2024A-01174-CHC-ROC Notice of Hearing & Packet MAILED 2024-01174.pdf

2024A-01174-CHC-ROC · Registrar of Contractors · 2024-05-20

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Taler Hemphill , Case No. 2024-01174

COMPLAINANT, Docket No. 2024A-01174-CHC-ROC

v. NOTICE OF HEARING ON CONTESTED CASE QBC Homes LLC License No. ROC 333055,

RESPONDENT.

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

HEARING INFORMATION The hearing is set for: June 24, 2024 1:00 PM Sondra Vanella Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person.

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

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

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

STATEMENT OF LEGAL AUTHORITY AND JURISDICTION

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

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

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

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

PARTICULAR ARIZONA STATUTES AND RULES INVOLVED

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

complaint and citation, which were served on the Respondent on April 11, 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)(b) Charge: 2 A.R.S. § 32-1154(A)(3) - R4-9-108(a)

Charge: 3 A.R.S. § 32-1154(A)(4)

Charge: 4 A.R.S. § 32-1154(A)(9)(a) Charge: 5 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 May 20, 2024. By: /s/ Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors

Copy mailed via USPS First Class mail May 20, 2024 to:

Respondent(s) QBC Homes LLC 1575 W Thatcher Blvd Safford, AZ 85548 Respondent's Attorney Lawrence J. Felder, Esq. 3101 N Central Ave Ste. 850 Phoenix, AZ 85012 Complainant(s) Taler Hemphill 269 E Saddlehorn Dr. Safford, AZ 85546

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

Case No. 2024-01174 /

Katie Hobbs, Governor Martin Quezada, Director

Hearing Packet FAQ What is the Hearing Packet?

The Hearing Packet is a packet of certain documents collected or issued by the Registrar over the course of its investigation.

Who gets the Hearing Packet?

The Hearing Packet is assembled and distributed to all parties and to the Office of Administrative Hearings (“OAH”) prior to an administrative hearing.

What types of cases does the Registrar prepare a Hearing Packet for?

The Registrar prepares a Hearing Packet for Complainant-Handled Cases and No-Pay Cases. Note: If the Docket Number on the Notice of Hearing contains a “CHC” or “NPC”, your case is a Complainant-Handled Case or a No-Pay Case.

What is in the Hearing Packet?

The Hearing Packet contains essential case-specific documents and at a minimum will include the following documents:

● Original complaint;

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

Katie Hobbs, Governor Martin Quezada, Director

● Citation; and ● Answer.

The Hearing Packet will also contain the following documents (if applicable):

● Jobsite inspection notices, notes, and photos; ● Written directives; and ● Compliance inspection notices, notes, and photos.

What if there are documents missing from the Hearing Packet?

If there is any evidence you submitted to the Registrar that are not included in the Hearing Packet it is your responsibility to introduce that evidence at the administrative hearing. Note: The administrative law judge assigned to your case does not have access to the entire Registrar record.

If there is additional evidence you submitted to the Registrar during the investigation that you also want to introduce as evidence during your hearing, it is your responsibility to:

● Properly disclose that evidence to the other party; and ● Introduce the evidence during your hearing.

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

Katie Hobbs, Governor Martin Quezada, Director

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

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

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

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

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

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

Complainant: Taler Hemphill 269 E Saddlehorn Dr Safford, AZ 85546

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: QBC Homes LLC DBA: PO Box 916 Safford, AZ 85548

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 February 2, 2024

Jobsite Inspection Notice Re: Complaint Number 2024-01174

Dear Complainant and Respondent:

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

A jobsite inspection is scheduled for February 7, 2024 at 11:00 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. 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 C008 05/21 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, Miles Crosby Miles Crosby, Investigator #213 (928) 296-2480 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

CC: Complainant Respondent Choose an item. Choose an item.

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.

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 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 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: Taler Hemphill 269 E Saddlehorn Dr Safford, AZ 85546

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 12/23 Respondent: QBC Homes LLC DBA: PO Box 916 Safford, AZ 85548

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 12/23 February 9, 2024

BUILDING CONFIDENCE PROGRAM Re: Complaint No. 2024-01174

Dear Complainant and Respondent:

Due to a conflict in scheduling of one of the parties, the jobsite inspection scheduled for February 7, 2024 at 11:00 AM has been rescheduled for Tuesday, February 13, 2024 at 12:30 PM.

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,

Miles Crosby Miles Crosby, Investigator #213 (928) 296-2480 [email redacted] 1700 W Washington St, Suite 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 12/23 Jobsite Inspection Notes

Case No.: 2024-01174 Investigator: Miles Crosby Inspection Date: Tuesday, February 13, 2024 Inspection Time: 12:30 PM

Complainant: Taler Hemphill Respondent: QBC Homes LLC Not Present: Not Present:

Jobsite General Notes:

JSI photos taken with my Google Pixel 3a work phone JSI audio recorded with my Olympus DM-720 JSI photos and audio have been placed into the Salesforce Case folder.

