2024A-03814-NPC-ROC Notice of Hearing & Packet MAILED 2024-03814.pdf

2024A-03814-NPC-ROC · Registrar of Contractors · 2024-05-14

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Shull Contracting, LLC, Case No. 2024-03814

COMPLAINANT, Docket No. 2024A-03814-NPC-ROC

v. NOTICE OF HEARING ON CONTESTED CASE Interstate Restoration LLC DBA: First Onsite Property Restoration License Nos. ROC 263331, 263330

RESPONDENT.

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

HEARING INFORMATION The hearing is set for:

June 19, 2024 9:00 AM 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 [DATE]. SHORT AND PLAIN STATEMENT OF THE MATTERS ASSERTED The complaint and citation allege that the Respondent committed the following act(s):

Charge: 1 A.R.S. § 32-1154(A)(10)

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

be a party to the hearing.

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

RIGHT TO BE REPRESENTED

The parties to the administrative hearing may choose to be represented by an attorney. A.R.S. § 41-1092.07(B). If one of the parties is a company, the company may be represented by an officer or employee if that person satisfies the conditions set forth in A.R.S. § 32-1156(B).

CHANGE OF ADDRESS

Each party must inform the Registrar and the Office of Administrative Hearings of any

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

HEARING PROCEDURES AND RULES The administrative hearing will be conducted in accordance with A.R.S. §§ 41-1092 to - 1092.12, and A.A.C. R2-19-101 to -122. The parties should review the statutes, rules, and processes governing the administrative hearing. Copies of the statutes, rules, and articles regarding the

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

REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE The Registrar’s investigators, employees, and attorneys will appear at the hearing via video conference or telephone unless requested by a party to appear in-person. Requests for the

Registrar’s investigators, employees, or attorneys to appear in-person must be filed with the Registrar and the Office of Administrative Hearings no later than seven (7) calendar days prior to the hearing date. HEARING PACKET In the interests of administrative efficiency, the Registrar compiles and discloses certain documents to the parties and the Office of Administrative Hearings. These documents are attached to this Notice of Hearing as the “Hearing Packet.” If any party wishes to submit additional evidence, they must do so during the hearing after completing a disclosure statement. See

“Disclosure Statement” section below.

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

notice on all the parties to the hearing, and on the Registrar. A.R.S. § 41-1092.04.

DISCLOSURE STATEMENT At least seven calendar days before the hearing, each party must prepare and serve a disclosure statement on all other parties, and file it with the Office of Administrative Hearings. A.A.C. R4-9-118; A.A.C. R2-19-108. The disclosure statement must include any exhibit the party will use at the hearing. A party’s failure to timely disclose any witness or exhibit, without good

cause, may result in the administrative law judge excluding those witnesses or exhibits from being used at the hearing. A.A.C. R4-9-118(C). A sample disclosure form is available on the Registrar’s website at https://roc.az.gov/forms/RC-L-800A%20- %20Prehearing%20Disclosure%20Statement%2020191007v4.pdf CHANGING THE HEARING DATE The date of the hearing may only be advanced or delayed on the agreement of the parties or on a showing of good cause. A.R.S. § 41-1092.05(C). The date of the hearing may be changed by filing a written agreement of the parties to change the date of the hearing. The written agreement

must be filed with the Office of Administrative Hearings, directed to the assigned Administrative

Law Judge, and transmitted to the Registrar and all other parties. The assigned Administrative Law

Judge may be found on the Office of Administrative Hearings’ web portal at www.azoah.com

If a party would like to move the date of the hearing without agreement of all parties, the party must file a written motion with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmit a copy to the Registrar and all other parties. The motion must state in detail good cause for why the date of the hearing should be advanced or delayed, and the position of all other parties regarding the advancement or delay. A party may also file a motion asserting a right to an expedited hearing upon a showing of extraordinary circumstances or the possibility of irreparable harm. A.R.S. § 41-1092.05(E).

RESOLUTION SHORT OF ADJUDICATION In any case which is resolved or settled by the parties, or which is withdrawn by the Complainant without objection from Respondent after the Notice of Hearing is issued, the parties

must notify the Office of Administrative Hearings of the resolution or settlement. Any such cases will be listed on the Registrar’s website and its records under the category: “Closed Complaints – Resolved/Settled/Withdrawn.” Dated May 14, 2024.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail May 14, 2024 to: Respondent(s) Interstate Restoration LLC DBA: First Onsite Property Restoration 3401 Quorum Dr, Suite 300 Fort Worth, TX 76137 Respondent's Attorney Joel M. Crank, Esq. 6200 S. Syracuse Way, Suite 230 Greenwood Village, CO 80111 Complainant(s) Shull Contracting, LLC 1228 S Sossaman Rd #109 Mesa, AZ 85209

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 Complainant’s Attorney at email address of record with Registrar

Case No. 2024-03814 /

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

April 3, 2024

Via U.S. Mail and Email

Complainant Shull Contracting, LLC 1228 S Sossaman Rd #109 Mesa, AZ 85209

Via U.S. Mail and Email

Respondent Interstate Restoration LLC DBA: First Onsite Property Restoration 3401 Quorum Dr., Suite 300 Fort Worth, TX 76137

Re: Complaint No. 2024-03814

Dear Complainant and Respondent:

The Registrar received a complaint filed against Interstate Restoration LLC DBA: First Onsite Property Restoration for non-payment of materials or services rendered. This complaint is complete and will be substantively reviewed by the Registrar.

Respondent is free to raise any issue or affirmative defense to this complaint by filing a response with the Registrar by April 10, 2024. Please reference the complaint number listed above if you file a response. Respondent may file a response by:

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

The Registrar will not issue a citation before April 10, 2024, and will review Respondent’s response, if one is submitted.

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

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 Sincerely,

/s/ Doug Ulmer _________________ Doug Ulmer Legal Assistant Legal Department Registrar of Contractors

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Case No. 2024-03814 Shull Contracting, LLC,

COMPLAINANT, v. CITATION Interstate Restoration LLC DBA: First Onsite Property Restoration License Nos. ROC 263331, 263330 RESPONDENT.

