2023A-14395-NPC-ROC Notice of Hearing and Packet MAILED

2023A-14395-NPC-ROC · Registrar of Contractors · 2024-02-05

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

State Forty Eight Home Comfort LLC, Case No. 2023-14395 Docket No. 2023A-14395-NPC-ROC COMPLAINANT, NOTICE OF HEARING ON v. CONTESTED CASE

Bonum Development & Construction, LLC DBA: Bonum Development & Construction License No. ROC 344755,

RESPONDENT.

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

HEARING INFORMATION The hearing is set for: March 25, 2024 1:00 PM Sondra Vanella Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person.

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

You must attend this hearing. This is an adversarial hearing before an administrative law judge, and is conducted in a similar manner as judicial proceedings. Thus, you must be prepared to present evidence, including witness testimony and documents, in support of your case.

STATEMENT OF LEGAL AUTHORITY AND JURISDICTION The State of Arizona has determined that the licensing and regulation of construction contractors is a proper state function, and has vested authority in the Registrar of Contractors

to administer Title 32, Chapter 10 of the Arizona Revised Statutes. A.R.S. §§ 32-1101 et seq.

All hearings for alleged violations of Title 32, Chapter 10 are conducted under Title 41,

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

The statutes and rules governing the hearing can be found at: Arizona Revised Statutes §§ 41-1092 to -1092.12, and Arizona Administrative Code R2-19-101 to -122. PARTICULAR ARIZONA STATUTES AND RULES INVOLVED The statutes and rules the Respondent is alleged to have violated are cited in the complaint and citation, which were served on the Respondent on January 4, 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)(10)

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

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

be a party to the hearing.

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

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

1156(B).

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

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

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

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

processes governing the administrative hearing. Copies of the statutes, rules, and articles regarding the administrative hearing process can be found at https://www.azoah.com/.

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

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

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

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

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

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

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

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

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

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

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

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

party will use at the hearing. A party’s failure to timely disclose any witness or exhibit, without good cause, may result in the administrative law judge excluding those witnesses or exhibits from being used at the hearing. A.A.C. R4-9-118(C). A sample disclosure form is available on the Registrar’s website at https://roc.az.gov/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 February 5, 2024.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail February 5, 2024 to: Respondent(s) Bonum Development & Construction, LLC DBA: Bonum Development & Construction 2820 S Alma School Rd #18-456 Chandler, AZ 85286 William H. Breier, Esq. 15205 N Kierland Blvd Ste 200 Scottsdale, AZ 85254

Complainant(s) State Forty Eight Home Comfort LLC 8722 N 83rd Dr Peoria, AZ 85345 Copy sent electronically this same date to: Respondent at email address on record with the Registrar Respondent’s Attorney at email address of record with Registrar Complainant at email address on record with the Registrar

Case No. 2023-14395 /

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

December 20, 2023

Via U.S. Mail and Email

Complainant State Forty Eight Home Comfort LLC 8722 N 83rd Dr Peoria, AZ 85345

Via U.S. Mail and Email

Respondent Bonum Development & Construction, LLC DBA: Bonum Development & Construction 2820 S Alma School Rd #18-456 Chandler, AZ 85286

Re: Complaint No. 2023-14395

Dear Complainant and Respondent:

The Registrar received a complaint filed against Bonum Development & Construction, LLC DBA: Bonum Development & Construction for non-payment of materials or services rendered. This complaint is complete and will be substantively reviewed by the Registrar.

Respondent is free to raise any issue or affirmative defense to this complaint by filing a response with the Registrar by December 27, 2023. Please reference the complaint number listed above if you file a response. Respondent may file a response by:

Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Email: [email redacted]

The Registrar will not issue a citation before December 27, 2023 and will review Respondent’s response, if one is submitted.

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

Sincerely,

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 /s/ Tedi Quezada ________________ Tedi Quezada Legal Department 1700 W Washington St. Ste 105 Phoenix, AZ 85007

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 Received by Investigations 12/18/2023 2023-14395

Non-Payment Complaint Form Deoartmental Use Onlv Complaint Number: Mail to: Registrar of Contractors P.O. Box 18243 kJa\\( in Phoenix, AZ 85005-8243

Person laint Business Name Full Name (First Middle Last) ROC License Number(s) (ifanv) State Forty Eight Home Comfort LLC William David Swartz ll 33221,4 StrL'lrt Address City State Zip Code 8722 North 83rd Drive Peoria AZ 85345 Phone Number Email Address 602-517-5903 [email redacted] I consent to receive communications electronicalh, in connection with this case. Yes i No I

Name of Attomey (if any)

Attomey's Street Address City State Zip Cctde

Attornev's Phone Number Attoney's Email Address

Licensee Information (Payer) Name (as shown on contracts, invoicet etc.) ROC License Number(s) Bonum DC 344755 Street Address City State ziP Codc 2820 S Alma School Rd #18-456 chandler AZ 85286 Phone Number Email Address 602-329-2659 [email redacted] Name of Person(s) Representing License Gerald Turner Complaint Infonnation Principal Amount Due (excluding interest and fees) Contract Date (if applicable)

Have you filed a civil complaint? Yes tr (lf yes, provide a copy of the civiliudgment) No=

List all specific invoices which have not been paid. Aftach additional pages if ne(essary I

lnvoice 841 $23,849.00 lnvoice 831 $20,881.85 lnvorce 820 $37,915.89 l lnvoice 819 $34,538.80

Certification I certifu, upon information and belief, that the aboae-named licensee has failed to pay monies in excess of seten hundred fifty dollars whm due t'or materials or seraices rendered in connection with the licensee's operations as a contractor. I further certfu, upon information and belief, that the abooe-named licmsee has the capacity to pay, or has receiaed sufficient monies as payment for the particular constructiofl work proiect or operation for which the seraices or mpteria\were lpntlered or purchased. A.R.S. $ s2-1154(AX10) Printed Name Date Wlliam D Swartz ll 72t1-5t2023 &S I am the Complainant in this Complaint Form or Complainant's duly authorized representatiz.te. I declare under penalty of petiury that the information contained in this F orm is true and correct to the best of my knowledge. I further certify that any docut etts submitted in suryort of this a fiplaint are true and correct copies of the originals and are accurate to the best of my knowledge. I will assist in the int;estigation or in the prosecution of the contractor,orlplher parties, and a7jll, if (ecessary, attend heaings and testifrt to lacts Printed Name Date William D Swartz ll L?11512023 Received by Investigations l2ll5l23, 4:70 PM lnvoice Simple - lnvoice lNVOlCE0841 12/18/2023 2023-14395

State Forty Eight INVOICE

rNVOtCE0841 Home Comfort LLC DATE 11754 W Electra Lane Sep14,2023 Sun City, AZ 85373 State4SY www.state4Shc.com DUE

[number redacted] On Receipt www.state4Shc.com BALANCE DUE statefortyeightcomfort@gmail. usD $23,849.00 com

BILL TO

Bonum DC Nektar 200 W Combs Rd Suite #109 [email redacted]

DESCRIPTION RATE QTY AMOUNT

Ductwork, installation materials and labor for Nekter, per plans $23,849.00 1 $23,849.00 lncludes ductwork, insulation around ductwork, flex duct, supply diffusers, return registers, greenheck exhaust, test and balance, scissor lifts and thermostat

Payment lnfo TOTAL $23,849.00

Scan this code to pay online BALANCE DUE usD $23,849.00 I I

Please leave a rating/review on https://g.pa ge/r/CW-m9hDRf XTyEBM/review

https://app.invoicesimple.com/invoices/bNlARsovRR Lt4 Received by Investigations 12175123, 4:70 PM lnvoice Simple - lnvoice lNVO|CE0820 12/18/2023 2023-14395

State Forty Eight tNvotcE tNVOtCE0820 Home Comfort LLC DATE 11754 W Electra Lane Aug 23,2023

Stateffif Sun City, AZ 85373 www.state4Shc.com DUE

Home Comfort [number redacted] On Receipt www.state4Shc.com BALANCE DUE statefortyeightcomfort@gmail. usD $3291s.89 com

BILL TO

Bonum DC Cheba Hut Gerald Turner Cheba Hut 4912 E Shea Blvd Scottsdale, AZ [email redacted]

DESCRIPTION RATE QTY AMOUNT

Ruud 10 ton package heat pump $12802.00 1 $12802.00 ModeI# RHPDZTl2OACGOOOABCAO TON HEAT PUMP R41OA 2O8I23O-3 PHASE 2 STAGE COMPRESSOR VFD BELT DRIVE MED STATIC

Ruud 7.5 ton package heat pump $1s,589.00 1 $1s,s89.00 Model# RHPDZT09oACG000ABCA0 7-1I2TON HEAT PUMP R41OA REFRIGERANT 208/230-3 2 STAGE COMPRESSOR VFD BELT DRIVE MED STATIC

Labor $3,450.00 1 $3,450.00 Crane $1,07s.00 'l $1,o7s.oo

Addendum to contract $zsoo.oo 1 $zsoo.oo

httpsi//app.invoicesimple.com/invoices/12Yfi Pclzv 1/5 Received by Investigations 72175123. 4:!O PM lnvoice Simple - lnvoice lNVOlCE0820 12/18/2023 2023-14395

Payment lnfo TOTAL $4s,416.00 PAID -$2s00.11 Scan this code to pay online

lr + E. 1 I BALANCE DUE usD $32s15.89 I r-

J I

Please leave a rating/review on https:/ig.page/riCW-m9hDRf XTyEBM/review

CUSTOMER AUTHORIZATION

AUTHORIZATION TO PROCEED WITH ABOVE RECOMMENDATION - l, the undersigned, am owner/authorized representative/tenant of the premises at which the work mentioned above is to be done. lhereby authorize you to perform Recommendation, and to use such labor and materials as you deem advisable. I have read, understand, and agree to all of the terms stated here. I understand that all work performed is C.O.D. unless arrangements were made, prior to work being started. All collection and legal expenses are to be paid by the purchaser when past due invoices are submitted for collection through agency, attorney or court. There will be a $25 NSF fee charged on all returned checks. All sales are final. ln the event that the purchaser terminates this agreement less than 72 hours prior to the scheduled installation date the purchaser agrees to pay a $500 (per system) cancellation and restocking fee. lf at time of installation and system start up there are any outstanding follow up items such as but not limited to drywall repair, accessory installation, filter grille replacement, etc. 95% of the contract total will be collected on the day of installation and purchaser will reserve 5% of the contract total to be paid at completion of these items. I hereby authorize you to proceed with above work at the Contract Price.

hnpsr//app.invoicesimple.com/invoices/r2YllPc1Zv 2t5 Received by Investigations 72115123, 4:Og PM lnvoice Simple - lnvoice lNVOlCE0831 12/18/2023 2023-14395

State Forty Eight twotcE rNVOtCE0831 Home Comfort LLC DATE 11754 W Electra Lane Sep 1, 2023

StatefSY Sun City, A285373 www.state4Shc.com DUE

Home Comfort [number redacted] On Receipt www.state4Shc.com BALANCE DUE statefortyeightcomfort@gmail. usD $20,881.85 com

BILL TO

Bonum DC Cheba Hut Change Order Gerald Turner Cheba Hut 4912 E Shea Blvd Scottsdale, AZ [email redacted]

DESCRIPTION RATE QTY AMOUNT

Ductwork $4,300.00 1 $4,300.00 lncludes offsets and fittings to connect ductwork to supply and return drops, supply grills on exposed ducts, return registers, supply and return registers for drop ceiling and thermostats

Curb adapter $2,762.55 2 $s,525.10 Curb adapters for 7.5 ton and 10 ton heat pumps

Ducturork lnsulatlon

#39;t,469.76 1 $1,469.76 insulate supply and return ducts above the ceiling grid per plans

smoke det€ctors $285.33 3 $8s5.99 lncludes smoke detector, sample tube, and remote keyed reset alarms

https://app.invoicesimple.com/lnvoices/J6KCTgASs Ll3 Received by Investigations 12115123,4:09 PM lnvoice Simple ' lnvoice lNVOlCE0831 12/18/2023 2023-14395 DESCRIPTION RATE QTY AMOUNT

Labor $s,8s6.00 1 $5,8s6.00 labor to complete ductwork, hook up to plenum boxes, run new flex ductwork for registers, install supply registers on exposed ductwork

Test and Balance $2,875.00 1 $2,87s.00 Air handler units with associated diffusers. Exhaust fans with associated inlets. Kitchen hoods Certified smoke detectors, shut down verification and/or fire dampers.