The original inspection was set for 2/7/24 but was rescheduled due to weather.

The Respondent was not present and no representative was present.

The primary concern of the Complainant was the flooring, exterior wood columns and beams and the block fence.

The floor is a floating system with interlocking planks. I checked multiple areas which indicated the floor had not room for expansion. This is against the manufacturer’s installation methods.

The exterior beams and posts had untreated/unprotected areas, as well as no fasteners or hardware. The beam to post connections were “toenailed” in which is a temporary way to fasten the connection but does not meet minimum code.

Local county code requires drainage blocks.

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

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: 2 - Doors not sealed properly Investigator’s Observation: Door not adjusted properly and Respondent should correct in the 1st year of completion. After one year of occupancy the Complainant is responsible for maintenance. 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 - Flooring Investigator’s Observation: Flooring had multiple areas that where the floor planks are compressed and beginning to separate. The Respondent advised this may be a manufactured issue. However, probing under the base boards revealed the floating floor planks have no expansion space which is not the manufactures recommended installation method. 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: 4 - Grout in both bathrooms cracking and coming off Investigator’s Observation: Multiple areas in both bathrooms have grout cracking and chipping. 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: 5 - White paint on cabinets Investigator’s Observation: Over spray on island cabinets. 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.

Compliance Item: 6 - Foam on windows Investigator’s Observation: Windows had areas of spray foam that had not been cleaned from the vinyl. 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: 7 - Brick wall (I have concerns about it being done properly) Investigator’s Observation: No drainage blocks installed. Complainant provided photos of the area holding several feet of water. 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: 9 - Gaps in roof on porch (front and back) Investigator’s Observation: The porches and soffits/eaves of the home have multiple gaps greater than 1/8” and are unprotected from the elements and/or insects. No insect screening or other material was observed in these areas. 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: 10 - Glue from insulation on both bathtubs Investigator’s Observation: Some spray foam had not been properly cleaned from the bathtub. 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. 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: 11 - Paint on beam in front Investigator’s Observation: The beams and columns are not properly sealed or protected from the elements including incorrect fastening. 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: 12 - Black paint on windows Investigator’s Observation: Minor areas of paint of exterior vinyl of the windows. 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: 15 - Island trim Investigator’s Observation: The trim on the island had a nail that missed and is loose. 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: 16 - chips in bath tub Investigator’s Observation: There were chips in the porcelain. The manufacturer has recommended correction protocol. 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:

Compliance Item: 8 - Crooked bathroom faucet handles Investigator’s Observation: Faucets are prone to moving and none

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

were observed at the time of the inspection. Governing Rule:

Compliance Item: 13 - Gravel in front Investigator’s Observation: The contract did not specify a scope of work for the rock as to whether it is decorative or for egress. As the rock is now, there is no standard for amount of rock placed if not specified in the scope of work. Governing Rule:

Compliance Item: 14 - Check for mold Investigator’s Observation: This is a statement that I cannot inspect and report on, as the ROC does not conduct testing. This must be tested by the appropriate specialist if the Complainant has concerns. Governing Rule:

Miles Crosby Miles Crosby, Investigator #213 (928) 296-2480 [email redacted] 1700 W Washington St, Suite 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

Complaint #2023-14061 P 1 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 2 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 3 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

No fasteners and paint on beam.

Complainant advised the Respondent would have to chicle out the paint which is an extreme way to correct. Complaint #2023-14061 P 4 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

No fasteners installed Complaint #2023-14061 P 5 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 6 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Large gaps with no sealant Complaint #2023-14061 P 7 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

No insect screen or other approved method Complaint #2023-14061 P 8 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 9 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Paint on concrete not acid cleaned or removed. Complaint #2023-14061 P 10 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

More excessive gapping. Complaint #2023-14061 P 11 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 12 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 13 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Damaged Complaint #2023-14061 P 14 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Opposite view Complaint #2023-14061 P 15 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Door adjustment Complaint #2023-14061 P 16 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 17 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 18 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Light from outside when door is latched Complaint #2023-14061 P 19 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 20 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Nail pops Complaint #2023-14061 P 21 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

mm Complaint #2023-14061 P 22 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 23 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Plank was replaced but cut too short. Complaint #2023-14061 P 24 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

1.5 mm Complaint #2023-14061 P 25 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Spray foam residue Complaint #2023-14061 P 26 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 27 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

mm Complaint #2023-14061 P 28 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

2.5 mm

Glue residue from reinstallation Complaint #2023-14061 P 29 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Grout chipping

Spray foam residue Complaint #2023-14061 P 30 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Would not come off with finger nail Complaint #2023-14061 P 31 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Faucets are prone to move. All appeared straight Complaint #2023-14061 P 32 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 33 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Again appeared straight Complaint #2023-14061 P 34 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Cracking & chipping Complaint #2023-14061 P 35 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

