2023A-14406-CHC-ROC Notice of Hearing & Packet MAILED 2023-14406.pdf

2023A-14406-CHC-ROC · Registrar of Contractors · 2024-07-29

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Hortencia Garcia , Case No. 2023-14406

COMPLAINANT, Docket No. 2023A-14406-CHC-ROC

v. NOTICE OF HEARING ON CONTESTED CASE Rounds Construction LLC License No. ROC 200012,

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

HEARING INFORMATION The hearing is set for:

September 4, 2024 9:00 AM Velva Moses-Thompson Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person.

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

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

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

STATEMENT OF LEGAL AUTHORITY AND JURISDICTION

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

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

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

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

PARTICULAR ARIZONA STATUTES AND RULES INVOLVED

The statutes and rules the Respondent is alleged to have violated are cited in the

complaint and citation, which were served on the Respondent on June 18, 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)(2)(a) Charge: 2 A.R.S. § 32-1154(A)(3) - R4-9-108(a)

Charge: 3 A.R.S. § 32-1154(A)(22)

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

be a party to the hearing.

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

argument to the administrative law judge.

The Registrar’s assigned investigator will appear as a witness at the hearing. RIGHT TO BE REPRESENTED The parties to the administrative hearing may choose to be represented by an attorney.

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

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

1156(B).

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

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

to -1092.12, and A.A.C. R2-19-101 to -122. The parties should review the statutes, rules, and processes governing the administrative hearing. Copies of the statutes, rules, and articles regarding the administrative hearing process can be found at https://www.azoah.com/.

REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE

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

HEARING PACKET

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

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

SUBPOENAS FOR TESTIMONY FROM A WITNESS OR DOCUMENTS

The parties to the hearing must be prepared to present evidence in support of their

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

possession, the party must prepare and file a written subpoena for the Administrative Law Judge to review and sign, if approved. A.R.S. § 41-1092.07(C). Forms for requesting a

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

DISCLOSURE STATEMENT

At least seven calendar days before the hearing, each party must prepare and serve a disclosure statement on all other parties, and file it with the Office of Administrative Hearings. A.A.C. R4-9-118; A.A.C. R2-19-108. The disclosure statement must include any exhibit the party will use at the hearing. A party’s failure to timely disclose any witness or exhibit, without good cause, may result in the administrative law judge excluding those witnesses or exhibits from being used at the hearing. A.A.C. R4-9-118(C). A sample disclosure form is available on the Registrar’s website at https://roc.az.gov/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 July 29, 2024.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors

Copy mailed via USPS First Class mail July 29, 2024 to:

Respondent(s) Rounds Construction LLC PO Box 1692 Buckeye, AZ 85326

Complainant(s) Hortencia Garcia 8417 S 229th Lane Buckeye, AZ 85326

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

Case No. 2023-14406 /

Douglas A. Ducey, Governor Jeffrey L. Fleetham, 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

Douglas A. Ducey, Governor Jeffrey L. Fleetham, 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

Douglas A. Ducey, Governor Jeffrey L. Fleetham, Director

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

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

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

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

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

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

Complainant: RANDOLPH DOUGLAS WOLFSON 919 N. Dysart Road Avondale, AZ 85323

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Respondent: Rounds Construction LLC DBA: PO Box 1692 Buckeye, AZ 85326

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 December 20, 2023

Jobsite Inspection Notice Re: Complaint Number 2023-14406

Dear Complainant and Respondent:

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

A jobsite inspection is scheduled for January 18, 2024 at 10:00 AM. The Complainant is required to be present. The Respondent’s attendance is requested and encouraged. The Registrar encourages both parties to make a good faith effort to resolve this complaint prior to the jobsite inspection.

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

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

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

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

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

Sincerely, James Carter James Carter, Investigator 602 7716770 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

CC: Respondent Complainant Complainant Attorney

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Complainant: RANDOLPH DOUGLAS WOLFSON 919 N. Dysart Road Avondale, AZ 85323

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 Respondent: Rounds Construction LLC DBA: PO Box 1692 Buckeye, AZ 85326

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 January 17, 2024

Re: Complaint Number 2023-14406

Dear Complainant and Respondent:

Due to a conflict in scheduling of one of the parties, the jobsite inspection scheduled for January 18, 2024 at 10:00 AM has been rescheduled for February 1, 2024 at 10:00 AM.

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

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

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

Sincerely,

James Carter James Carter, Investigator 602 7716770 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

CC: Respondent Complainant

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 Licensed Complaint Form Departmental Use Only Received 2/20/2024 For Current or Suspended Licensees Complaint Number: ROC Legal Mail to: Registrar of Contractors P.O. Box 18243 Phoenix, AZ 85005-8243 FIRST AMENDED COMPLAINT Person Filing Complaint

I Full Name (First Middle Last) Business Name (if a licensed contractor or supplier) ROC License Number(s) (if any) Hortencia Garcia N/A

I Mailing Address (Enter jobsite in ContracUProject section) City State Zip 8517 S 229th lane Buckeye, AZ 85326. Buckeye AZ 85326 Email 602-7 41-8592 [email redacted] I consent to receive communications electronically in connection with this case Yes xx N o

I Name of Attorney (if any) RANDOLPH D. WOLFSON, ESQ. [of Faith, Landyard & Faith, PLC] Street Address of Attorney City State Zip 919 North Dysart Road, Suite F Avondale AZ 85323 Phone Number of Attorney Email of Attorney 623-932-0430 [email redacted] Contractor Information

I Name (as shown on contracUinvoice) ROC License Number(s) ROUNDS CONSTRUCTION, LLC ROC 200012 Street Address City State Zip P.O. BOX 1692, BUCKEYE ARIZONA 85326 Phone Number Email (602) 677-6692 [email redacted] Name of Person(s) Representing License JAMES C. ROUNDS Contract/Project Information .,,. - " Contract Date Contract Amount Amount Paid 08-12-2021 $380,000.00 $38,000.00 Date Work Started Date Work Stopped Date Work Was Completed 08/12/2021 N/A Close of Escrow (New Home) Move-In Date (New-Home)

Jobsite Street Address 8517 S 229th lane Buckeye, AZ 85326. Name of Construction Site Owner Hortencia Garcia City Buckeye I State AZ Construction Site Name (if applicable) I Zip 85326

Phone Number of Construction Site Owner Email of Construction Site Owner 602-7 41-8592

This complaint is for X Abandonment XPoor Work 0 Other I have contacted the contractor by X Phone XEmail ()Letter O Have you filed a complaint in court? OYesx x N o ON/A If yes, provide a copy of civil complaint Has any work been corrected? OYes XN o If yes, by whom? The contract was xx Written O Oral 0Both ' All change orders were Written O Oral 0Both 0 N/A This project was 0 Commercial xx Residential O On Tribal Land This project involved xxNew Home O Remodel O Repair OOther A building permit was obtained by xx Contractor OProperty Owner OBuilding permit#

RCC099 12/05/18 Received Licensed Complaint Form 2/20/2024 ROC Legal For Current or Suspended Licensees

Contract/Project Information Continued List and briefly describe each complaint item (Please do not write "see attached" or use additional pages unless necessary to further describe issues or list more complaint items) (limited to 100 characters per line)

1. R O U N D S undertook to pr ov ide materials/labor N O T within s c o p e o f w o r k & w i t h invoice a b o v e bid 2. R O U N D S failed to c o n s t r u c t b a t h r o o m a n d glass enclosure included in plans a n d specs. 3. ROUNDS has not followed plans and specifications in violation of A.R.S. § § 32-1154(A)(6), and (A)(2){a) and (A)(3) and (A)(12); 4. ROUNDS abandoned the contract or refused to perform after submitting a bid contrary to A.R.S. § 32-1154(A)(1), (A)(3) and (A)(12) 5. ROUNDS departed from or disregarded the contracted plans or specifications contrary to ARS Sec. 32-1154(2)(a){2). (A)(1), (A)(3) and (A)(1:) 6. ROUNDS failed to complete construction for the price stated in the contract contrary to ARS Sec. 32-1154(8), (A)(3) and (A)(12); After ROUNDS, Upon information and belief, passed final Permitting inspection on on August 24, 2003, Maricopa County Planning and . Development issued a Certificate of Occupancy for Complainant's new home to ROUNDS contrary to A.R.S. § 32-1154(2)(a), (A){3) and (A) \'"' B. ROUNDS has repeatedly refused to provide Complainant with a Certificate of Occupancy unless and until the $527,742.07 is paid in full. Complainant's mortgage banker requires the Certificate of Occupancy in order to document its loan and to disburse proceeds - all in violation 9. of § 32-1154(A)(6), (A)(3,and (A)(12); ROUNDS demands that if Complainant does not pay $527,742,07 to ROUNDS, that ROUNDS threatened to falsely assert and claim to 10. Complainant's mortgage lender that the project is not completed and a Certificate of Occupance has not issued ROUNDS induced Complainant to contract with it based on ROUNDS' bid total of $380,000.00. Without change orders or other written 11. amendments to the contract, ROUNDS now demands payment of not less than $527,742.074 - a material misrepresentation made by ROUNDS which Complainant justifiably relied upon resulting in damage to the Complainant's good credit and exposing the Complainant 12. to a mechanic's lien, foreclosure and a suit for damages from ROUNDS. A A C R4-9-131 Aggravating circumstances include: 13. a. ROUNDS Failed to perform any work for which money was received 14. b. ROUNDS Executed or used anv false or misleadinn documents for the nurnose of inducinn a nerson to enter into c contract or to pay money for work to be performed. 15. C. ROUNDS Made false or misleadinn statements for the purpose of inducing a nerson to enter into a contract or to y n b:I money for work to be performed. 16. - -- r-,.'"'- . . ,r"'\r't, -- ,....,_ ...,. r,v, ..,, .., 1,110 ,._...,...,_ 1V . .. ..,.,._,,. 111111IUI u....,...,...., VI ...... .., - y .:;,1,oT ;uc;u u.:;, u1 tJ·auu ...,..., ...,, -.-. .. not 17. performed in a good and workmanlike manner.