Payment lnfo TOTAL $20,881.8s

Scan this code to pay online BALANCE DUE usD $20,881.85

Please leave a rating/review on https://g.page/r/CW-m9hDRf XTyEBM/review

Written customer authorization will be obtained before beginning any unforeseen additional or extended work.

Property owner has the right to file a written compliant with the Registrar for an alleged violation of section 32-1154, subsection A.The AZ Registrar of Contractors website address is www.azroc.gov and their phone number is 1-877- 692-9762. Complaints must be made within the applicable time period as set forth in Section 32-1155, subsection A.

Terms and Conditions

Buyer's Responsibility - Buyer will operate the mechanical system(s) in accordance with the manufacturer's instructions and will ensure routine maintenance and tune-ups are performed according to the manufacturer's operating manual. Damage or the need for repairs as a result of

https://app. invoicesimple.com/invoices/J6KCTgASs 2t3 Received by Investigations 721!5123, 4:77 PM lnvoice Simple - lnvoice lNVOlCE0819 12/18/2023 2023-14395

State Forty Eight INVOICE

rNVOrCE0819 Home Comfort LLC DATE 11754 W Electra Lane

State{SY Sun City, A285373 [number redacted] Aug 22,2023

DUE Home Comfort www.state4Shc.com On Receipt statefortyeightcomfort@gmail. BALANCE DUE com usD $34,s38.86

BILL TO

Bonum DC Cheba Hut Hood Cheba Hut 4912 E Shea Blvd Scottsdale, AZ [email redacted]

DESCRIPTION RATE QTY AMOUNT

CaptlveAlre Hood Package per plans $16,938.86 1 $16,938.86 (2) 5' long condensate hood (2) Centrifugal Upblast Exhaust Fans (2) Curbs w/hinged base (2) CaptiveAire Duct Runs (1) Electrical System controller (1) Stainless steel backsplash

System has a 2 year warranty on equipment

CaptiveAire duct runs have a 20 year warranty from shipping date.

Hardware and installation material $2,100.00 1 $2,100.00

Labor $15,500.00 1 $15,500.00 installation of exhaust hood, backsplash, duct runs, curbs, exhaust fans

https://app.invoicesimple.com/invoices/YvPnZf OxbG 7t4 Received by Investigations 1-21L5123. 4:77 PM lnvoice Simple - lnvoice lNVOlCE0819 12/18/2023 2023-14395

Payment lnfo TOTAL $34,538.86

Scan this code to pay online BALANCE DUE usD $34,538.86 T I

Please leave a rating/review on https://g.page/r/CW-m9hDRfXTyEBM/review

By Others:

Roof patching, framing for drops to roof, all electrical field wiring, cat6 connections, electrical connection/landing at electrical controller, electrical connection/landing at exhaust fans, electrical connection/landing at hoods, electrical wiring to duct thermostat kits, gas or electric shutdown for fire system hook-up, fire system hook-up, fire system chemical agent, NO2 cartridge, field piping, detection and pull station line(s), tests and permits.

The fire suppression system final hook up is not included on this quote. The final hook up usually consists of, but is not limited to, the chemical agent, NO2 cartridge, field piping/re-piping, detection and pull station line(s), tests, and permits. Hook up for the fire system must be performed by an Authorized Distributor. lf not installed by an Authorized Distributor, then the warranty on this product will be voided.

CUSTOMER AUTHORIZATION

https://app.invoicesimple.com/invoiceslYvPnZf OxbG 2t4 Docusign Envelope lD AEF912OQ-C72Q4744-98E3-0613'1 1AAA048 Received by Investigations 12/18/2023 State Forty Eight Home 2023-14395 ESTIMATE ESTO5 2 3 Comfort LLC DATE 11754 W Electra Lane

StatelSY Sun City, AZ 85373 www. state4Shc.com 4u917,2023 TOTAL Home Comfort [number redacted] usD $32916.00 www.state4Shc.com statefortyeightcomf [email redacted]

Bonum DC Gerald Turner Cheba Hut 4912 E Shea Blvd Scottsdale, AZ gera ld@ bonu md c.co m

DESCRIPTION RATE QTY AMOUNT

Ruud 10 ton package heat pump $12802.00 1 $12802.00 Model# RHPDZTl 20ACG000ABCA0 1O TON HEAT PUMP R4lOA 2O8I23O-3 PHASE 2 STAGE COMPRESSOR VFD BELT DRIVE MED STATIC

Ruud 7.5 ton package heat pump $15,589.00 1 $15,589.00 Model# RHPDZT09oACG000ABCA0 7-112TON HEAT PUMP R4lOA REFRIGERANT 208/230-3 2 STAGE COMPRESSOR VFD BELT DRIVE MED STATIC

Labor $3,4s0.00 1 $3,4s0.00 Crane $1,075.00 1 $1,07s.00

TOTAL usD $32916.00 Please leave a rating/review on https://q.paqe/r/CW- m9h D Rf XTvEBM/rev iew

Professional installation of your new HVAC system will include:

Follow all necessary regulations to meet code requirements lnstall units per manufacturer requirements Removal of the existing condenser & air handler Recovery of existing refrigerant from the system lnstallation of new condenser pad (where applicable)

ArdUllrwr Oocusign Envelope lD ABF912DC-C72A4144-98E3-0613,1 lAAAO4B Received by Investigations 12/18/2023 lnstall new condenser 2023-14395

Connect existing liquid and suctaon lines to condenser lnstall new Armaflex insulation on exposed outdoor suction line lnstallation of new air handler New Hungrite unit supports for level & secure reinforcement New return and supply plenums (where applicable) for proper air distribution New start collars to connect existing duct runs (where applicable) New volume dampers to regulate air flow (where applicable) Connect air ducts with airtight plenum transitions New return filter grilles and filters (bar style return grilles) Pressure test refrigerant lines for leaks Charge new system with R-410A refrigerant to manufacturer's specifications New condensate drain pan New gas line and gas flex line (as needed) New B-vent exhaust for furnaces Blow out existing condensate drain line lnstall new condensate overflow safety switch (Flood Protection) Connection of condensate drain line with proper trap New fused electrical disconnect box and wire from disconnect to unit Wire unit using existing electrical service (existing wiring from panel to disconnect box to remain) lnstallation & configuration of new Ecobee Thermostat Remove and replace decorative trim and/or bullnose for attic access Clean-up work area to customer's satisfaction Perform complete system start up to ensure proper operation Register unit for customer warranty

Your new HVAC system includes the following warranties:

l0 Year manufacturer's parts warranty Year labor warranty Year manufacturer's compressor warranty

CUSTOM ER AUTHORIZATION

AUTHORIZATION TO PROCEED WITH ABOVE RECOMMENDATION - l, the undersigned, am owner/authorized representative/tenant of the premises at which the work mentioned above is to be done. I hereby authorize you to perform Recommendation, and to use such labor and materials as you deem advisable. lhave read, understand, and agree to all of the terms stated here. I understand that all work performed is C.O.D. unless arrangements were made, prior to work being started. All collection and legal expenses are to be paid by the purchaser when past due invoices are submitted for collection through agency, attorney or court. There will be a $25 NSF fee charged on all returned checks. All sales are final. ln the event that the purchaser terminates this agreement less than 72 hours prior to the scheduled installation date the purchaser agrees to pay a $500 (per system) cancellation and restocking fee. lf at time of installation and system start up there are any outstanding follow up items such as but not limited to drywall repail accessory installation, filter grille replacement, etc. 95% of the contract total will be collected on the day of installation and purchaser will reserve 5% of the contract total to be paid at completion of these items. I hereby authorize you to proceed

Oocusign Envelope lO: AAF912OC-C72O4744-96 E3-061 31 t AAA04B Received by Investigations 12/18/2023 2023-14395 with above work at the Contract Price.

Terms & Conditions These terms and conditions are between the Purchaser(s) and State Forty-Eight Home Comfort LLC 1. No other work except as specified herein will be performed. Work will begin following approval of Purchaser's credit. 2. Purchaser grants to State Forty Eight Home Comfort LLC a security interest and lien on all materials or goods covered by this agreement and said materials or goods shall not be deemed to constitute a part of the realty to which it may be attached until the purchase prices is paid in full. State Forty-Eight Home Comfort LLC hereby acknowledges that it is not retaining a securaty interest in any real property and hereby waives any such security interest in said real estate which may be authorized under applicable state law. State Forty- Eight Home Comfort LLC is given express lien upon said materials or goods notwithstanding the manner in which said materials or goods are annexed or attached to the realty. ln the event of default by the Purchaser(s), including, but not limited to payment, of any amounts due and payable, State Forty-Eight Home Comfort LLC, may at once (and without process of law) take possession of and remove, as and when it sees fit and wherever found, all materials or goods called for in this agreement without being guilty of trespassing. 3. The sale is final. State Forty-Eight Home Comfort LLC or the installation contractor does not and will not install or furnish any labor material or labor on a trial basas. State Forty-Eight Home Comfort LLC or the installation contractor shall not be responsible for conditions resulting from existing facilities, proper drainage, water supply, electrical power, pump, sand in the water supply, condensation, weather, and other conditions beyond its control. Purchaser(s) shall be responsible for weather protection. State Forty-Eight Home Comfort LLC or the installation contractor shall not be responsible for any damages caused by the malfunction of merchandise, goods or materials, or delay due to strikes, fire, accidents, material shortages, acts of God, or any other causes. 4. lt is agreed that the terms of this agreement shall be construed according to the laws of the State of Arizona. 5. Any action arising out of, or concerning, this agreement shall be brought in the State (City Court of Phoenix, AZ) or Federal (Western District of Arizona, Southwest Division) Courts located in Maricopa County, Arizona, and the parties hereto consent to the iurisdiction of said court(s) and that this paragraph shall supersede any conflicting choice of law rules. 6. lf either party to this agreement shall default in their performance under this agreement, which default results in the expenditure of attorney's fees to enforce the terms of this agreement or to recover damages for breach of this agreement. The prevailing party shall receive their reasonable and actually incurred attorney's fees in addition to any other damages recovered. 7. Past due accounts are subject to a one and one-half (1112%l per month late charge. 8. Purchaser(s) acknowledge that no payment for referrals have been made or offered as an inducement for this purchase. 9. State Forty-Eight Home Comfort LLC reserves the right to cancel agreement and return any deposit made by Purchaser(s) in the event Purchaser's credit is found to be unsatisfactory. 10. This agreement constitutes and expresses the entire agreement between the parties. All other promises, undertakings, agreements, whether written or oral, are merged in this agreement. 11. Purchaser(s) represent that they are the owners(s) of the property address listed on the quote attached. 12. ln the event any part of this agreement is found to be void or in violation of any law, the remaining provisions of this agreement shall nevertheless be binding with the same effect as thought the void or unlawful parts were deleted.

