2024A-05665-CHC-ROC Notice of Hearing & Packet MAILED

2024A-05665-CHC-ROC · Registrar of Contractors · 2024-10-16

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Jaime S. Mayol , Case No. 2024-05665

COMPLAINANT, Docket No. 2024A-05665-CHC-ROC

v. NOTICE OF HEARING ON CONTESTED CASE Southern Arizona Structures LLC License No. ROC 289023 & 309129

RESPONDENT.

This Notice of Hearing is issued under A.R.S. § 41-1092.05(D). HEARING INFORMATION The hearing is set for:

December 3, 2024 9:00 AM Sondra Vanella Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person.

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

You must attend this hearing. This is an adversarial hearing before an administrative

law judge, and is conducted in a similar manner as judicial proceedings. Thus, you must be

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

STATEMENT OF LEGAL AUTHORITY AND JURISDICTION

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

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

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

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

PARTICULAR ARIZONA STATUTES AND RULES INVOLVED

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

complaint and citation, which were served on the Respondent on September 19, 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)(1) Charge: 2 A.R.S. § 32-1154(A)(2)(a)

Charge: 3 A.R.S. § 32-1154(A)(2)(b)

Charge: 4 A.R.S. § 32-1154(A)(3) - R4-9-108(a) Charge: 5 A.R.S. § 32-1154(A)(9)(a) Charge: 6 A.R.S. § 32-1154(A)(22)

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

argument to the administrative law judge.

The Registrar’s assigned investigator will appear as a witness at the hearing.

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

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

HEARING PROCEDURES AND RULES

The administrative hearing will be conducted in accordance with A.R.S. §§ 41-1092 to -1092.12, and A.A.C. R2-19-101 to -122. The parties should review the statutes, rules, and processes governing the administrative hearing. Copies of the statutes, rules, and articles regarding the administrative hearing process can be found at https://www.azoah.com/.

REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE

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

video conference or telephone unless requested by a party to appear in-person. Requests for

the Registrar’s investigators, employees, or attorneys to appear in-person must be filed with the Registrar and the Office of Administrative Hearings no later than seven (7) calendar days prior to the hearing date.

HEARING PACKET

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

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

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

additional evidence, they must do so during the hearing after completing a disclosure statement. See “Disclosure Statement” section below.

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

The party seeking a subpoena must serve notice on all the parties to the hearing, and on the

Registrar. A.R.S. § 41-1092.04.

DISCLOSURE STATEMENT At least seven calendar days before the hearing, each party must prepare and serve a disclosure statement on all other parties, and file it with the Office of Administrative Hearings. A.A.C. R4-9-118; A.A.C. R2-19-108. The disclosure statement must include any exhibit the

party will use at the hearing. A party’s failure to timely disclose any witness or exhibit,

without good cause, may result in the administrative law judge excluding those witnesses or

exhibits from being used at the hearing. A.A.C. R4-9-118(C). A sample disclosure form is

available on the Registrar’s website at https://roc.az.gov/forms/RC-L-800A%20-

%20Prehearing%20Disclosure%20Statement%2020191007v4.pdf

CHANGING THE HEARING DATE The date of the hearing may only be advanced or delayed on the agreement of the parties or on a showing of good cause. A.R.S. § 41-1092.05(C). The date of the hearing may

be changed by filing a written agreement of the parties to change the date of the hearing. The written agreement must be filed with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmitted to the Registrar and all other parties. The assigned Administrative Law Judge may be found on the Office of Administrative Hearings’ web portal at www.azoah.com If a party would like to move the date of the hearing without agreement of all parties,

the party must file a written motion with the Office of Administrative Hearings, directed to the

assigned Administrative Law Judge, and transmit a copy to the Registrar and all other parties.

The motion must state in detail good cause for why the date of the hearing should be advanced

or delayed, and the position of all other parties regarding the advancement or delay. A party may also file a motion asserting a right to an expedited hearing upon a showing of extraordinary circumstances or the possibility of irreparable harm. A.R.S. § 41-1092.05(E).