e. ROUNDSPerformed work that has caused loss or damage to the structure, its appurtenances, or property being wo k ed 18. uoon or has caused loss or iniurv to anv oerson 19. ROUNDS installed the home's HVAC system. The HVAC will not heat or 20. cool in each room of the house at the thermostate's setting. Signature ..

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

u - . I Date

- ' /. 1<:J/-7, ' '--'

R C C 0 9 9 12/05/18

Received 2/20/2024 ROC Legal

R O U N D S C O N S T R U C T I O NL L C P.O. BOX 1692, BUCKEYE, ARIZONA 85326 (602) 677-6692 LICENSE# ROC 200012

CONSTRUCTION PRIME CONTRACT AGREEMENT To: Hortencia Vergara Garcia Date: 08-12-2021 10234 W. Whyman Ave. Tolleson, AZ. 85353 Phone: 602-399-6107

PROPERTY: Located at S 229 1h Ln, Buckeye, AZ 85326 Maricopa County, Parcel No. 400-13-038E Plans: Hortencia Garcia Residence Sheets S1, A 1 thru A5, and E1 Dated, 08/10/2021

1. FULL PROJECT PRICE: $380,000.00 Price increases to material, equipment rental, etc. due to the duration of the project will be the responsibility of the owner.

2. PAYMENTS: Buyers have made no payments at this time. All payments are non-refundable.

3. REMAINDER OF FUNDS TO BE PAID N DRAWS AS FOLLOWS: See attached exhibit 'fl:.' DISBURSEMENT ·scHEDULE. FUNDS SHALL BE DISBURSED 00 LATER THAN '7 DAYS" a= INVOICE DATE.

4. PLANS & SPECIFICATIONS: See attached exhibit "B" COST BREAKDOWN, PLANS & SPECIFICATIONS

5. SCHEDULE: Builder and Owner shall comply with all Terms and Conditions of this contract within 9 months of obtaining permits. Owner understands that i1 order to meet project schedule, owner must be available to make all selections i1 a timely manner. Owner understands that if they are not available. time of construction could be extended. Builder will have two weeks after final walk thru with owner to schedule punch list items prior to occupancy. If occupied during the two weeks after walk thru, owner will be responsible for scheduling.

6. ACCEPTANCE: Occupancy of premises constitutes acceptance.

7. SCOPE OF WORK: WE PROPOSE TO FURNISH LABOR AND MATERIALS N STRICT ACCORDANCE WITH PLANS AND SPECIFICATIONS p.s FOLLOWS: (SEE EXHIBIT "B" COST BREAKDOWN, PLANS & SPECIFICATIONS) ROUNDS CONSTRUCTION LLC contracts to build a new home at the above address according to building plans and specification sheet, which lists all fixtures and equipment to be installed in the home. All owners allowances to be listed' on the job specification sheet. All changes, upgrades, or additions which are added by owner must be i1 writing on the Contractor's Change Order form, signed by contractor and Owner and to be paid direct to Contractor before construction of extra is started.

SUBMITTED BY: ROUNDS CONSTRUCTION, LLC

ACCEPTED BY: HoR/Jcf/,r . . . afis.Rc,AtoWNER DATE Received 2/20/2024 ROC Legal

Exhibit "B" Plans & Specifications Continued Page -2-

25. WATER: DRILL 300-FOOT-DEEP WELL WITH PUMP AND PRESSURE TANK. 26. UNDER ARIZONA REVISED STATUES SECTION 32-1155, AN OWNER OF A DWELLING HAS THE RIGHT TO FILE A WRITTEN COMPLAINT AGAINST THE BUILDER WITH THE ARIZONA REGISTRAR OF CONTRACTORS WITHIN 1WO YEARS OF THE COMMISSION CF AN ACT N VIOLATION OF ARIZONA REVISED STATUTES SECTION 32-1154 SUB- SECTION A.

'-- C ·TI SUBMITTED BY: ROUNDS CONST. Rucr1 A l e

\ \"3 , Zl ROUNDS/BUILDER DATE

ACCEPTED BY: HORTENCIA GARCIA/ OWNER DATE

#a /OWNER o//23_/ -1- DATE

Received 2/20/2024 ROC Legal

ROUNDS CONSTRUCTION LLC P.O. BOX 18JZ, BUCKEYE, AZ. ffiil6 r m ) 677-«Rl. LICENSE# ROC 20Xll2

EXHIBIT ''A" DISBURSEMENT SCHEDULE

FUNDS SHALL BE DISBURSED N> LATER 1HAN '7' DAYS OF INVOICE DATE

AMOUNT DESCRIPTION

$ 38,000.00 (10%) Disbursed upon acceptance and signing of contract.

$ 57,000.00 (15%) Disbursed upon completion of the slab and construction ready for framing.

$ 58,470.00 (20%) Disbursed when the framing is complete, roof trusses & sheathing are n place.

$ 38,000.00 (10%) Disbursed when exterior lathed, windows installed, rough plumbing and rough electric, heating and air conditioning ducts installed.

$ 38,000.00 (10%) Disbursed when insulation installed, drywall is hung and roof is dried n and stocked.

$ 38,000.00 (10%) Disbursed when exterior or interior is painted, stucco complete, drywall taped and textured.

$ 38,000.00 (10%) Disbursed when doors are installed and finish carpentry complete, upper and lower cabinets installed.

$ 38,000.00 (10%) Disbursed when painting and roof is complete and countertops installed.

$ 27,030.00 Disbursed when finish electric, finish plumbing, finish flooring, cabinet faces and appliances installed, driveway and walk complete. Completion of all required items and Certificate of Occupancy issued. No work remains to be done. $ 9,500.00 Septic - $

$ -

$ - - $

$ -

$ 380,000.00 TOTAL CONTRACT Received 2/20/2024 Rounds Const. LLC ROC Legal PO Box 1692 Buckeye,Az. 85326

PROPOSAL SUBMITTED TO: Rounds Const. LLC 'Date Hortencia Garcia PO Box 1692 8/12/2021 STREET Buckeye,Az. 85326 10234 W. Whyman Ave. ROC # KB-1 200012 CITY, STATE AND ZIP CODE Cell 602-677-6692 w

Tolleson, Az.. 85353 Email - [email redacted] Scope of work: Site Work, Grading & Drainage - Utilities - Septic $32,200.00 Concrete $41,000.00 Interior & Exterior Doors - Garage Doors - Installation $12,000.00 Insulation $5,700.00 Cabinets - Granite Countertop $14,000.00 Drywall $19,000.00 Roofing $21,000.00 Windows Aluminum Regal View Thermal Break $14,000.00 Framing Per Plans $63,000.00 Stucco - Synthetic Finish $18,600.00 Flooring $13,000.00 Painting Interior $6,000.00 $0.00 HVAC $17,000.00 Plumbing and Fixtures $21,400.00 Electrical Wiring - Fixtures - SES $17,100.00 Appliance BY OWNER $0.00 Fireplace (Allowance) $2,900.00

! Bath Accessories $1,050.00 General Conditions $9,084.78 Project Management, Coordination and Supervision $2,400.00

! i nclusions: rubtotal $330,434.78 As noted above. O&P $49,565.22 Tax $0.00 Total $380,000.00 Exclusions: As noted aj){J\/e.