,utu

Docusign Envelope lD AEF912DC-C7204144-9EE3-06131 1AAA04B Received by Investigations 12/18/2023 2023-14395

ts DEVELOPMENT CONSTRUCTION

SUBCONTRACTOR AGREEMENT This Subcontractor Agreement is entered into on j9'ajf , j92 3- by and between Bonum Development & Construction ("General Contractor") and State 48 Home Comfort ("Subcontractor") who agree as follows:

1. AGREEMENT General Contractor and Subcontractor wish to enter into the following Contract whereby Subcontractor shall furnish labor and materials as addressed in the Subcontractor's proposal attached to this agreement in accordance with the architectural drawings referenced below. Subcontractor will be responsible for the labor and materials as outlined in their proposal at the cost referenced unless otherwise noted.

Project Name and Address: cheba Hut 4912 E shea Blv phoenix, Az 85254

Architect (if applicable) leffery aaker

Project Number (if applicable) . cBH221l,

Plan Date (if applicable): 06/27 /2023

General Contractor Name and Address: Bonum Development & Construction 2820 S. Alma School Rd. 18-456 Chandler, A285286

Sub-Contractor Company

state Forty Eight Home comfort LLc

Company Representative: L{illiam D swartz rr

2. CONTRACTPRICE General Contractor shall pay Subcontractor a total p rice of $ '916 in exchange for work referenced in the Subcontractor's proposal attached and/or as discussed.

3. DRAWINGS & SUBMITTALS Drawings, plans, submittals and/or specifications for this project are attached, if applicable. If attached, General Contractor and Subcontractor agree that they have carefully examined these Drawings and agree that they are complete and accurate. If not attached, submittals must be approved by the General Contractor and the owner of the project before purchasing. Docusign Envelope lD ABF912DC-C12047 44-9E E3-061 31 1AAA04B Received by Investigations 12/18/2023 2023-14395

All work must be performed per pians unless discussed and approved by the General Contractor before the work is performed.

4. TERMANDSCHEDULE To complete in compliance with the schedule attached. Al1 Sub Contractors are required to speak with the GC regarding the schedule before their scope of work begins. If the project schedule is not attached in this agreement, you must reach out to the General Contractor to request a schedule before your work can begin.

Subcontractor will work according to the project schedule. Subcontractor agrees to complete their work according to the project schedule. Subcontractor is responsible for notifying General Contractor of any delay in performance immediately upon Subcontractor's knowledge that performance under this Agreement will be delayed. Subcontractor may be financially liable for any project delays caused by their work or lack of. Subcontractor will be scheduled a window of time to complete their scope of work for each phase. The Subcontractor MUST start on the first day assigned in their schedule. They can utiiize all scheduled days in their schedule or work faster but they MUST start on the first day assigned for each phase. The Subcontractor does not have the authority to change the scheduie or create their own schedule to accommodate their personal convenience unless authorized by the General Contractor.

Should the Subcontractor's performance of the Work be delayed or interfered with as a result of actions by the owner, General Contractor, or another subcontractor, Subcontractor is entitled to request an extension of time for the performance of their Work but this agreement does not guarantee approval of the request for extension of time. Subcontractor funher agrees that the extension of time for performance of this Project shall not be permitted without the General Contractor's wdtten consent, which shall not be unreasonably withheld.

5. PAYMENT Payment shall be made by the General Contractor to the Subcontractor according to the following Payment Plan:

See Pavment terms attached-

**1070 retention balance can p1q!q!!y be held until after the General Contractor completes the project, the project is inspected and approved by the owner, the city (if necessary) and the General Contractor if the General Conuactor has been paid by the owner completely for the project+*

The General Contractor does reserve ttre right to withhold 10%o retention of Subcontractor payment and will issue a final check to the subcontractor for any balances owed, once the subcontractor's work has been approved by the owner and general contractor and the general contractor has received the final payment from the owner. Received by Investigations Oocusrgn Envelope lD. ABF912DC-C72047 44-9EE3-06131 t AAA04B 12/18/2023 2023-14395

General Contractor and Subcontractor agree that, if payment is not made according to the above Payment Plan, Subcontractor is entitled to stop work until payment is current and up to date.

6. LICENSINGANDINSURANCE Subcontractor certifies that they hold all necessary licensing and insurance required to perform the work required for this Project and will only hire subcontractors who are properly licensed, if any.

7. SUBCONTRACTOR'S OBLIGATIONS TO GENERAL CONTRACTOR Upon request, subcontractor agrees to provide General Contractor with a list of any and all subcontractors and suppliers Subcontractor hires and if necessary, agrees to update said list throughout the life of the Project. Subcontractor agrees to work with General Contractor when scheduling and will make every effort to avoid conflicts and interference with the General Contractor's work, as well as the work ofany other subcontractors. Subcontractor will make available any information necessary for Subcontractor's subcontractors and suppliers to provide any notice required or contemplated by this state's mechanics lien laws. All subcontractors must sign a lien waiver upon final payment.

8. CLAIMS

General Contractor and Subcontractor both agree to attempt to resolve any and all disputes on this Project in good faith prior to filing legal action. Further, Subcontractor will immediately noti& General Contractor upon becoming aware of a dispute with Subcontractor's subcontractors and suppliers.

9. SUBCONTRACTORS

Subcontractor shall be fully responsible for all acts and omissions of its subcontractors, suppliers, and other persons furnishing any work for Subcontractor on this Project

10. MATERIALS AND EQUIPMENT Unless otherwise noted in this Agreement, the Subcontractor will be responsible for securing all necessary materials and equipment for the Subcontractor's Work on this Project and will be responsible for the costs thereof.

11. PROJECTSITE Sub-contractor agrees to keep the Project site reasonably clean and to leave the site free of any debris, equipment, materials, etc. resulting from Subcontractor's Work at the completion oithis Project.

12. CHANGE ORDERS, AMENDMENTS, ALTERATIONS TO CONTRACT Any change order, amendment, or alteration to this Agreement or the project Drawings must be agreed to by the General Contractor and Subcontractor in writing before any purchases or work pertaining to perspective change order, amendment or alteration can move forward. DocuSrgn Envelope lD ABF912DC-C7 2047 44-96 E3-061 3 t 1AAAO4 B Received by Investigations 12/18/2023 2023-14395

14. TERMINATION BY GENERAL CONTRACTOR If the Subcontractor breaches any obligation created by this Agreement or the attached Drawings (if any), General Contractor may give the Subcontractor a Notification of Breach which provides Subcontractor notification identifying the breach, in writing. Upon receipt of such Notification of Breach, Subcontractor will have seven (3) days to cure the breach. If the breach cannot be cured in seven (3) days, the General Contractor is entitled to terminate this Agreement and charge the Subcontractor for any material or iabor expenses caused by this breach. Alternatively, the Owner may cure the breach and deduct the cost of curing the breach from the amounts otherwise owed to the General Contractor. Regardless of Termination, General Contractor will be liable to make payments owed and unpaid to Subcontractor for the work performed prior to Termination.

15. SEVERABILITY

If any provision of this Agreement should be found invalid or unenforceable, that provision should be severed from the Agreement and shall have no effect on the remaining provisions of this agreement.

This Agreement is subject to the laws and regulations of the state of Arizona.

16. CONTRACT/PROJECT SPECIFICS (lf Applicable)

subcontractor understands that the install for this contract needs to start no later than septembe l-5, 2023 DS

il"tlt*',

8/23/2023 Gerald General Contractor Representative Signature Date

Bonum DC 2820 S. Alma School 18-456 Chandler. AZ General Contractor Address

william D swartz I1 t-,lrjr+, 8 /23 /2023

Subcontractor Representative Signature Date wi l.l i am swartz wi l I. swartz@state48hc. com

Subcontractor Company Name Email DocuSrgn Envelope lD. ABF912OC-C1204744-96E3-06131 lAAAO4B Received by Investigations 12/18/2023 2023-14395

DEVELOPMENT ts CONSTRUCTION Bonum Development & Construction / Ohana Construction Management

Sub-Contractor Payment Terms

Before any payments will be issued, all sub-contractors must be properly onboarded which includes

o Presenting your W9 . Presenting your Company Contractor Certificate of lnsurance with Bonum Development & Construction listed as Additional lnsured . Opting in for one of the following ACH Payment Methods: 1. Filling out Bonum's euickbooks ACH online payment form 2. Emailing Bonum an online link, attached to your invoice, that allows Bonum to make ACH bank to bank payments

All contracts must be signed before any payments will be issued

Pay outs and Progression Payment are as follows:

Bonum Projects with duration less than 30 days -

. Sub-contractors will be paid on or about 14 business days after approval of the Sub-contractor's work and/or passing any necessary inspections. This includes any approved and completed change orders.

Bonum Projects with duration longer than 30 days -

o Sub-contractors must submlt invoices no later than the 25th of each month. . Sub-contractors will be paid on or about the 15th of the following month as long as Bonum DC has been paid in a timely manner by the client. This includes any approved and completed change orders. . Sub-contractors must submit invoices no later than the 25th of each month in order to be paid in a timely ma nner Please note that a sub-contractor's initial estimates or bids are not considered an tnvotce.

Deposits:

. We Do Not lssue Deposits.

Bulk Purchase options for Materials, Fixtures and Equipment:

. Bonum DC or the Client can purchase directly with vendors and distributors. . Sub-Contractors can purchase directly with vendors and distributors with their own terms or accounts but must show proof of purchase at any time upon the request of Bonum DC.

JiL oW-. DocuSign Envelope lD: A8F912OC-C7204744-98E3-06131 1AAA04B Received by Investigations 12/18/2023 2023-14395

AMENDMENT V1

SUBCONTRACTOR - STATE 48 OWNER - WILL SWARTZ

PROJECT: - CHEBA HUT TATUM/SHEA PROJECT ADDRESS: 4912 E. SHEA BLVD. SCOTTSDALE, AZ

RE: Additional Compensation; Deadline for Payment

This Amendment is for the purpose of providing additional compensation to State 48 owned by Wll Swartz. The additional compensation of $7500.00 is for the work provided by State 48 for the Cheba Hut Tatum/Shea project. This amendment and compensation is to be considered a part of the original Mechanical HVAC contract held between State 48 and Bonum forthe Cheba Hut Tatum/Shea poect and falls under the same governing rules of Arizona.

