requested delay will incur additional charges in the amount of $250/day until work is resumed. Failure to pay draws as contracted, may be deemed a customer delay resulting in additional charges.

11. Allowances may or may not be a part of this contract. Allowances function such that the stated dollar amount is the amount factored into the contract. If the Buyer does not utilize the full amount of the allowance, the difference will be

refunded to the Buyer along with applicable taxes and markup. If the Buyer utilizes more than the allowance amount, the overage will be billed to the Buyer along with applicable taxes and markup. 12. Escalation Clause in the even of significant delay or price increase of material, equipment, energy, or labor force occurring during the performance of the contract through no fault of the contractor, the contract sum, time of completion, or contract requirements shall be equitably adjusted by change order in accordance with the procedures of the contract documents. A change in price of an item of material, equipment, or energy will be considered significant when the price of an item increases 20% between the date of this contract and the date of installation. The amount of the increase shall be capped at five percent (5%) of the original budgeted price for the item.

The Property NOTICE OF LIMITED WARRANTY Owner has the right to Contractor warrants that the materials used are of a quality specified and Buyer(s) file a written acknowledges that all of the manufacturer’s written warranties guaranteed have been orally complaint disclosed to the prior to entering into this contract and which Buyer(s) further acknowledge with the Contractor’s representative has displayed to them or offered to display to them prior to registar for execution of this contract. Contractor further warrants labor for one year after date of alleged substantial completion. Buyer’s exclusive remedy shall be the repair of any defects in labor and violation of as a condition precedent Buyer(s) must notify Contractor in writing at Contractor’s address of section 32- any claimed defect. Contractor makes no express warranties not set forth in writing herein and 1152, does not make any warranties as to the materials by the manufacturer.

NOTICE Any holder of this consumer contract is subject to all claims and defenses which could assert against the Contractor of goods or services obtained with the proceeds hereof. Recovery hereunder by the debtor shall not exceed amounts paid by the Debtor hereunder.

NOTICE OF CANCELLATION Date of transaction ____________________

You may cancel this transaction, without any penalty or obligation, within 3 business days from the above date.

If you cancel, any property traded in, any payments made by you under the contract of sale, and any negotiable instrument executed buy you will be returned within 10 business days following receipt by the Contractor of your cancelation notice, and any security interest arising out of the transaction will be cancelled. If you cancel, you must make available to Contractor at your residence, in substantially as good condition as when you received, any goods delivered to under this contract or sale or you may, if you wish, comply with the instructions of the Contractor regarding the return shipment of goods at the Contractor’s expense and risk.

If you do not make the goods available to the Contractor and the Contractor does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make goods available to the Contractor, or if you agree to return the goods to the Contractor and fail to do so, then you remain liable for performances of all obligations under contract.

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice or any other written notice to BJELDE CONSTRUCTION, LLC, P.O. Box 50962, Mesa, AZ 85208, no later than midnight (Date) ____________________

I hereby cancel this transaction

________________________________________________ ________________________________________________________ Date Buyer’s Signature Authorize.Net Invoice https://invoice.authorize net/Invoicing/UI/#/viewandpay/DKnO2m0B...

Bjelde Construction 415 S 48th Street, Suite 111, tempe, AZ 85281

(480)288-7512

Invoice To: Jeremy Underwood Invoice Number: 20231704 Invoice Date: Apr 17, 2023 Payment Due: Apr 17, 2023

0.00 USD

 Hide invoice details

Draw 1 × 8,138.00 USD

Subtotal 8,138.00 USD

TOTAL 8,138.00 USD

DESCRIPTION:

Start of Construction Draw

PAYMENTS:

Date Amount (USD) Transaction ID

Apr 17, 2023 8,138.00 [number redacted]

of 1 8/24/2023, 6:51 PM Authorize.Net Invoice https://invoice.authorize.net/Invoicing/UI/#/viewandpay/5qG2clK8rxls...

Bjelde Construction 415 S 48th Street, Suite 111, tempe, AZ 85281

(480)288-7512

Invoice To: Jeremy Underwood Invoice Number: 22-0019-001 Invoice Date: Apr 11, 2023 Payment Due: Apr 11, 2023

0.00 USD

 Hide invoice details

Change Order 1 × 3,800.00 USD

Subtotal 3,800.00 USD

TOTAL 3,800.00 USD

DESCRIPTION:

Electrical Change Order 1

PAYMENTS:

Date Amount (USD) Transaction ID

Apr 12, 2023 3,800.00 [number redacted]

of 1 8/24/2023, 6:37 PM Gmail - Kitchen Cost and Accounting https://mail.google.com/mail/u/0/?ik=559052cf49&view=pt&search=a...

