2024A-04959-NPC-ROC Notice of Hearing & Packet MAILED 2024-04959.pdf

2024A-04959-NPC-ROC · Registrar of Contractors · 2024-08-21

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Marrs Construction Inc., Case No. 2024-04959

COMPLAINANT, Docket No. 2024A-04959-NPC-ROC

v. NOTICE OF HEARING ON CONTESTED CASE Vollkommen Arizona LLC License No. ROC 324044,

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

HEARING INFORMATION The hearing is set for:

October 8, 2024 9:00 AM Kay Abramsohn Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person.

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

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

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

STATEMENT OF LEGAL AUTHORITY AND JURISDICTION

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

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

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

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

PARTICULAR ARIZONA STATUTES AND RULES INVOLVED

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

complaint and citation, which were served on the Respondent on June 10, 2024. SHORT AND PLAIN STATEMENT OF THE MATTERS ASSERTED

The complaint and citation allege that the Respondent committed the following act(s): Charge: 1 A.R.S. § 32-1154(A)(10)

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

be a party to the hearing.

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

argument to the administrative law judge.

RIGHT TO BE REPRESENTED The parties to the administrative hearing may choose to be represented by an attorney. A.R.S. § 41-1092.07(B). If one of the parties is a company, the company may be represented

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

1156(B).

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

HEARING PROCEDURES AND RULES

The administrative hearing will be conducted in accordance with A.R.S. §§ 41-1092 to -1092.12, and A.A.C. R2-19-101 to -122. The parties should review the statutes, rules, and

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

REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE

The Registrar’s investigators, employees, and attorneys will appear at the hearing via

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

HEARING PACKET

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

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

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

SUBPOENAS FOR TESTIMONY FROM A WITNESS OR DOCUMENTS

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

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

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

Judge to review and sign, if approved. A.R.S. § 41-1092.07(C). Forms for requesting a subpoena can be found on the Office of Administrative Hearings’ website at www.azoah.com.

The party seeking a subpoena must serve notice on all the parties to the hearing, and on the Registrar. A.R.S. § 41-1092.04.

DISCLOSURE STATEMENT

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

disclosure statement on all other parties, and file it with the Office of Administrative Hearings. A.A.C. R4-9-118; A.A.C. R2-19-108. The disclosure statement must include any exhibit the party will use at the hearing. A party’s failure to timely disclose any witness or exhibit, without good cause, may result in the administrative law judge excluding those witnesses or exhibits from being used at the hearing. A.A.C. R4-9-118(C). A sample disclosure form is available on the Registrar’s website at https://roc.az.gov/forms/RC-L-800A%20- %20Prehearing%20Disclosure%20Statement%2020191007v4.pdf

CHANGING THE HEARING DATE

The date of the hearing may only be advanced or delayed on the agreement of the

parties or on a showing of good cause. A.R.S. § 41-1092.05(C). The date of the hearing may

be changed by filing a written agreement of the parties to change the date of the hearing. The

written agreement must be filed with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmitted to the Registrar and all other parties. The assigned Administrative Law Judge may be found on the Office of Administrative Hearings’ web portal at www.azoah.com

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

extraordinary circumstances or the possibility of irreparable harm. A.R.S. § 41-1092.05(E).

RESOLUTION SHORT OF ADJUDICATION In any case which is resolved or settled by the parties, or which is withdrawn by the Complainant without objection from Respondent after the Notice of Hearing is issued, the parties must notify the Office of Administrative Hearings of the resolution or settlement. Any such cases will be listed on the Registrar’s website and its records under the category: “Closed

Complaints – Resolved/Settled/Withdrawn.”

Dated August 21, 2024.

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

Copy mailed via USPS First Class mail August 21, 2024 to:

Respondent(s) Vollkommen Arizona LLC 1875 S State Street STE 2400 Orem, UT 84097

Complainant(s) Marrs Construction Inc. 711 W Happy Valley Rd Phoenix, AZ 85085

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. 2024-04959 /

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

Hearing Packet FAQ What is the Hearing Packet?

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

Who gets the Hearing Packet?

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

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

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

What is in the Hearing Packet?

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

● Original complaint;

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

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

● Citation; and ● Answer.

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

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

What if there are documents missing from the Hearing Packet?

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

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

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

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

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

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

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

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

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

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

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

May 1, 2024

Via U.S. Mail and Email

Complainant Marrs Construction Inc 4727 E Bell Rd Ste 45374 Phoenix, AZ 85032

Via U.S. Mail and Email

Respondent Vollkommen Arizona LLC 3278 W 1150 S Provo, AZ 84601

Re: Complaint No. 2024-04959

Dear Complainant and Respondent:

The Registrar received a complaint filed against Vollkommen Arizona LLC 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 May 8, 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 May 8, 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.

Sincerely,

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 /s/Madelyn Hayes Madelyn Hayes Legal Assistant II Legal Department 1700 W Washington St. Ste 105 Phoenix, AZ 85007

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

Case No. 2024-04959 Marrs Construction Inc,

COMPLAINANT, v. CITATION Vollkommen Arizona LLC License No. ROC 324044,

RESPONDENT.

The Registrar issues this Citation to Vollkommen Arizona LLC (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by June 25, 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 April 30, 2024, Marrs Construction Inc (“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

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

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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 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 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:

If the matter proceeds to a hearing and the administrative law judge determines that any of the charges listed above are supported by a preponderance of the evidence, then Respondent’s license(s) may be subject to suspension or revocation, and Respondent may be subject to other penalties provided by law, including civil penalties under A.R.S. §§ 32-1154(E) and (F). FILING A WRITTEN ANSWER Respondent must appear by filing with the Registrar a written answer to the citation and complaint showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). Respondent’s written answer should contain the heading “Written Answer to Citation and Complaint” and should include the case number, which is Case No. 2024-04959. 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 June 25, 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). 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 license(s) status may be considered as a mitigating or aggravating factor in determining the appropriate discipline. EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to the Citation and Complaint, showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). This Citation does not constitute proof that any charge or allegation in Complainant’s written complaint is in fact true. This Citation does not constitute proof that Respondent violated any statutory provision or rule adopted by the Registrar. Dated June 10, 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, June 10, 2024 to:

Respondent Certified Mail No: [number redacted]

Vollkommen Arizona LLC 3278 W 1150 S Provo, UT 84601 Copy mailed by USPS First Class mail this same date to: Vollkommen Arizona LLC 3278 W 1150 S Provo, UT 84601

Complainant Marrs Construction Inc 711 W Happy Valley Rd PHOENIX, AZ 85085

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. 2024-04959 / MTH

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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 Non-Payment Complaint Form Departmental Use Only Complaint Number: Mail to: Registrar of Contractors P.O. Box 18243 Phoenix, AZ 85005-8243

Person Filing Complaint (Payee) Business Name Full Name (First Middle Last) ROC License Number(s) (if any) Tim Marrs Street Address City State Zip Code 4727 E Bell Rd, #45-374 Phoenix Arizona 85032 Phone Number Email Address [number redacted] [email redacted] I consent to receive communications electronically in connection with this case

Name of Attorney (if any)

Attorney’s Street Address City State Zip Code

Attorney’s Phone Number Attorney’s Email Address

Licensee Information (Payer) Name (as shown on contracts, invoices, etc.) ROC License Number(s) Vollkommen Arizona LLC ROC 324044 Street Address City State Zip Code 3278 W 1150 S Provo AZ 84601 Phone Number Email Address

Name of Person(s) Representing License Jacob Erekson Complaint Information Principal Amount Due (excluding interest and fees) Contract Date (if applicable) $465,609.85 February 20, 2023 Have you filed a civil complaint? No List all specific invoices which have not been paid. Attach additional pages if necessary. 111187, 11/22/2023, $120787.63;111202, 12/22/2023, $190300.57;111220, 1/25/2024, $89950.02;111241, 2/23/2024, $34533.16;111256, 3/24/2024, $30038.47

Certification I certify, upon information and belief, that the above-named licensee has failed to pay monies in excess of seven hundred fifty dollars when due for materials or services rendered in connection with the licensee’s operations as a contractor. I further certify, upon information and belief, that the above-named licensee has the capacity to pay, or has received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased. A.R.S. § 32-1154(A)(10). Printed Name Signature Date Tim Marrs Declaration & Signature I am the Complainant in this Complaint Form or Complainant’s duly authorized representative. I declare under penalty of perjury that the information contained in this Form is true and correct to the best of my knowledge. I further certify that any documents submitted in support of this complaint are true and correct copies of the originals and are 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 Tim Marrs CONSTRUCTION AGREEMENT – Vesta Views

This Construction Agreement (this “Agreement”) is made this ______20 day of _______________, Febuary 202__, by and between _____________________________________________ Marrs Construction Inc. (Contractor’s License No. _________) 319690 - KA (“Contractor”), whose address is 4727 E. Bell Rd. #45-374 and Vollkommen Arizona, LLC, a Utah Limited Liabiltiy Company, (“Owner”), whose ______________, address, is 3278 W 1150 S, Provo, Utah 84601. As used in this Agreement, "Contractor" may be a vendor, supplier and/or contractor.