� E PROPOSE hereby to furnish material and labor - complete in accordance with above description, �or the sum of: $ 380,000.00 Payment to be made as follows: See Contract Exhibit "A" Disbursement Schedule I

This proposal is. good for 30 days. Authorized Signature � - {!__ \ · -\ � �CCEPTANCEOFPROPOSALTheabove prices, spciclRcslons and condU i ons &re,satisfaeiory ar1date �by \ """"pted. Yoo"" •ulhonzed\odolhe wor< l os sp,clied. Paym•nt wmbemade.. outlined above. --------------------11 � t h o r i z e d to Proceed:

Date of Acceptance: Signature: Received 2/20/2024 ROC Legal

ROUNDS CONSTRUCTION LLC P.O. B O X 1{:92, BUCKEYE, A R I Z O N A 85326 ((£2) 677-«BZ. L I C E N S E # RO C axxn2

EXHIBIT "B" PLANS & SPECIFICATIONS

To: Hortencia Garcia DATE: 08-12-2021 10234 W Whyman Ave. Tolleson,Az. 85326 602-399-6107

PROPERTY: Maricopa County APN 400-13-038E, Buckeye, N.. 85326

CUSTOM HOME DESIGN BY OWNER DATED 08-10-2021 ARCHITECTURAL SHEETS: S1 - A1 thru A5 - E1

SPECIFICATIONS

1. SEWER SYSTEM: 1250 GALLON SEPTIC TANK V\/1TH SHALLOW DISPOSAL TRANCHES. CONCRETE: PER PLANS. FRAMING: PER PLANS. 4. A/C AND HEATING: (2) DAY & NIGHT 4 TON 14 SEER SPLIT HEAT PUMP SYSTEMS. INSULATION: R-19 FIBERGLASS BATTS N EXTERIOR WALLS. R-38 FIBERGLASS BATT N CEILINGS. R-19 & R-11 FIBERGLASS BATTS N INTERIOR SOUND WALLS, RESTROOMS, MASTER BEDROOM & UTILITY ROOM. WINDOWS: INSULATED DUAL PANE LOW-E V\/1NDOWS. 7. DOORS AND TRIM: INTERIOR TO EE PAINT GRADE, H.C. 2-PANEL. 3-1/4" FJ - BASEBOARD AND TRIM TO EE PAINT GRADE. CUSTOM ENTRY DOOR (PER OWNER) EXTERIOR SLIDING DOORS (BUILDER SERIES CR EQUAL). CABINETS: TO EE STANDARD BUILDER SERIES CR EQUAL (NOT TO EXCEED ALLOWANCE). COUNTERTOPS: GRANITE (NOT TO EXCEED ALLOWANCE) 10. PLUMBING FIXTURES: BUILDERS SERIES CR EQUAL 11. SHOWER DOORS: NIA (ROD AND CURTAIN PROVIDED BY OWNER). APPLIANCES: APPLY ALLOWANCE CREDITS TO THIS COST CODE IF ANY. 13. UGHT FIXTURES: $1250.00 CEILING FANS ALLOWANCE, $600.00 INTERIOR & EXTERIOR LIGHT FIXTURES ALLOWANCE. 14. TV AND PHONE: PER PLANS. 15. FLOORING: $4500 CARPET ALLOWANCE, $8500.00 LUXURY VINYL PLANK ALLOWANCE 16. FIREPLACE: ZERO CLEARENCE V\/1TH 20' NON-COMBUSTIBLE HEARTH. 17. ROOFING: PITCHED 30 YEAR CONCRETE TILES. 18. STUCCO: PER PLANS OR EQUAL 19. DRYWALL: PER PLANS (SKIP TROWEL FINISH) 20. GAS: PER PLANS 21. PAINT: INTERIOR WALLS ONE COLOR EGGSHELL FINISH, INTERIOR TRIM ONE COLOR, EXTERIOR WALLS ONE COLOR, EXTERIOR POP'-OUTS ONE COLOR. 22. GARAGE DOORS: TO BE INSULATED AND SHALL INCLUDE OPENERS (FACTORY COLOR) 23. LANDSCAPING: NOT INCLUDED 24. SECURITY SYSTEM: NOT INCLUDED Received 2/21/24, 10:47 AM State of Arizona Mail - 1st Amended Complaint Complaint Number 2023-14406 2/20/2024 ROC Legal

Legal New Mail - AZROC <[email redacted]>

1st Amended Complaint Complaint Number 2023-14406 messages

Randy Wolfson <[email redacted]> Tue, Feb 20, 2024 at 11:42 AM To: "[email redacted]" <[email redacted]>, "[email redacted]" <[email redacted]> Cc: Debbie Malone <[email redacted]>, ISIDRO TORAL <[email redacted]>, "[email redacted]" <[email redacted]>, James Carter <[email redacted]>

Please find attached the Complainant’s 1st Amended Complaint in Complaint Number 2023-14406

Sincerely,

Randolph D. Wolfson, Esq. Faith, Ledyard & Faith, PLC 919 N. Dysart Road, Suite F Avondale, AZ 85323 Office: 623-932-0430 Direct line: (602) 834-0678 Fax: 623-932-1610 [email redacted] www.faithlaw.com

THIS EMAIL MESSAGE AND ANY ATTACHMENTS CONTAIN INFORMATION FROM THE LAW FIRM OF FAITH, LEDYARD & FAITH, PLC INTENDED SOLELY FOR THE INDIVIDUAL OR ENTITY TO WHOM IT IS DIRECTED. IT MAY CONTAIN INFORMATION THAT IS CONFIDENTIAL AND PROTECTED BY ATTORNEY-CLIENT PRIVILEGE, ATTORNEY WORK PRODUCT DOCTRINE AND OTHER APPLICABLE PRIVILEGES UNDER BOTH FEDERAL AND STATE LAW. ANY DISSEMINATION, DISCLOSURE, DISTRIBUTION, OR REPRODUCTION OF THIS MESSAGE AND/OR CONTENTS BY AN UNINTENDED RECIPIENT IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS MESSAGE IN ERROR AS AN UNINTENDED RECIPIENT, YOU ARE DIRECTED TO CONTACT THE SENDER IMMEDIATELY VIA TELEPHONE AT (623) 932-0430 OR REPLY EMAIL, THEN PERMANENTLY DELETE THIS MESSAGE AND ANY ATTACHMENTS FROM YOUR INBOX, EMAIL SERVER, AND/OR COMPUTER HARD DRIVE.

IRS CIRCULAR 230 DISCLOSURE: TO ENSURE COMPLIANCE WITH REQUIREMENTS IMPOSED BY THE IRS, WE INFORM YOU THAT, TO THE EXTENT THIS COMMUNICATION (OR ANY ATTACHMENT) ADDRESSES ANY TAX MATTER, IT WAS NOT WRITTEN TO BE (AND MAY NOT BE) RELIED UPON TO (I) AVOID TAX-RELATED PENALTIES UNDER THE INTERNAL REVENUE CODE, OR (II) PROMOTE, MARKET OR RECOMMEND TO ANOTHER PARTY ANY TRANSACTION OR MATTER ADDRESSED HEREIN (OR IN ANY SUCH ATTACHMENT).

WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE. IF THIS EMAIL IS AN ATTEMPT TO COLLECT A DEBT, ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE

https://mail.google.com/mail/b/AEoRXRSbZErmtg3x-dV7og0Y6ta-2LD7jOrB3gFHnRPzRjmdJC9W/u/0/?ik=d3afebeda9&view=pt&search=all&permthi… 1/2 Received 2/21/24, 10:47 AM State of Arizona Mail - 1st Amended Complaint Complaint Number 2023-14406 2/20/2024 ROC Legal

1st Amended Complaint.pdf 1612K

Legal New Mail - AZROC <[email redacted]> Wed, Feb 21, 2024 at 10:47 AM To: James Carter <[email redacted]>

FYI - This was received by the Legal Department. We are taking no action because the complaint hasn't been sent to Legal yet.

Thank you,

Arizona Registrar of Contractors Legal Department

Fill out AZ ROC’s survey to let us know how we’re doing and how we can better serve you!

[Quoted text hidden]

1st Amended Complaint.pdf 1612K

https://mail.google.com/mail/b/AEoRXRSbZErmtg3x-dV7og0Y6ta-2LD7jOrB3gFHnRPzRjmdJC9W/u/0/?ik=d3afebeda9&view=pt&search=all&permthi… 2/2 Complainant: RANDOLPH DOUGLAS WOLFSON 919 N. Dysart Road Avondale, AZ 85323

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 12/23 Respondent: Rounds Construction LLC DBA: PO Box 1692 Buckeye, AZ 85326

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 12/23 March 8, 2024

Re: Complaint No. 2023-14406

Dear Complainant and Respondent:

After the initial filing of the complaint 2023-14406, the Complainant filed the attached amended complaint containing additional complaint items.