.5 mm Complaint #2023-14061 P 36 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 37 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 38 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 39 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 40 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

MB bath chipping & cracking Complaint #2023-14061 P 41 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

1.5 mm wide

cm deep Complaint #2023-14061 P 42 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 43 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

mm deep

.7 mm side Complaint #2023-14061 P 44 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

15” is minimum meets standards Complaint #2023-14061 P 45 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

MB bathroom fixtures straight Complaint #2023-14061 P 46 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 47 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

2mm Complaint #2023-14061 P 48 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Unable to feel plank edge indicated not enough expansion gap Complaint #2023-14061 P 49 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Opposite of P48

Not gap indicating the planks are compressing Complaint #2023-14061 P 50 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Floating floors are not recommend under appliances. Unless otherwise specified by the Manufacturer. Complaint #2023-14061 P 51 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 52 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

mm Complaint #2023-14061 P 53 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

mm wide Complaint #2023-14061 P 54 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Same location as P53

6d Complaint #2023-14061 P 55 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Pencil marks Complaint #2023-14061 P 56 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 57 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

mm Complaint #2023-14061 P 58 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

mm Complaint #2023-14061 P 59 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS

Location of P58 Complaint #2023-14061 P 60 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 61 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 62 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 63 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 64 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 65 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 66 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 67 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 68 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 69 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 70 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 71 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 72 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 73 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 74 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 75 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 76 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 77 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 78 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 79 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 80 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 81 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 82 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 83 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 84 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 85 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 86 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 87 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 88 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 89 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 90 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 91 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 92 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 93 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 94 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 95 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 96 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 97 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 98 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 99 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 100 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complaint #2023-14061 P 101 JSI date January 8, 2024 at 11:00 AM JSI PHOTOS Complainant: Taler Hemphill 269 E Saddlehorn Dr Safford, AZ 85546

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: QBC Homes LLC DBA: 1575 W Thatcher Blvd Stafford, AZ 85548

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 February 15, 2024

License No. ROC 333055

Re:Complaint No. 2024-01174

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 March 9, 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 reasons1, 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:

Compliance Item: 1 - Windows not sealed properly Investigator’s Observation: The Complainant is referencing the exterior window seal connection to the trim. Multiple areas have nothing sealing the windows and the house wrap is visible. No flashing tape was used. 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.

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 Compliance Item: 2 - Doors not sealed properly Investigator’s Observation: Door not adjusted properly and Respondent should correct in the 1st year of completion. After one year of occupancy the Complainant is responsible for maintenance. 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: 5 - White paint on cabinets Investigator’s Observation: Over spray on island cabinets. Governing Rule: Violation of any rule adopted by the Registrar;

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: 7 - Brick wall (I have concerns about it being done properly) Investigator’s Observation: No drainage blocks installed per county adopted code. Complainant provided photos of the area holding several feet of water. 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: 10 - Glue from insulation on both bathtubs Investigator’s Observation: Some spray foam had not been properly

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 cleaned from the bathtub. 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: 8 - Crooked bathroom faucet handles Investigator’s Observation: Faucets are prone to moving and none were observed at the time of the inspection. Governing Rule:

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

Sincerely,

Miles Crosby Miles Crosby, Investigator #213 (928) 296-2480 [email redacted] 1700 W Washington St, Suite 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 C009 12/23 CC: Choose an item. Choose an item. Choose an item. Choose an item.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 (DELETE THIS ADDRESS/PAGE IF NOT WARRANTED)

Complainant Attorney:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 (DELETE THIS ADDRESS/PAGE IF NOT WARRANTED)

Respondent Attorney:

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: Taler Hemphill 269 E Saddlehorn Dr Safford, AZ 85546

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: QBC Homes LLC DBA: 1575 W Thatcher Blvd Stafford, AZ 85548

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 March 11, 2024

License No. ROC 333055

Re:Complaint No. 2024-01174

Extension of the WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

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).

Compliance Item: 5 - White paint on cabinets Investigator’s Observation: Over spray on island cabinets.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 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: 7 - Brick wall (I have concerns about it being done properly) Investigator’s Observation: No pilasters were done at all and no drainage blocks installed. Complainant provided photos of the area hold several feet of water. 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: 9 - Gaps in roof on porch(front and back) Investigator’s Observation: The porches and soffits of the home have multiple gaps unprotected from the elements and/or insects. 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: 10 - Glue from insulation on both bathtubs Investigator’s Observation: Some spray foam had not been properly cleaned from the bathtub.