The Registrar issues this Citation to Interstate Restoration LLC DBA: First Onsite Property Restoration (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by May 1, 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 licenses. THE WRITTEN COMPLAINT On April 1, 2024, Shull Contracting, LLC (“Complainant”) filed a written complaint with the Registrar. A copy of that Complaint is attached to this Citation. A FORMAL STATEMENT OF THE CHARGES AGAINST RESPONDENT The Registrar investigated this matter and finds cause to charge Respondent with violation of Title 32, Chapter 10 of the Arizona Revised Statutes. Respondent is charged with violating:

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Charge :1 A.R.S. § 32-1154(A)(10) — Failure by a licensee or agent or official of a licensee to pay monies in excess of $750 when due for materials or services rendered in connection with the licensee's operations as a contractor unless the licensee proves that the licensee lacks the capacity to pay and has not received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased.

If the matter proceeds to a hearing and the administrative law judge determines that any of the charges listed above are supported by a preponderance of the evidence, then Respondent’s licenses 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 licenses should not be suspended or revoked. A.R.S. § 32-1155(A). Respondent’s written answer should contain the heading “Written Answer to Citation and Complaint” and should include the case number, which is Case No. 2024-03814. How to File a Written Answer: Respondent’s written answer may be submitted in the following ways: In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 Email: [email redacted]

The Registrar’s normal office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday.

If Respondent submits a written answer by mail, it is not filed with the Registrar until the

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Registrar actually receives it. Deadline for Filing a Written Answer: Respondent must file a written answer with the Registrar no later than May 1, 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 licenses. THE ADMINISTRATIVE HEARING If Respondent files a timely written answer contesting any charges in the Complaint, then the Registrar will request the Office of Administrative Hearings set a date for an administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D). RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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 licenses status may be considered as a mitigating or aggravating factor in determining the appropriate discipline. EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to the Citation and Complaint, showing cause, if any, why Respondent’s licenses 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 16, 2024. By: /s/ Robert Stirling Robert Stirling Assistant General Counsel Legal Department Arizona Registrar of Contractors

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, April 16, 2024 to:

Respondent Certified Mail No: [number redacted]

Interstate Restoration LLC DBA: First Onsite Property Restoration 3401 Quorum Dr., Suite 300 Fort Worth, TX 76137

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

Restoration Interstate Restoration LLC DBA: First Onsite Property Restoration 3401 Quorum Dr., Suite 300 Fort Worth, TX 76137

Complainant Shull Contracting, LLC 1228 S. Sossaman Rd. #109 Mesa, AZ 85209

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. 2024-03814/du

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Received 4/19/2024 ROC Legal

April 19, 2024 VIA FEDERAL EXPRESS AND ELECTRONIC MAIL

Douglas Ulmer Arizona Registrar of Contractors 1700 W. Washington Street, Suite 105 Phoenix, AZ 85007-2812 Email: [email redacted]

Re: Written Answer to Citation and Complaint No. 2024-03814 Shull Contracting LLC (“Shull”) v. Interstate Restoration LLC d/b/a First Onsite Property Restoration (“First Onsite”)

Dear Mr. Ulmer:

I serve as Regional Corporate Counsel for First Onsite, please direct all further communications about this matter to me. On April 18, 2024, First Onsite received a notice of Complaint No. 2024-03814 (the “Complaint”) filed by Shull Contracting, LLC. Unfortunately, the letter appears to have been mailed on April 3, 2024, and was not delivered until after its deadline to respond. Shortly after submitting a response to that letter on April 19, 2024, counsel received an emailed copy of a citation (the “Citation”), sent on Tuesday, April 16, 2024.1 This letter responds as requested in the Citation. Throughout this letter, I hope to set forth First Onsite’s position relative to Shull’s work. By way of necessary background, First Onsite received, and responded to, a demand letter from counsel for Shull; however, Shull did not respond to First Onsite’s correspondence. Finally, this letter will conclude with a request for an Informal Settlement Conference, as permitted under A.R.S. § 41-1092.06. I. MISUNDERSTANDINGS RELATED TO THE FACTS OF THE DISPUTE. As to the merits of Shull’s position, I would like to first dispel what appears to be some misunderstandings related to the facts of the matter. Shull was not entitled to $91,690.87, Shull walked off the job despite First Onsite’s request that Shull cure Shull’s defective work, and, shortly thereafter, Shull incurably breached the Master Services Agreement governing the relationship between the parties, attached as Exhibit 2 (the “Agreement”).

A. Despite Written Attempts By First Onsite Asking Shull to Repair its Work, Shull Abandoned the Work.

In the Original Scope of Work (attached as Exhibit 3), Shull agreed to perform several areas of work, yet failed to do so. Shull completed line items 1.1 through 1.5, 1.12 through 1.14,

A copy of the Citation is attached as Exhibit 1.

800.622.6433 FIRSTONSITE.COM 6200 S. Syracuse Way, Suite 230, Greenwood Village, CO 80111 Received 4/19/2024 ROC Legal

and 2.5. For all other items, Shull abandoned the job before completing the same. Accordingly, Shull would be entitled to, at most, $14,455.00 for work it completed. This amount does not take into account the numerous damages First Onsite suffered because of Shull’s breach, discussed infra Section II. In the Demand Letter, Shull takes the position that First Onsite removed Shull from the project; however, this is not the case. Attached as Exhibit 4 is an email wherein Mr. Shull admits that (1) he has not completed the work at the project and (2) he would “send a final invoice and walk from [the] job” on July 27. Mr. Shull followed through with his threat and, subsequently, walked from the job. As such, Shull is not entitled to damages as asserted in the Demand Letter.