RESOLUTION SHORT OF ADJUDICATION

In any case which is resolved or settled by the parties, or which is withdrawn by the

Complainant without objection from Respondent after the Notice of Hearing is issued, the

parties must notify the Office of Administrative Hearings of the resolution or settlement. Any

such cases will be listed on the Registrar’s website and its records under the category: “Closed Complaints – Resolved/Settled/Withdrawn.” Dated October 16, 2024. By: /s/ Erika Hoskin Legal Assistant II Legal Department Arizona Registrar of Contractors

Copy mailed via USPS First Class mail October 16, 2024 to: Respondent(s) Southern Arizona Structures LLC P.O. Box 2491 Carefree, AZ 85377 Complainant(s) Jaime S. Mayol 13637 E Dove Valley Road Scottsdale, AZ 85262

Complainant's Attorney Zachary Rosenberg Esq. 2394 E Camelback Road, Suite 600 Phoenix, AZ 85016 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 Complainant’s Attorney at email address of record with Registrar

Case No. 2024-05665 /

Hearing Packet FAQ What is the The Hearing Packet is a packet of certain documents collected or Hearing Packet? issued by the Registrar over the course of its investigation. Who gets the The Hearing Packet is assembled and distributed to all parties and Hearing Packet? to the Office of Administrative Hearings (“OAH”) prior to an administrative hearing. What types of The Registrar prepares a Hearing Packet for Complainant-Handled cases does the Cases and No-Pay Cases. Note: If the Docket Number on the Registrar prepare a Notice of Hearing contains a “CHC” or “NPC”, your case is a Hearing Packet for? Complainant-Handled Case or a No-Pay Case. What is in the The Hearing Packet contains essential case-specific documents and Hearing Packet? at a minimum will include the following documents: ● Original complaint; ● 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 If there is any evidence you submitted to the Registrar that are not documents missing included in the Hearing Packet it is your responsibility to introduce from the Hearing that evidence at the administrative hearing. Note: The Packet? 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

How do I disclose You must properly disclose any and all documents and witnesses evidence I intend to you intend to use at your hearing according to the Registrar’s use at a Hearing? 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 If you previously submitted documents to the Registrar and need a documents I copy of these documents, please contact the Registrar’s Legal previously submitted Department or submit a public records request at to the Registrar? https://roc.force.com/AZRoc/s/roc-public-request.

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

Complainant: Jaime S. Mayol 13637 E Dove Valley Road Scottsdale, AZ 85262

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 Respondent: Southern Arizona Structures LLC P.O. Box 2491 Carefree, AZ 85377

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 May 17, 2024

Re: Complaint No. 2024-05665

Dear Complainant and Respondent:

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

A jobsite inspection is scheduled for June 13, 2024 at 11:30 AM. The Complainant is required to be present. The Respondent’s attendance is requested and encouraged. The Registrar encourages both parties to make a good faith effort to resolve this complaint prior to the jobsite inspection.

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

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

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 If the parties resolve the complaint prior to the inspection, please notify the assigned investigator in writing and by phone as soon as possible.

Sincerely,

David Fagerburg, Investigator #210 (602) 771-6735 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007-2812

Cc: File Respondent Complainant Complainant Attorney

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 A Guide to Jobsite Inspections

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

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

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

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

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

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

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 What to expect after a Jobsite Inspection After doing a Jobsite Inspection, the Registrar’s Investigator will leave the jobsite and review the evidence provided during the inspection. Generally, the investigator does not make any determination at the time of the jobsite inspection regarding whether the allegations listed in the complaint are supported. ● If the allegations are confirmed, the Registrar’s Investigator may issue a Written Directive telling the contractor to correct the poor or incomplete work. ● If the allegations are not confirmed, the Registrar’s Investigator will close the complaint.

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

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 A Guide to Written Directives Purpose of the Jobsite Inspection When the Registrar receives a complaint against a contractor’s license, the Registrar generally schedules a Jobsite Inspection. The Jobsite Inspection serves two purposes: 1. To give the contractor an opportunity to inspect the complaint items; and 2. To give the Registrar an opportunity to determine if the contractor’s work violates Arizona law.