In consideration of the mutual promises herein contained, the parties agree that during the term of this Agreement, if Owner issues to Contractor one or more Purchase Orders authorizing Contractor to provide labor, services, materials and/or equipment (the “Work”) to one or more sites (the "Site"), Contractor shall perform the Work at the Site and Owner shall pay Contractor for the Work, in accordance with the procedures, terms, conditions and limitations contained in this Agreement. The parties further agree as follows:

1. SCOPE OF WORK. Owner and Contractor shall agree upon one or more documents describing the requirements for the Work which may also contain a description of the Work (each, a “Scope of Work”); each such Scope of Work may be amended and/or supplemented by Owner from time to time. Additionally, Owner may provide Contractor with specifications and/or standards to supplement the Scope of Work and such specifications and/or standards shall be deemed to be part of the Scope of Work.

2. PRICING. After receipt by Contractor of the Scope of Work and/or any amendment or supplement to the Scope of Work, Owner and Contractor shall agree upon the price (the "Price") and payment terms (the "Payment Terms") for performance of the Work as described in the Scope of Work (collectively referred to as the “Contract Price”). The Contract Price for the Scope of Work shall be _____________________. $404,948.09 The Payment Terms are as follows: Applications for payment are due no later than the 5th of each month. Payments to Contractor shall be made by the 15th of the same month, subject to the conditions set forth is section 4. Unless otherwise excluded in writing by Owner, the Contract Price will include all costs to perform the Work including, without limitation, supervision, freight, permits, sales and other taxes, and any other applicable costs required to perform the Work. Contractors proposal may be attached to this Agreement , for reference only, as Exhibit B.

3. PERFORMANCE OF THE WORK. By execution of this contract, Owner authorizes Contractor to perform the Work set forth in the Scope of Work. Owner may elect to authorize the Contractor to begin work on individual lots or parcels or Owner may elect to authorize the Contractor to perform work on an entire community. The Scope of Work shall set forth (a) the Work that Contractor shall perform, (b) the price for the Work (as shown in the Scope of Work), (c) the Site where the Work shall be performed, and (d) at the option of Owner, the estimated time when the Work is to be performed. Changes to the Scope of Work may be issued by Owner in the form of a Change Order. A Change Order may be issued to supplement the Scope of Work originally agreed upon. If a Change Order references a Price not previously agreed upon in the Scope of Work, the Price in the Change Order shall be deemed agreed to by Contractor when Contractor begins the Work that is the subject of the Change Order. Prior to beginning the Work, Contractor shall confirm with Owner the estimated date, time and Site for the performance of the Work. Contractor shall begin performance of the Work on the date requested by Owner and complete the Work within the time period specified by Owner. Contractor’s beginning of the Work is deemed Contractor’s acceptance of the Contract Price and all other terms specified in the Scope of work and this Agreement. Contractor has no authority to provide materials or perform work not described in the Scope of Work. Owner will not pay for any materials or work that it did not order by acceptance of the Scope of Work or by previously authoirized change order.

4. PAYMENT. Contractor shall submit an application for payment to Owner monthly, in a format substantially similar to the AIA G702/703 form. Applicaitions for paymet are due no later than the 5th of each month. Owner agrees, subject to the terms herein, to make payment to Contractor for Work authorized in under this contract when (a) Owner confirms the Work complies with the Scope of Work, (b) Owner has received lien releases or waivers, to the extent required by Owner, from potential lien claimants (at any tier) involved in the performance of the Work, and (c) Contractor satisfies, to Owner’s satisfaction, any additional payment conditions set forth in the Pricing Schedule or this Agreement. Unless requested by Owner, Contractor shall not send any invoice to Owner. Notwithstanding anything in this Agreement to the contrary, to the extent that the terms of this Agreement or any documents incorporated herein are governed by, or subject to, the Arizona Prompt Payment Act, Arizona Revised Statutes sections 32-1181 et seq. (the “Act”), the provisions of the Act supersede any inconsistent provisions of such documents. Each of Owner and Contractor shall comply with the Act.

5. PAYMENTS BY CONTRACTOR – NO LIENS. Subject to the terms herein, Contractor shall promptly pay all costs of labor, materials, services and equipment used in the performance of the Work, and Contractor will provide proof of such payment. To the extent permitted by law, Owner may at any time make payments due to Contractor directly, or at

Site Work Construction Agreement 11142022 1 Owner’s option, by joint check if permitted by law, to any person or entity for obligations incurred by Contractor in connection with the performance of Work, unless Contractor has first delivered written notice to Owner of a dispute with any such person or entity and has furnished security satisfactory to Owner insuring against claims therefrom. Any payment so made will be credited against sums due Contractor in the same manner as if such payment had been made directly to Contractor. The provisions of this Section 5 are intended solely for the benefit of Owner and will not extend to the benefit of any third persons, or obligate Owner or its sureties in any way to any third party. Subject to the terms of this Section 5, Contractor will at all times keep the Site, and each part thereof, free from any attachment, lien, claim of lien, or other encumbrance arising out of Work. Owner may demand, from time to time in its sole discretion, that Contractor provide a detailed listing of any and all potential lien claimants (at all tiers) involved in the performance of the Work including, with respect to each such potential lien claimant, the name, scope of work, sums paid to date, sums owed, and sums remaining to be paid.

6. STANDARD OF CARE. Contractor shall perform the Work as follows (collectively, “Contractor’s Standard of Care”): (a) in a prompt, diligent, good and workmanlike manner, (b) during normal business hours for Owner, unless otherwise requested by Owner, and (c) in accordance with: (i) industry standards, (ii) any standards and/or practices set forth in the applicable Scope of Work or Purchase Order, (iii) any practices otherwise specified in writing by Owner to Contractor, (iv) the jobsite rules of Owner, (v) building codes, (vi) all manufacturers' most recent written recommendations and specifications for the installation of materials and the finish thereof, and (vii) the specific plans, specifications, drawings, and the Scope of Work that have been provided to Contractor or are on file and made available to Contractor at Owner’s office including, without limitation, any amendments or alterations to them made by Owner from time to time; (viii) specifications of the Federal Housing Administration or the Veterans Administration, if Owner informs Contractor that such specifications are applicable. If there is a conflict between any of the standards, practices, plans, drawings, specifications, and schedules included in Contractor’s Standard of Care, the more stringent or exacting among them shall control.

7. FAMILIARITY WITH SITE, DOCUMENTS AND LAWS. Before Contractor commences the Work, Contractor shall (a) inspect the Site, (b) read all plans, specifications and other documentation included within Contractor’s Standard of Care and (c) compare the Site against the plans and specifications and such other written documentation. Contractor’s commencement of the Work is an acknowledgment by Contractor that the Site is safe and ready for the Work to commence and continue in accordance with Contractor’s Standard of Care and all Laws (as defined in Section 9(a) below) bearing on the Work. Contractor's continuation of the Work without objection is a continuing acknowledgment that the Site is safe and ready for such performance of the Work. It is understood by the parties that Contractor is best able to evaluate the cost of the Work and that in arriving at the Contract Price, Contractor has considered and assumed the risk that unforeseen conditions or events may be encountered causing additional difficulty and expense not anticipated at the time the parties agreed upon the Contract Price. Contractor further represents that it is fully familiar with the requirements of any governmental authority having jurisdiction over the Work and is prepared to comply with all such requirements without additional compensation.