B. The Change Orders Shull Offered to First Onsite Were Not Accepted and Were Duplicative of the Original Scope of Work.

First Onsite never accepted any of Shull’s change orders, in part because they were duplicative of work Shull already agreed to perform. The Agreement ¶ 5(a)(iii) states: All Change Orders, modifications, claims for adjustments, and notices contemplated in this section shall be in writing, signed, and executed by both Parties. SUBCONTRACTOR HEREBY WAIVES AND RELEASES ANY CLAIM THAT FIRST ONSITE OR OWNER HAS ORALLY MODIFIED THE REQUIREMENTS OF THIS SECTION AND THE PARTIES UNDERSTAND THAT SUCH REQUIREMENTS CANNOT BE MODIFIED ORALLY.” (Emphasis in original). First Onsite never assented to Shull’s purported change orders – indeed, had First Onsite done so, I suspect proof would have been included in Shull’s demand letter or the Complaint. First Onsite did not assent to these change orders because the change orders attempted to increase the price for the same work listed in Shull’s Original Scope of Work. 1. Change Order 1 – Dated June 27, 2023 (Exhibit 5) Change Order 1 purports to unilaterally increase the amount First Onsite owed Shull, but includes fabricated expenses, items that were included in the original scope, and items supplied by First Onsite. Item 1.1 is not attributable to First Onsite, nor was it bargained for. Item 1.3 attempts to charge First Onsite for materials that First Onsite provided to Shull. Item 1.3 also serves to illustrate Shull’s inexperience and potentially improper work by claiming to incorporate Romex connectors into this project – Romex connectors are not appropriate for this job. Item 1.2 in Change Order 1 is duplicative of Items 1.5, 1.7, and 1.8 of the Original Scope of Work. First Onsite is not willing to pay twice for work Shull was already obligated to perform. 2. Change Order 2 – Dated July 5, 2023 (Exhibit 6) Every part of Change Order 2 was not completed by Shull. Additionally, Item 3.1 was already included in the Original Scope of Work as Item 1.9.

800.622.6433 FIRSTONSITE.COM 6200 S. Syracuse Way, Suite 230, Greenwood Village, CO 80111 Received 4/19/2024 ROC Legal

3. Change Order 3 – Dated July 10, 2023 (Exhibit 7) Change Order 3 was included in the Original Scope of Work as Item 1.6 and, therefore, Shull’s failure to perform this work is not compensable, even if the parties agreed to the terms in the Change Order. 4. Change Order 4 – Dated July 28, 2023 (Exhibit 8) Change Order 4 was performed by another contractor, with the exception of possibly Item 2.4. First Onsite does not admit Shull performed Item 2.4, and there clearly was no agreement that Shull should perform the items in Change Order 4 (except to the extent that Shull agreed to perform them in the Original Scope of Work). 5. Change Order 5 – Dated July 28, 2023 (Exhibit 9) Change Order 5 is a duplicate of Change Order 4. For the reasons stated in Section I.B.4., this amount is not due to Shull.

C. Shull’s Actions After Abandoning the Work Further Incurably Breached the Agreement.

After being asked to perform the work stated in the Scope of Work, Shull walked off the job. Shortly thereafter, Shull, through its agent Mr. Shull, further breached the Agreement by demanding payment from First Onsite’s client and threatening to file potentially fraudulent liens against the client’s property. These communications are also included in Exhibit 4. The Agreement ¶ 16 states: Contact with Owner. Subcontractor agrees not to contact Owner with respect to any payment dispute or otherwise and acknowledges that any such dispute shall be resolved in accordance with the terms of this Agreement. Subcontractor must have written approval from First Onsite to communicate, correspond, or work with the Owner directly. Violation of this provision shall constitute a material breach of this Agreement. In addition to those damages sustained by Shull’s decision to abandon the job, First Onsite also sustained damages because Shull breached Agreement ¶ 16. For the sake of argument, even if First Onsite failed to provide sufficient notice to cure Shull’s poorly performed work and Shull did not abandon the job (both of which are false), First Onsite was entitled to terminate its contractual relationship with Shull because of its incurable violation of Agreement ¶ 16. II. FIRST ONSITE’S DAMAGES. After Shull abandoned the job, First Onsite was required to hire a different subcontractor to perform the work Shull was hired to perform. This subcontractor, Crestwood General Contracting (“Crestwood”), performed a significant portion of the work Shull failed to perform, as well as repaired a substantial portion of Shull’s shoddy workmanship. Crestwood charged $73,350.002 to perform the work Shull agreed to perform for $39,065.00. Admittedly, Crestwood

A copy of Crestwood’s invoice is attached as Exhibit 10.

800.622.6433 FIRSTONSITE.COM 6200 S. Syracuse Way, Suite 230, Greenwood Village, CO 80111 Received 4/19/2024 ROC Legal

also performed HVAC work that Shull was not hired to perform, so the approximately $1,000 charge for HVAC should be deducted from First Onsite’s damages calculation. Accordingly, First Onsite has been damaged in the amount of $33,285.00, plus reputational harm, attorney fees, costs associated with the dispute, and other consequential damages for Shull’s decision to breach the Agreement, abandon the job, and contact First Onsite’s clients. This amount will continue to accrue interest at the lesser of 1.5% per month or the maximum lawful interest rate. III. SUMMARY AND OFFER TO SETTLE. In summary, Shull breached the Agreement in several regards, failed to perform the work for which it was hired, sent over $50,000 in invoices for work it did not perform, caused First Onsite to incur tens of thousands of dollars (or more) in damages, and has now filed administrative grievances against First Onsite for failing to pay Shull for the work it did not perform. Despite this, in an effort to resolve this matter expeditiously, First Onsite has offered to settle the matter in exchange for THIRTY THOUSAND DOLLARS ($30,000.00) paid by Shull to First Onsite and a mutual release of claims (including any of Shull’s claims against First Onsite’s client, REI). Shull did not respond and has refused to engage in further negotiations relative to this matter. Please note that: (a) nothing contained herein constitutes a waiver or election of any rights or remedies which First Onsite may have against Shull, (b) it is the intention of First Onsite to retain all rights and remedies available under applicable law, and (c) any delay on the part of First Onsite in taking any action does not constitute a waiver of the right to take such action at any time. IV. REQUEST FOR INFORMAL SETTLEMENT CONFERENCE First Onsite herby requests, pursuant to A.R.S. § 41-1092.06, the Registrar host an informal settlement conference about this matter. It is, and continues to be, First Onsite’s hope that the parties may resolve this matter amicably and without the burden and expense of administrative proceedings. Should you have any questions, or if you would like to discuss this matter, you may contact me using the information in my signature block. I look forward to working with you to address this Complaint.