This Amendment is also for the purpose of providing a deadline for payment and late penalties if the entire contract amount, including the additional compensation, is not paid in full by December 15,2023. Furthermore, Bonum agrees to make a $7500.00 payment no laterthan Saturday, December 2, 2023. Late fee penalties of $150 per day will apply for Bonum's failure to meet either deadline.

ln return, State 48 agrees to complete the Cheba Hut Tatum/Shea project including all test and balancing no later than December 6, 2023.

The original contract is attached to this Amendment

Gerald Turner

anLIirur.r 2023 DocuSign Envelope lD: DECBTD4E-Co38-433A-88CA6787180201 DF Received by Investigations 12/18/2023 2023-14395 [EI]DEVELOPMENT IIJ]CONSTRUCTION

SUBCONTRACTOR AGREEMENT This Subcontractor Agreement is entered into on August 23, 2023 . by and between Bonum Development & Construction ("General Contractor") and State Forty Eight Home comfo.t LLc ("Subcontractor") who agree as follows:

1. AGREEMENT General Contractor and Subcontractor wish to enter into the following Contract whereby Subcontractor shall fumish labor and materials as addressed in the Subcontractor's proposal attached to this agreement in accordance with the architeotural drawings referenced below. Subcontractor will be responsible for the labor and materials as outlined in their proposal at the cost referenced unless otherwise noted.

Project Name and Address cheba Hut 4912 E shea Blv, phx Az 85254

Architect (if applicable): Jeffery aaker

Project Number (if applicable): cBH2211

Plan Date (if applicable) 6-27 -2023

General Contractor Name and Address: Bonum Development & Construction 2820 S. Alma School Rd. 18-456 Chandler. A285286

Sub-Contractor Company state 48 Home comfort

Company Representative wi l 1i am D swartz rr

]. CONTRACT PRICE General Contractor shall pay Subcontractor a total price of $ 34, 538. 86 in exchange fbr work referenced in the Subcontractor's proposal attached and/or as discussed

3. DRAWINGS & SUBMITTALS Drawings, plans, submittals and/or specifications lor this project are attached, ifapplicable- Il attached, General Contractor and Subcontractor agree that they have carefully examined these Drawings and agree that they are complete and accurate. Ifnot attached, submittals must be approved by the General Contractor and the owner ofthe project before purchasing. DocuSrgn Envelope lD: DEC 87D4E-C038-433A-6 BCA-[number redacted] OF Received by Investigations 12/18/2023 2023-14395

All work must be performed per plans unless discussed and approved by the General Contractor before the work is performed.

4. TERMANDSCHEDULE To complete in compliance with the schedule attached. All Sub Contractors are required to speak with the GC regarding the schedule before their scope of work begins. Ifthe project schedule is not attached in this agreement, you must reach out to the General Contractor to request a schedule before your work can begin.

Subcontractor will work according to the project schedule. Subcontractor agrees to complete their work according to the project schedule. Subcontractor is responsible for notifuing General Contractor ofany delay in performance immediately upon Subcontractor's knowledge that performance under this Agreement will be delayed. Subcontractor may be financially liable ior any project delays caused by their work or lack of. Subcontractor will be scheduled a window of time to complete their scope of work for each phase. The Subcontractor MUS'I'start on the first day assigned in their schedule. They can utilize all scheduled days in their schedule or work faster but they MUST start on the first day assigned lor each phase. The Subcontractor does not have the authority to change the schedule or create their own schedule to accommodate their personal convenience unless authorized by the General Contractor.

Should the Subcontractor's performance of the Work be delayed or interfered with as a result of actions by the owner, General Contractor, or another subcontractor, Subcontractor is entitled to request an extension of time for the perlormance of their Work but this agreement does not guarantee approval of the request for extension of time. Subcontractor further agrees that the extension of time for performance ofthis Project shall not be permitted without the General Contractor's written consent, which shall not be unreasonably withheld.

5. PAYMENT Payment shall be made by the General Contractor to the Subcontractor according to the following Payment Plan:

See Payment terms attached.

** 1070 retention balance can p!q1fu!!y be held until after the General Contractor completes the project, the project is inspected and approved by the owner, the city (if necessary) and the General Contractor if the General Contractor has been paid by the owner completely for the projectt *

The General Contractor does reserve the right to withhold 100% retention of Subcontractor payment and will issue a final check to the subcontractor for any balances owed, once the subcontractor's work has been approved by the owner and general contractor and the general contractor has received the final payment from the owner. DocuSrgn Envelope lD. DECBTD4E-Co38-433A-EBCA-67 87 i 60201 DF Received by Investigations 12/18/2023 2023-14395

General Contractor and Subcontractor agree that, if payment is not made according to the above Payment Plan, Subcontractor is entitled to stop work until payment is current and up to date.

6. LICENSINGANDINSURANCE Subcontractor certifies that they hold all necessary licensing and insurance required to perforrn the work required for this Project and will only hire subcontractors who are properly licensed, if any.

7. SUBCONTRACTOR'S OBLIGATIONS TO GENERAL CONTRACTOR Upon request, subcontractor agrees to provide General Contractor with a list ofany and all subcontractors and suppliers Subcontractor hires and ilnecessary, agrees to update said list throughout the life ofthe Project. Subcontractor agrees to work with General Contractor when scheduling and will make every effort to avoid conflicts and interference with the Oeneral Contractor's work, as well as the work ofany other subcontractors. Suboontraotor will make available any information necessary for Subcontractor's subcontractors and suppliers to provide any notice required or contemplated by this state's meohanics lien laws. All subcontractors must sign a lien waiver upon final payment.

8. CLAIMS

General Contractor and Subcontractor both agree to attempt to resolve any and all disputes on this Project in good faith prior to filing legal action. Further, Subcontractor will immediately notif, General Contractor upon becoming aware of a dispute with Subcontractor's subcontractors and suppliers.

9. SUBCONTRACTORS

Subcontractor shall be fully responsible fbr all acts and omissions of its suboontractors, suppliers, and other persons fumishing any work for Subcontractor on this Project

I1. PROJECTSITE Sub-contractor agrees to keep the Project site reasonably clean and to leave the site free ofany debris, equipment, materials, etc. resulting from Subcontractor's Work at the completion of this Project.

12. CHANGEORDERS,AMENDMENTS,ALTERATIONSTOCONTRACT Any change order, amendment, or alteration to this Agreement or the project Drawings must be agreed to by the General Contractor and Subcontractor in writing before any purchases or work pertaining to perspective change order, amendment or alteration can move fbrward. Oocusign Envelope lD' DECBTD4E-C038-433A-6BCA-67871EO2O1DF Received by Investigations 12/18/2023 2023-14395

I4. TERMINATIONBYGENERALCONTRACTOR

Ifthe Subcontractor breaches any obligation created by this Agreement or the attached Drawings (ifany), General Contractor may give the Subcontractor a Notification of Breach which provides Subcontractor notification identifiing the breach, in writing. Upon receipt ofsuch Notification of Breach, Subcontractor will have seven (3) days to cure the breach. If the breach cannot be cured in seven (3) days, the General Contractor is entitled to terminate this Agreement and charge the Subcontractor for any material or labor expenses caused by this breach. Altematively, the Owner may cure the breach and deduct the cost ofcuring the breach from the amounts otherwise owed to the General Contractor. Regardless of 'l'ermination, General Contractor will be liable to make payments owed and unpaid to Subcontractor for the work performed prior to Termination.

15. SEVERABILITY

Ifany provision of this Agreement should be found invalid or unenforceable, that provision should be severed from the Agreement and shall have no effect on the remaining provisions of this agreement.

This Agreement is subject to the laws and regulations ofthe state of Arizona

16. CONTRACITPROJECl SPECIFICS (If Applicable)

ay signing this agreement, the sub-contractor agrees to start instal.lation no 'later than september 13, 2023 and also communicate with Bonum project manager regarding the schedule within 48 hours of signing this document. os

h,rx

Gerald Tumer 4-.) 8/23/2023 General Contractor Representative Signature Date

Bonum DC 2820 S. Alma Schoo I Rd l8-456 Chandler. AZ General Contractor Address

wi'lIiam D swartz rr illlLa),;€ 8 /23 / 2023

Subcontractor Representative Signature Date state Forty Eight Home comfort LLC wi I I . swartz@state48hc. com

S ubcontractor Company Name Email DocuSign Envelope lD 861B47Al 4 1 1E4O21-8222-700861361ocs Received by Investigations 12/18/2023 2023-14395

ts DEVELOPMENT CONSTRUCTION

SUBCONTRACTOR AGREEMENT This Subcontraotor Agreement is entered into on septe ber 12, 2023 by and between Bonum Development & Construction ("General Contractor") and state Forty Eight Home comfort LLc ("Subcontractor") who agree as follows

I. AGREEMENT General Contractor and Subcontractor wish to enter into the following Contract whereby Subcontractor shall lumish labor and materials as addressed in the Subcontractor's proposal attached to this agreement in accordance with the arohitectural drawings referenced below. Subeontractor will be responsible for the labor and materials as outlined in their proposal at the cost referenced unless otherwise noted.

Project Name and Address: Nekter 200 w comi: *d t"t: 1oljg:a creek 85140 Architect (if applicabte) Fl atr ron G roup

Project Number (if applicable): J L- 002

Plan Date (if applicable) 7 /27 /2023

General Contractor Name and Address: Bonum Development & Construction 2820 S. Alma School Rd. l8-456 Chandter. AZ 85286

Sub-Contractor Company

state Forty Ei qht Home comfort LLC

Company Representative:

william D sv'/artz rr

2. CONTRACT PRICE General Contractor shall pay Subcontractor a total p rice of $ 23,849 in exchange for work referenced in the Subcontractor's proposal attached and/or as discussed

3. DRAWINGS & SUBMITTALS Drawings, plans, submittals and/or specifications for this project are attached. ifapplicable. If attached, General Contractor and Subcontractor agree that they have carelully examined these Drawings and agree that they are complete and accurate. llnot attached. submittals must be approved by the General Contractor and the owner olthe project before purchasing. DocuSrgn Envelope lD 861B4l Cl -111E4O21-E222-7 00A61361AC' Received by Investigations 12/18/2023 2023-14395

All work must be performed per plans unless discussed and approved by the General Contractor before the work is performed.

4. TERMANDSCHEDULE To complete in compliance with the schedule attached. All Sub Contractors are required to speak with the GC regarding the scheduls before their scope ofwork begins. lf the project schedule is not attached in this agreement, you must reaoh out to the General Contractor to request a schedule before your work can begin.

Subcontractor will work according to the project schedule. Subcontractor agrees to complete their work according to the project schedule. Subcontractor is responsible for notifying General Contractor ofany delay in performance immediately upon Subcontractor's knowledge that performance under this Agreement will be delayed. Suboontractor may be financially liable for any project delays caused by their work or lack of. Subcontractor will be scheduled a window of time to complete their scope of work for each phase.'I'he Subcontractor MUS'I'start on the first day assigned in their schedule. They can utilize all scheduled days in their schedule or work faster but they MUST start on the hrst day assigned for each phase. 'fhe Subcontractor does not have the authority to change the schedule or create their own schedule to accommodate their personal convenience unless authorized by the General Contractor.