8. PROTECTION OF WORK AND SITE. Contractor will supervise, administer and protect the Work against loss or damage from any cause and will be responsible for all parts of the Work, temporary or permanent, finished or not, until the Work is finally completed and accepted for payment by Owner. In addition, if the Scope of Work includes installation of materials or equipment furnished by anyone other than Contractor, Contractor must examine the items so provided and thereupon handle, store and install the items with the necessary skill and care to ensure a satisfactory and proper installation. Contractor will take reasonable precautions and maintain reasonable safeguards to protect against loss or damage to persons or property as a result of weather conditions or arising out of Contractor’s activities at or about the Site. Contractor will bear and be liable for, and Owner will not be responsible for, any loss, theft or damage to the Work (until after full and final completion and acceptance for payment of such Work by Owner) and/or any material, equipment or other thing used in the Work or placed at the Site by Contractor. The acceptance of the Work or any portion of the Work by Owner shall not constitute a waiver or release of any rights of Owner against Contractor under this Agreement, at law or in equity including, without limitation, liability for defective, deficient or non-conforming Work. Contractor shall assume full responsibility for the storage of its own materials, tools and equipment.

9. COMPLIANCE WITH LAWS.

(a) General Compliance with Laws. In the performance of the Work, Contractor shall comply with all local, state, and federal laws, codes, rules, ordinances, regulations, orders and permits (herein collectively referred to as “Laws”) including, without limitation, the Federal Water Pollution Control Act (commonly referred to as the Clean Water Act), the Fair Labor Standards Act, the Immigration Reform and Control Act of 1986, the Immigration and Naturalization Reform Act, and the safety and health rules and regulations established by or pursuant to the Occupational Safety and Health Act of 1970, all as amended from time to time. In addition, Contractor shall carefully check the Scope of Work, plans and specifications and any other written documents included in Contractor’s Standard of Care, for conformity with Laws. Contractor, at its sole cost and expense, shall obtain all necessary permits and licenses and

Site Work Construction Agreement 11142022 2 shall give all necessary notices prior to commencement of the Work, unless Owner agrees otherwise in writing. The Work will conform to Laws, and if Contractor observes any violation of Laws, it will immediately report such violation to Owner in writing.

(b) Compliance with OSHA Regulations. Contractor acknowledges that the OSHA Hazard Communication Standard promulgated pursuant to the Occupational Safety and Health Act of 1970, as amended, and any and all state laws related to occupational health and safety (collectively the “OSHA Regulations”) requires, among other things, all contractors and subcontractors to exchange material safety data sheets and share information about precautionary measures necessary to protect all workers on a building project. In this regard, Contractor specifically agrees, without limitation of its general obligation under Section 9(a), as follows:

(i) Contractor will fully comply with the OSHA Regulations and will cooperate with Owner and all subcontractors of Owner in order to assure compliance with the OSHA Regulations.

(ii) Contractor accepts full responsibility and liability for the training of its employees as to all precautionary measures necessary to protect such employees during both routine and emergency situations on the Site and Contractor shall make available for Owner’s review all records and logs indicating such training was administered by Contractor to its employees.

(iii) Contractor will assist Owner in complying with the OSHA Regulations.

(iv) Before using any chemicals in its performance of the Work for Owner or incorporating any chemicals into materials or products supplied to Owner or to the Site, Contractor must give Owner prior written notice of the existence and the possible exposure to such chemical, deliver a material safety data sheet to Owner, and obtain a written consent of Owner to use such chemicals.

(c) Compliance with Storm Water Discharge Laws and Plan. Contractor acknowledges that the discharge of storm water from certain construction sites is governed by the Laws. Owner will obtain necessary authorizations to discharge storm water and develop a plan (the “Storm Water Discharge Plan”) in accordance with the Laws. Contractor agrees, without limitation of its general obligation under Section 9(a), as follows:

(i) Prior to commencing the Work, Contractor will review the Storm Water Discharge Plan and familiarize itself and its employees with those parts of the Storm Water Discharge Plan that apply to its activities.

(ii) Contractor will comply with the Storm Water Discharge Plan and all requirements of the Laws related to storm water discharges applicable to its activities.

(iii) Contractor will cooperate with Owner, all contractors of Owner and all regulatory agencies having jurisdiction over the Site in complying with the Storm Water Discharge Plan including, but not limited to, executing any documents required by the Laws related to storm water discharges, participating in training and compliance review programs, and undertaking inspections and monitoring as requested by Owner.

(iv) Contractor will handle construction chemicals and construction debris in accordance with requirements of the Storm Water Discharge Plan.

(v) Contractor will avoid materially damaging erosion or sediment controls called for by the Storm Water Discharge Plan, will immediately bring to the attention of Owner any damage that it may do to such erosion or sediment controls, and will be responsible for the reasonable costs of repairing any erosion or sediment controls that it may damage.

(d) Compliance with Immigration Reform and Control Act (“IRCA”). Contractor agrees that it will not assign any of its employees to a Site prior to Contractor completing the employment eligibility verification process as required by IRCA and has verified that the employee is lawfully eligible to work in the United States. Contractor further agrees that it will retain Form I-9 Employment Eligibility Verification relating to any employee currently or previously assigned to a Site for the period mandated by applicable law and, upon written request, will make such Form I-9s available for Owner’s review.

(e) Notice and Opportunity to Repair State Statutes. Various states require preliminary steps be taken before a legal action or arbitration may be commenced. Such steps may include a “right to repair” process after receipt by the homebuilder of notice of alleged defects. If the Work is performed in a state that has a “Notice and Opportunity to Repair” statute (or comparable statute), Contractor will comply with (and shall cooperate reasonably in good faith

Site Work Construction Agreement 11142022 3 with Owner so that Owner may comply with and satisfy) any requirements and/or obligations related to these state statutes. Such cooperation shall include, without limitation, assisting Owner in complying with deadlines in responding to allegations by homeowners, participating in inspections, participating in mediation, and assisting Owner in preparing offers to repair and performing such repairs.

10. REQUIRED INSURANCE. Contractor shall maintain insurance with the minimum coverage, terms and limits provided in Exhibit A attached hereto. Owner reserves the right to amend and/or supplement the Required Insurance provided such amendment and/or supplement is agreed to by Contractor.

11. INDEMNITY.

(a) Duty to Defend – Claims Related to Work. Contractor agrees to defend each FIG Party (as defined below) against any Claim (as defined below) related to or arising from the Work or Contractor’s failure to comply with the terms of this Agreement including, without limitation, all costs and expenses related to such defense (including, without limitation, attorneys’ fees, court costs and all other professional, expert or consultants’ fees and costs). This duty to defend exists and includes any other claims or demands alleged by the party asserting the Claim, including any allegations that one or more FIG Parties or any other party other than Contractor was negligent or otherwise responsible for the claim or demand. The duty to defend arises immediately upon written notice from Owner requesting such defense and regardless of whether Contractor is a party to the Claim. Owner shall be entitled to select the attorney and experts engaged to defend the Claim and to control and make all decisions, in its sole and absolute discretion, related to the Claim. Owner agrees to reimburse Contractor the reasonable costs actually paid by Contractor in defending the Claim based upon the percentage of the costs attributable to Owner’s gross negligence or intentional fault. Such reimbursement obligation shall arise upon (i) the entry of a judgment or issuance of an award that allocates Owner’s and Contractor’s percentage of negligence (or with regard to Owner, gross negligence) or fault, or (ii) Owner and Contractor agreeing in writing on their percentages of responsibility. The duty to defend described in this Section 11(a) is separate and independent from the duty to indemnify described in Section 11(b) below.