Sincerely,

Joel M. Crank Regional Corporate Counsel [email redacted] (719) 238-8525

800.622.6433 FIRSTONSITE.COM 6200 S. Syracuse Way, Suite 230, Greenwood Village, CO 80111 Received 4/19/2024 ROC Legal

Exhibit 1 The Citation Received 4/19/2024 ROC Legal

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Case No. 2024-03814 Shull Contracting, LLC,

COMPLAINANT, v. CITATION Interstate Restoration LLC DBA: First Onsite Property Restoration License Nos. ROC 263331, 263330 RESPONDENT.

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Received 4/19/2024 ROC Legal

Charge :1 A.R.S. § 32-1154(A)(10) — Failure by a licensee or agent or official of a licensee to pay monies in excess of $750 when due for materials or services rendered in connection with the licensee's operations as a contractor unless the licensee proves that the licensee lacks the capacity to pay and has not received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased.

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

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Received 4/19/2024 ROC Legal

Registrar actually receives it. Deadline for Filing a Written Answer: Respondent must file a written answer with the Registrar no later than May 1, 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 licenses. THE ADMINISTRATIVE HEARING If Respondent files a timely written answer contesting any charges in the Complaint, then the Registrar will request the Office of Administrative Hearings set a date for an administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D). RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Received 4/19/2024 ROC Legal

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 licenses status may be considered as a mitigating or aggravating factor in determining the appropriate discipline. EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to the Citation and Complaint, showing cause, if any, why Respondent’s licenses 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 16, 2024. By: /s/ Robert Stirling Robert Stirling Assistant General Counsel Legal Department Arizona Registrar of Contractors

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Received 4/19/2024 ROC Legal

COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, April 16, 2024 to:

Respondent Certified Mail No: [number redacted]

Interstate Restoration LLC DBA: First Onsite Property Restoration 3401 Quorum Dr., Suite 300 Fort Worth, TX 76137

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

Restoration Interstate Restoration LLC DBA: First Onsite Property Restoration 3401 Quorum Dr., Suite 300 Fort Worth, TX 76137

Complainant Shull Contracting, LLC 1228 S. Sossaman Rd. #109 Mesa, AZ 85209

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. 2024-03814/du

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Received 4/19/2024 ROC Legal

Exhibit 2 The Agreement Received 4/19/2024 ROC Legal Received 4/19/2024 ROC Legal Received 4/19/2024 ROC Legal Received 4/19/2024 ROC Legal Received 4/19/2024 ROC Legal Received 4/19/2024 ROC Legal Received 4/19/2024 ROC Legal Received 4/19/2024 ROC Legal Received 4/19/2024 ROC Legal Received 4/19/2024 ROC Legal Received 4/19/2024 ROC Legal Received 4/19/2024 ROC Legal

Exhibit 3 The Scope of Work Received Shull Homes Bill To 4/19/2024 Joshua Shull • (480) 526-4811 ROC Legal First Onsite 1228 South Sossaman Road, 109, Mesa, Arizona, 85209 • Chris Rochin License Number: ROC 336846, ROC 345073 [email redacted] 1565 W University Dr. ste 103, Tempe, Arizona, 85281

Invoice WO #60529055 Due Date: Aug 9, 2023 Date Created: Jul 25, 2023

Invoice from Estimate for REI

Items

1. West RSPU Material: $1,660.00 Labor: $26,640.00 Cost: $28,300.00 Total: $28,300.00

1.1. Demo Total: $1,750.00 Remove Lighting Cut Drywall to accept new framing Saw Cut Concrete

Material: $0.00 Labor: $1,750.00 Cost: $1,750.00

1.2. Back Fill Total: $900.00 1/2" Rebar pinned 24" 2500 PSI back filled, leveled, and screeted Grinding to prep for framing

Material: $150.00 Labor: $750.00 Cost: $900.00

1.3. Framing Total: $5,200.00 16' walls tied in with ledger redhead pins to block wall box beams door opening

Material: $0.00 Labor: $5,200.00 Cost: $5,200.00

1.4. Insulation Total: $500.00 Replaced insulation in exterior wall

Material: $125.00 Labor: $375.00 Cost: $500.00

1.5. Drywall Total: $4,705.00 5/8" drywall installation on new storage room walls only, ceiling not included Close in exterior wall Patch holes from electrical installation Tape/Texture 80% smooth finish Add and finish L metal at top of drywall

Material: $0.00 Labor: $4,705.00 Cost: $4,705.00 Received 4/19/2024 Total: $6,300.00 1.6. Electrical ROC Legal Run Underground Conduit Install Wire, outlets, junction boxes, and switches Identify and mark breakers Itemize circuits and labeling correct breakers for location nothing was per blueprints

Material: $0.00 Labor: $6,300.00 Cost: $6,300.00

1.7. Painting Total: $2,450.00 Prime/Paint newly drywalled surfaces prime/paint Box Beams in storage area

Material: $0.00 Labor: $2,450.00 Cost: $2,450.00

1.8. Wainscotting Total: $1,635.00 Install new OSB Sand prep/ clear coat install corner metal

Material: $285.00 Labor: $1,350.00 Cost: $1,635.00

1.9. Rack Installation Total: $1,300.00 Assemble and install rack system (provided by client)

Material: $100.00 Labor: $1,200.00 Cost: $1,300.00

1.10. Electrical Total: $1,450.00 Install Lighting fixtures (provided by client)

Material: $0.00 Labor: $1,450.00 Cost: $1,450.00

1.11. Lighting Mounts Total: $950.00 Installation of UniStrut lighting mounts junction boxes (provided by client) assembly of unisturt fixtures (bolts, nuts, springs, and locks provided by Shull Contracting)