Jeremy Underwood <[email redacted]>

Kitchen Cost and Accounting messages

Jim Scott <[email redacted]> Thu, Jun 16, 2022 at 3:36 PM To: "[email redacted]" <[email redacted]> Cc: "melissa bjeldeconstruction.com" <[email redacted]>

Hi Jeremy,

The kitchen quote came out to $40,621.00. It includes everything we discussed and would be completed as you see in the renderings. Below are details of what all is included. If everything looks good to you, I'll prepare a detailed proposal.

Kitchen Remodel:

1. Remove cabinets, countertops, soﬃts and duct work. 2. Remove South pocket door and frame new opening. 3. Remove popcorn ceiling and ﬁnish en�re ceiling in kitchen and dining room areas. 4. Install new refrigerator water line. 5. Repair drywall where needed and paint same areas. 6. Update and add new outlets where needed. 7. Install six LED can lights where needed. 8. Install ﬂex duct in a�c and add three vents where needed. 9. Install cabinetry per renderings (color your choice). 10. Install quartz or granite countertops. two slabs needed with a $750.00 per slab allowance included. 11. Update plumbing under sink and install new garbage disposal. 12. Install new farm sink, sink allowance: $500.00 13. Install new kitchen faucet, allowance: $250.00. 14. Install cabinet door and drawer pulls on all cabinets. $6.00 each allowance 15. Install �le backsplash where needed, �le allowance: $8.00 per sq. �.

Total Sale Price: $40,692.00

We are waiving any penalties since you're changing projects. However, we will need to keep the $2,000.00 retainer for building plans. We actually have run over the 2K but are capping it at that. The deposit for the addition will be applied to the kitchen. However, we require a 50% deposit on kitchen projects as we need to order everything up front. The deposit for the kitchen comes out to about $20,000.00 so you would just owe about $5,000.00 at this point to get that updated. Another payment will not be due on the kitchen until we start which may be about three months.

If you decide to cancel all together, we will have to deduct all costs to this point and apply our 25% cancellation fee (of the addition project). I think the kitchen project makes more sense if I were you. Please let me know how you would like to proceed.

Thanks,

of 2 8/24/2023, 6:16 PM Gmail - Kitchen Cost and Accounting https://mail.google.com/mail/u/0/?ik=559052cf49&view=pt&search=a...

Jim

Jim Scott Construction Consultant Bjelde Construction, LLC Cell:

Jerry Underwood <[email redacted]> Thu, Jun 16, 2022 at 6:58 PM To: Jim Scott <[email redacted]> Cc: "melissa bjeldeconstruction.com" <[email redacted]>

Hi Jim,

Let's go ahead and proceed with the kitchen project.

Thank you, Jeremy Underwood [Quoted text hidden]

Jim Scott <[email redacted]> Thu, Jun 16, 2022 at 7:35 PM To: Jerry Underwood <[email redacted]> Cc: "melissa bjeldeconstruction.com" <[email redacted]>

Ok Jeremy, I’ll get you an updated proposal by end of tomorrow. Thanks and good decision!

Get Outlook for iOS

From: Jerry Underwood <[email redacted]> Sent: Thursday, June 16, 2022 6:58:07 PM To: Jim Sco� <[email redacted]> Cc: melissa bjeldeconstruction.com <[email redacted]> Subject: Re: Kitchen Cost and Accoun�ng

[Quoted text hidden]

of 2 8/24/2023, 6:16 PM Merchant: BJELDE CONSTRUCTION 5930 S SOSSAMAN RD, STE 104 MESA, AZ 85212 (480)288-7512 US Order Information Description: Kitchen remodel Order Number: P.O. Number: Customer ID: Invoice Number:

Billing Information Shipping Information Jeremy Underwood 85028

[email redacted]

Shipping: 0.00 Tax: 0.00 Total: USD 5,346.00

Payment Information Date/Time: 07-Jul-2022 11:50:29 MST Transaction ID: [number redacted] Transaction Type: Authorization w/ Auto Capture Transaction Status: Settled Successfully Authorization Code: 035030 Payment Method: Visa XXX Authorize.Net Invoice https://invoice.authorize net/Invoicing/UI/#/viewandpay/DKnO2m0B...

Bjelde Construction 415 S 48th Street, Suite 111, tempe, AZ 85281

(480)288-7512

Invoice To: Jeremy Underwood Invoice Number: 20231704 Invoice Date: Apr 17, 2023 Payment Due: Apr 17, 2023

0.00 USD

 Hide invoice details

Draw 1 × 8,138.00 USD

Subtotal 8,138.00 USD

TOTAL 8,138.00 USD

DESCRIPTION:

Start of Construction Draw

PAYMENTS:

Date Amount (USD) Transaction ID

Apr 17, 2023 8,138.00 [number redacted]

of 1 8/24/2023, 6:09 PM Jobsite Inspection Notes