Should the Subcontractor's performance ofthe Work be delayed or interfered with as a result of actions by the owner, General Contractor, or another subcontractor, Subcontractor is entitled to request an extension of time lor the performance oftheir Work but this agreement does not guarantee approval ofthe request for extension of time. Subcontractor further agrees that the extension of time for performance of this Project shall not be permitted without the General Contractor's written consent, which shall not be unreasonabty withhetd.

5. PAYMENT Payment shall be made by the General Contractor to the Subcontractor according to the following Payment Plan:

See Payment terms attached.

** 107o retention balance can rrotentially bc held until afier the General Contractor com pletes the project, the project is inspected and approved by the owner, the city (if necessary) and the General Contractor if the General Contractor has been paid by the owner completely for the project* *

The General Contractor does reserve the right to withhold 10o% retention of Subcontractor payment and will issue a final check to the subcontractor for any balances owed, once the subcontractor's work has been approved by the owner and general contractor and the general contractor has received the final payment from the owner. Docusrgn Envelope lO. 86 1 B'41 C7 -1 1 1 E4D2j -8222-t OOA 36 1 OCs Received by Investigations 12/18/2023 2023-14395

General Contractor and Subcontractor agree that, if payment is not made according to the above Payment Plan, Subcontractor is entitled to stop work until payment is current and up to date.

7. SUBCONTRACTOR'S OBLIGATIONS TO GENERAL CONTRACTOR Upon request, subcontractor agrees to provide General Contractor with a list ofany and all subcontractors and suppliers Subcontractor hires and if necessary, agrees to update said list throughout the life ofthe Project. Subcontractor agrees to work with General Contractor when scheduling and will make every effort to avoid conflicts and interference with the General Contractor's work, as well as the work ofany other subcontractors. Subcontractor will make available any information necessary lor Subcontractor's subcontractors and suppliers to provide any notice required or contemplated by this state's mechanics lien laws. All subcontractors must sign a lien waiver upon final payment.

8. CLAIMS

General Contractor and Subcontractor both agree to attempt to resolve any and all disputes on this Project in good faith prior to filing legal action. Further, Subcontractor will immediately notifu General Contractor upon becoming aware of a dispute with Subcontractor's subcontractors and suppliers.

9. SUBCONTRACTORS

Subcontractor shall be fully responsible for all acts and omissions of its suboontractors, suppliers, and other persons fumishing any work lor Subcontractor on this Projeot

10. IT{ATERIALS AND EQUIPMENT Unless otherwise noted in this Agreement, the Subcontractor will be responsible for seouring all necessary materials and equipment for the Subcontractor's Work on this Project and wilt be responsible for the costs thereof.

I I- PROJECT SITE Sub-conkactor agrees to keep the Project site reasonably clean and to leave the site free ofany debris, equipment, materials, etc. resulting from Subcontractor's Work at the completion of this Project.

12. CHANGE ORDERS, AMENDMENTS, ALTERATIONS TO CONTRACT Any change order, amendment, or alteration to this Agreement or the project Drawings must be agreed to by the General Contractor and Subcontractor in writing before any purchases or work pertaining to perspective change order, amendment or alteration can move forward. DocuSign Envelope lD 861 B,47 C7 -1 1 1E4O21 -E222-1 00B61361OC' Received by Investigations 12/18/2023 2023-14395

14. TERMINATION BY GENERAL CONTRACTOR Ifthe Subcontractor breaches any obligation created by this Agreement or the attached Drawings (ifany), General Contractor may give the Subcontractor a Notihcation ofBreach which provides Subcontractor notification identifying the breach, in writing. Upon receipt ofsuch Notification of Breach, Subcontractor will have seven (3) days to cure the breach. Ifthe breach cannot be cured in seven (3) days, the General Contractor is entitled to terminate this Agreement and charge the Subcontractor for any material or labor expenses caused by this breach. Altematively, the Owner may cure the breach and deduct the cost of ouring the breach from the amounts otherwise owed to the General Contractor. Regardless of Termination, General Contractor will be liable to make payments owed and unpaid to Subcontractor for the work performed prior to Termination.

15. SEVERABILITY

If any provision ofthis Agreement should be found invalid or unenforceable, that provision should be severed from the Agreement and shall have no effect on the remaining provisions of this agreement.

This Agreement is subject to the laws and regulations olthe state of Arizona

16. CONTRACT/PROJECT SPECIFICS (lf Applicable)

Per schedule provided by Bonum

,* 9/L2/2023 Gerald Turner General Contractor Representative Signature Date

Bonum DC h I Rd l8-456 Chandle General Contraotor Address

william D swartz fr 9/72 /2023

Subcontractor Representative Signature Date state Forty Eight Home comfort LLC wi I I . swartz@state48hc. com

Subcontractor Company Name Email [number redacted]ÿ4744ÿ89 ÿÿ ÿ9 ÿÿÿÿ7ÿ1140Received 4! Legal 12/27/2023 <=>?@ÿB=CÿD?E@ÿFÿGHIJKÿL@=>?@M=CN?E@OPQRS?TS>QUV

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" #722 $$%2 2&2'()*+0,$-.+/101/(21!03031/39 +'45 2)26227.8-4 & - 9:*89# %"8 9 ; 021 [number redacted]ÿ4744ÿ89 ÿÿ ÿ9 ÿÿÿÿ7ÿ1140Received 4! Legal <=>?@Aÿ=CÿDEEAFGFH@AÿIJKLKMLKNOPEQC 12/27/2023 011R SATE=HTAÿ>=ÿ<=LUFVÿW=XEYF?H>ÿIZ>F>Aÿ[=G>Vÿ\?]^>OÿIJKLKMLKNOPEQC 140R

" #722 $$%2 2&2'()*+0,$-.+/101/(21!03031/39 +'45 2)26227.8-4 & - 9:*89# %"8 9 ; 121 Received Legal 12/27/2023

William H. Breier (029626) RADIX LAW 15205 N. Kierland Blvd., Suite 200 Scottsdale, AZ 85254 [email redacted] (602) 606-9300 Attorneys for Respondent

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA STATE FORTY EIGHT HOME Case No. 2023-14395 COMFORT LLC, License No. 332214, NOTICE OF APPEARANCE OF COUNSEL Complainant, v.

BONUM DEVELOPMENT & CONSTRUCTION, LLC doing business as BONUM DEVELOPMENT & CONSTRUCTION aka BONUM DC, License No. 344755, Respondent.

William H. Breier of Radix Law hereby gives notice of his appearance as counsel of record for Respondent Bonum Development & Construction, LLC dba Bonum Development & Construction aka Bonum DC (“Respondent”). Please direct all future filings, correspondence, and all other communications on behalf of Respondent to Mr. Breier at the address listed above. DATED: December 27, 2023. RADIX LAW

/s/ William H. Breier William H. Breier Attorneys for Respondent 1553008.1 Received Legal 12/27/2023

Original e-mailed/mailed on December 27, 2023, to: REGISTRAR OF CONTRACTORS P.O. Box 18244 Phoenix, AZ 85005-8243 [email redacted] Copy e-mailed/mailed same date to: State Forty Eight Home Comfort LLC 8722 N. 83rd Drive Peoria, AZ 85345 [email redacted] Complainant By: /s/ Kelsey Slocum

1553008.1 Received Legal 12/27/2023

William H. Breier (029626) RADIX LAW 15205 N. Kierland Blvd., Suite 200 Scottsdale, AZ 85254 [email redacted] (602) 606-9300 Attorneys for Respondent

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA STATE FORTY EIGHT HOME Case No. 2023-14395 COMFORT LLC, License No. 332214, RESPONSE TO NO-PAY COMPLAINT Complainant, v.

BONUM DEVELOPMENT & CONSTRUCTION, LLC doing business as BONUM DEVELOPMENT & CONSTRUCTION aka BONUM DC, License No. 344755, Respondent.

Respondent Bonum Development & Construction, LLC dba Bonum Development & Construction aka Bonum DC (“Bonum”) files this Response to the No-Pay Complaint filed by Complainant State Forty Eight Home Comfort LLC (“State Forty Eight”) on or about December 15, 2023 (“Complaint”). For the reasons set forth below, the Complaint should be dismissed without any further action taken. I. RELATIONSHIP OF THE PARTIES Bonum is a duly licensed contractor which currently holds a General Dual KB-2 Dual Residential and Small Commercial license. State Forty Eight’s holds a Specialty Dual CR-39 CR-10 Air Conditioning and Refrigeration license. The Complaint arises out of two projects known as Nektar located at 200 W. Combs Road Suite 109 Queen Creek, 1552902.1 Received Legal 12/27/2023

AZ 85140 (“Nektar Project”) and Cheeba Hut located at 4912 E. Shea Blvd., Phoenix, AZ 85254 (“Cheeba Hut Project”). 1 Bonum was the general contractor and State Forty Eight was the HVAC subcontractor the both Projects. II. THE COMPLAINT SHOULD BE DISMISSED In the Complaint, State Forty Eight alleges that Bonum owes payment on the following four invoices: • Invoice 0841 - $23,849.00 • Invoice 0831 - $20,881.85 • Invoice 0820 - $37,915.89 • Invoice 0819 - $34,538.86 Invoice 0841 relates to the Nektar Project. The other invoices relate to the Cheeba Hut Project. Regardless, as set forth below, pursuant to the agreed upon payment terms between the parties, the Complaint should be dismissed without further action taken. Bonum Has Not Been Paid on the Projects State Forty Eight and Bonum entered into written subcontract agreements entitled “Subcontractor Agreement” on each of the Projects. Indeed, State Forty Eight provided a copy of these Subcontractor Agreement for the Projects with its Complaint. Each Subcontractor Agreement references specific payment terms, and provides:

Hereinafter, the Nektar Project and Cheeba Hut Project are collectively referred to as “the Projects.” 1552902.1 Received Legal 12/27/2023

Bonum’s Payment Terms were also provided with the Complaint and state, in pertinent part:

(Highlight added). State Forty Eight acknowledged and signed these Payment Terms. The Projects are/were both longer than 30 days in duration. As a result, Bonum’s Payment Terms amount to a customary “pay when paid” provision. These terms make Bonum’s payment obligations to subcontractors (like State Forty Eight) expressly conditioned on when payment is received payment from the Project Owner. Bonum has not been paid in full by its Client (the Project Owner) for either of the Projects. Bonum is currently finishing up both Projects and anticipates submitting final pay applications in the next 30 days, which include the amounts claimed in the Complaint. Enclosed as Exhibit 1 is an email from Bonum’s Owner to undersigned counsel confirming that Bonum has not yet received final payment on the Projects. Pursuant to the “pay when paid” contract provision cited above, payment to State Forty Eight (or any subcontractor) is not yet due. As a result, the Complaint should be dismissed. III. CONCLUSION As set forth above, the Complaint is completely without merit. Bonum has not been paid on the Projects for which State Forty Eight seeks payment on. State Forty Eight acknowledged and agreed that payment was expressly conditioned on Bonum receiving payment which has not happened yet. Bonum fully intends to pay State Forty Eight the money owed, but cannot do so until Bonum receives payment from the Project Owner/client. 1552902.1 Received Legal 12/27/2023

As such, Bonum requests for the Complaint to be dismissed without the ROC taking any further action taken. DATED: December 27, 2023. RADIX LAW

/s/ William H. Breier William H. Breier Attorneys for Respondent

1552902.1 Received Legal 12/27/2023

EXHIBIT 1 Received Legal 12/27/2023 From: Gerald Turner To: Will Breier Subject: [External] No-Pay Complaint issued in Case 2023-14395 ( Bonum + State 48) Date: Wednesday, December 27, 2023 10:29:17 AM Attachments: 20231220 Notice of No-Pay Complaint 2023-14395 MAIL.pdf

Will,

Please review the attached No Pay Complaint from State 48 via the ROC.