A jobsite inspection is scheduled Wednesday, March 20, 2024 at 10:00 AM. The Complainant is required to be present. The Respondent’s attendance is requested and encouraged. The Registrar encourages both parties to make a good faith effort to resolve this complaint prior to the jobsite inspection.

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

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

If either party needs to reschedule the jobsite inspection, please notify the assigned investigator at least three business days prior to the inspection date to schedule a new date and time. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 12/23 If the parties resolve the complaint prior to the inspection, please notify the assigned investigator in writing and by phone as soon as possible.

Sincerely,

James Carter James Carter, Investigator 602 7716770 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

Cc: File Respondent Complainant

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 12/23 Complaint #2024-14406 Inspection Date 03/20/2024 10:00 AM - Photo Page 1 Complaint #2024-14406 Inspection Date 02/01/2024 10:00 AM - Photo Page 1 Complaint #2024-14406 Inspection Date 02/01/2024 10:00 AM - Photo Page 2 Complaint #2024-14406 Inspection Date 02/01/2024 10:00 AM - Photo Page 3 Complaint #2024-14406 Inspection Date 02/01/2024 10:00 AM - Photo Page 4 Jobsite Inspection Notes

Case No.: 2023-14406 Investigator: James Carter Inspection Date: Wednesday, March 20, 2024 Inspection Time: 10:00 AM

Complainant: Randy Douglas Respondent: Rounds Construction Wolfson LLC Not Present: Not Present:

Jobsite General Notes: JSI photos and audio taken with my agency issued Google Pixel Phone camera. JSI photos and audio have been placed into the ROC complaint file. The initial inspection was held on February 1, 2024. The listed Complainant is the attorney for the homeowners of this property. At the time of this inspection the Homeowner Hortencia Garcia and her husband had a translator there as neither one spoke English. The Respondent was represented by Chris Rounds owner of Rounds Construction. He also had one of his employees as a translator. Respondent left the inspection early as he said he had another appointment and he took his employees with him. At the conclusion of the JSI Mrs Garcia advised through her translator that there were additional items she wish to discuss. Because the Respondent had already left I advised her that she would need to file an addendum in order to add those items and I explained to her that doing so would delay any written directive. I also advised that if any additional inspections were needed that I would bring someone from the agency as a translator due to there being some confusion as to what each parties translator was saying. She acknowledged and said she would contact her attorney. I did not receive the addendum items so I reach out to the listed Complainant and advised that the Written Directive was being delayed due to not having received the addendum of items. Complainant responded with Item #13 only. I then scheduled the inspection on March 20, 2024. I conducted this inspection with Asst. Chief Alex Figueroa as my translator. Mrs Garcia and her husband were again present. Respondent was not present for this inspection. The allegation items listed below are as submitted by the complaintant.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C011 12/23

Compliance Item: 2 - R O U N D S failed to construct bathroom and glass enclosure included in plans and specs Investigator’s Observation: Verified. At the time of the inspection there was no shower glass installed. A review of the plans shows that the master bath should have had glass installed. The Respondent will need to correct this by the appropriate means, using an appropriately licensed contractor. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 3 - ROUNDS has not followed plans and specifications in violation of A.R.S. § § 32-1154(A)(6), and (A)(2){a) and (A)(3) and (A)(12); Investigator’s Observation: Verified. Complainant specifically pointed out the rear patio door. The door swings in but per the plans the door is supposed to swing out. The Respondent will need to correct this by the appropriate means, using an appropriately licensed contractor. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 13 - ROUNDS installed the home's HVAC system. The HVAC will not heat or cool in each room of the house at the thermostate's settings Investigator’s Observation: Verified. During the inspection the Complainant turned on the heater. There was a noticeable temperature difference in the great room and kitchen area from the bedrooms in the rest of the home. I was unable to feel any air coming out of the vents in the bedrooms. The Respondent should determine the cause and will need to correct this by the appropriate means, using an appropriately licensed contractor. Governing Rule: Violation of any rule adopted by the

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C011 12/23

Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

ITEMS NOT REQUIRING CORRECTION:

Compliance Item: 1 - R O U N D S undertook to provide materials/labor N O T within scope o f w o r k & with invoice above bid Investigator’s Observation: Unverified. The Complainant failed to demonstrate the complaint item. Governing Rule:

Compliance Item: 4 - ROUNDS abandoned the contract or refused to perform after submitting a bid contrary to A.R.S. § 32-1154(A)(1), (A)(3) and (A)(12) Investigator’s Observation: This is a general statement and does not implicate a specific workmanship issue. It therefore and cannot be evaluated by the ROC. Governing Rule:

Compliance Item: 5 - ROUNDS departed from or disregarded the contracted plans or specifications contrary to ARS Sec. 32-1154(2)(a){2). (A)(1), (A)(3) and (A)(1:) Investigator’s Observation: This is covered in Item #3 Governing Rule:

Compliance Item: 6 - ROUNDS failed to complete construction for the price stated in the contract contrary to ARS Sec. 32-1154(8), (A)(3) and (A)(12); Investigator’s Observation: Unverified. The Complainant failed to demonstrate the complaint item. Governing Rule:

Compliance Item: 7 - After ROUNDS, Upon information and belief, passed final Permitting inspection on August 24, 2003, Maricopa County Planning and Development issued a Certificate of Occupancy for Complainant's new home to ROUNDS contrary to A.R.S. § 32-1154(2)(a), (A){3) and (A) 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C011 12/23

Investigator’s Observation: Certificate of Occupancy has been issued. No correction is required by the Respondent. Governing Rule:

Compliance Item: 8 - ROUNDS has repeatedly refused to provide Complainant with a Certificate of Occupancy unless and until the $527,742.07 is paid in full. Investigator’s Observation: Certificate of Occupancy has been issued. No correction is required by the Respondent. Governing Rule:

Compliance Item: 9 - Complainant's mortgage banker requires the Certificate of Occupancy in order to document its loan and to disburse proceeds - all in violation of § 32-1154(A)(6), (A)(3,and (A)(12); Investigator’s Observation: Certificate of Occupancy has been issued. No correction is required by the Respondent. Governing Rule:

Compliance Item: 10 - ROUNDS demands that if Complainant does not pay an inflated $527,742,07 to ROUNDS, that ROUNDS threatened to falsely assert and claim to Complainant's mortgage lender that the project is not completed and a Certificate of Occupancy has not issued Investigator’s Observation: Complaint item does not implicate a workmanship issue, but a matter of payment for the services. The ROC has no jurisdiction on this complaint item. Governing Rule:

Compliance Item: 11 - ROUNDS induced Complainant to contract with it based on ROUNDS' bid total of $380,000.00. Without change orders or other written amendments to the contract, ROUNDS now demands payment of not less than $527,742.074 - a material misrepresentation made by ROUNDS now demands payment of not less than $527,742.074 - a material misrepresentation 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C011 12/23

made by Investigator’s Observation: Unverified. The Complainant failed to demonstrate the complaint item. Governing Rule:

Compliance Item: 12 - ROUNDS which Complainant justifiably relied upon resulting in damage to the Complainant's good credit and exposing the Complainant to a mechanic's lien, foreclosure and a suit for damages from ROUNDS A. A. C. R4-9- 131 Aggravating circumstances include: a. ROUNDS Failed to perform any work for which money was received. b. ROUNDS Executed or used any false or misleading documents for the purpose of inducing a person [to wit: the Complaint] to enter into contract or to pay money for work to be performed. C. ROUNDS Made false or misleadinn statements for the purpose of inducing a nerson to enter into a contract or to nmb:I oney for work to be performed. r - , ' " ' - . . , r " ' \ r ' t , ...,. r - -- ,....,_ ,v, -- .. , ..,, 1,110 ,._...,...,_ 1.V performed in a good and workmanlike manner.. ...,.,._,,. 111111 IUI u....,...,...., VI ...... ..., - y .:;,1,oT ;uc;u u.:;, u1 tJ · auu ...,..., ...,, -.-. ....y not e. ROUNDSPerformed work that has caused loss or damage to the structure, its appurtenances, or property being wo k ed uoon or has caused loss or iniurv to anv oerson Investigator’s Observation: Continuation from item 11 Governing Rule:

James Carter James Carter, Investigator 602 7716770 [email redacted] 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 C011 12/23

Complainant: Randy Douglas Wolfson 919 North Dysart Road, Suite F Avondale, AZ 85323

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Respondent: Rounds Construction LLC DBA: PO Box 1692 Buckeye, AZ 85326

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 April 23, 2024

License No. ROC 200012

Re:Complaint No. 2023-14406

WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

After investigation, the Registrar determined that you failed to meet the requirements of A.R.S. § 32-1154(A), and now issues this Directive requiring you to take appropriate corrective action. Failure to comply with this Directive constitutes a violation of A.R.S. § 32-1154(A)(22) and may result in the issuance of a citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-1154(E) of up to $500.00. You must notify the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on May 14, 2024.