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

Compliance Item: 8 - Crooked bathroom faucet handles Investigator’s Observation: Faucets are prone to moving and none were observed at the time of the inspection. Governing Rule:

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

Sincerely,

Miles Crosby Miles Crosby, Investigator #213 (928) 296-2480 [email redacted] 1700 W Washington St, Suite 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 C009 12/23 CC: Choose an item. Choose an item. Choose an item. Choose an item.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 (DELETE THIS ADDRESS/PAGE IF NOT WARRANTED)

Complainant Attorney:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 (DELETE THIS ADDRESS/PAGE IF NOT WARRANTED)

Respondent Attorney:

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: Taler Hemphill 269 E Saddlehorn Dr Safford, AZ 85546

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: QBC Homes LLC DBA: 1575 W Thatcher Blvd Stafford, AZ 85548

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

C012 12/23 April 1, 2024

Compliance Jobsite Inspection Notice Re: Complaint No. 2024-01174

Dear Complainant and Respondent:

A Compliance Inspection has been scheduled for Thursday, April 4, 2024 at 1:30 PM 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,

Miles Crosby Miles Crosby, Investigator #213 (928) 296-2480 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

CC: Respondent Complainant Choose an item. Choose an item.

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 #2024-01174 P 1 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 2 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 3 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 4 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 5 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 6 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 7 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 8 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 9 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 10 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 11 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 12 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 13 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 14 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 15 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 16 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 17 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 18 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 19 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 20 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 21 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 22 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 23 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 24 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 25 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 26 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 27 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 28 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 29 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 30 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 31 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 32 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 33 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 34 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 35 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 36 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 37 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 38 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 39 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 40 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 41 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 42 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 43 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 44 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 45 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 46 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 47 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 48 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 49 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 50 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS

Respondent felt 5/8” hol es woul d be adequat e f or drai nage. Complaint #2024-01174 P 51 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 52 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 53 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 54 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 55 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS

Respondent felt 5/8” hol es woul d be adequat e f or drai nage. Complaint #2024-01174 P 56 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 57 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 58 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 59 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 60 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 61 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 62 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 63 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 64 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 65 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 66 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 67 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 68 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 69 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 70 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 71 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 72 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS

Not pest pr ot ecti on Complaint #2024-01174 P 73 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 74 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS Complaint #2024-01174 P 75 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS

No pet pr ot ecti on i nstall ed Complaint #2024-01174 P 76 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS

Chi p still i n tub Complaint #2024-01174 P 77 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS

Chi p i n tub still present Complaint #2024-01174 P 78 CJSI date April 4, 2024 at 1:30 PM CJSI PHOTOS

Still stai ned from spray f oam Complainant: Taler Hemphill 269 E Saddlehorn Dr Safford, AZ 85546

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: QBC Homes LLC DBA: 1575 W Thatcher Blvd Safford, AZ 85548

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.: 2024-01174 Investigator: Miles Crosby Inspection Date: Thursday, April 4, 2024 Inspection Time: 1:30 PM

Compliance Jobsite General Notes:

CJSI photos taken with my Google Pixel 3a work phone CJSI audio recorded with my Olympus DM-720 CJSI photos and audio have been placed into the Salesforce Case folder.

Many of the items were corrected to standards. However, the Respondent left the work to be completed by an employee who did not know or understand the code/minimum standards/industry standards, and the following items were left incomplete or no attempt made. Ultimately, the Respondent advised he had not been there to oversee and supervise the work.

Compliance Findings:

Compliance Item: 2 - Doors not sealed properly Investigator’s Observation: Door not adjusted properly and Respondent should correct in the 1st year of completion. After one year of occupancy the Complainant is responsible for maintenance. Compliance Inspections: No correction attempted. 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: 5 - White paint on cabinets Investigator’s Observation: Over spray on island cabinets. Compliance Inspections: No correction attempted 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.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: 6 - Foam on windows Investigator’s Observation: Windows had areas of spray foam that had not been cleaned from the vinyl. Compliance Inspections: No correction attempted. 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: 7 - Brick wall (I have concerns about it being done properly) Investigator’s Observation: No pilasters were done at all and no drainage blocks installed. Complainant provided photos of the area hold several feet of water. Compliance Inspections: Pilasters are not required under the current Graham County adopted code. However, the drainage issue was not in compliance with industry standards. 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: 9 - Gaps in roof on porch(front and back) Investigator’s Observation: The porches and soffits of the home have multiple gaps unprotected from the elements and/or insects. Compliance Inspections: No correction attempted. 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: 10 - Glue from insulation on both bathtubs Investigator’s Observation: Some spray foam had not been properly cleaned from the bathtub.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Inspections: No correction attempted. 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: 16 - chips in bath tub Investigator’s Observation: There were chips in the porcelain. The manufacturer has recommended correction protocol. Compliance Inspections: No correction attempted. 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.

Note:

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

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

Miles Crosby Miles Crosby, 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Investigator #213 (928) 296-2480 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

CC: Choose an item. Choose an item. Choose an item. Choose an item.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 (DELETE THIS ADDRESS/PAGE IF NOT WARRANTED)

Complainant Attorney:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 (DELETE THIS ADDRESS/PAGE IF NOT WARRANTED)

Respondent Attorney:

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

Taler Hemphill, Case No. 2024-01174 COMPLAINANT, v.