(b) INDEMNITY. CONTRACTOR AGREES TO INDEMNIFY AND HOLD EACH FIG PARTY HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS TO THE EXTENT SUCH CLAIMS (i) ARISE FROM OR ARE RELATED TO THE WORK, AND (ii) ARE ATTRIBUTABLE TO CONTRACTOR’S FAILURE TO COMPLY WITH THE TERMS OF THIS AGREEMENT OR CONTRACTOR’S, OR ITS AGENT’S, NEGLIGENCE, FAULT OR MISCONDUCT, OR FOR WHICH CONTRACTOR, OR ITS AGENT, IS STRICTLY LIABLE. THIS INDEMNITY DOES NOT EXTEND TO LIABILITY FOR CLAIMS TO THE EXTENT SUCH CLAIMS ARISE OUT OF THE GROSS NEGLIGENCE OF A FIG PARTY OR OTHER INDEPENDENT CONTRACTORS WHO ARE CONTRACTUALLY RESPONSIBLE TO OWNER OR TO THE EXTENT SUCH CLAIMS DO NOT ARISE FROM OR RELATE TO THE WORK.

(c) Definitions.

(i) FIG Party. As used in this Agreement, “FIG Party” or “FIG Parties,” as the case may be, means Owner, the owner of the Site if other than Owner, all subsidiaries, divisions, partners, parent and affiliated companies of Owner, and all such parties’ representatives, partners, officers, directors, shareholders, employees, agents, successors and assigns, and any lender of Owner with a security or collateral interest in the Site.

(ii) Claim. As used in this Agreement, a “Claim” or “Claims,” as the case may be, means any and all claims (including, without limitation, claims for bodily injury, financial loss, payment, death, or damage to property), attachment, lien, claim of lien, encumbrance, demands, causes of action, lawsuits, liabilities, losses, obligations, damages, actions, fines, penalties, costs and expenses (including, but not limited to, attorneys’ fees, court costs and all other professional, expert or consultants’ fees and costs).

(iii) Independent Obligations. Contractor’s liability for indemnification under this Section 11 is in addition to any liability Contractor may have to any FIG Party for breach by Contractor of any of the provisions of this Agreement. Under no circumstances will the required insurance in Section 10 be construed to limit Contractor’s defense or indemnification obligation or other liability hereunder.

(d) Survival. Contractor’s obligation to indemnify and defend under this Section 11 will survive the expiration or earlier termination of this Agreement.

Site Work Construction Agreement 11142022 4 (e) Savings Provision. If the provisions of this Section 11 violate the statutory or common law of the applicable state or governing authority, this Section 11 will not be stricken or found to be void in its entirety. Rather, Contractor’s defense and indemnification obligations will apply to the fullest extent permitted by such applicable law.

12. WARRANTY. In addition to any other warranty expressly made by Contractor or implied by law, Contractor unconditionally warrants that the Work: (a) conforms to the specifications contained in the Scope of Work, (b) adheres to Contractor’s Standard of Care, (c) complies with all Laws, (d) was performed without defects in workmanship or materials, and (e) consists of new materials, unless otherwise specified. Such warranty is for the benefit of Owner and its successors and assigns for a period of (i) ten years from the close of escrow from Owner to the initial owner other than a FIG Party ("Closing") if the Work is structural related, and (ii) two years from Closing for all other Work. This warranty will specifically extend to the benefit of, and be enforceable by, any purchaser of any dwelling constructed on a Site, and to the extent applicable, any municipal corporation, jurisdiction, agency or homeowner’s association that will ultimately own and/or govern any portion of a Site (each, a “Subsequent Owner”). In addition to all other remedies that Owner has under Section 15(b) herein, if demand is made upon Contractor to perform under this warranty within the applicable warranty period for an item covered by the warranty as provided in this Section 12, Contractor at its sole cost and expense will expeditiously repair or replace any defective Work, whether existing because of faulty workmanship, defective equipment or materials or from any other reason resulting from Contractor's activities, and repair or replace any damage to the Work of others caused by such defective Work or repair or replacement of such defective Work. The warranty in this Section 12 is independent from all other obligations of Contractor under this Agreement including, without limitation, all indemnification provisions, and will apply whether or not required by any other provision of this Agreement. Contractor’s obligations under this Section 12 will survive the expiration or earlier termination of this Agreement.

13. ARBITRATION AND DISPUTE RESOLUTION. Contractor and Owner agree that all disputes, controversies or claims arising out of or relating to the Work, any payment disputes or obligations, any warranties (express or implied) relating thereto, or any breach of this Agreement (or questions as to its interpretation) and any other dispute arising between Contractor and Owner, (herein referred to collectively as a "Dispute"), shall be submitted to binding arbitration under the Construction Industry Arbitration Rules of the American Arbitration Association and the Federal Arbitration Act (Title 9, U.S. Code), or the applicable state arbitration statute if the Federal Arbitration Act does not apply to the transaction. After commencement of the arbitration proceeding (i.e., by filing and serving a demand for arbitration), either party may require submission of the Dispute to mediation. If the Dispute is not settled in mediation, the arbitration proceeding shall continue to conclusion. The decision of the arbitrator shall be conclusive and may be enforced in a court of competent jurisdiction. This arbitration provision shall survive closing, breach or termination of this Agreement. The submission to mediation or arbitration of any Dispute arising during construction shall not delay or otherwise affect the continuing performance of the Work. Venue for arbitration shall be in the metropolitan area where Owner’s nearest Office is located.

14. TERMINATION OF WORK OR AGREEMENT BY OWNER.

(a) Termination. Owner may terminate Contractor’s right to perform all or any portion of the Work (including all or any portion of any individual Purchase Order), or this entire Agreement (in which case Contractor’s right to perform all Work shall terminate), upon written notice at any time with or without cause (each, a “Termination”). Upon receipt of notice of Termination from Owner (“Termination Notice”), unless directed otherwise, Contractor shall immediately cease performance of the terminated portion of the Work, placement of orders for materials, equipment, machinery and supplies in connection therewith and shall, if requested, make every reasonable effort to procure cancellation of all existing orders for contracts upon terms satisfactory to Owner. Contractor will do only such Work as may be necessary to preserve and protect that portion of the Work which has been incorporated into the Site and to protect materials, supplies and equipment at or about such Site or in transit thereto, unless otherwise instructed by Owner.

(b) Compensation. Upon Termination, the obligations of the parties to continue performance as to the terminated portion of the Work (if all or any portion of the Work is being terminated), or under this Agreement (if this Agreement is being terminated), shall cease and Contractor shall be entitled to receive, as its exclusive remedy: (i) compensation for the Work performed up to the time of delivery of the Termination Notice (as the percentage of completion is reasonably determined by Owner) with the Contract Price being prorated accordingly, (ii) reimbursement for the actual cost of materials purchased by Contractor for the Work, as evidenced by Contractor’s supplier’s invoice, provided the materials are delivered to Owner, and (iii) payment for any other bona fide obligations assumed by Contractor in writing prior to Contractor’s receipt of the Termination Notice, if the obligations cannot with reasonable effort be canceled, so long as any benefits accruing from such obligations are assigned to Owner. Payment to Contractor shall be made in accordance with the terms and conditions set forth in Section 4 hereof, with final payment being made only after expiration of the period allowed by law for the filing of any claims to enforce mechanics liens arising out of the Work, without any claims having been filed.

Site Work Construction Agreement 11142022 5 Notwithstanding any other provision in this Agreement to the contrary, neither Termination of any portion of the Work nor Termination of all or any portion of this Agreement shall prejudice any claim of either party arising before such Termination, relieve either party from any liability arising prior to such Termination, affect Contractor’s warranty obligations for the portion of the Work performed prior to Termination, relieve Contractor of its duty to correct any defective Work or affect Contractor's obligations to indemnify, defend and hold Owner harmless as required by this Agreement.

15. DEFAULT AND REMEDIES.

(a) Default. For purposes of this Agreement, the term “Default” shall mean any breach or default of the terms of this Agreement by Contractor including, without limitation, if (i) Contractor fails to timely and diligently proceed with the Work; (ii) Contractor fails to acquire and/or maintain the Required Insurance; (iii) Contractor fails to make or ensure payment to subcontractors or suppliers (at all tiers) for labor, materials, services or equipment employed by Contractor in connection with performance of the Work; (iv) Contractor fails to perform the Work in accordance with Contractor’s Standard of Care, the Laws, the Scope of Work, or otherwise performs the Work in an unsatisfactory or defective manner; (v) Contractor fails to furnish the necessary skilled labor, materials, equipment or services to meet the construction needs in accordance with the Scope of Work or Purchase Order; (vi) Contractor files a petition or a petition is filed against Contractor under any chapter or section of the federal Bankruptcy Code, as amended, or under any similar law, or Contractor is adjudged bankrupt or insolvent; (vii) Contractor makes a general assignment for the benefit of creditors; or (viii) a receiver is appointed on account of Contractor’s insolvency.