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

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

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

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

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 Manner and method of performance: The Registrar does not provide specific instructions for how to correct poor work. A licensed contractor is expected to have the skill and professionalism to complete the work. Moreover, the complainant may not dictate the manner of repair. If the contractor fails to appropriately correct the work according to the contract, the Registrar will issue a citation.

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

Work performed after the directive ends: After the Directive period ends, a property owner may choose to allow the contractor to continue its work. The Registrar encourages parties to work cooperatively, but cannot require a homeowner to continue to allow a contractor access to the property after the Directive period ends in order for the administrative process to continue. Denying access after the Directive ends is not grounds to close or dismiss a complaint.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 Complainant Attorney: Zachary Rosenberg Esq. 2394 E Camelback Road, Suite 600 Phoenix, AZ 85016

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 Complainant: Jaime S. Mayol 13637 E Dove Valley Road Scottsdale, AZ 85262

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 12/23 Respondent: Southern Arizona Structures LLC P.O. Box 2491 Carefree, AZ 85377

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 12/23 May 20, 2024

JOBSITE INSPECTION RESCHEDULE Re: Complaint No. 2024-05665

Dear Complainant and Respondent:

Due to a conflict in scheduling of one of the parties, the jobsite inspection scheduled for June 13, 2024 at 11:30 AM has been rescheduled June 27, 2024 at 11:30 AM.

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

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

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

Sincerely,

David Fagerburg, Investigator #210 (602) 771-6735 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007-2812

CC: Respondent Complainant Complainant Attorney

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 12/23 Complainant Attorney: Zachary Rosenberg Esq. 2394 E Camelback Road, Suite 600 Phoenix, AZ 85016

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 12/23 David Fagerburg #210 2024-05665 JSI Photos

June 27, 2024 - 11:30 AM

13637 E Dove Valley Rd Scottsdale, AZ 85262

P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9 P 10 P 11 P 12 P 13 P 14 P 15 P 16 P 17 P 18 P 19 P 20 P 21 P 22 P 23 P 24 P 25 P 26 P 27 P 28 P 29 P 30 P 31 P 32 P 33 P 34 P 35 P 36 P 37 P 38 P 39 P 40 P 41 P 42 P 43 P 44 P 45 P 46 P 47 P 48 P 49 P 50 P 51 P 52 P 53 P 54 P 55 P 56 P 57 P 58 P 59 P 60 P 61 P 62 P 63 P 64 P 65 P 66 P 67 P 68 P 69 P 70 P 71 David Fagerburg #210 2024-05665 Additional JSI Photos

June 27, 2024 - 11:30 AM

13637 E Dove Valley Rd Scottsdale, AZ 85262

P 72 P 73 P 74 P 75 Katie Hobbs, Governor Martín Quezada, Director

Jobsite Inspection Notes

Case No.: 2024-05665 Investigator: David Fagerburg #210 Inspection Date: June 27, 2024 Inspection Time: 11:30 AM

Complainant: Jamie Mayol, Respondent: Southern Arizona Homeowner, Zachary Rosenberg, Structures LLC, Ernest Smith, Owner Attorney, Tom Stone, Stone & QP, Michele Guy PE Southern Engineering, Erik Anderson PE Arizona Structures LLC & Jonathan Anderson Engineering, Jeff Guy, Assistant, David Alcaraz, Lucid Landtiser, RLB Construction Plumbing, Izzy Smith & Brandon Consultant, Brian Hill WRECORP Lewis, Cave Creek Air, Mark Paulick Roof Consultant & Nick Dana, Abstract Electric, Evan Not Present: Getchell, Witness Not Present:

Jobsite General Notes: Both parties were present at this jobsite investigation JSI photos taken with my Pixel 6 Pro Cell Phone JSI audio recorded with my Olympus Digital Voice Recorder model DM-720. Photos #1 and #2 are of the complainant’s residence and address.