QBC Homes LLC, CITATION License No. ROC 333055,

RESPONDENT.

The Registrar issues this Citation to QBC Homes LLC (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by April 26, 2024, then under A.R.S. § 32-1155(C), Respondent’s failure to answer may be deemed an admission of the act or acts charged in the underlying complaint, and the Registrar may then suspend or revoke Respondent’s license(s). THE WRITTEN COMPLAINT On January 29, 2024, Taler Hemphill (“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)(b) Departure from or disregard of: (b) A building code of this state or any political subdivision of this state in any material respect that is prejudicial to another.

of 6 1700 W. Washington Street, Suite 105 · Phoenix, AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Charge :2 A.R.S. § 32-1154(A)(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)(4) Failure to comply with the statutes or rules governing social security, workers’s compensation or unemployment insurance. Charge :4 A.R.S. § 32-1154(A)(9)(a) Attempting to evade this chapter by: (a) Aiding or abetting a licensed or unlicensed person. Charge :5 A.R.S. § 32-1154(A)(22) Failure to take appropriate corrective action to comply with this chapter or with rules adopted pursuant to this chapter without valid justification within a reasonable period of time after receiving a written directive from the Registrar. The written directive shall set forth the time within which the contractor is to complete the remedial action. The time permitted for compliance shall not be less than fifteen days from the date of issuance of the directive. A license shall not be revoked or suspended nor shall any other penalty be imposed for a violation of this paragraph until after a hearing has been held. If the matter proceeds to a hearing and the administrative law judge determines that any of the charges listed above are supported by a preponderance of the evidence, then Respondent’s license(s) may be subject to suspension or revocation, and Respondent may be subject to other penalties provided by law, including civil penalties under A.R.S. §§ 32-1154(E) and (F). FILING A WRITTEN ANSWER Respondent must appear by filing with the Registrar a written answer to the citation and complaint showing cause, if any, why Respondent’s license(s) should not be suspended or

of 6 1700 W. Washington Street, Suite 105 · Phoenix, AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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. 2024-01174. 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, AZ 85007-2812 Mail: P.O. Box 18244, Phoenix, AZ 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 April 26, 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 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).

of 6 1700 W. Washington Street, Suite 105 · Phoenix, AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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. § 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.

of 6 1700 W. Washington Street, Suite 105 · Phoenix, AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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 April 11, 2024. By: /s/ Katelyn Rolling Katelyn Rolling Legal Assistant II Legal Department Arizona Registrar of Contractors

COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, April 11, 2024 to: Respondent Certified Mail No: [number redacted] QBC Homes LLC 1575 W Thatcher Blvd Safford, AZ 85548

Copy mailed by USPS First Class Mail this same date to: Respondent QBC Homes LLC 1575 W Thatcher Blvd Safford, AZ 85548 QBC Homes LLC PO Box 916 Safford, AZ 85548

///

of 6 1700 W. Washington Street, Suite 105 · Phoenix, AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Complainant Taler Hemphill 269 E Saddlehorn Dr Safford, AZ 85546

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. 2024-01174

of 6 1700 W. Washington Street, Suite 105 · Phoenix, AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

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

Taler Hemphill Mailing Address (Enter jobsite in Contract/Project section) City State Zip

269 E Saddlehorn Dr Safford Arizona 85546 Phone Number Email

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

Street Address of Attorney City State Zip

Phone Number of Attorney Email of Attorney

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

QBC Homes LLC ROC 333055 Street Address City State Zip

PO Box 916 Safford AZ 85548 Phone Number Email

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

Justin Mack Contract/Project Information Contract Date Contract Amount Amount Paid

December 5, 2022 $250,000.00 $253,000.00 Date Work Started Date Work Stopped Date Work Was Completed

December 8, 2022 April 20, 2023 April 20, 2023 Close of Escrow (New Home) Move-In Date (New-Home)

April 24, 2023 April 24, 2023 Jobsite Street Address City State Zip

269 E Saddlehorn dr Safford AZ 85546 Name of Construction Site Owner Construction Site Name (if applicable)

Justin Mack Phone Number of Construction Site Owner Email of Construction Site Owner

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

RCC099 12/05/18 Page 1 of 2 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

Has any work been corrected? No

The contract was Both All change orders were Both This project was Residential This project involved New Home

A building permit was obtained by Contractor N/A Graham County 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)

Improperly installed flooring . Communicated to contractor several times over 365 days with no solution to problem.

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 Signature Date

Taler Hemphill \complainant1\ \complainantd1\

RCC099 12/05/18 Page 2 of 2 Purchase Contract - QBC HOMES, LLC THIS AGREEMENT, between QBC Homes, LLC ROC #333055 and ________________________________, Taler Hemphill known hereafter as “Buyer”, shall commence on __________________________ and Close of Escrow (COE) shall occur when a Dec 5, 2022 deed is recorded at the appropriate County Recorders Office.