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

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

This means the license is suspended for lack of qualifying party, lack of bond, nonrenewal, Recovery Fund payout, or for any reason listed in A.R.S. § 32-1124(F).

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 13 - ROUNDS installed the home's HVAC system. The HVAC will not heat or cool in each room of the house at the thermostate's settings Investigator’s Observation: Verified. During the inspection the Complainant turned on the heater. There was a noticeable temperature difference in the great room and kitchen area from the bedrooms in the rest of the home. The Respondent should determine the cause and will need to correct this by the appropriate means, using an appropriately licensed contractor. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

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

Compliance Item: 1 - R O U N D S undertook to provide materials/labor N O T within scope o f w o r k & with invoice above bid Investigator’s Observation: Unverified. The Complainant failed to

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 demonstrate the complaint item. Governing Rule:

Compliance Item: 7 - After ROUNDS, Upon information and belief, passed final Permitting inspection on August 24, 2003, Maricopa County Planning and Development issued a Certificate of Occupancy for Complainant's new home to ROUNDS contrary to A.R.S. § 32-1154(2)(a), (A){3) and (A) Investigator’s Observation: Certificate of Occupancy has been issued. No correction is required by the Respondent. Governing Rule:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliance Item: 8 - ROUNDS has repeatedly refused to provide Complainant with a Certificate of Occupancy unless and until the $527,742.07 is paid in full. Investigator’s Observation: Certificate of Occupancy has been issued. No correction is required by the Respondent. Governing Rule:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Investigator’s Observation: Unverified. The Complainant failed to demonstrate the complaint item. Governing Rule:

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

Sincerely,

James Carter James Carter, Investigator 602 7716770 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

CC: Respondent Complainant

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complainant: Hortencia Garcia 8417 S 229th Lane Buckeye, AZ 85326

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

C012 12/23 Respondent: Rounds Construction LLC DBA: PO Box 1692 Buckeye, AZ 85326

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

C012 12/23 May 20, 2024

Compliance Jobsite Inspection Notice Re: Complaint No. 2023-14406

Dear Complainant and Respondent:

A Compliance Inspection has been scheduled for Thursday, May 30, 2024 at 11:30 AM to determine the current status of the items listed on the issued Directive.

The Complainant is required to be present for this inspection. The Respondent is encouraged to be present but is not required to attend.

Complainant: SAFE ACCESS IS REQUIRED TO ANY AREA TO BE INSPECTED.

Sincerely,

James Carter, Investigator (602) 771-6770 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

CC: Respondent Complainant

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

C012 12/23 Complaint #2023-14406 Compliance Inspection Date 05/30/2024 11:30 AM - Photo Page 1 Complaint #2023-14406 Compliance Inspection Date 05/30/2024 11:30 AM - Photo Page 2 Complaint #2023-14406 Compliance Inspection Date 05/30/2024 11:30 AM - Photo Page 3 Complaint #2023-14406 Compliance Inspection Date 05/30/2024 11:30 AM - Photo Page 4 Complainant: Hortencia Garcia 8417 S 229th Lane Buckeye, AZ 85326

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Respondent: Rounds Construction LLC DBA: PO Box 1692 Buckeye, AZ 85326

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Case No.: 2023-14406 Investigator: James Carter Inspection Date: Thursday, May 30, 2024 Inspection Time: 11:30 AM

Compliance Jobsite General Notes: CJSI photos and audio taken with my Google Pixel Phone camera. CJSI photos and audio have been placed into the ROC complaint file. Complainant was present for the CJSI Respondent was not. Complainant does not speak English so Assistant Chief of Compliance Alex Figueroa acted as a translator at the Compliance Inspection

Compliance Findings:

Compliance Item: 2 - R O U N D S failed to construct bathroom and glass enclosure included in plans and specs Investigator’s Observation: Respondent did not complete glass was still not installed

Compliance Item: 13 - ROUNDS installed the home's HVAC system. The HVAC will not heat or cool in each room of the house at the thermostate's s Investigator’s Observation: Per Complainant a technician did come out and made some adjustments. Master closet and bedroom were still warm. Complainant did advise that the technician did advise that if there were still issues to call him back however Complainant had not yet called him back

Note:

Please review the complaint items listed above. If any of the items have not been corrected at the time of the compliance inspection this complaint will be forwarded to the Registrar’s legal department and a citation may be issued. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 If all items are corrected after receipt of this letter, please notify the Registrar’s legal department by sending a notice of compliance signed by the complainant to fax number (602) 364-0416 or by mail to: Arizona Registrar of Contractors, P.O. Box 18244, Phoenix, Arizona 85005-8244. Sincerely,

James Carter, Investigator (602) 771-6770 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

CC: Respondent Complainant

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Hortencia Garcia Case No. 2023-14406 COMPLAINANT, v. Rounds Construction LLC CITATION License No. ROC 200012,

RESPONDENT.

The Registrar issues this Citation to Rounds Construction LLC (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by July 3, 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).

of 6

1700 W. Washington Street, Suite 105 ꞏ Phoenix AZ 85007-2812 602.542.1525 ꞏ Toll Free 877.692.9762 ꞏ roc.az.gov Lg101 8/21 THE WRITTEN COMPLAINT On December 19, 2023, Hortencia Garcia (“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)(2)(a) Departure from or disregard of: (a) Plans or specifications in any material respect that is prejudicial to another without consent of the owner or the owner’s duly authorized representative and without the consent of the person entitled to have the particular construction project or operation completed in accordance with such plans and specifications and code.

Charge 2: A.R.S. § 32-1154(A)(3) - R4-9-108(a) Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Charge 3: A.R.S. § 32-1154(A)(22) Failure to take appropriate corrective action to comply with this chapter or with rules adopted pursuant to this chapter without valid justification within a reasonable period of time after receiving a written directive from the Registrar. The written directive shall set forth the time within which the contractor is to complete the remedial action. The time permitted for compliance shall not be less than fifteen days from the date of issuance of the directive. A license shall not be revoked or suspended nor shall any other penalty be imposed for a

of 6

1700 W. Washington Street, Suite 105 ꞏ Phoenix AZ 85007-2812 602.542.1525 ꞏ Toll Free 877.692.9762 ꞏ roc.az.gov Lg101 8/21 violation of this paragraph until after a hearing has been held. If the matter proceeds to a hearing and the administrative law judge determines that any of the charges listed above are supported by a preponderance of the evidence, then Respondent’s license(s) may be subject to suspension or revocation, and Respondent may be subject to other penalties provided by law, including civil penalties under A.R.S. §§ 32-1154(E) and (F).

FILING A WRITTEN ANSWER Respondent must appear by filing with the Registrar a written answer to the citation and complaint showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). Respondent’s written answer should contain the heading “Written Answer to Citation and Complaint” and should include the case number, which is Case No. 2023-14406. 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 July 3, 2024. 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

of 6

1700 W. Washington Street, Suite 105 ꞏ Phoenix AZ 85007-2812 602.542.1525 ꞏ Toll Free 877.692.9762 ꞏ roc.az.gov Lg101 8/21 Respondent’s latest address of record in the Registrar’s office. Consequences for Failing to File a Written Answer: If Respondent fails to answer, Respondent’s failure may be deemed an admission of the act or acts charged in the written complaint. A.R.S. § 32-1155(C). The Registrar may then suspend or revoke Respondent’s license(s). THE ADMINISTRATIVE HEARING If Respondent files a timely written answer contesting any charges in the Complaint, then the Registrar will request the Office of Administrative Hearings set a date for an administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D). INVESTIGATOR’S APPEARANCE AS A WITNESS The Registrar’s assigned investigator will appear as a witness at the hearing. If either party demands the attendance at the hearing of any other person, that party must obtain and serve a subpoena in compliance with the rules and processes established by the Office of Administrative Hearings. RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an 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.

of 6

1700 W. Washington Street, Suite 105 ꞏ Phoenix AZ 85007-2812 602.542.1525 ꞏ Toll Free 877.692.9762 ꞏ roc.az.gov Lg101 8/21 § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations, are inadmissible in the administrative hearing. A.R.S. § 41-1092.06(B). RESPONDENT’S PRIOR RECORD Under A.A.C. R4-9-117, in determining the appropriate discipline, the administrative law judge and the Registrar may consider not only facts in the current case, but also facts in prior cases and any documents regarding Respondent on file with the Registrar. Respondent’s prior disciplinary record and current license(s) status may be considered as a mitigating or aggravating factor in determining the appropriate discipline. EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to the Citation and Complaint, showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). This Citation does not constitute proof that any charge or allegation in Complainant’s written complaint is in fact true. This Citation does not constitute proof that Respondent violated any statutory provision or rule adopted by the Registrar. Dated June 18, 2024. By: /s/ Dylan Warwick Dylan Warwick Legal Department Arizona Registrar of Contractors

of 6

1700 W. Washington Street, Suite 105 ꞏ Phoenix AZ 85007-2812 602.542.1525 ꞏ Toll Free 877.692.9762 ꞏ roc.az.gov Lg101 8/21 COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, June 18, 2024 to:

Respondent Certified Mail No: [number redacted]

Rounds Construction LLC PO Box 1692 Buckeye, AZ 85326

Copy mailed by USPS First Class mail this same date to:

Rounds Construction LLC PO Box 1692 Buckeye, AZ 85326

Complainant Hortencia Garcia 8417 S 229th Lane Buckeye, AZ 85326 Copy sent electronically this same date to: Respondent at email address on record with the Registrar Complainant at email address on record with the Registrar

Case No. 2023-14406 / <<CreatedBy_DW>

of 6

1700 W. Washington Street, Suite 105 ꞏ Phoenix AZ 85007-2812 602.542.1525 ꞏ Toll Free 877.692.9762 ꞏ roc.az.gov Lg101 8/21 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

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

Hortencia Garcia Mailing Address (Enter jobsite in Contract/Project section) City State Zip

919 N. Dysart Road Avondale Arizona 85353 Phone Number Email

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

Randolph D. Wolfson Street Address of Attorney City State Zip

919 North Dysart Road Avondale Arizona 85323 Phone Number of Attorney Email of Attorney

[number redacted] [email redacted] Contractor Information Name (as shown on contract/invoice) ROC License Number(s)

Rounds Construction LLC ROC 200012 Street Address City State Zip

PO Box 1692 Buckeye AZ 85326 Phone Number Email

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

James C. Rounds Contract/Project Information Contract Date Contract Amount Amount Paid

August 12, 2021 $380,000.00 $38,000.00 Date Work Started Date Work Stopped Date Work Was Completed

August 12, 2021 August 24, 2023 Close of Escrow (New Home) Move-In Date (New-Home)

Jobsite Street Address City State Zip

8517 South 229th Lane Buckeye AZ 85326 Name of Construction Site Owner Construction Site Name (if applicable)

Hortencia Garcia Phone Number of Construction Site Owner Email of Construction Site Owner

[number redacted] [email redacted] This complaint is for Abandonment;Poor Work;Other I have contacted the contractor by Phone/Text;Email Have you filed a complaint in court? No

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

Has any work been corrected? No

The contract was Written All change orders were N/A This project was Residential This project involved New Home

A building permit was obtained by Contractor B202203255 Maricopa List and briefly describe each complaint item (Please do not write "see attached" or use additional pages unless necessary to further describe issues or list more complaint items) (limited to 100 characters per line)

. R O U N D S undertook to provide materials/labor N O T within scope o f w o r k & with invoice above bid 2. R O U N D S failed to construct bathroom and glass enclosure included in plans and specs. 3. ROUNDS has not followed plans and specifications in violation of A.R.S. § § 32-1154(A)(6), and (A)(2){a) and (A)(3) and (A)(12); 4. ROUNDS abandoned the contract or refused to perform after submitting a bid contrary to A.R.S. § 32-1154(A)(1), (A)(3) and (A)(12) 5. ROUNDS departed from or disregarded the contracted plans or specifications contrary to ARS Sec. 32-1154(2)(a){2). (A)(1), (A)(3) and (A)(1:) 6. ROUNDS failed to complete construction for the price stated in the contract contrary to ARS Sec. 32-1154(8), (A)(3) and (A)(12); After ROUNDS, Upon information and belief, passed final Permitting inspection on August 24, 2003, Maricopa County Planning and Development issued a Certificate of Occupancy for Complainant's new home to ROUNDS 8. ROUNDS has repeatedly refused to provide Complainant with a Certificate of Occupancy unless and until the $527,742.07 is paid in full. 9. Complainant's mortgage banker requires the Certificate of Occupancy in order to document its loan and to disburse proceeds - all in violation of § 32-1154(A)(6), (A)(3,and (A)(12); 10. ROUNDS demands that if Complainant does not pay an inflated $527,742,07 to ROUNDS, that ROUNDS threatened to falsely assert and claim to Complainant's mortgage lender that the project is not completed and a Certificate of Occupancy has not issued. 11. ROUNDS induced Complainant to contract with it based on ROUNDS' bid total of $380,000.00. Without change orders or other written amendments to the contract, ROUNDS now demands payment of not less than $527,742.074 - a material misrepresentation made by ROUNDS which Complainant justifiably relied upon resulting in damage to the Complainant's good credit and exposing the Complainant to a mechanic's lien, foreclosure and a suit for damages from ROUNDS. A. A. C. R4-9-131 Aggravating circumstances include: a. ROUNDS Failed to perform any work for which money was received. b. ROUNDS Executed or used any false or misleading documents for the purpose of inducing a person [to wit: the Complaint] to enter into a contract or to pay money for work to be performed. C. ROUNDS Made false or misleading statements for the purpose of inducing a person [to wit: the Complaint] to enter into a contract or to pay money for work to be performed. ROUNDS performed work that failed to meet minimum acceptable trade or industry standards or practices or was not performed in a good and workmanlike manner. performed in a good and workmanlike manner. .. ..,.,._,,. 111111 IUI u....,...,...., VI ...... ..., - y .:;,1,oT ;uc;u u.:;, u1 tJ · auu ...,..., ...,, -.-. .... y not 18. e. ROUNDSPerformed work that has caused loss or damage to the structure, its appurtenances, or property being wo k ed uoon or has caused loss or iniurv to anv oerson

Signature

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

Hortencia Garcia \complainant1\ \complainantd1\

RCC099 12/05/18 Page 3 of 3 RECEIVED LEGAL 7/02/2024

07/03/24

Arizona Registrar of Contractors 1700 W. Washington St. 105 Phoenix, Az. 85007

Written Answer to Citation and Compliant Case No. 2023 - 14406

Response to Licensed Compliant Form: 1. Hortencia Garcia (Owner) assigned Isidro Morales (Husband) to be my point of contact for the construction of this entire project. I never spoke directly to Hortencia Garcia. Always to Isidro Morales regarding construction, changes and materials. I never proceeded without his approval verbal or written. 2. The contract Exhibit “B” Plans and Specifications signed by Owner specifies on item #11, that SHOWER DOORS: N/A (Rod and Curtain Provided by Owner). I have attached copy of entire executed contract for your review. 3. Rounds Construction has met or exceeded plans and specification of executed contract. 4. Rounds Construction has not abandoned the contract. Rounds Construction scheduled a meeting with Hortencia Garcia, Isidro Morale and a translator for October 26th to discuss final payment on contract. We were unable to agree on the final amount. I asked Isidro Morales at that meeting if he wanted me to come out and complete the remaining work. He informed Rounds Construction not to do any more work on the project. I’m not aware of any direct correspondence with either Hortencia Garcia or Isidro Morales since that meeting. 5. Rounds Construction has not departed or disregarded the contracted plans or specifications. All changes from plans were approved prior to completion by Isidro Morale (Owners Rep). All were done at the request of Hortencia Garcia the Owner to my knowledge. A complete list of changes can be made available upon request. 6. Rounds Construction completed project and Owner took Occupancy on or around August 24th, 2023. See attached Certificate of Occupancy. Please see Construction Prime Contract Agreement item #6 stating ACCEPTANCE: Occupancy of premises constitutes acceptance. 7. See Attached Certificate of Occupancy. 8. This a blatantly untrue. On December 7th ,2023 Rounds Construction submitted Draw #6 to Lender and Owner. Draw #6 included Owner Draw Request Authorization (Signed by Contractor), Change Order #1, Hortencia Garcia Cost Breakdown Draw #6 and Copy of Certificate of Occupancy. The final draw requests 1-6 for the project total was $450,000.00. Final Draw request #6 was for $48,892.50. The actual cost of the project was $527,742.07. Rounds Construction has absorbed almost $77,742.07 of losses on this project from Owner changes and upgrades to Contract. What more can I do! 9. Rounds Construction sent a copy of Certificate of Occupancy to lender with Draw #6 application on December 7th, 2023. 10. Blatantly Untrue. Rounds Construction has not demanded any more than the amount claimed on Draw Application #6 sent December 7th to Lender and Owner. 11. Rounds Construction never induced Owner. Owner came to Rounds Construction and Rounds Construction helped Owner to secure Loan and Budget based on current day costs. Due to Owner changes and upgrades the duration was longer than expected. Please see Construction Prime Contract Agreement #1 Prices Increase due to materials, RECEIVED LEGAL 7/02/2024

equipment rental, etc. due to duration of the project will be the responsibility of the Owner. I made Isidro Morales (Owner Rep.) aware of the strict adherence to the plans and specifications to meet costs. He began ignoring my warning regarding costs the day we broke ground. We had agreed that fill dirt would be barrow from site and not imported. He changed his mind and insisted we import all fill dirt Approx 1400 yds. That cost alone was $9,000.00. Please see Addendum #1 contingency budget increase of $40,000.00 to lender. Lender was also concerned that if the Owner did not strictly adhere to plans and specification as well as allowances and Contractor recommendations, he would go over budget. Owner ignored the Rounds Constructions recommendations and verbally agreed to pay all addition costs.