Material: $500.00 Labor: $450.00 Cost: $950.00

1.12. Door Installation Total: $180.00 Install 36" door (provided by client)

Material: $0.00 Labor: $180.00 Cost: $180.00

1.13. Baseboard Total: $235.00 Provide and install cove baseboard and glue

Material: $115.00 Labor: $120.00 Cost: $235.00 Received 4/19/2024 Total: $745.00 1.14. Paneling ROC Legal Provide and install paneling system fir out w/ 2 layers 1/2" plywood dowel joint returns on MDF wraps

Material: $385.00 Labor: $360.00 Cost: $745.00

2. North Section Material: $1,925.00 Labor: $5,740.00 Cost: $7,665.00 Total: $7,665.00

2.1. Demo Total: $2,800.00 Area containment/ plastic preparation Remove wainscotting, acoustic cieling Remove and set aside counter systems Remove lighting system and mounts Floor Preparation (scrape/grind)

Material: $0.00 Labor: $2,800.00 Cost: $2,800.00

2.2. Paint/Drywall Total: $225.00 Touch/Up after demo minor patch, paint May require extensive repairs and will be invoiced as such

Material: $0.00 Labor: $225.00 Cost: $225.00

2.3. Paneling Total: $2,200.00 Provide and install paneling system fir out w/ 2 layers 1/2" plywood dowel joint returns on MDF wraps

Material: $1,300.00 Labor: $900.00 Cost: $2,200.00

2.4. Lighting Mount Total: $850.00 Installation of UniStrut lighting mounts junction boxes (provided by client) assembly of unisturt fixtures (bolts, nuts, springs, and locks provided by Shull Contracting)

Material: $500.00 Labor: $350.00 Cost: $850.00

2.5. Baseboard Total: $240.00 Provide and install cove baseboard

Material: $125.00 Labor: $115.00 Cost: $240.00

2.6. Lighting Install Total: $1,350.00 Install client provided lighting fixtures

Material: $0.00 Labor: $1,350.00 Cost: $1,350.00

3. Bathrooms Material: $0.00 Labor: $2,000.00 Cost: $2,000.00 Total: $2,000.00

3.1. Updates Total: $1,500.00 As outlined in blueprints, items will be updated with materials provided by client

Material: $0.00 Labor: $1,500.00 Cost: $1,500.00 Received 4/19/2024 Total: $500.00 3.2. Touch Up Paint ROC Legal

Material: $0.00 Labor: $500.00 Cost: $500.00

4. Cleaning Material: $0.00 Labor: $1,100.00 Cost: $1,100.00 Total: $1,100.00

4.1. Deep clean Total: $1,100.00 Deep clean areas where work was conducted

Material: $0.00 Labor: $1,100.00 Cost: $1,100.00

Subtotal $39,065.00

Tax $0.00

Total $39,065.00

Amount Paid $0.00

Balance $39,065.00

Payments

$39,065.00 Payment 1 Due: Aug 9, 2023

Terms and Conditions

Prices include labor only, unless indicated on estimate. Materials to be provided by client. Received 4/19/2024 ROC Legal

Exhibit 4 Mr. Shull’s Email Abandoning the Job Received 4/19/2024 ROC Legal Received 4/19/2024 ROC Legal

Further I am including Brandon back into this email. He needs to know what level this is being escalated to. Yes I contacted Brandon about the level of commitment first on site was producing on the job, and how every step of the way they decided to overstep the plans and do as they wish. I did the right thing by telling him of your companies shortcomings.

Someone needs to pay me today and this problem goes away.

On Thu, Aug 10, 2023, 11:29 AM Randy Conrad <[email redacted]> wrote:

Joshua, in response to your email below, I too am turning this over to our legal team. I would like to highlight a couple of points for your consideration for you in reference to your breach of the contract (there may be more).

Job abandonment (which the AZ ROC takes very seriously (per ARS 32-1154 (A) 1). Contractually, if you quit/walked off/ or refuses to finish then you are in default of the sub MSA (MSA Attached) PAGE 7 under DEFAULT Line 12 Sections A-E. ALSO, you are in violation/Material Breach of contract be calling and speaking to REI Directly. Page 8, line 16. Contact with Owner. Subcontractor agrees not to contact Owner with respect to any payment dispute or otherwise and acknowledges that any such dispute shall be resolved in accordance with the terms of this Agreement. Subcontractor must have written approval from First Onsite to communicate, correspond, or work with the Owner directly. Violation of this provision shall constitute a material breach of this Agreement Plans/Specifications were not followed or adhered to (additional violation of ARS 32-1154)

Please refrain from including our client on any correspondence and refer all further communications to our legal team, cc’d on this email.

Randy Conrad Construction Manager

Mobile: (480) 737-2585

1565 W University Dr. Ste 103 Tempe, AZ 85281

24/7 EMERGENCY SERVICE: 800-622-6433

FIRSTONSITE.COM

From: Joshua Shull <[email redacted]> Sent: Thursday, August 10, 2023 9:17 AM To: Randy Conrad <[email redacted]>; [email redacted] Cc: Chris Rochin <[email redacted]>; Kevin Sullivan <[email redacted]>; Shannon Cooper <[email redacted]> Subject: Re: REI PV status check-in with client

This message has originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email.

Tomorrow, Friday Aug 11, my legal team will be handling this file. Whatever course they decide to take is up to them, and their costs will be passed on to you. I need to be paid TODAY. Your side has had plenty of time to get this sorted. Someone needs to cut a certified check and send a courier. I don't care where it comes from.

Send me whatever you need me to sign to get this cleared up today.

On Fri, Jul 28, 2023 at 6:12 PM Joshua Shull <[email redacted]> wrote: I'm requesting payment with the attached form. As I understand it, another contractor has taken over the project. This means I need to made full for everything up to this morning.

I am owed money. A lien will be claimed in 7 calendar days if payment is not received. Further administrative charges will be added at that time.

On Fri, Jul 28, 2023 at 12:46 AM Joshua Shull <[email redacted]> wrote: Attached is the original invoice, along with all of the change orders. I'll get a lien release waiver in the sum of those amounts signed, notarized, and issued to your accounting division tomorrow. I'm requesting a progress payment of 75% of this total, immediately, and will get that signed and delivered as well.