Between Buyer(s): ________________________________________________________________ Taler Hemphill Email: _____________________________________________________________ [email redacted] Phone: ____________________________________________________________ 928-322-1144

And the Contractor: QBC Homes, LLC, Justin Mack, Builder Phone: 928-651-4046

For the Project Named: ___________________________ Hemphill Home

Located at Parcel #: ________________________ 106-26-269

Construction Lender: __________________________________________ Fairway Mortgage Phone: ____________________________________ 928-322-9343 Title and Escrow Company/Officer agreed upon: _____________________________________________ Pioneer Title - Rick Skinner

Non-Refundable Deposit Amount: ________________ $2500 shall not be used as Earnest Money Deposit but shall be considered down payment toward the final costs. PD 12/5/2022 to Justin Mack

Article 1. Contract Documents

1.1 The contract documents consist of this agreement, construction documents, specifications, construction draw schedule, all addenda issued prior to execution of this agreement and all change orders or modifications issues and agreed to by both parties. These contract documents represent the entire agreement of both parties and supersede any prior oral or written agreement. Any changes or modifications must be in writing and signed by both Buyer and Contractor.

Article 2. Scope of Work

2.1 The Buyer agrees to purchase, and the Contractor agrees to construct the above-mentioned structure and fixtures attached thereto in Graham County, according to the construction documents, allowances, finish schedules, all addenda, change orders, modifications and specifications set forth in the specification booklet. Contractor agrees that any work or material required to complete the project and to obtain a Certificate of Occupancy shall be Contractor’s responsibility.

Article 3. Time of Completion

3.1 The approximate commencement date of the project shall be _________________________; December 5, 2022 The project will take approximately ____ months to complete; however, any change orders and/or unusual weather conditions might delay or otherwise affect the completion date. Material supply chains and availability of materials may also delay or otherwise affect the completion date. These are beyond the Contractor’s control.

1|Page Initialed by: Buyer _____________________ Contractor ________ Article 4. The Contract Price

4.1 The construction contract shall be a subject to fluctuation with market pricing, with all labor, materials, permits, taxes and liability insurance figured as costs.

4.2 Construction costs are $__________________; 250,000 Closing costs shall be paid by the Buyer, unless otherwise agreed upon in writing through an addendum incorporated into this agreement.

4.3 The Buyer and the Contractor acknowledge that the Buyer will pay the sum set forth as Non-Refundable Deposit Amount (reference page 1) for initial funds, upon signing of this contract and before construction begins as a non- refundable deposit and part of the purchase price of the project.

Article 5. Duties of the Contractor

5.1 All work shall be in accordance to the provisions of the plans and specifications. All systems shall be in good working order.

5.2 All work shall be completed in a workman like manner, and shall comply with all applicable national, stat, and local building codes and laws.

5.3 All work shall be performed by licensed individuals to perform their said work.

5.4 Contractor shall obtain all permits necessary for the work to be completed, and Certificate of Occupancy from the applicable jurisdiction.

5.5 Contractor shall remove all construction debris and leave the project in a broom clean condition.

Article 6. Duties of the Buyer

6.1 The Buyer shall communicate with the subcontractors and Contractor only through their legal real estate representation.

6.2 The Buyer will not assume any liability or responsibility, nor have control over or charge of construction means, methods, techniques, sequences, procedures, or for safety precautions and programs in connection with the project, since these are solely the Contractor’s responsibility. Any systems provided by the Buyer will be done according to information provided by Buyer. Contractor will not be responsible if systems provided do not perform properly.

6.3 Subject to the coordination with Contractor, Buyer may obtain access to the project to allow specialty contractors and installers to install fixtures, landscaping and other amenities.

6.4 From time to time, Buyer may make progress inspections with Contractor. Each party agrees to accommodate the other party in determining mutually convenient inspection times.

Article 7. Change Orders and Finish Schedules

7.1 A Change Order is any change to the original plans and/or specifications. All Change Orders need to be agreed upon in writing, including cost, additional time considerations, approximate dates when the work will begin and be completed, a legal description of the location where the work will be done and signed by both parties. Fifty percent (50%) of the cost of each change order will be paid

7.2 Completed Finish Selection Schedules shall be submitted to the Contractor prior to commencement. 7.3 Any delays or changes in Finish Selection schedules will delay the projected completion date.

2|Page Initialed by: Buyer _____________________ Contractor ________ Article 8. Insurance

8.1 The Contractor will purchase and maintain liability insurance to the full and insurable value of the project, in case of fire, vandalism, malicious mischief or other instances that may occur.

8.2 The Contractor shall purchase and maintain needed Worker’s Compensation and Liability insurance coverage as required by law and deemed necessary for their own protection.