(b) Remedies Upon Default. If Owner determines that a Default has occurred, then, in addition to all remedies available at law or in equity, Owner shall be entitled to, immediately, with notice to Contractor either oral or written and without allowing Contractor an opportunity to cure, exercise any or all of the following remedies, which are cumulative and the exercise of any one remedy shall not preclude, prevent or waive Owner’s right to exercise any or all other remedies:

(i) Suspend, Terminate or Retain Payments. Owner may suspend, terminate or retain any or all payments to Contractor for any Work until such time as Contractor is not in Default or such Work is fully and finally completed. However, if Contractor’s right to perform all or a part of the Work is terminated, or this entire Agreement is terminated, then Owner may suspend or terminate any or all payments as provided in subsection 15(b)(v) below.

(ii) Correct Unsatisfactory or Defective Work. With respect to unsatisfactory or defective Work, Owner may take possession of the Site and all materials thereon that were used in connection with the performance of Work, correct such unsatisfactory or defective Work and either offset or back-charge the cost incurred by Owner in performing such Work, together with a supervision and administration fee equal to 15% of such costs, against any sums due Contractor by Owner, or require that Contractor immediately pay to Owner such costs incurred by Owner in performing/providing such Work, together with a supervision and administration fee equal to 15% of such costs.

(iii) Perform Unfinished Work. With respect to Work that has not been performed by Contractor in the timeframe set forth in a Purchase Order, Owner shall have the right to take possession of the Site and all materials that were used by Contractor in connection with the performance of such Work on such Site and complete (or cause to be completed) such Work by whatever method Owner may deem expedient. If Owner performs any Work, then the unpaid portion of the Contract Price shall be reduced by the amount of all costs incurred by Owner in performing such Work, together with a supervision and administration fee equal to 15% of such costs. However, if such costs and fees exceed the unpaid portion of the Contract Price, then Contractor shall immediately pay such excess amount to Owner. Notwithstanding the foregoing, if Contractor’s right to perform all or a part of Work is terminated, or this entire Agreement is terminated, then Owner may suspend or terminate any or all payments as provided in subsection 15(b)(v) below.

(iv) Protect From Liens; Pay Lien Claimants. If a person or entity asserts or claims a right to lien a site or claims that Contractor did not pay such person or entity for materials and/or labor employed in connection with Contractor’s performance and/or provision of Work, Owner shall, to the extent permitted by law, have a right to pay such claim, including attorneys’ fees and other costs and expenses incurred, as necessary to obtain a release and discharge. However, Owner may not make such payment if Contractor has first delivered written notice to Owner of a dispute with any such person or entity, and has furnished security satisfactory to Owner insuring against claims therefrom. If Contractor fails to immediately pay to Owner the sum paid by Owner to such person or entity asserting the payment claim, Owner may, in addition to any other rights Owner may have, at law or in equity, withhold such sum from the unpaid Contract Price. If any such lien or claim remains

Site Work Construction Agreement 11142022 6 unsatisfied after Owner has paid the full Contract Price to Contractor, Contractor shall refund to Owner all monies that Owner may be compelled to pay in discharging such lien or claim, including all costs, expenses and attorneys’ fees which may be incurred.

(v) Terminate Work or Agreement. Owner may terminate all or any portion of the Work or any portion of this Agreement as provided in Section 14.

16. OTHER AGREEMENTS. If there are one or more other agreements between Owner and Contractor, or any affiliate of Contractor, concerning this or any other construction project (“Other Agreements”), any breach by Contractor or its affiliate under the terms of any of the Other Agreements, shall be considered, at the option of Owner, a breach of, and Default under, this Agreement and all Other Agreements. A breach of, and Default under, this Agreement shall be considered, at the option of Owner, a breach of all Other Agreements. If Owner declares this Agreement breached because of a breach of an Other Agreement as provided above, then Owner shall be entitled to the remedies provided in this Agreement and Owner may withhold money due or to become due to Contractor under such Other Agreements and apply the same toward payment of any damages suffered or amounts otherwise due from Contractor pursuant to this Agreement. Likewise, in the event Owner declares a breach of any Other Agreement due to a breach of this Agreement, Owner shall be entitled to withhold monies due under this Agreement and apply the same toward payment of any damages suffered or amounts otherwise due from Contractor pursuant to such Other Agreement.

17. GENERAL PROVISIONS.

(a) Authorized Persons. The only persons with authority to sign and/or amend this Agreement on behalf of Owner is Brian Schnell, Manager, or any persons designated in writing by the aforementioned. Contractor represents and warrants that any person who executes this Agreement on behalf of Contractor has the authority to bind Contractor.

(b) Independent Contractor Status. Contractor shall be an independent contractor with respect to the Work, and neither Contractor, nor anyone employed by, or working for, Contractor, shall be deemed for any purpose to be the agent, employee, servant or representative of Owner in the performance of the Work. Contractor acknowledges and agrees that Owner shall have no direction or control over the means, methods, procedures, details or manner of the Work performed by Contractor or any of its subcontractors, employees, or agents, or any of their employees, agents, vendors or suppliers. Notwithstanding anything contained herein to the contrary, any provisions in this Agreement which may appear to give Owner the right to direct Contractor as to details of doing the Work or to exercise a measure of control over the Work shall be deemed to mean that Contractor shall follow the desires of Owner in the results of the Work only.

(c) Taxes. Contractor will bear sole and exclusive responsibility for the payment of all taxes imposed by local, state or federal law applicable to: the Work, materials supplied by Contractor, payments received by Contractor and payments made by Contractor. Contractor will be solely responsible for the payment of all local, state and federal income taxes, withholding requirements, self-employment taxes, social security taxes and other taxes on the payments made to Contractor and payments made by Contractor to its employees and suppliers.

(d) Entire Agreement. This Agreement, together with any and all addenda hereto, all plans and specifications and other written documentation in Contractor’s Standard of Care, the Scopes of Work, Pricing Schedules and the Purchase Orders, constitutes the entire agreement between the parties and may only be amended or supplemented by written instrument duly executed by both parties hereto.

(e) Waiver. No consent or waiver, express or implied, by either party to this Agreement relating to any breach or default by the other in the performance of any obligation hereunder will be deemed or construed to be a consent to, or waiver of, any other breach or default by such party. Failure on the part of either party to complain of any act or failure to act of the other party or to declare the other party in default irrespective of how long such failure continues will not constitute a waiver of the rights of such party.

(f) Notice. Unless otherwise provided herein, any notice provided for in this Agreement will be in writing and delivered to the parties (i) in person, (ii) by facsimile transmission (with the original and a copy of the facsimile confirmation following in the United States mail), (iii) by overnight delivery service, or (iv) by certified mail, return receipt requested. If such notice is given in person or by facsimile transmission, notice will be deemed to have been received when delivered or transmitted. If such notice is given by overnight delivery service, notice will be deemed received the day after delivery to the overnight delivery service. If such notice is given by certified mail, notice will be deemed received 3 days after a certified letter containing such notice, properly addressed with postage prepaid, is deposited in the United States mail. Notice will go to the address given at the beginning of this Agreement for the respective party to whom notice is given or to such other address as may be designated by either party by written notice given pursuant hereto.

Site Work Construction Agreement 11142022 7 (g) Time. Time is of the essence of this Agreement and each provision herein contained.

