2023A-10801-CHC-ROC Notice of Hearing and Packet MAILED

2023A-10801-CHC-ROC · Registrar of Contractors · 2024-03-15

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Stefany Vara Villegas , Case No. 2023-10801 COMPLAINANT, Docket No. 2023A-10801-CHC-ROC v. NOTICE OF HEARING ON CONTESTED CASE REIcon LLC License Nos. ROC 319709, 340420,

RESPONDENT.

This Notice of Hearing is issued under A.R.S. § 41-1092.05(D). HEARING INFORMATION The hearing is set for: April 30, 2024 9:00 AM Velva Moses-Thompson 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 February 15, 2024. 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(b)

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/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 March 15, 2024.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail March 15, 2024 to: Respondent(s) REIcon LLC 4233 E Villa Theresa Dr Phoenix, AZ 85032

Complainant(s) Stefany Vara Villegas 4237 N 10th Pl Phoenix, AZ 85014

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. 2023-10801 /

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: Stefany Vara Villegas 4237 N 10th Place Phoenix, AZ 85014

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: REIcon LLC DBA: 4233 E Villa Theresa Dr Phoenix, AZ 85032

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 October 13, 2023

Jobsite Inspection Notice Re: Complaint Number 2023-10801

Dear Complainant and Respondent:

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

A jobsite inspection is scheduled for November 16, 2023 at 9:00 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, Lisa Melton Lisa Melton, Investigator #206 602 7716736 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812

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: Stefany Vara Villegas 4237 N 10th Place Phoenix, AZ 85014

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 04/21 Respondent: REIcon LLC DBA: 4233 E Villa Theresa Dr Phoenix, AZ 85032

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 04/21 November 9, 2023

Re: Complaint No. 2023-10801

Dear Complainant and Respondent:

After the initial filing of the complaint 2023-10801, the Complainant filed the attached amended complaint containing additional complaint items.

A jobsite inspection is scheduled November 16, 2023 at 9:00 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 amended complaint items 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 the amended complaint items. 2. The Registrar may also be precluded from taking further action on the amended complaint items, if the work that is the subject of the amended 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. Additionally, please secure any animals.

RESPONDENT: 1. Enclosed is a copy of the amended complaint. Under A.R.S. § 32-1155(D) you must be allowed, upon request, the opportunity 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 amended 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 C007 04/21 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,

Lisa Melton Lisa Melton, Investigator #206 602 7716736 [email redacted] 1700 W Washington St, Suite 105 Phoenix, Arizona 85007-2812

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 04/21 00121345ÿ00740ÿ89 ÿÿ8 ÿ9 ÿÿ33420ÿÿ33400

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711 1 1!11"#$40 %&2%&'()$' $ ' *$ *70+0,,0+%000'$70+0,,0+%000 010 Complainant: Stefany Vara Villegas 4237 N 10th Place Phoenix, AZ 85014

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: REIcon LLC DBA: 4233 E Villa Theresa Dr Phoenix, AZ 85032

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 December 4, 2023

Re: Complaint Number 2023-10801

Dear Complainant and Respondent:

Due to a conflict in scheduling of one of the parties, the jobsite inspection scheduled for November 16, 2023 at 9:00 AM has been rescheduled for December 20, 2023 at 9:00 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, Lisa Melton Investigator #206 602 7716736 [email redacted] 1700 W Washington St, Suite 105 Phoenix, Arizona 85007-2812

License mailing address (if different from account/company address of record):

REIcon LLC 4233 E Villa Theresa Dr Phoenix, AZ 85032-1434

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.: 2023-10801 Investigator: Lisa Melton Inspection Date: December 20, 2023 Inspection Time: 9:00 AM

Complainant: Stefany Vara Villegas Respondent: REIcon LLC Not Present: Not Present:

ATTENDEES: Complainant Stefany Villegas Respondent: Christopher Reigel

Jobsite General Notes: JSI photos and audio was recorded with my agency issued Pixel 6 Pro phone.