For an amount equal to 60% of the total I will sign a release and walk away. For now I am in a holding pattern and am awaiting direction from REI.

I have included a PM charge at 30% of the job total. This project has lacked any direction, and the skillset needed to keep up with the ever changing scope of work has been delivered by my staff. This does not come free. I find myself being distastefully criticized for cleaning up your mess and doing what I can to get your contract fulfilled while maintaining a respectable margin for my efforts. I take care of my people, remember?

Your client is breathing down your neck, and it needs to end there. Own up to biting off more than you can chew as you cautioned me just yesterday. This is your problem and I am fixing it, at a cost.

On Thu, Jul 27, 2023 at 9:17 PM Joshua Shull <[email redacted]> wrote: Received 4/19/2024 ROC Legal

I'll send a final invoice and walk from this job tonight.

On Thu, Jul 27, 2023, 9:03 PM Randy Conrad <[email redacted]> wrote: Looking forward to the PCO and the completion schedule.

We haven't ever had any other contractors on that site.

I am still in town so if you need someone on-site, let me know and I will send a supervisor over there. We were scheduled to be complete by end of this week. I am more than happy to provide site leadership if necessary.

Based on your email, I would suggest we wrap up the REI and shake hands.

Randy Conrad Construction Manager

Mobile: (480) 737-2585

1565 W University Dr. Ste 103 Tempe, AZ 85281

24/7 EMERGENCY SERVICE: 800-622-6433 FIRSTONSITE.COM

From: Joshua Shull <[email redacted]> Sent: Thursday, July 27, 2023 8:46 PM To: Randy Conrad <[email redacted]> Cc: Chris Rochin <[email redacted]>; Kevin Sullivan <[email redacted]>; Shannon Cooper <[email redacted]> Subject: Re: REI PV status check-in with client

This message has originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email.

Sure thing. I'll have a change order and a schedule to you shortly. I will be adding in project management time and administrative costs.

I really do not like the way you are talking to me right now, however. This business relationship is going to take honest conversations and that requires accountability on all ends for the very poor plan we were handed from the beginning.

This job was set up for failure since the day we were asked to come clean it up. Every scope of every trade has been wrong. Materials, design, timelines, and expectations. Don't even try to put this on me, or throw me under the bus. I'm losing money showing Received 4/19/2024 ROC Legal

up getting it done.

Call Christine for a conclusive answer on the way we've handled the portion we were assigned. Brad has a bad taste in his mouth from whoever started this and I will not be picking up anyone elses slack moving forward.

Id appreciate you making these things clear with everyone.

Data is the one having issues today. I have absolutely nothing to do with that.

Please note I am on site right now with wavering faith as both project managers are on vacation and a third is nowhere in site.

On Thu, Jul 27, 2023, 3:57 PM Randy Conrad <[email redacted]> wrote: Guys, I just got off the phone with Brandon Pettibone with REI regarding the status of the PV project. He is less than satisfied with the level of effort going into this project. He expressed a real irritation with the erratic scheduling of trades and scope completion. He is paying a security guard to come in as we state our scheduled hours and yet we don’t honor those commitments and he pays for the guy regardless. He has pics of damaged (scratched) counter tops and messy site conditions on a regular basis.

I need to see by 10:00am Friday 7.28.23:

A comprehensive completion schedule.

Days Hours Trades Manpower load

I need to see a daily summary with pics. The site better be cleaned as you go, not just at the end of the day

This is a very large client nationally for First Onsite. We do not want to be the cause of jeopardizing the relationship.

Please acknowledge by replying to this email.

Randy Conrad Construction Manager

Mobile: (480) 737-2585 Received 4/19/2024 ROC Legal

1565 W University Dr. Ste 103 Tempe, AZ 85281

24/7 EMERGENCY SERVICE: 800-622-6433 FIRSTONSITE.COM

CONFIDENTIALITY NOTICE: This message and any attachments are intended to be viewed only by the listed recipient(s). This email and / or attachment may contain information which remains the property of First Onsite and shall not be forwarded, reproduced, duplicated and or otherwise u ilized, in whole or in part, other than for he intended purpose of review by recipient only. This restriction shall specifically include estimates of the scope of any contemplated work. Information may be privileged, confidential and exempt from disclosure under applicable law. Any dissemination, distribution or copying of this message is strictly prohibited without First Onsite’s prior permission. This message may contain material that is intellectual property which may not be forwarded, reproduced, utilized or duplicated without specific written consent from an authorized representative of the company. If you are not the intended recipient, or if you have received this communication in error, please notify us immediately by return email and delete the original message and any copies. CONFIDENTIALITY NOTICE: This message and any attachments are intended to be viewed only by the listed recipient(s). This email and / or attachment may contain information which remains the property of First Onsite and shall not be forwarded, reproduced, duplicated and or otherwise utilized, in whole or in part, other than for the intended purpose of review by recipient only. This restriction shall specifically include estimates of the scope of any contemplated work. Information may be privileged, confidential and exempt from disclosure under applicable law. Any dissemination, distribution or copying of this message is strictly prohibited without First Onsite’s prior permission. This message may contain material that is intellectual property which may not be forwarded, reproduced, utilized or duplicated without specific written consent from an authorized representative of the company. If you are not he intended recipient, or if you have received this communication in error, please notify us immediately by return email and delete the original message and any copies. CONFIDENTIALITY NOTICE: This message and any attachments are intended to be viewed only by the listed recipient(s). This email and / or attachment may contain information which remains the property of First Onsite and shall not be forwarded, reproduced, duplicated and or otherwise utilized, in whole or in part, other than for the intended purpose of review by recipient only. This restriction shall specifically include estimates of the scope of any contemplated work. Information may be privileged, confiden ial and exempt from disclosure under applicable law. Any dissemination, distribution or copying of this message is strictly prohibited wi hout First Onsite’s prior permission. This message may contain material that is intellectual property which may not be forwarded, reproduced, utilized or duplicated without specific written consent from an authorized representa ive of the company. If you are not the intended recipient, or if you have received this communication in error, please notify us immediately by return email and delete the original message and any copies. Received 4/19/2024 ROC Legal