(h) Assignment. Contractor shall not assign or subcontract this Agreement, or any portion thereof, or any money due or which may become due hereunder, without the prior written consent of Owner; provided, however, that in any event Contractor shall remain primarily obligated under this Agreement unless Owner issues Contractor a written release to the contrary. In addition to constituting a default under this Agreement, any assignment or attempted assignment made in violation of this Section 17(h) will be null and void and the assignee will acquire no rights hereunder. If Owner consents to an assignment of, or subcontract under, this Agreement, Contractor will continue to be (unless Owner issues Contractor a written release to the contrary) and the assignee or subcontractor will be, bound by the terms of this Agreement including, without limitation, the insurance provisions contained herein. If an assignment or subcontract is made in breach of this Agreement, Contractor is liable to Owner for all damages resulting therefrom. Notwithstanding anything to the contrary contained herein, Owner may assign this Agreement without the consent of Contractor.

(i) Successors and Assigns. Subject to the provisions of Section 17(h) relating to assignment, this Agreement will be binding upon and extend to the benefit of the parties and their heirs, successors and assigns.

(j) Words and Meanings. Words used herein will include the plural as well as the singular. Words used in the masculine gender include the feminine and neuter. The section headings used herein are for convenience only and will have no effect upon the construction or interpretation of any part of this document.

(k) Survival. All sections of this Agreement, (including, but not limited to, Sections 9, 10, 11, 12 and 14) which, from their sense and context are intended to survive the termination or expiration of this Agreement in order for them to have the meaning intended by the parties, shall survive the termination or expiration of this Agreement.

(l) Right to Audit. Contractor will permit Owner to inspect, during normal business hours upon 24 hours notice, those files and records that specifically relate to information pertinent to Contractor’s compliance with the requirements of this Agreement including, without limitation, Contractor’s compliance with the Laws and Contractor's Standard of Care as such relate to the Work as well as Contractor’s payment of taxes pursuant to Section 17(c) herein. Owner agrees that any such audit will be conducted in a manner that does not unnecessarily disrupt Contractor’s normal business operations or violate any confidentiality obligations that Contractor may have to other customers.

(m) Severability. If any provision of this Agreement shall be held to violate any applicable law, the invalidity of such specific provision herein shall not be held to invalidate any other provision of this Agreement and the same shall remain in full force and effect.

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[Signatures on Following Page]

Site Work Construction Agreement 11142022 8 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first written above.

OWNER: CONTRACTOR:

_______________________________ Marrs Construction Inc.

By: ____________________________________________ By: Name: _________________________________________________ Name: Tim Marrs Title ____________________________________________ Title: President

Site Work Construction Agreement 11142022 9 EXHIBIT A

INSURANCE

I. Requirements

Prior to commencement of work under this Contract, Contractor, at its sole cost, shall procure and maintain in force continuously from date of commencement of work until termination of coverage as required herein, the insurance coverage described below, and shall furnish to Owner certificates of insurance evidencing such insurance coverage.

Contractor shall maintain all of the foregoing insurance coverage in force until the Work is fully completed; except as to liability coverage for Products/Completed Operations, which is to be maintained on a year-to-year basis for not less than ten (10) years following Final Completion. A certificate evidencing continuation of such coverage shall be submitted with Contractor’s application for final payment, and thereafter submitted to Owner on an annual basis prior to the expiration of such liability coverage for Products/Completed Operations.

The requirement for carrying the insurance set forth shall not derogate in any way from any provisions for indemnification of Owner by the Contractor. If the Contractor fails to secure and maintain the required insurance, Owner shall have the right (without the obligation to do so, however) to secure the same amount for the account of the Contractor in which event the Contractor shall pay the cost thereof and shall furnish upon demand all information that may be required therewith.

II. Insurance Coverage

1. Prior to the start of Contractor’s and its subcontractor’s work, Contractor and its subcontractors shall provide and maintain for the duration of the work the following: (i) Workers Compensation Insurance, (ii) Commercial General Liability Insurance, (iii) Automobile Liability Insurance, (iv) all insurances required to comply with the state jurisdiction where this work is taking place. This insurance shall be held in amounts Owner might reasonably deem necessary to protect Owner and Contractor against loss from any acts of the Contractor, its subcontractors, their agents, and/or employees. (a) The limit of Liability shall not be less than $1,000,000 for each occurrence and in aggregate for bodily injury, and not less than $2,000,000 combined single limit. (b) The Automobile Liability shall not be less than $1,000,000 for bodily injury and property damage combined, $1,000,000 for each accident. (c) If Contractor and its subcontractors have employees, (i) Worker’s Compensation Insurance with statutory limits, (ii) Employer’s Liability Insurance with limits of no less than $1,000,000 for bodily injury or accident and $1,000,000 for bodily injury by disease for each employee. (d) Contractor and its sub-contractors’ coverage must include an endorsement indicating that subcontractor’s coverage is Primary and Non-Contributory. 2. Contractor and its subcontractors hereby acknowledges and agree that Contractor and its subcontractors are not covered by Owner’s Workers Compensation Policy, if any, and hereby waives claim to all rights of action in common law or under any statute or other law and indemnifies Owner against damages for any injury, property damage, death, or other harm sustained during the duration of this Contract. 3. Contractor agrees to furnish insurance certificates to Owner along with an Additional Insured Endorsement CG 2010 (10/10) and GC 2037 (10/01) or their equivalents. This Additional Insured Endorsement must include both work in process and completed operations as well as a per project aggregate. The certificate must provide 30 days written notice (10 days for nonpayment of premium) prior to cancellation or reduction of insurance afforded by this policy. 3.1 Contractor and its subcontractor’s shall obtain from each of its insurers a waiver of subrogation on Commercial General Liability in favor of Owner and Contractor with respect to losses arising out of or in connection with the work. 3.2 Contractor and its subcontractor’s shall obtain from each of its insurers a waiver of subrogation on Workers Compensation in in favor of Owner with respect to losses arising out of or in connection with the work. 4. In addition to Contractor and its subcontractor’s indemnifying Owner against all claims arising out of or in connection with the work, Contractor and its subcontractor’s insurers shall similarly indemnify Owner and shall work to protect Owner as if Owner were directly insured by insurers. Marrs Construction, Inc. Invoice 111256 711 W. Happy Valley Rd. Phoenix, AZ 85085 +1 [number redacted] invoice@mciphx www.mciphx.com

BILL TO SHIP TO Vesta Views 15620 N. EL MIRAGE ROAD 15620 N. EL MIRAGE ROAD SURPRISE 85378 DATE PLEASE PAY DUE DATE SURPRISE, AZ 85378 03/24/2024 $30,038.47 04/23/2024

ACTIVITY QTY RATE AMOUNT

Sales 1 0.00 Mobilizations Sales 1 0.00 Parkway / Common Rough Grade Sales 1 0.00 Cut Curb Grade Sales 1 0.00 Gutter - Walks - Drives Sales 1 0.00 Fine Grade Subgarde (Paving) Sales 1 0.00 Finegrade & Place ABC Sales 1 0.00 Asphalt Paving & Patching Sales 1 0.00 Adjustments Sales 1 0.00 Site Concrete Sales 1 0.00 Water Service Relocation - Phase 1 Sales 1 0.00 Hydrant Relocate at Entrance Sales 1 0.00 T&M Hydrant Extension / 2" Water Line Relocation 1/18/24-1/19/24 Sales 1 0.00 Remove/Replace Curb 1-24-24 Sales 1 0.00 T&M / Fire Hydrant relocation Sales 1 10,060.63 T&M / Grading to Lay Sidewalk and Valley Gutter Sales 1 15,259.15 T&M Waterline Abandonment on El Mirage Rd. ACTIVITY QTY RATE AMOUNT

Sales 1 4,718.69 T&M 1.5" Irrigation Backflow Install Vesta Views

TOTAL DUE $30,038.47 THANK YOU. Marrs Construction, Inc. Invoice 111187 711 W. Happy Valley Rd. Phoenix, AZ 85085 +1 [number redacted] invoice@mciphx www.mciphx.com

BILL TO SHIP TO Vesta Views 15620 N. EL MIRAGE ROAD 15620 N. EL MIRAGE ROAD SURPRISE 85378 DATE PLEASE PAY DUE DATE SURPRISE, AZ 85378 11/22/2023 $120,787.63 12/22/2023