Article 9. General Provisions

9.1 If conditions are encountered at the construction site which are subsurface or otherwise concealed physical conditions or unknown physical conditions of an unusual nature, which differ naturally from those ordinarily found to exist and generally recognized as inherent in construction activities, the Buyer will promptly investigate such conditions and, if they differ materially and cause an increase or decrease in the Contractor’s cost of, and/or time required for, performance of any part of the work, will negotiate with the Contractor an equitable adjustment in the contract sum, contract time or both or, alternatively, Buyer may terminate this contract provided Buyer pays all sums then due or accrued.

Article 10. Arbitration of Dispute Resolution

10.1 Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its Construction Industry Arbitration Rules, and judgement on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

Article 11. Warranty

11.1 At the completion of the project, Contractor shall execute an instrument to Buyer warranting the project for One (1) year against defects in workmanship or materials utilized. Any third-party manufacturers’ warranty will be assigned to Buyer.

Article 12. Termination of Contract

12.1 Should the Buyer or Contractor fail to carry out this contract, with all its provisions, the following options and stipulations shall apply:

12.1.1 IF the Buyer or the Contractor shall default on the contract, the non-defaulting party may declare the contract is in default and proceed against the defaulting party for the recovery of all damages incurred as a result of said breach of contract, including a reasonable attorney’s fee.

12.1.2 In the event of a defaulting Buyer, the Contractor may make claim to the Buyer for all work executed and for proven loss with respect to equipment, materials, tools, construction equipment and machinery, including the construction coordination services applicable to the project.

Article 13. Acceptance and Occupancy

13.1 Upon completion, the project shall be inspected by the Buyer and the Contractor, and any repairs necessary to comply with the contract documents, including any building codes, shall be made by the Contractor.

13.2 The Buyer shall not occupy the property until final payment has been received by the Contractor and a Certificate of Occupancy has been obtained.

13.3 Provided the Contractor has complied in full with its obligations under the contract documents, occupancy of the project by the Buyer in violation of Article 14.2 shall constitute unconditional acceptance of the project and a waiver of any defects or uncompleted work.

3|Page Initialed by: Buyer _____________________ Contractor ________ Article 14. Additional Terms and Conditions

14.1 Notices: Unless otherwise provided, delivery of all notices and documentation required or permitted hereunder shall be in writing and deemed delivered and received when: (i) hand delivered, (ii) sent via fax, (iii) sent via electronic mail, if email addresses are provided herein; or (iv) sent by overnight carrier mail and addressed to Buyer, Contractor, and Escrow/Title Company provided hereunto.

14.2 This contract shall be used as escrow instructions.

14.3 Both parties acknowledge that time is of the essence in the performance of the obligations described herein.

14.4 Contractor and Buyer agree that Broker(s) shall be compensated for services rendered as previously agreed upon by separate written agreement(s), which shall be delivered by Broker to Escrow Company for payment upon COE, if not previously paid. If Contractor is obligated to pay Broker(s), this contract shall constitute an irrevocable assignment of Contractor’s proceeds at COE.

Article 15. Broker on Behalf Buyer

15.1 Agent Name: ______________________________________ Kym Gifford 15.2 Agent MLS Code: _______________________ AG21707 Agent State License #: _____________________ BR648150000 15.3 Agent Firm Name: ______________________ Agent Firm State License #: _________________ KeyHole Properties LC671976000 15.4 Agent Firm Address: __________________________________ 1618 S 1st Ave, Safford, AZ 85546 Agent Firm Phone #: ____________________ 928-965-0270

The undersigned agree to purchase the Premises on the terms and conditions described herein stated and acknowledge receipt of a copy hereof including any Buyer Attachments.

____________________________________ ________________________________________

____________________________________ Taler Hemphill ________________________________________ Buyer’s Name Printed Buyer’s Name Printed

____________________________________ [email redacted] ________________________________________ Buyer’s Email Address Buyer’s Email Address

The undersigned agree to sell the Premises on the terms and conditions described herein stated and acknowledge receipt of a copy hereof and grant permission to Broker named in Article 15 to deliver a copy to Buyer.

______________________________________

______________________________________ Justin Mack ______________________ 12/5/2022 Contractor’s Name Printed Date Executed

THIS CONTRACT CONTAINS FOUR (4) PAGES EXCLUSIVE OF ANY ADDENDA AND ATTACHMENTS. PLEASE ENSURE THAT YOU HAVE RECEIVED AND READ ALL FOUR (4) PAGES AS WELL AS ANY ADDENDA OR ATTACHEMENTS. CHANGE ORDERS ARE CONSIDERED ADDENDA TO THE CONTRACT.