We are currently finishing up the Cheba Hut project located at 4912 E. Shea Blvd. and the Nekter project located at 200 W. Combs. We have not completed the projects 100% and have not received all final payments from the clients for either project.

Regards,

Gerald Turner Bonum 480-227-4704 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Case No. 2023-14395 State Forty Eight Home Comfort LLC,

COMPLAINANT, v. CITATION Bonum Development & Construction, LLC DBA: Bonum Development & Construction License No. ROC 344755, RESPONDENT.

The Registrar issues this Citation to Bonum Development & Construction, LLC DBA: Bonum Development and Construction (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by January 19, 2024, then under A.R.S. § 32-1155(C), Respondent’s failure to answer may be deemed an admission of the act or acts charged in the underlying complaint, and the Registrar may then suspend or revoke Respondent’s license(s). THE WRITTEN COMPLAINT On December 18, 2023, State Forty Eight Home Comfort LLC (“Complainant”) filed a written complaint with the Registrar. A copy of that Complaint is attached to this Citation. A FORMAL STATEMENT OF THE CHARGES AGAINST RESPONDENT The Registrar investigated this matter and finds cause to charge Respondent with violation(s) of Title 32, Chapter 10 of the Arizona Revised Statutes. Respondent is charged with violating: Charge :1 A.R.S. § 32-1154(A)(10) — Failure by a licensee or agent or official of a licensee to pay monies in excess of $750 when due for materials or services

of 5

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 rendered in connection with the licensee's operations as a contractor unless the licensee proves that the licensee lacks the capacity to pay and has not received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased.

If the matter proceeds to a hearing and the administrative law judge determines that any of the charges listed above are supported by a preponderance of the evidence, then Respondent’s license(s) may be subject to suspension or revocation, and Respondent may be subject to other penalties provided by law, including civil penalties under A.R.S. §§ 32-1154(E) and (F). FILING A WRITTEN ANSWER Respondent must appear by filing with the Registrar a written answer to the citation and complaint showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). Respondent’s written answer should contain the heading “Written Answer to Citation and Complaint” and should include the case number, which is Case No. 2023-14395. How to File a Written Answer: Respondent’s written answer may be submitted in the following ways: In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 Email: [email redacted] The Registrar’s normal office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday. If Respondent submits a written answer by mail, it is not filed with the Registrar until the Registrar actually receives it. Deadline for Filing a Written Answer: Respondent must file a written answer with the Registrar no later than January 19, 2024.

of 5

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 This deadline is calculated under A.R.S. §§ 32-1155(A) and (B), which provides a deadline ten days after service of the Citation. Service of the Citation and Complaint is complete five days after the Registrar mails a copy of the Citation and Complaint to Respondent’s latest address of record in the Registrar’s office. Consequences for Failing to File a Written Answer: If Respondent fails to answer, Respondent’s failure may be deemed an admission of the act or acts charged in the written complaint. A.R.S. § 32-1155(C). The Registrar may then suspend or revoke Respondent’s license(s). THE ADMINISTRATIVE HEARING If Respondent files a timely written answer contesting any charges in the Complaint, then the Registrar will request the Office of Administrative Hearings set a date for an administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D). RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 written document, created or expressed solely for the purpose of settlement negotiations, are inadmissible in the administrative hearing. A.R.S. § 41-1092.06(B). RESPONDENT’S PRIOR RECORD Under A.A.C. R4-9-117, in determining the appropriate discipline, the administrative law judge and the Registrar may consider not only facts in the current case, but also facts in prior cases and any documents regarding Respondent on file with the Registrar. Respondent’s prior disciplinary record and current license(s) status may be considered as a mitigating or aggravating factor in determining the appropriate discipline. EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to the Citation and Complaint, showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). This Citation does not constitute proof that any charge or allegation in Complainant’s written complaint is in fact true. This Citation does not constitute proof that Respondent violated any statutory provision or rule adopted by the Registrar. Dated January 4, 2024. By: /s/ Robert Stirling Robert Stirling Assistant General Counsel Legal Department Arizona Registrar of Contractors COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, January 4, 2024 to:

Respondent Certified Mail No: [number redacted]

Bonum Development & Construction, LLC DBA: Bonum Development & Construction 2820 S Alma School Rd #18-456 of 5

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Chandler, AZ 85286 Copy mailed by USPS First Class mail this same date to: Respondent Bonum Development & Construction, LLC DBA: Bonum Development & Construction 2820 S Alma School Rd #18-456 Chandler, AZ 85286 Respondent’s Attorney William H. Breier, Esq. Radix Law PLC 15205 N Kierland Blvd Ste. 200 Scottsdale, AZ 85254

Complainant State Forty Eight Home Comfort LLC 8722 N 83rd Dr. Peoria, AZ 85345

Copy sent electronically this same date to: Respondent at email address on record with the Registrar Respondent’s Attorney at email address of record with Registrar Complainant at email address on record with the Registrar

Case No. 2023-14395/tq

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 December 20, 2023

Via U.S. Mail and Email

Complainant State Forty Eight Home Comfort LLC 8722 N 83rd Dr Peoria, AZ 85345

Via U.S. Mail and Email

Respondent Bonum Development & Construction, LLC DBA: Bonum Development & Construction 2820 S Alma School Rd #18-456 Chandler, AZ 85286

Re: Complaint No. 2023-14395

Dear Complainant and Respondent:

Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Email: [email redacted]

The Registrar will not issue a citation before December 27, 2023 and will review Respondent’s response, if one is submitted.

Sincerely,

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 /s/ Tedi Quezada ________________ Tedi Quezada Legal Department 1700 W Washington St. Ste 105 Phoenix, AZ 85007

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 Received by Investigations 12/18/2023 2023-14395

Non-Payment Complaint Form Deoartmental Use Onlv Complaint Number: Mail to: Registrar of Contractors P.O. Box 18243 kJa\\( in Phoenix, AZ 85005-8243

Name of Attomey (if any)

Attomey's Street Address City State Zip Cctde

Attornev's Phone Number Attoney's Email Address

Have you filed a civil complaint? Yes tr (lf yes, provide a copy of the civiliudgment) No=

List all specific invoices which have not been paid. Aftach additional pages if ne(essary I

lnvoice 841 $23,849.00 lnvoice 831 $20,881.85 lnvorce 820 $37,915.89 l lnvoice 819 $34,538.80

State Forty Eight INVOICE

rNVOtCE0841 Home Comfort LLC DATE 11754 W Electra Lane Sep14,2023 Sun City, AZ 85373 State4SY www.state4Shc.com DUE

[number redacted] On Receipt www.state4Shc.com BALANCE DUE statefortyeightcomfort@gmail. usD $23,849.00 com

BILL TO

Bonum DC Nektar 200 W Combs Rd Suite #109 [email redacted]

DESCRIPTION RATE QTY AMOUNT

Payment lnfo TOTAL $23,849.00

Scan this code to pay online BALANCE DUE usD $23,849.00 I I

Please leave a rating/review on https://g.pa ge/r/CW-m9hDRf XTyEBM/review

https://app.invoicesimple.com/invoices/bNlARsovRR Lt4 Received by Investigations 12175123, 4:70 PM lnvoice Simple - lnvoice lNVO|CE0820 12/18/2023 2023-14395

State Forty Eight tNvotcE tNVOtCE0820 Home Comfort LLC DATE 11754 W Electra Lane Aug 23,2023

Stateffif Sun City, AZ 85373 www.state4Shc.com DUE

Home Comfort [number redacted] On Receipt www.state4Shc.com BALANCE DUE statefortyeightcomfort@gmail. usD $3291s.89 com

BILL TO

Bonum DC Cheba Hut Gerald Turner Cheba Hut 4912 E Shea Blvd Scottsdale, AZ [email redacted]

DESCRIPTION RATE QTY AMOUNT

Ruud 10 ton package heat pump $12802.00 1 $12802.00 ModeI# RHPDZTl2OACGOOOABCAO TON HEAT PUMP R41OA 2O8I23O-3 PHASE 2 STAGE COMPRESSOR VFD BELT DRIVE MED STATIC

Ruud 7.5 ton package heat pump $1s,589.00 1 $1s,s89.00 Model# RHPDZT09oACG000ABCA0 7-1I2TON HEAT PUMP R41OA REFRIGERANT 208/230-3 2 STAGE COMPRESSOR VFD BELT DRIVE MED STATIC

Labor $3,450.00 1 $3,450.00 Crane $1,07s.00 'l $1,o7s.oo

Addendum to contract $zsoo.oo 1 $zsoo.oo

httpsi//app.invoicesimple.com/invoices/12Yfi Pclzv 1/5 Received by Investigations 72175123. 4:!O PM lnvoice Simple - lnvoice lNVOlCE0820 12/18/2023 2023-14395

Payment lnfo TOTAL $4s,416.00 PAID -$2s00.11 Scan this code to pay online

lr + E. 1 I BALANCE DUE usD $32s15.89 I r-

J I

Please leave a rating/review on https:/ig.page/riCW-m9hDRf XTyEBM/review

CUSTOMER AUTHORIZATION

hnpsr//app.invoicesimple.com/invoices/r2YllPc1Zv 2t5 Received by Investigations 72115123, 4:Og PM lnvoice Simple - lnvoice lNVOlCE0831 12/18/2023 2023-14395

State Forty Eight twotcE rNVOtCE0831 Home Comfort LLC DATE 11754 W Electra Lane Sep 1, 2023

StatefSY Sun City, A285373 www.state4Shc.com DUE

Home Comfort [number redacted] On Receipt www.state4Shc.com BALANCE DUE statefortyeightcomfort@gmail. usD $20,881.85 com

BILL TO

Bonum DC Cheba Hut Change Order Gerald Turner Cheba Hut 4912 E Shea Blvd Scottsdale, AZ [email redacted]

DESCRIPTION RATE QTY AMOUNT

Curb adapter $2,762.55 2 $s,525.10 Curb adapters for 7.5 ton and 10 ton heat pumps

Ducturork lnsulatlon

#39;t,469.76 1 $1,469.76 insulate supply and return ducts above the ceiling grid per plans

smoke det€ctors $285.33 3 $8s5.99 lncludes smoke detector, sample tube, and remote keyed reset alarms

https://app.invoicesimple.com/lnvoices/J6KCTgASs Ll3 Received by Investigations 12115123,4:09 PM lnvoice Simple ' lnvoice lNVOlCE0831 12/18/2023 2023-14395 DESCRIPTION RATE QTY AMOUNT

Labor $s,8s6.00 1 $5,8s6.00 labor to complete ductwork, hook up to plenum boxes, run new flex ductwork for registers, install supply registers on exposed ductwork

Payment lnfo TOTAL $20,881.8s

Scan this code to pay online BALANCE DUE usD $20,881.85

Please leave a rating/review on https://g.page/r/CW-m9hDRf XTyEBM/review

Written customer authorization will be obtained before beginning any unforeseen additional or extended work.