ACTIVITY QTY RATE AMOUNT

Earthwork:Grading (deleted) 1 6,398.41 Mobilizations Earthwork:Grading (deleted) 1 0.00 Parkway / Common Rough Grade Earthwork:Grading (deleted) 1 8,847.14 Cut Curb Grade Earthwork:Grading (deleted) 1 23,315.08 Gutter - Walks - Drives Earthwork:Grading (deleted) 1 0.00 Fine Grade Subgarde (Paving) Earthwork:Grading (deleted) 1 0.00 Finegrade & Place ABC Earthwork:Grading (deleted) 1 0.00 Asphalt Paving & Patching Earthwork:Grading (deleted) 1 0.00 Adjustments Earthwork:Grading (deleted) 1 82,227.01 Site Concrete Earthwork:Grading (deleted) 1 0.00 Water Service Relocation - Phase 1 Earthwork:Grading (deleted) 1 -0.01 Retainage Adjustment Vesta Views

TOTAL DUE $120,787.63 THANK YOU. Marrs Construction, Inc. Invoice 111202 711 W. Happy Valley Rd. Phoenix, AZ 85085 +1 [number redacted] invoice@mciphx www.mciphx.com

BILL TO SHIP TO Vesta Views 15620 N. EL MIRAGE ROAD 15620 N. EL MIRAGE ROAD SURPRISE 85378 DATE PLEASE PAY DUE DATE SURPRISE, AZ 85378 12/22/2023 $190,300.57 01/21/2024

ACTIVITY QTY RATE AMOUNT

Earthwork:Grading (deleted) 1 5,332.02 Mobilizations Earthwork:Grading (deleted) 1 1,928.31 Parkway / Common Rough Grade Earthwork:Grading (deleted) 1 0.00 Cut Curb Grade Earthwork:Grading (deleted) 1 0.00 Gutter - Walks - Drives Earthwork:Grading (deleted) 1 14,842.02 Fine Grade Subgarde (Paving) Earthwork:Grading (deleted) 1 39,869.08 Finegrade & Place ABC Earthwork:Grading (deleted) 1 79,135.89 Asphalt Paving & Patching Earthwork:Grading (deleted) 1 8,079.75 Adjustments Earthwork:Grading (deleted) 1 41,113.49 Site Concrete Earthwork:Grading (deleted) 1 0.00 Water Service Relocation - Phase 1 Earthwork:Grading (deleted) 1 0.01 Retainage Adjustment Vesta Views

TOTAL DUE $190,300.57 THANK YOU. Marrs Construction, Inc. Invoice 111220 711 W. Happy Valley Rd. Phoenix, AZ 85085 +1 [number redacted] invoice@mciphx www.mciphx.com

BILL TO SHIP TO Vesta Views 15620 N. EL MIRAGE ROAD 15620 N. EL MIRAGE ROAD SURPRISE 85378 DATE PLEASE PAY DUE DATE SURPRISE, AZ 85378 01/25/2024 $89,950.02 02/24/2024

ACTIVITY QTY RATE AMOUNT

Earthwork:Grading (deleted) 1 5,332.01 Mobilizations Earthwork:Grading (deleted) 1 0.00 Parkway / Common Rough Grade Earthwork:Grading (deleted) 1 0.00 Cut Curb Grade Earthwork:Grading (deleted) 1 0.00 Gutter - Walks - Drives Earthwork:Grading (deleted) 1 0.00 Fine Grade Subgarde (Paving) Earthwork:Grading (deleted) 1 0.00 Finegrade & Place ABC Earthwork:Grading (deleted) 1 0.00 Asphalt Paving & Patching Earthwork:Grading (deleted) 1 0.00 Adjustments Earthwork:Grading (deleted) 1 82,227.00 Site Concrete Earthwork:Grading (deleted) 1 0.00 Water Service Relocation - Phase 1 Earthwork:Grading (deleted) 1 2,391.01 Hydrant Relocate at Entrance Vesta Views

TOTAL DUE $89,950.02 THANK YOU. Marrs Construction, Inc. Invoice 111241 711 W. Happy Valley Rd. Phoenix, AZ 85085 +1 [number redacted] invoice@mciphx www.mciphx.com

BILL TO SHIP TO Vesta Views 15620 N. EL MIRAGE ROAD 15620 N. EL MIRAGE ROAD SURPRISE 85378 DATE PLEASE PAY DUE DATE SURPRISE, AZ 85378 02/23/2024 $34,533.16 03/24/2024

ACTIVITY QTY RATE AMOUNT

Sales 1 0.00 Mobilizations Sales 1 7,713.23 Parkway / Common Rough Grade Sales 1 0.00 Cut Curb Grade Sales 1 0.00 Gutter - Walks - Drives Sales 1 0.00 Fine Grade Subgarde (Paving) Sales 1 0.00 Finegrade & Place ABC Sales 1 0.00 Asphalt Paving & Patching Sales 1 0.00 Adjustments Sales 1 0.00 Site Concrete Sales 1 0.00 Water Service Relocation - Phase 1 Sales 1 0.00 Hydrant Relocate at Entrance Sales 1 5,583.76 T&M Hydrant Extension / 2" Water Line Relocation 1/18/24-1/19/24 Sales 1 12,523.66 Remove/Replace Curb 1-24-24 Sales 1 8,712.50 T&M / Fire Hydrant relocation Sales 1 0.01 Retainage Adjustment Vesta Views

TOTAL DUE $34,533.16 THANK YOU. REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Marrs Construction Inc, Case No. 2024-04959 COMPLAINANT,

v.

Vollkommen Arizona LLC, FINAL ADMINISTRATIVE License No. ROC 324044, DECISION AND ORDER (DEFAULT) RESPONDENT.

A Citation was issued in this matter based on a complaint filed with the Registrar of Contractors. Based upon the entire record in this matter, the following Findings of Fact, Conclusions of Law, and Order are made: FINDINGS OF FACT 1. The Citation and Complaint were served on Respondent by certified mail, with postage prepaid, directed to the latest address of record for Respondent as shown in the license files of the Registrar, in accordance with A.R.S. §§ 32-1155(A) and (B). 2. Respondent did not file a timely written Answer to the Citation as required by A.R.S. § 32-1155(A). 3. More than ten days have elapsed since service of the Citation, and under A.R.S. § 32-1155(C) Respondent’s failure to Answer within the time prescribed is deemed an admission of the acts charged in the Complaint. 4. Respondent’s license is active as of the date of this Order. CONCLUSIONS OF LAW 1. Respondent violated the provision of A.R.S. § 32-1154(A)(10) as charged in the Citation and Complaint. of 2 1700 W. Washington Street, Suite 105 · Phoenix, AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/19 2. The Registrar has authority to suspend or revoke Respondent’s license under A.R.S. §§ 32-1154 and 32-1155. ORDER Based on the foregoing, IT IS ORDERED that Respondent’s license is suspended beginning on July 11, 2024, until the Registrar receives written proof that Respondent has paid Complainant. This Order is not subject to judicial review except for jurisdictional issues under to A.R.S. §§ 41-1092.08(H) and 12-902(B). Dated July 3, 2024. By: /s/ Katelyn Rolling Katelyn Rolling Legal Assistant II Legal Department Arizona Registrar of Contractors

COPY mailed by USPS First Class Mail July 3, 2024 to:

Respondent Vollkommen Arizona LLC 3278 W 1150 S Provo, UT 84601

Complainant Marrs Construction Inc 711 W Happy Valley Rd Phoenix, AZ 85085

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. 2024-04959

of 2 1700 W. Washington Street, Suite 105 · Phoenix, AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/19 [n""n?@;ÿDC@DÿoF hA'A%ÿ1OÿoKJL16'ÿF'J5ÿTÿpXMÿM1$q5'J6Aÿ?>?@T>@UVU Received 7/10/2024 Legal Department

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Date: July 10th, 2024

To: Registrar of Contractors Of the State of Arizona 1700 W. Washington St., Ste. 105 Phoenix, Arizona 85007-2812

Via Email ([email redacted])

RE: Request for Reconsideration of Case #2024-04959

To whom it may concern,

My name is Jacob Erekson, and I write in my capacity as CEO of Vollkommen Arizona, LLC (“Vollkommen”) to the Registrar of Contractors of the State of Arizona (“ROC”). I was informed on July 8, 2024, during an informal settlement conference for case #2024-04962, that another complaint was filed against Vollkommen, case #2024-04959. I wish to inform the ROC that Vollkommen was never served this second complaint and had no knowledge of it prior to the aforementioned date. It is suspected that an issue involving the delivery of the complaint occurred, and in response to this, Vollkommen has proactively updated its mailing information in the ROC licensing system. Furthermore, Vollkommen has demonstrated good faith by responding to known case #2024-04962, and intends to do the same for case #2024-04959. Therefore, Vollkommen asks that the ROC reconsider allowing it to answer the complaint in case #2024-04959, and consider consolidating both cases #2024-04962 and #2024-04959, as they are both very similar in nature, and are filed by the same Complainant. The following is a summary of the dispute and actions Vollkommen plans to take to resolve the matter.