Exhibit 5 Change Order 1 Received Shull Homes Bill To 4/19/2024 Shannon Cooper • (480) 526-4811 ROC Legal First Onsite 1228 South Sossaman Road, 109, Mesa, Arizona, 85209 • Chris Rochin License Number: ROC 336846, ROC 345073 [email redacted] 1565 W University Dr. ste 103, Tempe, Arizona, 85281

Change Order WO #60529055 Date Created: Jun 27, 2023

Change Order for REI

Items

1. Change Orders

1.1. Inoperable Sky Jack Total: $700.00 Back charge by framers

Labor: $700.00 Cost: $700.00

1.2. Remove and repair Total: $1,000.00 Remove wainscoting rehang texture and drywall

Labor: $1,000.00 Cost: $1,000.00

1.3. Materials Total: $3,811.44 Gauge Stranded Wired RGBW Black, White, Red, Blue, Green Batting Insulation Drywall Screws Framing Screws Uni-Struts Mud Rings Hex Nuts Rebar tire wire 4" square boxes Pan heads self tapping screws Rebar Concrete Blade Romex connectors

Labor: $3,811.44 Cost: $3,811.44

Subtotal $5,511.44

Fee $0.00

Tax AZ & Mesa (8.3%) $0.00

Total $5,511.44

Amount Paid $0.00

Balance $5,511.44 Received Payments 4/19/2024 ROC Legal

$5,511.44 Payment 1 Due: Jul 12, 2023

Signature Click here to sign

Shull Homes

Company Signature Client Signature Received 4/19/2024 ROC Legal

Exhibit 6 Change Order 2 Received Shull Homes Bill To 4/19/2024 Jason Rose • (480) 526-4811 ROC Legal First Onsite 1228 South Sossaman Road, 109, Mesa, Arizona, 85209 • Chris Rochin License Number: ROC 336846, ROC 345073 [email redacted] 1565 W University Dr. ste 103, Tempe, Arizona, 85281

Change Order WO #60529055 Date Created: Jul 5, 2023

Additional Work

Items

1. Fire Sprinklers

1.1. Fire Sprinkler Total: $5,000.00

Quantity: 1 Unit: Material: $0.00 Labor: $5,000.00 Cost: $5,000.00

2. Hvac

2.1. Hvac Total: $740.00 $185 a hour minimum of 4 hours materials not included

Quantity: 1 Unit: Material: $0.00 Labor: $740.00 Cost: $740.00

3. Racking

3.1. Rack Installation Total: $1,800.00

Quantity: 1 Unit: Material: $0.00 Labor: $1,800.00 Cost: $1,800.00

3.2. Cabinets Total: $2,640.00 cabinet installation TDB electrical

Quantity: 1 Unit: Material: $0.00 Labor: $2,640.00 Cost: $2,640.00

Subtotal $10,180.00

Fee $0.00

Tax $0.00

Total $10,180.00

Amount Paid $0.00

Balance $10,180.00 Received Payments 4/19/2024 ROC Legal

$10,180.00 Payment 1 Due: Jul 20, 2023

Signature Click here to sign

Shull Homes

Company Signature Client Signature Received 4/19/2024 ROC Legal

Exhibit 7 Change Order 3 Received Shull Homes Bill To 4/19/2024 Shannon Cooper • (480) 526-4811 ROC Legal First Onsite 1228 South Sossaman Road, 109, Mesa, Arizona, 85209 • Chris Rochin License Number: ROC 336846, ROC 345073 [email redacted] 1565 W University Dr. ste 103, Tempe, Arizona, 85281

Change Order 2 WO #60529055 Date Created: Jul 10, 2023

Change Order for REI

Items

1. Electrical

1.1. dedicated circuits Total: $7,000.00 This scope of work is to supply and install all conduit, conductors and fittings to bring the (5) needed dedicated circuits to the energized the scope of work per approved plans. The newly remodeled location in the store does not have enough existing circuits to use to do that 250 ft of conduit and over 1000 ft of wire to be ran.

Labor: $7,000.00 Cost: $7,000.00

Subtotal $7,000.00

Fee $0.00

Tax $0.00

Total $7,000.00

Amount Paid $0.00

Balance $7,000.00

Payments

$7,000.00 Payment 1 Due: Jul 25, 2023

Signature Click here to sign

Shull Homes

Company Signature Client Signature Received 4/19/2024 ROC Legal

Exhibit 8 Change Order 4 Received Shull Homes Bill To 4/19/2024 Joshua Shull • (480) 526-4811 ROC Legal First Onsite 1228 South Sossaman Road, 109, Mesa, Arizona, 85209 • Chris Rochin License Number: ROC 336846, ROC 345073 [email redacted] 1565 W University Dr. ste 103, Tempe, Arizona, 85281

Change Order WO #60529055 Date Created: Jul 28, 2023

Change Order for REI

Items

1. Project Management

1.1. Supervision and Revisions Total: $21,159.43 30% Markup on TOTAL costs

Labor: $21,159.43 Cost: $21,159.43

2. Interior Finishes

2.1. Re-paint interior walls Total: $1,700.00

Labor: $1,700.00 Cost: $1,700.00

2.2. Return to touch up door, jamb and walls Total: $400.00

Labor: $400.00 Cost: $400.00

2.3. Upgrade from level 3 to level 5 drywall (skim) Total: $2,200.00

Labor: $2,200.00 Cost: $2,200.00

2.4. Cut in undersized door/ patch Total: $350.00

Labor: $350.00 Cost: $350.00

2.5. MDF - Full wall height and length Total: $900.00

Labor: $900.00 Cost: $900.00

3. Mezzanine

3.1. Reframe, hang tape opened areas Total: $2,800.00

Labor: $2,800.00 Cost: $2,800.00 Received 4/19/2024 Total: $425.00 3.2. wire clean-up ROC Legal