Terms and Conditions

https://app. invoicesimple.com/invoices/J6KCTgASs 2t3 Received by Investigations 721!5123, 4:77 PM lnvoice Simple - lnvoice lNVOlCE0819 12/18/2023 2023-14395

State Forty Eight INVOICE

rNVOrCE0819 Home Comfort LLC DATE 11754 W Electra Lane

State{SY Sun City, A285373 [number redacted] Aug 22,2023

DUE Home Comfort www.state4Shc.com On Receipt statefortyeightcomfort@gmail. BALANCE DUE com usD $34,s38.86

BILL TO

Bonum DC Cheba Hut Hood Cheba Hut 4912 E Shea Blvd Scottsdale, AZ [email redacted]

DESCRIPTION RATE QTY AMOUNT

System has a 2 year warranty on equipment

CaptiveAire duct runs have a 20 year warranty from shipping date.

Hardware and installation material $2,100.00 1 $2,100.00

Labor $15,500.00 1 $15,500.00 installation of exhaust hood, backsplash, duct runs, curbs, exhaust fans

https://app.invoicesimple.com/invoices/YvPnZf OxbG 7t4 Received by Investigations 1-21L5123. 4:77 PM lnvoice Simple - lnvoice lNVOlCE0819 12/18/2023 2023-14395

Payment lnfo TOTAL $34,538.86

Scan this code to pay online BALANCE DUE usD $34,538.86 T I

Please leave a rating/review on https://g.page/r/CW-m9hDRfXTyEBM/review

By Others:

CUSTOMER AUTHORIZATION

StatelSY Sun City, AZ 85373 www. state4Shc.com 4u917,2023 TOTAL Home Comfort [number redacted] usD $32916.00 www.state4Shc.com statefortyeightcomf [email redacted]

Bonum DC Gerald Turner Cheba Hut 4912 E Shea Blvd Scottsdale, AZ gera ld@ bonu md c.co m

DESCRIPTION RATE QTY AMOUNT

Ruud 10 ton package heat pump $12802.00 1 $12802.00 Model# RHPDZTl 20ACG000ABCA0 1O TON HEAT PUMP R4lOA 2O8I23O-3 PHASE 2 STAGE COMPRESSOR VFD BELT DRIVE MED STATIC

Ruud 7.5 ton package heat pump $15,589.00 1 $15,589.00 Model# RHPDZT09oACG000ABCA0 7-112TON HEAT PUMP R4lOA REFRIGERANT 208/230-3 2 STAGE COMPRESSOR VFD BELT DRIVE MED STATIC

Labor $3,4s0.00 1 $3,4s0.00 Crane $1,075.00 1 $1,07s.00

TOTAL usD $32916.00 Please leave a rating/review on https://q.paqe/r/CW- m9h D Rf XTvEBM/rev iew

Professional installation of your new HVAC system will include:

ArdUllrwr Oocusign Envelope lD ABF912DC-C72A4144-98E3-0613,1 lAAAO4B Received by Investigations 12/18/2023 lnstall new condenser 2023-14395

Your new HVAC system includes the following warranties:

l0 Year manufacturer's parts warranty Year labor warranty Year manufacturer's compressor warranty

CUSTOM ER AUTHORIZATION

AUTHORIZATION TO PROCEED WITH ABOVE RECOMMENDATION - l, the undersigned, am owner/authorized representative/tenant of the premises at which the work mentioned above is to be done. I hereby authorize you to perform Recommendation, and to use such labor and materials as you deem advisable. lhave read, understand, and agree to all of the terms stated here. I understand that all work performed is C.O.D. unless arrangements were made, prior to work being started. All collection and legal expenses are to be paid by the purchaser when past due invoices are submitted for collection through agency, attorney or court. There will be a $25 NSF fee charged on all returned checks. All sales are final. ln the event that the purchaser terminates this agreement less than 72 hours prior to the scheduled installation date the purchaser agrees to pay a $500 (per system) cancellation and restocking fee. lf at time of installation and system start up there are any outstanding follow up items such as but not limited to drywall repail accessory installation, filter grille replacement, etc. 95% of the contract total will be collected on the day of installation and purchaser will reserve 5% of the contract total to be paid at completion of these items. I hereby authorize you to proceed

Oocusign Envelope lO: AAF912OC-C72O4744-96 E3-061 31 t AAA04B Received by Investigations 12/18/2023 2023-14395 with above work at the Contract Price.

,utu

Docusign Envelope lD AEF912DC-C7204144-9EE3-06131 1AAA04B Received by Investigations 12/18/2023 2023-14395

ts DEVELOPMENT CONSTRUCTION

Project Name and Address: cheba Hut 4912 E shea Blv phoenix, Az 85254

Architect (if applicable) leffery aaker

Project Number (if applicable) . cBH221l,

Plan Date (if applicable): 06/27 /2023

General Contractor Name and Address: Bonum Development & Construction 2820 S. Alma School Rd. 18-456 Chandler, A285286

Sub-Contractor Company

state Forty Eight Home comfort LLc

Company Representative: L{illiam D swartz rr

2. CONTRACTPRICE General Contractor shall pay Subcontractor a total p rice of $ '916 in exchange for work referenced in the Subcontractor's proposal attached and/or as discussed.

All work must be performed per pians unless discussed and approved by the General Contractor before the work is performed.

5. PAYMENT Payment shall be made by the General Contractor to the Subcontractor according to the following Payment Plan:

See Pavment terms attached-

General Contractor and Subcontractor agree that, if payment is not made according to the above Payment Plan, Subcontractor is entitled to stop work until payment is current and up to date.

8. CLAIMS

9. SUBCONTRACTORS

Subcontractor shall be fully responsible for all acts and omissions of its subcontractors, suppliers, and other persons furnishing any work for Subcontractor on this Project

15. SEVERABILITY

This Agreement is subject to the laws and regulations of the state of Arizona.

16. CONTRACT/PROJECT SPECIFICS (lf Applicable)

subcontractor understands that the install for this contract needs to start no later than septembe l-5, 2023 DS

il"tlt*',

8/23/2023 Gerald General Contractor Representative Signature Date

Bonum DC 2820 S. Alma School 18-456 Chandler. AZ General Contractor Address

william D swartz I1 t-,lrjr+, 8 /23 /2023

Subcontractor Representative Signature Date wi l.l i am swartz wi l I. swartz@state48hc. com

Subcontractor Company Name Email DocuSrgn Envelope lD. ABF912OC-C1204744-96E3-06131 lAAAO4B Received by Investigations 12/18/2023 2023-14395

DEVELOPMENT ts CONSTRUCTION Bonum Development & Construction / Ohana Construction Management

Sub-Contractor Payment Terms

Before any payments will be issued, all sub-contractors must be properly onboarded which includes

All contracts must be signed before any payments will be issued

Pay outs and Progression Payment are as follows:

Bonum Projects with duration less than 30 days -

Bonum Projects with duration longer than 30 days -

Deposits:

. We Do Not lssue Deposits.

Bulk Purchase options for Materials, Fixtures and Equipment:

JiL oW-. DocuSign Envelope lD: A8F912OC-C7204744-98E3-06131 1AAA04B Received by Investigations 12/18/2023 2023-14395

AMENDMENT V1

SUBCONTRACTOR - STATE 48 OWNER - WILL SWARTZ

PROJECT: - CHEBA HUT TATUM/SHEA PROJECT ADDRESS: 4912 E. SHEA BLVD. SCOTTSDALE, AZ

RE: Additional Compensation; Deadline for Payment

ln return, State 48 agrees to complete the Cheba Hut Tatum/Shea project including all test and balancing no later than December 6, 2023.

The original contract is attached to this Amendment

Gerald Turner

anLIirur.r 2023 DocuSign Envelope lD: DECBTD4E-Co38-433A-88CA6787180201 DF Received by Investigations 12/18/2023 2023-14395 [EI]DEVELOPMENT IIJ]CONSTRUCTION

Project Name and Address cheba Hut 4912 E shea Blv, phx Az 85254

Architect (if applicable): Jeffery aaker

Project Number (if applicable): cBH2211

Plan Date (if applicable) 6-27 -2023

General Contractor Name and Address: Bonum Development & Construction 2820 S. Alma School Rd. 18-456 Chandler. A285286

Sub-Contractor Company state 48 Home comfort

Company Representative wi l 1i am D swartz rr

]. CONTRACT PRICE General Contractor shall pay Subcontractor a total price of $ 34, 538. 86 in exchange fbr work referenced in the Subcontractor's proposal attached and/or as discussed

All work must be performed per plans unless discussed and approved by the General Contractor before the work is performed.

Subcontractor will work according to the project schedule. Subcontractor agrees to complete their work according to the project schedule. Subcontractor is responsible for notifuing General Contractor ofany delay in performance immediately upon Subcontractor's knowledge that performance under this Agreement will be delayed. Subcontractor may be financially liable ior any project delays caused by their work or lack of. Subcontractor will be scheduled a window of time to complete their scope of work for each phase. The Subcontractor MUS'I'start on the first day assigned in their schedule. They can utilize all scheduled days in their schedule or work faster but they MUST start on the first day assigned lor each phase. The Subcontractor does not have the authority to change the schedule or create their own schedule to accommodate their personal convenience unless authorized by the General Contractor.

Should the Subcontractor's performance of the Work be delayed or interfered with as a result of actions by the owner, General Contractor, or another subcontractor, Subcontractor is entitled to request an extension of time for the perlormance of their Work but this agreement does not guarantee approval of the request for extension of time. Subcontractor further agrees that the extension of time for performance ofthis Project shall not be permitted without the General Contractor's written consent, which shall not be unreasonably withheld.

5. PAYMENT Payment shall be made by the General Contractor to the Subcontractor according to the following Payment Plan:

See Payment terms attached.

General Contractor and Subcontractor agree that, if payment is not made according to the above Payment Plan, Subcontractor is entitled to stop work until payment is current and up to date.

7. SUBCONTRACTOR'S OBLIGATIONS TO GENERAL CONTRACTOR Upon request, subcontractor agrees to provide General Contractor with a list ofany and all subcontractors and suppliers Subcontractor hires and ilnecessary, agrees to update said list throughout the life ofthe Project. Subcontractor agrees to work with General Contractor when scheduling and will make every effort to avoid conflicts and interference with the Oeneral Contractor's work, as well as the work ofany other subcontractors. Suboontraotor will make available any information necessary for Subcontractor's subcontractors and suppliers to provide any notice required or contemplated by this state's meohanics lien laws. All subcontractors must sign a lien waiver upon final payment.

8. CLAIMS

General Contractor and Subcontractor both agree to attempt to resolve any and all disputes on this Project in good faith prior to filing legal action. Further, Subcontractor will immediately notif, General Contractor upon becoming aware of a dispute with Subcontractor's subcontractors and suppliers.