The remainder of the compliant I.E. Aggravating circumstances are all blatantly untrue and do not merit response.

In closing I want to say that Rounds Construction has gone above and beyond for this project as we do with all our projects. Rounds Construction has been damaged by these unfounded blatantly malicious and untrue statements both financially and professionally. I want to find a palatable resolution to this for both the Owner and Rounds Construction. Look forward to working with the Registrar of Contractors to resolve this matter.

Thank you Chris Rounds

Attachments: Construction Prime Contract Agreement (Signed 08-13-2021) Exhibit “A” Disbursement Schedule (Signed 08-13-2021) Exhibit “B” Plans & Specification (Signed 08-13-2021) Proposal and Unit Pricing (Signed 08-13-2021) Email sent to Owners Rep 12-06-2023 Isidro Morales Draw#6 Email sent to Lender 12-06-2023 Draw #6 Bell Bank Draw Request Authorization Draw #6 Change Order #1 Copy of text tread show approval of French on Rear Patio Certificate of Occupancy Authorization to Discharge (Septic) RECEIVED LEGAL 7/02/2024

CERTIFICATE OF OCCUPANCY MARICOPA COUNTY PLANNING AND DEVELOPMENT DEPARTMENT

Site Address: 8517 S 229TH Ln Owner: GARCIA HORTENCIA VERGARA BUCKEYE AZ 85326 10234 W WHYMAN AVE TOLLESON AZ 85353

Permit Number: B202203255 Final Inspection Date: 8/24/2023 Occupancy Type: R-3 Resid Or Daycare, Less than 5 Building Code Year: 2012 Construction Type: VB Fire Sprinklers: No

Description: CUSTOM SINGLE FAMILY RESIDENCE

The above described portion of this structure has been inspected for compliance with the requirements of this code and for the occupancy and division of occupancy and the use for which the proposed occupancy is classified.

Building Official: Mark Sipes Date: 8/24/2023 RECEIVED LEGAL 7/02/2024 Garcia French Door

Sent from my iPhone

RECEIVED LEGAL 7/02/2024

48,892.50

12/07/2023 RECEIVED LEGAL 7/02/2024 RECEIVED LEGAL 7/02/2024 RECEIVED LEGAL 7/02/2024

48,892.50

12/07/2023 RECEIVED LEGAL 7/02/2024 Rounds Construction LLC Invoice P.O. Box 1692 Buckeye, AZ. 85326 Date Invoice # License No. ROC200012 12/7/2023 GRCA-INV-07

Bill To

Hortencia Garcia 8517 S. 229th Ln Buckeye, AZ 85396

Terms Due on receipt

Description Quantity Rate Amount

Per Cost Breakdown Sheet Draw 6 48,892.50 48,892.50 Garcia Residence at 8517 S. 229th Ln. Buckeye, AZ 85326

Payments/Credits $0.00

Balance Due $48,892.50

Phone # E-mail

602-677-6692 [email redacted] RECEIVED LEGAL 7/02/2024 RECEIVED LEGAL 7/02/2024

ccoleman roundsconstruction.com

From: ccoleman roundsconstruction.com Sent: Wednesday, December 6, 2023 3:32 PM To: Judy Denzer Cc: crounds roundsconstruction.com; Jorge Sandoval; Katie Bell Subject: RE: Final Draw/Post Closing Reconciliation 8517 S 229th LN Buckeye, AZ 85326 Garcia Attachments: Draw 6 & Change Order Docs.pdf; Hortencia Garcia Cost Breakdown Draw 6.xlsx; B202203255 CertificateOfOccupancy.pdf

Judy, Please find attached the documents we have for the Garcia Final draw and change order, Let me know if you have any questions or require any additional information, Thank you,

Cameron Coleman Admin Rounds Construction LLC PO Box 1692 Buckeye, AZ 85326 [email redacted] C: (740) 975-8693

From: Judy Denzer <[email redacted]> Sent: Wednesday, December 6, 2023 3:11 PM To: ccoleman roundsconstruction.com <[email redacted]>; crounds roundsconstruction.com <[email redacted]> Cc: Jorge Sandoval <[email redacted]>; Katie Bell <[email redacted]> Subject: RE: Final Draw/Post Closing Reconciliation 8517 S 229th LN Buckeye, AZ 85326 Garcia

Hi Cameron,

Just talked with Chris and he suggested I reach out to you to send a copy of the Garcia final draw, change orders, and certificate of occupancy. I will review and send another group email to try to move the final draw and reconciliation along.

Appreciate your help, Thank you,

Judy Denzer Construction Loan Coordinator

A Local and National Award-Winning Company

For California residents, please review our California Privacy Policy

RECEIVED LEGAL 7/02/2024

ccoleman roundsconstruction.com

From: ccoleman roundsconstruction.com Sent: Monday, November 27, 2023 3:11 PM To: ISIDRO TORAL Cc: crounds roundsconstruction.com Subject: Garcia Final Draw Request Authorization Attachments: Owner Draw Request Authorization (Signed).pdf; Change Order 1.xls; Hortencia Garcia Cost Breakdown Draw 6.xlsx

Isidro, Please ﬁnd a ached the Draw Request, Change Order, and Cost Breakdown for draw 6 Please review and sign draw request and return to us, Please do not hesitate to contact me if you have any ques ons, Thank you,

Cameron Coleman Admin Rounds Construction LLC PO Box 1692 Buckeye, AZ 85326 [email redacted] C: (740) 975-8693

RECEIVED LEGAL 7/02/2024 RECEIVED LEGAL 7/02/2024 RECEIVED LEGAL 7/02/2024 RECEIVED LEGAL 7/02/2024 RECEIVED LEGAL 7/02/2024 RECEIVED LEGAL 7/02/2024 RECEIVED LEGAL 7/02/2024

Borrower Name: Hortencia Garcia Loan Number: Notes:

TOTAL AMOUNT ORIGINAL Overages Item DRAW At NEEDED TO REMAINING DESCRIPTION OF WORK CONTRACT Added to DEPOSIT DRAW #1 DRAW #2 DRAW #3 DRAW #4 DRAW #5 DRAW #6 DRAW #7 DRAW #8 No. Closing COMPLETE BUDGET AMOUNT Contract CONSTRUCTION Site Work, Grading/Compaction - Utilities - Septic 32,200.00 32,200.00 4,830.00 8,700.00 18,670.00 0.00 Concrete Foundation Slabs 41,000.00 41,000.00 6,150.00 34,850.00 0.00 Interior & Exterior Doors - Garage Doors - Installation 12,000.00 12,000.00 1,800.00 6,000.00 4,200.00 0.00 Insulation 5,700.00 5,700.00 855.00 4,845.00 0.00 Cabinet work - Granite Countertops 14,000.00 14,000.00 2,100.00 4,870.00 7,030.00 0.00 Drywall 19,000.00 19,000.00 2,850.00 6,090.00 10,060.00 0.00 Roofing 21,000.00 21,000.00 3,150.00 8,000.00 7,900.00 1,950.00 0.00 Windows Aluminum Regal View Thermal Break 14,000.00 14,000.00 2,100.00 10,000.00 1,600.00 300.00 0.00 Framing 63,000.00 63,000.00 9,450.00 26,775.00 26,775.00 0.00 Stucco - Synthetic Finish 18,600.00 18,600.00 2,790.00 6,500.00 6,000.00 3,310.00 0.00 Flooring 13,000.00 13,000.00 1,950.00 5,000.00 6,050.00 0.00 Painting Interior 6,000.00 6,000.00 900.00 4,000.00 1,100.00 0.00 HVAC 17,000.00 17,000.00 2,550.00 8,120.00 6,330.00 0.00 Plumbing and Fixtures 21,400.00 21,400.00 3,210.00 11,340.00 2,500.00 4,350.00 0.00 Electrical Wiring - Fixtures - SES 17,100.00 17,100.00 2,565.00 8,930.00 3,500.00 2,105.00 0.00 Appliance by Owner 0.00 0.00 0.00 0.00 Fireplace (Allowance) 2,900.00 2,900.00 435.00 2,465.00 0.00 Bath Accessories 1,050.00 1,050.00 157.50 892.50 0.00 General conditions 9,084.78 9,084.78 1,362.72 1,816.95 1,220.00 3,000.00 1,685.11 0.00 Supervision 2,400.00 2,400.00 360.00 600.00 1,440.00 0.00 OH&P 49,565.22 49,565.22 7,434.78 10,000.00 10,000.00 5,680.00 5,000.00 11,450.44 0.00 0.00 0.00 0.00 Contingency 40,000.00 40,000.00 6,000.00 11,000.00 5,000.00 18,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Change Order No 1 0.00 0.00 30,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 SUM OF THE LINE ITEMS ABOVE 420,000.00 0.00 0.00 420,000.00 63,000.00 93,741.95 65,775.00 62,250.00 48,620.00 67,720.55 48,892.50 0.00 0.00 0.00