Compliance Item 1: The Contractor and I signed a written contract agreeing to the renovation of my home, a single family home, per a written proposal, that would cost $90,500 plus the addition of a dining room for $12,000 totaling $102,500. Due to unforeseen conditions and changes, the contractor randomly notified me we are over budget by over $30,000. I told him I don't have $30,000 and to work with me on what things we could eliminate or change to bring that number down. He asked me what my max was so that the project would be less stressful. He was able to bring that number down to $11, 071.95 and bringing the total to 113,581.51 to complete the renovation including the dining room. Over time he never communicated any other unforeseen conditions and I did not agree on any changes that he would indicate would dramatically affect the budget. But on September 10, 2023 he emails me that the budget has been spent and there is no money left in the budget to begin the dining room and complete the master bathroom. He told me that what was left to complete the dinning and bathroom is another $22,300. I have not seen any itemized list or invoice of proof of this overage, although I have asked him to provide itemized lists showing where the money has been spent. It feels at this point that my money has been mishandled.; Investigator’s Observation: At the time of this inspection work is not complete by Respondent’s own assertion. Work began in September 2022. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. (No photo) Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 2: A estimated completion date was given to me verbally of 3 to 6 months to complete. A few months later an estimated completion date of 04/03/2023 was given to me via email. It has now been almost one year and no completion or communication about completion date. I have in numerous occasions through text and email asked for that information or at least communication on the progress because days would go by with no one showing up to do any work. I asked for communication on the status of the dining room addition and those questions would go unanswered. Investigator’s Observation: At the time of this inspection work is not complete by Respondent’s own assertion. Work began in September 2022. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. (No photo) Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 3: I asked for status on the permit for the addition of the dining room and that questions was unanswered. Investigator’s Observation: At the time of this inspection work is not complete by Respondent’s own assertion. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. (No photo) Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Compliance Item 4: An addition of a dining room is agreed upon in the contract. To this day, there is no work done on a dining room addition.; Even though the remodel is not completed, My family and I moved in on August 15, 2023 after being told by my contractor that bathroom and kitchen were usable. Investigator’s Observation: Dining room is included in proposal/contract. At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. (No photo) Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Investigator’s Observation: At the time of inspection, the water heater has been relocated (no permit), Respondent states that the bedroom ceiling fan is missing the owner furnished/contractor installed remote, numerous outlets have no power. Proposal calls for repair or replacement of electrical throughout house & rework electrical for new rooms. Proposal states “scope of work is hard to define until we start going so we have used an allowance that covers a typical home of this size”. Unpermitted new electrical panel is partially installed and numerous outlets in the home are not working. Respondent states at inspection, “all the stuff that’s not working is feeding that new panel”. Respondent also stated that the panel has been left in this condition for six months. At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. (See JSI Photos #2 -3 & #11) Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Respondent’s proposal states: New grills & registers AND reroute HVAC ducting as needed. At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. (No photos) Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 7: The Closet Rods were finally installed after asking a few times. But the part that holds the rod at the end of the closet was placed upside down, so the rods had nothing to sit on. I asked for it to be corrected and it never was, I had to try to fix it myself.; Investigator’s Observation: Corrected by Complainant prior to Jobsite Inspection. (No Photo) Governing Rule: Not Applicable.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

not being placed properly, removed, or even communicated to me that it was just placed on top.; Investigator’s Observation: Transition is not affixed. At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. (See JSI Photos #4) Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. (See JSI Photos #5) Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 10: There are many areas where the baseboards have noticeable gaps between the wall and the baseboards and between the floor and baseboards.; Investigator’s Observation: There are numerous, intermittent gaps at the floor/ baseboard connection which are up to ¼” wide. Floor should be level with ¼” in any 12’ run. This does not meet workmanship standards. Existing floor may not have been appropriately level, Respondent accepted the substrate by installation of flooring. At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. (See JSI Photos #6 - #9) Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 11: The two south bedrooms have dips on the floor where you can feel the floor is just uneven.; Investigator’s Observation: Complainant could not show me an area where I could detect this condition in the field tile, however, it was apparent at the baseboard (see Item #10). (No photo) Governing Rule: Not Applicable.

Compliance Item 12: The floor tile in the bathroom also looks poorly installed, the tiles are just not all even and it could use more grout in some areas.; Investigator’s Observation: Significant (greater than 1/32”) lippage on tile by toilet which does not meet workmanship standards. Respondent asserts that this is due to the existing conditions. Respondent accepted the substrate by installation of flooring. Caulk is missing in some areas and caulk cracking typical to new construction is occurring (incomplete project began 9/22). At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. (See JSI Photos #10) Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 13: The kitchen hood has been sitting in the livingroom in the box for over a month and has yet to be installed.; Investigator’s Observation: Insufficient evidence at this time to substantiate that hood was part of the Respondent’s scope of work. Respondent did state at the inspection that he intended to install the hood free of charge. (No photo) Governing Rule: Not Applicable.

Compliance Item 14: The light fixture for the front door has yet to be installed.; Investigator’s Observation: Respondent stated they did the wiring but fixture has not been installed (incomplete project began 9/22). At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. (No photo) Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 15: The faux fireplace has yet to be installed.; Investigator’s Observation: Insufficient evidence at this time to substantiate that stucco was part of the Respondent’s scope of work. (No photo) Governing Rule: Not Applicable.