Labor: $425.00 Cost: $425.00

Subtotal $29,934.43

Fee $0.00

Tax AZ & Mesa (8.3%) $0.00

Total $29,934.43

Amount Paid $0.00

Balance $29,934.43

Payments

$29,934.43 Payment 1 Due: Aug 12, 2023

Signature Click here to sign

Shull Homes

Company Signature Client Signature Received 4/19/2024 ROC Legal

Exhibit 9 Change Order 5 Received Shull Homes Bill To 4/19/2024 Joshua Shull • (480) 526-4811 ROC Legal First Onsite 1228 South Sossaman Road, 109, Mesa, Arizona, 85209 • Chris Rochin License Number: ROC 336846, ROC 345073 [email redacted] 1565 W University Dr. ste 103, Tempe, Arizona, 85281

Change Order 3 WO #60529055 Date Created: Jul 28, 2023

Change Order for REI

Items

1. Project Management

1.1. Supervision and Revisions Total: $21,159.43 30% Markup on TOTAL costs

Labor: $21,159.43 Cost: $21,159.43

2. Interior Finishes

2.1. Re-paint interior walls Total: $1,700.00

Labor: $1,700.00 Cost: $1,700.00

2.2. Return to touch up door, jamb and walls Total: $400.00

Labor: $400.00 Cost: $400.00

2.3. Upgrade from level 3 to level 5 drywall (skim) Total: $2,200.00

Labor: $2,200.00 Cost: $2,200.00

2.4. Cut in undersized door/ patch Total: $350.00

Labor: $350.00 Cost: $350.00

2.5. MDF - Full wall height and length Total: $900.00

Labor: $900.00 Cost: $900.00

3. Mezzanine

3.1. Reframe, hang tape opened areas Total: $2,800.00

Labor: $2,800.00 Cost: $2,800.00 Received 4/19/2024 Total: $425.00 3.2. wire clean-up ROC Legal

Labor: $425.00 Cost: $425.00

Subtotal $29,934.43

Fee $0.00

Tax AZ & Mesa (8.3%) $0.00

Total $29,934.43

Amount Paid $0.00

Balance $29,934.43

Payments

$29,934.43 Payment 1 Due: Aug 12, 2023

Signature Click here to sign

Shull Homes

Company Signature Client Signature Received 4/19/2024 ROC Legal

Exhibit 10 Crestwood Invoice Received 4/19/2024 ROC Legal

Re: REI Paradise Valley October 25, 2023various Mr. Conrad, Per your request I have broken down the project referenced above. This is inclusive of all work completed by Crestwood General Contracting. Should you have any questions please feel free to contact me. 1. Painting: Crestwood painted various areas of the property including repainting the front-line wall behind the registers, the front wall at the entry and the back area ceiling and walls in front of the storage area. This required complete repaint as the paint which had been completed was substandard. 2. Wainscotting: The plywood wainscotting in the front line behind the registers was installed incorrectly and not completed. We secured the wainscotting properly and installed the corner guards. 3. Rack Installation: The rack is located in the new warehouse area and was not installed. It was in multiple pieces and was completed by our firm and brought to code and fully working. 4. Install Lighting Fixtures: Crestwood installed all lighting fixtures on existing partially completed Unistrut. The strut was completed, and the fixtures were installed over the new sales counter, in the new warehouse and in the back sales area in front of the warehouse doors. 5. Lighting Mounts: The Unistrut was partially installed by previous contractors and was completed by Crestwood GC. 6. Paint and Drywall: Drywall patches were made by Crestwood in various locations and paint was touched up. This included the new warehouse area, the back sales area and the AC Duct locations. 7. Touch Up paint was performed at various locations throughout the building as directed by the owner or contractor. 8. Paint Interior Walls and Door Jambs: At the direction of the General Contractor and the direction of the owner, various interior walls were repainted and included various doors and jambs as required. 9. Complete MDF: The MDF installed in the back of store was incorrectly installed. The MDF was removed and reinstalled per plan. 10. Frame and Tape warehouse area in back sales floor. Install new 2x4 studs, drywall and paint to match as required. Area had been previously demoed by others. 11. Have HVAC contractor manufacture new duct work over sales area and install. 12. Remove and reset frontline cabinets as required. The aforementioned list were all items which required various degrees of work and time to be completed. I can gladly meet at the site and walk you or anyone else though the work who may have concerns. Overall, it seems a fair amount of work was started but no work was actually completed. Sincerest Regards,

Jim Lord Received 4/19/2024 ROC Legal

Division

Hours Rate Total Demo 155 90 $13,950.00 Electrical 255 90 $22,950.00 Paint / Drywall 212 90 $19,080.00 Carpentry 193 90 $17,370.00

Total $73,350.00 Received 4/22/24, 8:19 AM State of Arizona Mail - Written Answer to Citation and Complaint No. 2024-03814 4/19/2024 ROC Legal

Answers - AZROC <[email redacted]>

Written Answer to Citation and Complaint No. 2024-03814 message

Joel Crank <[email redacted]> Fri, Apr 19, 2024 at 4:19 PM To: "[email redacted]" <[email redacted]>

Hello:

Please find attached Interstate Restoration, LLC d/b/a First Onsite Property Restoration’s response to a citation issued in Case No. 2024-03814.

Thank you, Joel

Joel Crank, Esq.

Regional Corporate Counsel

First Onsite Property Restoration

Mobile: 719.238.8525

6200 S. Syracuse Way, Suite 230

Greenwood Village, CO 80111

CONFIDENTIALITY NOTICE: This message and any attachments are intended to be viewed only by the listed recipient(s) and may be protected by the attorney-client privilege and/or the work product doctrine. If you are not the intended recipient, or if you have received this communication in error, please notify us immediately by return email and delete the original message and any copies.

Written Answer to Citation and Complaint 2024-03814.pdf 11477K

https://mail.google.com/mail/b/AEoRXRQ_S8u9yL_1xyR_5D6nwbUzhhwj8Miyo7CmmcyMYZ59aULn/u/0/?ik=581c53cf5c&view=pt&search=all&permt… 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