SOURCE OF FUNDS Funds from Escrow Reserves (borrower cash or financed amt) 0.00 Funds from Borrower Deposit Account 0.00 Construction Loan First Mortgage 0.00 Home Equity 0.00 Borrower Cash Post Closing 0.00 Closing Costs TOTAL COST 0.00 0.00 0.00 420,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 RECEIVED LEGAL 7/02/2024

Borrower Name Loan Number

Additional Notes

Ite ORIGINAL m CONTRACT CONTRACT No. DESCRIPTION OF WORK SUB-CONTRACTOR AMOUNT ADJUST RECEIVED LEGAL 7/02/2024

BALANCE CHECK 0.00 TOTAL COST 0.00 0.00 RECEIVED LEGAL 7/02/2024

NET DOWN CONTRACT PAYMENT AMOUNT DRAW #9 DRAW #10 DRAW #11 DRAW #12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 RECEIVED LEGAL 7/02/2024

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 RECEIVED LEGAL 7/02/2024

REMAINING DRAW #13 DRAW #14 DRAW #15 DRAW #16 BUDGET 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 RECEIVED LEGAL 7/02/2024

Borrower Name Loan Number

Additional Notes

Ite ORIGINAL m CONTRACT CONTRACT No. DESCRIPTION OF WORK SUB-CONTRACTOR AMOUNT ADJUST RECEIVED LEGAL 7/02/2024

BALANCE CHECK 0.00 TOTAL COST 0.00 0.00 RECEIVED LEGAL 7/02/2024

NET DOWN CONTRACT PAYMENT AMOUNT DRAW #17 DRAW #18 DRAW #19 DRAW #20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 RECEIVED LEGAL 7/02/2024

REMAINING DRAW #21 DRAW #22 DRAW #23 DRAW #24 BUDGET 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 RECEIVED LEGAL 7/02/2024

Answers - AZROC <[email redacted]>

FW: Compliant Response Case #2023-14406 message

crounds roundsconstruction.com <[email redacted]> Tue, Jul 2, 2024 at 4:34 PM To: "[email redacted]" <[email redacted]>

Dear ROC,

Please find attached Written Answer to Citation and Compliant Case No. 2023 -14406.

Thank you

Chris Rounds

Rounds Construction LLC

Cell - 602-677-6692

Email - [email redacted]

From: ccoleman roundsconstruction.com <[email redacted]> Sent: Tuesday, July 2, 2024 4:19 PM To: crounds roundsconstruction.com <[email redacted]> Subject: Compliant Response Case #2023-14406

Chris,

Please find attached the documents for the Response to Case #2023-14406,

Please forward this to the reviewer at ROC,

Cameron Coleman RECEIVED LEGAL Admin 7/02/2024

Rounds Construction LLC

PO Box 1692

Buckeye, AZ 85326

[email redacted]

C: (740) 975-8693

Compliant Case No. 2023 - 14406 Attachments.zip 17677K Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees Complaint Number: Mail to: Registrar of Contractors P.O. Box 18243 Phoenix, AZ 85005-8243

Person Filing Complaint

I Full Name (First Middle Last) Business Name (if a licensed contractor or supplier) ROC License Number(s) (if any) Hortencia Garcia & Isidro Toral N/A

I Mailing Address (Enter jobsite in ContracUProject section) City State Zip 8417 S. 229th Lane Buckyeye AZ 85326 Phone Number Email 602-7 41-8592 [email redacted] I consent to receive communications electronically in connection with this case @Yes Q N o

I Name (as shown on contracUinvoice) ROC License Number(s) ROUNDS CONSTRUCTION, LLC RO C 200012 Street Address City State Zip P.O. BOX 1692, BUCKEYE ARIZONA 85326 Phone Number Email (602) 677-6692 [email redacted] Name of Person(s) Representing License JAMES C. ROUNDS Contract/Project Information .,,. - " Contract Date Contract Amount Amount Paid 08-12-2021 $380,000.00 $38,000.00 Date Work Started Date Work Stopped Date Work Was Completed 08/12/2021 N/A Close of Escrow (New Home) Move-In Date (New-Home)

Jobsite Street Address 8417 S. 229th Lane Name of Construction Site Owner City Buckeye I State AZ Construction Site Name (if applicable) I Zip 85326

Phone Number of Construction Site Owner Email of Construction Site Owner

This complaint is for 0 Abandonment O Poor Work 0 Other Poor Work, Abandonment, fail I have contacted the contractor by O Phone 0 Email ()Letter QN/A Have you filed a complaint in court? OYes 0 N o ON/A If yes, provide a copy of civil complaint Has any work been corrected? OYes 0 N o If yes, by whom? ' The contract was 0 Written O Oral 0Both All change orders were 0 Written O Oral 0Both 0 N/A This project was 0 Commercial 0 Residential O On Tribal Land This project involved 0 New Home O Remodel O Repair OOther A building permit was obtained by 0Contractor OProperty Owner OBuilding permit# ??

RCC099 12/05/18 Licensed Complaint Form For Current or Suspended Licensees

1. R O U N D S undertook to pr ov ide materials/labor N O T within s c o p e o f w o r k & w i t h invoice a b o v e bid 2. R O U N D S failed to c o n s t r u c t b a t h r o o m a n d glass enclosure included in plans a n d specs. 3. ROUNDS has not followed plans and specifications in violation of A.R.S. § § 32-1154(A)(6), and (A)(2){a) and (A)(3) and (A)(12); 4. ROUNDS abandoned the contract or refused to perform after submitting a bid contrary to A.R.S. § 32-1154(A)(1), (A)(3) and (A)(12) 5. ROUNDS departed from or disregarded the contracted plans or specifications contrary to ARS Sec. 32-1154(2)(a){2). (A)(1), (A)(3) and (A)(1:) 6. ROUNDS failed to complete construction for the price stated in the contract contrary to ARS Sec. 32-1154(8), (A)(3) and (A)(12); After ROUNDS, Upon information and belief, passed final Permitting inspection on on August 24, 2003, Maricopa County Planning and . Development issued a Certificate of Occupancy for Complainant's new home to ROUNDS contrary to A.R.S. § 32-1154(2)(a), (A){3) and (A) \'"' B. ROUNDS has repeatedly refused to provide Complainant with a Certificate of Occupancy unless and until the $527,742.07 is paid in full. Complainant's mortgage banker requires the Certificate of Occupancy in order to document its loan and to disburse proceeds - all in violation 9. of § 32-1154(A)(6), (A)(3,and (A)(12); ROUNDS demands that if Complainant does not pay $527,742,07 to ROUNDS, that ROUNDS threatened to falsely assert and claim to 10. Complainant's mortgage lender that the project is not completed and a Certificate of Occupance has not issued ROUNDS induced Complainant to contract with it based on ROUNDS' bid total of $380,000.00. Without change orders or other written 11. amendments to the contract, ROUNDS now demands payment of not less than $527,742.074 - a material misrepresentation made by ROUNDS which Complainant justifiably relied upon resulting in damage to the Complainant's good credit and exposing the Complainant 12. to a mechanic's lien, foreclosure and a suit for damages from ROUNDS. A A C R4-9-131 Aggravating circumstances include: 13. a. ROUNDS Failed to perform any work for which money was received 14. b. ROUNDS Executed or used anv false or misleadinn documents for the nurnose of inducinn a nerson to enter into c contract or to pay money for work to be performed. 15. C. ROUNDS Made false or misleadinn statements for the nurnose of inducinn a nerson to enter into a contract or to nb:I y money for work to be performed. 16. - -- r-,.'"'- ,....,_ ...,. r,v, . . ,r"'\r't, -- ..,, ,.. 1,110 ,._...,...,_ 1V . .. ..,.,._,,. 111111IUI u....,...,...., VI ...... .., - y .:;,1,oT ;uc;u u.:;, u1 tJ·auu ...,..., ...,, -.-. .. not 17. performed in a good and workmanlike manner.

e. ROUNDSPerformed work that has caused loss or damage to the structure, its appurtenances, or property being wo k ed 18. uoon or has caused loss or iniurv to anv oerson 19. 20. Signature ..