Compliance Item 16: The ceiling for the master bathroom was raised a few inches, and the gaps in the wall have not been fully covered or closed.; Investigator’s Observation: Large gap in this area between wall and ceiling/roof connection (incomplete project began 9/22). At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. (See JSI Photos #11) Governing Rule: 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 17: The Stucco on the outside of the house has not been installed.; I am exhausted with trying to get clear communication and answers and issues addressed by my contractor . And with being told out of nowhere that the money was spent, I have no confidence in what he says to be true, and on my work being done timely or properly because to this day it has not. Investigator’s Observation: Insufficient evidence at this time to substantiate that stucco was part of the Respondent’s scope of work. (No photo) Governing Rule: Not Applicable.

Compliance Item 18: One of the doors installed in the house appears to be installed with the wrong hardware, as it seems to be falling off of alignment (not sure if the others may have issues). Some of the door handles are also loose. Investigator’s Observation: Hinge has failed. (incomplete project began 9/22). At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. (See JSI Photos #12) Governing Rule:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Compliance Item 19: The Bathroom and Kitchen tile still need the corners caulked before the grout starts to crack more. Investigator’s Observation: Caulk is missing in some areas and caulk cracking typical to new construction is occurring (incomplete project began 9/22). At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. (See JSI Photos #13 - #15) Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Compliance Item 20: plumbing pipes in the backyard have been left exposed. Investigator’s Observation: Pipes are exposed. At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. (See JSI Photos #16) Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. (See JSI Photos #17) Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 22: The framing of the front door needs to be completed. Investigator’s Observation: Door is contractor furnished/installed. Door/framing is not complete. At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. (See JSI Photos #18 - #19) Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

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: Stefany Vara Villegas 4237 N 10th Place Phoenix, AZ 85014

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: REIcon LLC DBA: 4233 E Villa Theresa Dr Phoenix, AZ 85032

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 January 9, 2024

License No. ROC 319709

Re:Complaint No. 2023-10801

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 January 26, 2023.

If the Respondent requires additional time to complete the Written Directive, they must request the additional time PRIOR to the expiration of this Written Directive and provide sufficient documentation to substantiate the need for the extension.