4|Page Initialed by: Buyer _____________________ Contractor ________ dotloop signature verification: dtlp.us/lAmU-dtOC-pKDB

Change Order-----------------QBC Homes, LLC PH: 928-651-4046

Buyer: ________________________________ Address: ______________________________ tbd with permit Taler Hemphill _____________________________________ Parcel #106-26-269 _____________________________________ Hemphill Home Job Name: ____________________________ 12/5/2022 Contract Date: _________________________ 928-322-1144 Phone #: ______________________________ 1 Change Order #: _____

We hereby agree to make the following change(s) to the original plans: Amount +/- Block Wall (3) Christmas outlets on exterior eaves Total of 4. (1) on each corner of house. Black Grout on tile tub surrounds both bathrooms Larger tub in the master bathroom Mirror door on the master closet Farmhouse sink stainless steel in kitchen 10" overhang on the bar 24"x36" door in the middle bedroom closet Front loader washer and dryer installed Granite countertops throughout Black cabinets throughout Gravel in the driveway 10' Back Porch White blinds installed on all windows.

TOTAL PRICE FOR CHANGES 0 CURRENT CONTRACT TOTAL 0 REVISED CONTRACT TOTAL $250,000

THIS CHANGE ORDER BECOMES PART OF AND IS INCORPORATED INTO THE EXISTING PURCHASE CONTRACT UPON EXECUTION BY BOTH PARTIES. Builder hereby agree to make the change(s) specified above at the price indicated per this Change Order. Justin Mack dotloop verified 12/06/22 4:22 PM MST Signed: ________________________________________________ WBKF-O4ZB-DINZ-8KQO Contractor/Builder 12/5/2022 Date: __________________

The prices and specifications of this Change Order are satisfactory and are hereby accepted. All work is to be performed under the established terms and conditions specified in the original purchase contract unless otherwise specified. Taler Hemphill dotloop verified 12/06/22 11:37 AM MST Signed: __________________________________________________________ M7II-DWEH-0OO0-8T15 Buyer Date: ___________________

Signed: __________________________________________________________ Buyer Date: ___________________ Received 4/23/2024 ROC Legal

Resolvere Law PLLC Lawrence J. Felder, Esq. # 019763 3101 N. Central Ave., Suite 850 Phoenix, Arizona 85012 Telephone: 480-725-9135 [email redacted] [email redacted] Attorney for Respondent REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA TALER HEMPHILL, ) Case No. 2024-01174 ) COMPLAINANT, ) ) ANSWER TO CITATION v. ) QBC HOMES, L.L.C., LICENSE NO. ) ) ROC 333055. ) ) RESPONDENT. ) ) Respondent QBC Homes, L.L.C. (“QBC”) hereby makes its Answer to the Citation

dated April 11, 2024 in this matter. There is good cause why its license should not be suspended or revoked under A.R.S. § 32-1155(A). QBC responds to the Written Directive requirements by stating that QBC is and has been ready, willing, and able to repair the directive items. The Complainant has, instead, demanded a cash offer from QBC. Received 4/23/2024 ROC Legal

QBC, having timely filed this answer to the Citation, requests that it and its counsel be notified at least 30 days before a date is set with the Office of Administrative Hearings for an administrative hearing. QBC further reserves its right to request a settlement conference. DATED: April 23, 2024 RESOLVERE LAW PLLC _ /s/ Lawrence J. Felder___________ Lawrence J. Felder, Esq. #019763 Resolvere Law PLLC 3101 N. Central Ave., Suite 850 Phoenix, AZ 85012 Attorney for Respondent

ORIGINAL of the foregoing emailed this 23rd day of April 2024, to: [email redacted] [email redacted] Arizona Registrar of Contractors Taler Hemphill [email redacted] By: /s/ Lawrence J. Felder Received 4/24/24, 8:41 AM State of Arizona Mail - QBC/Hemphill - Case No. 2024-01174 4/23/2024 ROC Legal

Answers - AZROC <[email redacted]>

QBC/Hemphill - Case No. 2024-01174 message

Larry Felder <[email redacted]> Tue, Apr 23, 2024 at 2:25 PM To: "[email redacted]" <[email redacted]>, Legal New Mail - AZROC <[email redacted]>, "[email redacted]" <[email redacted]> Cc: Victoria <[email redacted]>

All: Please see copy of respondent's answer, attached. Thank you, Larry Felder

Lawrence J. Felder, Esq. Resolvere Law PLLC 3101 N. Central Avenue, Suite 850 Phoenix, Arizona 85012 http://www.resolverelaw.com D: (480) 725-9135

Please note that we have moved to Suite 850.

2024-04-23 Answer.pdf 97K

https://mail.google.com/mail/b/AEoRXRSsk3zVYMra27EgPCeJd3kbwgD2nYOxBhO3MOn1v3q3wKJo/u/0/?ik=581c53cf5c&view=pt&search=all&per… 1/1 Mediation Notice

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

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

v. JOINT REQUEST FOR MEDIATION _________________________ RESPONDENT.

REQUEST

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

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

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

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

_____________________________________ _______________________ Respondent (or representative) Date

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

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

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

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

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

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

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

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

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

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

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

4. Subject Matter of Expected Testimony

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

4. Subject Matter of Expected Testimony

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

4. Subject Matter of Expected Testimony

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

4. Subject Matter of Expected Testimony

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

Exhibit Exhibit Name

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

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

Print Name Signature Date

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