9. SUBCONTRACTORS

Subcontractor shall be fully responsible fbr all acts and omissions of its suboontractors, suppliers, and other persons fumishing any work for Subcontractor on this Project

12. CHANGEORDERS,AMENDMENTS,ALTERATIONSTOCONTRACT Any change order, amendment, or alteration to this Agreement or the project Drawings must be agreed to by the General Contractor and Subcontractor in writing before any purchases or work pertaining to perspective change order, amendment or alteration can move fbrward. Oocusign Envelope lD' DECBTD4E-C038-433A-6BCA-67871EO2O1DF Received by Investigations 12/18/2023 2023-14395

I4. TERMINATIONBYGENERALCONTRACTOR

15. SEVERABILITY

Ifany provision of this Agreement should be found invalid or unenforceable, that provision should be severed from the Agreement and shall have no effect on the remaining provisions of this agreement.

This Agreement is subject to the laws and regulations ofthe state of Arizona

16. CONTRACITPROJECl SPECIFICS (If Applicable)

h,rx

Gerald Tumer 4-.) 8/23/2023 General Contractor Representative Signature Date

Bonum DC 2820 S. Alma Schoo I Rd l8-456 Chandler. AZ General Contractor Address

wi'lIiam D swartz rr illlLa),;€ 8 /23 / 2023

Subcontractor Representative Signature Date state Forty Eight Home comfort LLC wi I I . swartz@state48hc. com

S ubcontractor Company Name Email DocuSign Envelope lD 861B47Al 4 1 1E4O21-8222-700861361ocs Received by Investigations 12/18/2023 2023-14395

ts DEVELOPMENT CONSTRUCTION

Project Name and Address: Nekter 200 w comi: *d t"t: 1oljg:a creek 85140 Architect (if applicabte) Fl atr ron G roup

Project Number (if applicable): J L- 002

Plan Date (if applicable) 7 /27 /2023

General Contractor Name and Address: Bonum Development & Construction 2820 S. Alma School Rd. l8-456 Chandter. AZ 85286

Sub-Contractor Company

state Forty Ei qht Home comfort LLC

Company Representative:

william D sv'/artz rr

2. CONTRACT PRICE General Contractor shall pay Subcontractor a total p rice of $ 23,849 in exchange for work referenced in the Subcontractor's proposal attached and/or as discussed

All work must be performed per plans unless discussed and approved by the General Contractor before the work is performed.

Subcontractor will work according to the project schedule. Subcontractor agrees to complete their work according to the project schedule. Subcontractor is responsible for notifying General Contractor ofany delay in performance immediately upon Subcontractor's knowledge that performance under this Agreement will be delayed. Suboontractor may be financially liable for any project delays caused by their work or lack of. Subcontractor will be scheduled a window of time to complete their scope of work for each phase.'I'he Subcontractor MUS'I'start on the first day assigned in their schedule. They can utilize all scheduled days in their schedule or work faster but they MUST start on the hrst day assigned for each phase. 'fhe Subcontractor does not have the authority to change the schedule or create their own schedule to accommodate their personal convenience unless authorized by the General Contractor.

Should the Subcontractor's performance ofthe Work be delayed or interfered with as a result of actions by the owner, General Contractor, or another subcontractor, Subcontractor is entitled to request an extension of time lor the performance oftheir Work but this agreement does not guarantee approval ofthe request for extension of time. Subcontractor further agrees that the extension of time for performance of this Project shall not be permitted without the General Contractor's written consent, which shall not be unreasonabty withhetd.

5. PAYMENT Payment shall be made by the General Contractor to the Subcontractor according to the following Payment Plan:

See Payment terms attached.

General Contractor and Subcontractor agree that, if payment is not made according to the above Payment Plan, Subcontractor is entitled to stop work until payment is current and up to date.

7. SUBCONTRACTOR'S OBLIGATIONS TO GENERAL CONTRACTOR Upon request, subcontractor agrees to provide General Contractor with a list ofany and all subcontractors and suppliers Subcontractor hires and if necessary, agrees to update said list throughout the life ofthe Project. Subcontractor agrees to work with General Contractor when scheduling and will make every effort to avoid conflicts and interference with the General Contractor's work, as well as the work ofany other subcontractors. Subcontractor will make available any information necessary lor Subcontractor's subcontractors and suppliers to provide any notice required or contemplated by this state's mechanics lien laws. All subcontractors must sign a lien waiver upon final payment.

8. CLAIMS

General Contractor and Subcontractor both agree to attempt to resolve any and all disputes on this Project in good faith prior to filing legal action. Further, Subcontractor will immediately notifu General Contractor upon becoming aware of a dispute with Subcontractor's subcontractors and suppliers.

9. SUBCONTRACTORS

Subcontractor shall be fully responsible for all acts and omissions of its suboontractors, suppliers, and other persons fumishing any work lor Subcontractor on this Projeot

12. CHANGE ORDERS, AMENDMENTS, ALTERATIONS TO CONTRACT Any change order, amendment, or alteration to this Agreement or the project Drawings must be agreed to by the General Contractor and Subcontractor in writing before any purchases or work pertaining to perspective change order, amendment or alteration can move forward. DocuSign Envelope lD 861 B,47 C7 -1 1 1E4O21 -E222-1 00B61361OC' Received by Investigations 12/18/2023 2023-14395

14. TERMINATION BY GENERAL CONTRACTOR Ifthe Subcontractor breaches any obligation created by this Agreement or the attached Drawings (ifany), General Contractor may give the Subcontractor a Notihcation ofBreach which provides Subcontractor notification identifying the breach, in writing. Upon receipt ofsuch Notification of Breach, Subcontractor will have seven (3) days to cure the breach. Ifthe breach cannot be cured in seven (3) days, the General Contractor is entitled to terminate this Agreement and charge the Subcontractor for any material or labor expenses caused by this breach. Altematively, the Owner may cure the breach and deduct the cost of ouring the breach from the amounts otherwise owed to the General Contractor. Regardless of Termination, General Contractor will be liable to make payments owed and unpaid to Subcontractor for the work performed prior to Termination.

15. SEVERABILITY

If any provision ofthis Agreement should be found invalid or unenforceable, that provision should be severed from the Agreement and shall have no effect on the remaining provisions of this agreement.

This Agreement is subject to the laws and regulations olthe state of Arizona

16. CONTRACT/PROJECT SPECIFICS (lf Applicable)

Per schedule provided by Bonum

,* 9/L2/2023 Gerald Turner General Contractor Representative Signature Date

Bonum DC h I Rd l8-456 Chandle General Contraotor Address

william D swartz fr 9/72 /2023

Subcontractor Representative Signature Date state Forty Eight Home comfort LLC wi I I . swartz@state48hc. com

Subcontractor Company Name Email Received 1/19/2024 ROC Legal

William H. Breier (029626) RADIX LAW 15205 N. Kierland Blvd., Suite 200 Scottsdale, AZ 85254 [email redacted] (602) 606-9300 Attorneys for Respondent

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

STATE FORTY EIGHT HOME Case No. 2023-14395 COMFORT LLC, License No. 332214, WRITTEN ANSWER TO CITATION Complainant, v.

BONUM DEVELOPMENT & CONSTRUCTION, LLC doing business as BONUM DEVELOPMENT & CONSTRUCTION aka BONUM DC, License No. 344755, Respondent.

Respondent Bonum Development & Construction, LLC dba Bonum Development

& Construction aka Bonum DC (“Bonum”) files this written Answer to the Citation issued by the Arizona Registrar of Contractors (“AROC”) dated January 4, 2024. As stated in Bonum’s Response to the No-Pay Complaint, the payment terms of the subcontract agreements with Complainant have an express pay-when-paid clause, and because Bonum’s clients have not paid in full on either project for which Complainant seeks payment, Bonum is not obligated to pay Complainant until and unless Bonum receives payment. Bonum provides the AROC with following update to recap and reiterate the status of the projects for which Complainant seeks payment: 1552902.1 Received 1/19/2024 ROC Legal

Cheba Hut Project: Bonum is currently working on completing punch list items and is finalizing its job costs so it can submit a final pay application to Bonum’s client. Bonum anticipating submission of this final pay application in the next week. Assuming no issues or disputes over Bonum’s final pay application, Bonum expects to be paid in full pursuant to the terms of its contract with Bonum’s client. Once Bonum receives payment, it will transmit payment to Complainant in accordance with the payment terms of the subcontract.

Nekter Project: Bonum’s client reduced the two pay applications previously submitted and has not certified the third pay application which has been submitted. The reductions were not trade specific. As a result, Bonum had to prioritize what limited funds it did receive to other trades to keep the project moving. Bonum is currently working with its client to resolve the matter and will pay Complainant in accordance with the payment terms of the subcontract if/when additional funds are received.

Bonum will be happy to explain these situations further at a hearing, should that become necessary. DATED: January 19, 2024. RADIX LAW

/s/ William H. Breier William H. Breier Attorneys for Respondent

Original e-mailed on January 19, 2024, to: REGISTRAR OF CONTRACTORS P.O. Box 18244 Phoenix, AZ 85005-8244 [email redacted] 1552902.1 Received 1/19/2024 ROC Legal

Copy e-mailed same date to:

State Forty Eight Home Comfort LLC 8722 N. 83rd Drive Peoria, AZ 85345 [email redacted] Complainant By: /s/ William H. Breier

1552902.1 Received 1/23/24, 8:10 AM State of Arizona Mail - Case 2023-14395 - Answer to Citation 1/19/2024 ROC Legal

Answers - AZROC <[email redacted]>

Case 2023-14395 - Answer to Citation message

Will Breier <[email redacted]> Fri, Jan 19, 2024 at 4:18 PM To: "[email redacted]" <[email redacted]> Cc: "[email redacted]" <[email redacted]>

To Whom It May Concern,

Attached is Respondent’s Answer to the Citation in the above-referenced case.

Thank you, Will

William H. Breier, Partner

15205 N. Kierland Blvd, Suite 200 Scottsdale, AZ 85254

Phone: 602-606-9304

CONFIDENTIALITY NOTICE: The information contained herein may be privileged and protected by the attorney/client and/or other privilege. It is confidential in nature and intended for use by the intended addressee only. If you are not the intended recipient, you are hereby expressly prohibited from dissemination, distribution, copy or any use whatsoever of this transmission and its contents. If you receive this transmission in error, please reply or call the sender and delete this transmission from your email and/or network.

https://mail.google.com/mail/b/AEoRXRSJUn9T17L6HtvtM316cH7H3WoERJ3B1NSp3WigEJKPPgfO/u/0/?ik=581c53cf5c&view=pt&search=all&permt… 1/2 Received 1/23/24, 8:10 AM State of Arizona Mail - Case 2023-14395 - Answer to Citation 1/19/2024 ROC Legal Answer to Citation(1559068.1).pdf 81K

https://mail.google.com/mail/b/AEoRXRSJUn9T17L6HtvtM316cH7H3WoERJ3B1NSp3WigEJKPPgfO/u/0/?ik=581c53cf5c&view=pt&search=all&permt… 2/2 Mediation Notice

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

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

v. JOINT REQUEST FOR MEDIATION _________________________ RESPONDENT.

REQUEST

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

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

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

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

_____________________________________ _______________________ Respondent (or representative) Date

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

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

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

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

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

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

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

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

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

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

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

4. Subject Matter of Expected Testimony

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

4. Subject Matter of Expected Testimony

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

4. Subject Matter of Expected Testimony

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

4. Subject Matter of Expected Testimony

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

Exhibit Exhibit Name

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

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

Print Name Signature Date

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