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 max was so that the project would be less stressful. He was able to bring that number down to $11, 071.95 and bringing the total to 113,581.51 to complete the renovation including the dining room. Over time he never communicated any other unforeseen conditions and I did not agree on any changes that he would indicate would dramatically affect the budget. But on September 10, 2023 he emails me that the budget has been spent and there is no money left in the budget to begin the dining room and complete the master bathroom. He told me that what was left to complete the dinning and bathroom is another $22,300. I have not seen any itemized list or invoice of proof of this overage, although I have asked him to provide itemized lists showing where the money has been spent. It feels at this point that my money has been mishandled.; Investigator’s Observation: At the time of this inspection work is not complete by Respondent’s own assertion. Work began in September 2022. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Compliance Item 2: A estimated completion date was given to me verbally of 3 to 6 months to complete. A few months later an estimated completion date of 04/03/2023 was given to me via email. It has now been almost one year and no completion or communication about completion date. I have in numerous occasions through text and email asked for that information or at least communication on the progress because days would go by with no one showing up to do any work. I asked for communication on the status of the dining room addition and those questions would go unanswered. Investigator’s Observation: At the time of this inspection work is not complete by Respondent’s own assertion. Work began in September 2022. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Compliance Item 3: I asked for status on the permit for the addition of the dining room and that questions was unanswered. Investigator’s Observation: At the time of this inspection work is not complete by Respondent’s own assertion. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 5: However there was a list of important items needing to be addressed that have not been addressed to this day. ; We have been living in the home for a month now and the water heater is not heating well. He has told me it would be addressed but has not.; There is one bedroom ceiling fan that is not working at all that he said would be addressed but has not.; The bathroom outlet does not have any power.; None of the outlets in the Livingroom have any power and we have been using extensions cords connected to bedroom to connect items needing electrical in the livingroom. ; Two other bedrooms do not have electricity, one is being used and we use another extension cord to connect items needing electrical.; Investigator’s Observation: At the time of inspection, the water heater has been relocated (no permit), Respondent states that the bedroom ceiling fan is missing the owner furnished/contractor installed remote, numerous outlets have no power. Proposal calls for repair or replacement of electrical throughout house & rework electrical for new rooms. Proposal states “scope of work is hard to define until we start going so we have used an allowance that covers a typical home of this size”. Unpermitted new electrical panel is partially installed and numerous outlets in the home are not working. Respondent states at inspection, “all the stuff that’s not working is feeding that new panel”. Respondent also stated that the panel has been left in this condition for six months. At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 6: The two front bedrooms do not get enough air circulation and are very hot unless a fan is on. ; Investigator’s Observation: In Respondent’s response email which was provided subsequent to the Inspection. Respondent states “The HVAC issue – these are existing ducts all we did was change the grilles… has nothing to do with our work.” However, Respondent’s proposal states: New grills & registers AND reroute HVAC ducting as needed. At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 8: The tile to laminate transition was finally placed at the entry of the bathroom. However, we noticed over time that it was only placed on the floor with no type of adhesive whatsoever. It was very concerning to see that as someone could have tripped over it and gotten hurt. I text him a video and questioned him about there not being placed properly, removed, or even communicated to me that it was just placed on top.; Investigator’s Observation: Transition is not affixed. At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 9: The garbage disposal switch was finally installed, it was a little loose but didn't think much of it. It soon enough stopped working and when we looked into it, it appeared it was bent and not installed/secured correctly. The electrical outlet is right underneath as well. I contacted the contractor and sent pictures and that has not been corrected yet.; Investigator’s Observation: Garbage disposal switch is not installed securely. At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 10: There are many areas where the baseboards have noticeable gaps between the wall and the baseboards and between the floor and baseboards.; Investigator’s Observation: There are numerous, intermittent gaps at the floor/ baseboard connection which are up to ¼” wide. Floor should be level with ¼” in any 12’ run. This does not meet workmanship standards. Existing floor may not have been appropriately level, Respondent accepted the substrate by installation of flooring. At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 12: The floor tile in the bathroom also looks poorly installed, the tiles are just not all even and it could use more grout in some areas.; Investigator’s Observation: Significant (greater than 1/32”) lippage on tile by toilet which does not meet workmanship standards. Respondent asserts that this is due to the existing conditions. Respondent accepted the substrate by installation of flooring. Caulk is missing in some areas and caulk cracking typical to new construction is occurring (incomplete project began 9/22). At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. Governing Rule:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 14: The light fixture for the front door has yet to be installed.; Investigator’s Observation: Respondent stated they did the wiring but fixture has not been installed (incomplete project began 9/22). At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 16: The ceiling for the master bathroom was raised a few inches, and the gaps in the wall have not been fully covered or closed.; Investigator’s Observation: Large gap in this area between wall and ceiling/roof connection (incomplete project began 9/22). At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Investigator’s Observation: Hinge has failed. (incomplete project began 9/22). At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with documentation of passed final permit/certificate of occupancy for the work they have performed. Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item 21: Two of the outlet wall plates need to be replaced with bigger ones. Investigator’s Observation: Covers do not adequately cover opening. At the time of this inspection work is not complete by Respondent’s own assertion. Complainant had paid the Respondent $100,862.71 which is 98% of the proposal/contract amount (including dining room addition) identified in the scope contained in the proposal/contract. The proposal (May 2022) is incorporated into the contract (signed August 2022) by quote and direct reference: “Renovation of single family home per REIcons proposal emailed 5/12/22 for $90,500 plus a dining room addition for $12,000 totaling $102,500 on a cost plus 12% agreement.” Respondent has not completed the scope of work identified in their proposal & contract and also has not provided sufficient evidence to substantiate that they have a legal excuse for abandonment/refusal to perform after submitting a bid. Additionally, NONE of the work which Respondent has performed relative to this remodel/addition has been permitted or inspected by the Building Official. Statute requires that licensed contractors comply with code. Permit/inspection are part of code. Respondent advised that his contract excludes permitting. Neither party to the contract has the authority to remove the Respondent’s statutory obligation to comply with code. Respondent should complete their scope of work by appropriate methods and in accordance with contract, executed change orders, specifications, drawings, building code/requirements of the local building authority (permit/inspection), manufacturer recommendations, industry and workmanship standards. Respondent should provide this Investigator with

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 documentation of passed final permit/certificate of occupancy for the work they have performed. Governing Rule: 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. ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

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

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, Lisa Melton Investigator #206 602 7716736 [email redacted] 1700 W Washington St, Suite 105 Phoenix, Arizona 85007-2812

License mailing address (if different from account/company address of record):

REIcon LLC 4233 E Villa Theresa Dr Phoenix, AZ 85032-1434

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: Stefany Vara Villegas 4237 N 10th Place Phoenix, AZ 85014

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: REIcon LLC DBA: 4233 E Villa Theresa Dr Phoenix, AZ 85032

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 January 12, 2024

License No. ROC 319709

Re:Complaint No. 2023-10801

AMENDED WRITTEN DIRECTIVE FROM THE REGISTRAR