The Project at the center of case #2024-04959, known as Villas at Vesta Views (“Project”), is a 72 Unit apartment complex owned by Vesta H, LLC (“Owner”). The Owner of the Apartment Complex contracted Vollkommen to construct the units for $15,392,540 USD. Vollkommen contracted Marrs Construction Inc., to assist with the earthwork, grading, and road/walkways of the Project. As of today, the Owner has not paid Vollkommen for all services rendered. It is further believed that the Owner does not intend to pay Vollkommen for services rendered, and Vollkommen is planning to file a Lien on the property in order to collect what they are owed.

A.R.S. § 32-1154(A)(10) states, “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.” Received 7/10/2024 Legal Department

Vollkommen is not in direct violation of A.R.S. § 32-1154(A) (10) because the Owner of the Project failed to pay Vollkommen for services rendered, therefore, depriving Vollkommen of necessary funds to pay debts in relation to the Project. Vollkommen intends to maintain compliance with Arizona law in regards to its contractor license, and intends to honor its commitments to Marrs Construction Inc., and pay off its debt as soon as funding is received. Evidence in the form of affidavits and supporting documents will be provided to the ROC for the hearing.

Dated July 10th, 2024

/s/ Jacob Erekson Jacob Erekson CEO Vollkommen Arizona, LLC License No. ROC 324044 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Marrs Construction Inc., Case No. 2024-04959 COMPLAINANT, ORDER SETTING ASIDE FINAL v. ADMINISTRAIVE DECISION AND Vollkommen Arizona LLC, ORDER (DEFAULT) License No. ROC 324044, AND RESPONDENT. ORDER SETTING HEARING

After a review of the file and record, Respondent’s request to set aside the Registrar’s Final Administrative Decision and Order (Default) is granted for the following reasons: BACKGROUND On April 30, 2024, the Registrar received a complaint against Respondent. On June 10, 2024, the Registrar issued a citation to Respondent for alleged violation(s) of A.R.S. § 32- 1154(A)(10). The Registrar mailed the Citation via certified mail to Respondent’s address of record at: Vollkommen Arizona LLC 3278 W. 1150 S, Provo, UT 84601. The Registrar did not receive a timely answer from Respondent. On July 3, 2024, the Registrar suspended Respondent’s license until the Registrar received written proof that Respondent has paid Complainant by Final Administrative Decision and Order (Default). On July 10, 2024, the Registrar received Respondent’s response to the Final Administrative Decision and Order (Default) where it stated that it did not receive the complaint, and updated its mailing information with the Registrar to 1875 S. State Street STE 2400, Orem, UT 84097.

of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877) 692-9762 Lg107 4/21 ANALYSIS The Registrar may accept a late answer if it determines, in its sole discretion, that the failure to timely answer is attributable to excusable neglect. A.R.S. § 32-1155(C). Here, the Citation was mailed to Respondent’s correct address of record on June 10, 2024, via certified and USPS first class mail. The due date for Respondent to file an answer to the Citation was June 25, 2024. Because Respondent failed to timely file an answer as required under A.R.S. § 32-1155(C), the Registrar issued a default order in this case. The Registrar therefore considers Respondent’s submittal as a late answer and a request to set aside the default order. The Registrar favors resolving complaints on their merits rather than procedural technicalities. The Registrar reviewed the record to determine whether there is sufficient evidence to set aside the Default in this case. Although the Registrar mailed the Citation to Respondent’s correct address on the record, that was not Respondent’s current address. Respondent updated its address with the Registrar once it discovered that this complaint and citation went to the outdated address. Here, good cause exists to set this matter for a hearing before the Office of Administrative Hearings. Once Respondent was aware of the Registrar’s issuance of a default he promptly sought relief. Respondent further articulated reasons for failing to file a timely answer due to excusable neglect. Therefore, the Registrar determines that good cause exists to set aside the default. ORDER Based on the foregoing, Respondent’s request to set aside the Final Administrative Decision and Order (Default) is granted. IT IS ORDERED that the discipline imposed on July 3, 2024, is quashed. IT IS FURTHER ORDERED that a hearing be scheduled in the normal course of

of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877) 692-9762 Lg107 4/21 docketing. A Notice of Hearing will be issued in due course. Dated August 15, 2024. By: /s/ Margaret Lindsey Margaret Lindsey Assistant General Counsel Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail on August 15, 2024 to: Respondent(s) Vollkommen Arizona LLC 1875 S State Street, Ste. 2400 Orem, UT 84097 Complainant(s) Marrs Construction Inc. 711 W. Happy Valley Rd. Phoenix, AZ 85085 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. 2024-04959/

of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877) 692-9762 Lg107 4/21 [n""n?@;ÿDC@DÿoF hA'A%ÿ1OÿoKJL16'ÿF'J5ÿTÿpXMÿM1$q5'J6Aÿ?>?@T>@UVU Received 7/10/2024 Legal Department

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Date: July 10th, 2024

To: Registrar of Contractors Of the State of Arizona 1700 W. Washington St., Ste. 105 Phoenix, Arizona 85007-2812

Via Email ([email redacted])

RE: Request for Reconsideration of Case #2024-04959

To whom it may concern,

My name is Jacob Erekson, and I write in my capacity as CEO of Vollkommen Arizona, LLC (“Vollkommen”) to the Registrar of Contractors of the State of Arizona (“ROC”). I was informed on July 8, 2024, during an informal settlement conference for case #2024-04962, that another complaint was filed against Vollkommen, case #2024-04959. I wish to inform the ROC that Vollkommen was never served this second complaint and had no knowledge of it prior to the aforementioned date. It is suspected that an issue involving the delivery of the complaint occurred, and in response to this, Vollkommen has proactively updated its mailing information in the ROC licensing system. Furthermore, Vollkommen has demonstrated good faith by responding to known case #2024-04962, and intends to do the same for case #2024-04959. Therefore, Vollkommen asks that the ROC reconsider allowing it to answer the complaint in case #2024-04959, and consider consolidating both cases #2024-04962 and #2024-04959, as they are both very similar in nature, and are filed by the same Complainant. The following is a summary of the dispute and actions Vollkommen plans to take to resolve the matter.

The Project at the center of case #2024-04959, known as Villas at Vesta Views (“Project”), is a 72 Unit apartment complex owned by Vesta H, LLC (“Owner”). The Owner of the Apartment Complex contracted Vollkommen to construct the units for $15,392,540 USD. Vollkommen contracted Marrs Construction Inc., to assist with the earthwork, grading, and road/walkways of the Project. As of today, the Owner has not paid Vollkommen for all services rendered. It is further believed that the Owner does not intend to pay Vollkommen for services rendered, and Vollkommen is planning to file a Lien on the property in order to collect what they are owed.

A.R.S. § 32-1154(A)(10) states, “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.” Received 7/10/2024 Legal Department

Vollkommen is not in direct violation of A.R.S. § 32-1154(A) (10) because the Owner of the Project failed to pay Vollkommen for services rendered, therefore, depriving Vollkommen of necessary funds to pay debts in relation to the Project. Vollkommen intends to maintain compliance with Arizona law in regards to its contractor license, and intends to honor its commitments to Marrs Construction Inc., and pay off its debt as soon as funding is received. Evidence in the form of affidavits and supporting documents will be provided to the ROC for the hearing.

Dated July 10th, 2024

/s/ Jacob Erekson Jacob Erekson CEO Vollkommen Arizona, LLC License No. ROC 324044 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