Investigator Notes: 1: At this jobsite investigation the respondent stated that the complainant is the owner builder of the project and the respondent was hired to assemble a team of subcontractors and manage the project. Based upon ARS § 32-1101(A)(3)(b) “Contractor” Includes subcontractors, specialty contractors, floor covering contractors, hardscape contractors and consultants who represent that they are able to supervise or manage a construction project for the property owner’s benefit, including hiring and firing specialty contractors, scheduling work on the project and selecting and purchasing construction material.

2: During this jobsite investigation the complainant stated that the respondent was hired to and is responsible for the mechanical design, architectural and structural plans and the respondent hired AIE Design to procure all the plans for the project.

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 RCC100 11/18

Investigator Notes Continued: 3: At this jobsite investigation the complainant’s attorney explained that a final lien release was provided by the respondent in order to get a final inspection and C of O and a final inspection was passed by Maricopa County Planning and Development and the main electrical panel was passed by SRP. See P (3) and P (4).

4: On July 29, 2024 the complainant’s attorney provided additional information related to the electrical equipment, fixtures, components and completed delivery for a significant portion of the Cosine luminaire package.

Complaint Narrative: 1: As Set forth in Sec. I of Exhibit 1, hereto, Contractor violated workmanship standards, 2: As set forth in Sec. II of Exhibit 1 hereto, Contractor used unlicensed subcontractors, 3: As set forth in Sec. III of Exhibit 1 hereto, Contractor abandoned the project. In all, there are 73 complaint items in Exhibit 1, but in (brief) summary: The HV/AC was improperly sized and installed and does not function correctly; There are substantial portions of the electrical work that are incomplete or contrary to plans; There are substantial portions of the plumbing that do not comply with applicable standards; The propane tank was improperly installed in violation of codes; The roof was improperly installed in violation of applicable codes; and The doors were made of the wrong material, improperly finished, and improperly installed.

Exhibit 1: SPECIFIC ALLEGATIONS In support of the Licensed Complaint Form (“the Complaint”), the following is a recitation of some of the most significant issues with the construction of a new home, which includes a primary residence and a detached casita (“the Project”) that Jaime S. Mayol (“Mayol”) hired Southern Arizona Structures, LLC, ROC License Nos. 289023 & 309129 (“SAS”) to construct at 13637 E. Dove Valley Road, Scottsdale, AZ 85262 (“the Property”). A copy of the contract for the Project is attached as Exhibit 2 to the Complaint.

(2) SAS hired at least two unlicensed trades to perform critical work on the Project, which caused at least some of the defective workmanship issues complained of in this Complaint; and (3) SAS abandoned the Project without completing it or fixing problems that Mayol brought to its attention.

For ease of reference and organization, problems are separated into sections and categories, but line items of specific defects are consecutively numbered.

SAS violated A.R.S. § 32-1158 and AAC § R4-9-108 by failing to complete its work in a workmanlike manner, in compliance with applicable building codes, in compliance with industry standards, and in conformity with the Project plans. 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 RCC100 11/18

Though the Project suffers numerous defects, this Complaint is limited to the most significant problems known to date that preclude the house from being used as intended.

a. Electrical problems. As more completely detailed in the Professional Engineering Report of Anderson Engineering, a copy of which is attached as Exhibit 3 to the Complaint, the Project failed to comply with applicable codes and deviated from the construction plans in the following respects:

Compliant Item 1: The electrical panel for the Casita/guest house is supplied by a 100-amp circuit breaker on a 125-Amp electrical subpanel instead of the required 200- amp subpanel, which fails to provide capacity for exterior and landscape lighting that was required by the plans and specifications. Investigator’s Observation: At this jobsite investigation the complainant’s engineer Erik Anderson provided hard copy plans showing the electrical panel for the Casita/guest house is to be supplied by a 200 amp subpanel. I am able to verify the electrical panel for the Casita/guest house is supplied by a 100-amp circuit breaker on a 125-Amp electrical subpanel. The respondent shall correct the electrical panel for the Casita/guest house that is supplied by a 100-amp circuit breaker on a 125-Amp electrical subpanel instead of the required 200- amp subpanel by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (A) Departure from or disregard of plans or specifications, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 2: The luminaires are not properly coordinated with the devices that control their operation. The luminaires are not properly paired with the switches / controllers. The coordination issues are found in the living room, the kitchen, hallways, and the game room. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the luminaires are not properly coordinated with the devices that control their operation. The luminaires are not properly paired with the switches / controllers and coordination issues are found in the living room, kitchen, hallways, and the game room. The respondent shall correct the luminaires that are not properly coordinated with the devices that control their operation by appropriate means. Governing Rule: ARS §32-1154 (A)(2)(A) Departure from or disregard of plans or specifications, ARS §32-1154 (A)(3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 3: There were no outlets provided and no branch circuitry ran for certain luminaires that are shown in the drawing. Investigator’s Observation: At this jobsite investigation the complainant demonstrated that there are no outlets provided and no branch circuitry ran for certain luminaires. The respondent shall determine the outlets and branch circuitry that are missing and correct by appropriate means. Governing Rule: ARS §32-1154 (A)(2)(A) Departure from or disregard of plans or specifications, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 4: The luminaire above the vanity in the master bedroom is non- functional. It appears to require a driver for operation, which is not present. Investigator’s Observation: At this jobsite investigation the complainant demonstrated that the luminaire above the vanity in the master bedroom is non- functional and a required driver is not on the jobsite. The complainant stated that the drivers for the vanity and other luminaires were delivered to the property in November 2022 and the respondent accepted all deliveries into their possession for storage because the materials arrived too soon. After this jobsite investigation the complainant attorney provided a list of all the lighting fixtures and drivers provided by Cosine the company that put together the lighting package as being received. The respondent shall determine cause and correct by appropriate means. Governing Rule: ARS §32-1154 (A)(3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 5: The outdoor kick lights are non-functional. They do not have the required driver to make them operational. Investigator’s Observation: At this jobsite investigation the complainant stated that the drivers for the kick lights were delivered to the property in November 2022 and the respondent accepted all deliveries into their possession for storage because the materials arrived too soon. After this jobsite investigation the complainant attorney provided a list of all the lighting fixtures and drivers provided by Cosine the company that put together the lighting package as being received. The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A)(3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 6: The LED strip light for the master bathroom shower is not installed. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the LED strip light for the master bathroom shower is not installed. See P (9). The complainant stated that the driver for the LED strip light were delivered to the property in November 2022 and the respondent accepted all deliveries into their possession for storage because the materials arrived too soon. The respondent shall complete the LED strip light installation by appropriate means. Governing Rule: ARS §32-1154 (A)(3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 7: The special purpose luminaire for the stream bath is not installed. Investigator’s Observation: At this jobsite investigation the complainant showed me some of the components for the steam bath luminaire and stated the components were never installed. I am able to verify the special purpose luminaire for the stream bath is not installed. The respondent shall complete the special purpose luminaire for the steam bath installation by appropriate means. Governing Rule: ARS §32-1154 (A (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 8: There is no luminaire above the toilet in the master bathroom. Investigator’s Observation: At this jobsite investigation I observed and am able to verify there is no luminaire above the toilet in the master bathroom. See P (11). The respondent shall complete the luminaire installation above the toilet in the master bathroom by appropriate means. Governing Rule: ARS §32-1154 (A)(3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 9: The half bathroom, adjacent to the game room, is missing a lighting strip and has no circuit to supply power. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the half bathroom, adjacent to the game room, is missing a lighting strip and has no circuit to supply power. The complainant stated that the driver for the LED strip light were delivered to the property in November 2022 and the respondent accepted all deliveries into their possession for storage because the materials arrived too soon. The respondent shall complete the lighting strip and circuit installation at the half bathroom adjacent to the game room by appropriate means. Governing Rule: ARS §32-1154 (A)(2)(A) Departure from or disregard of plans or specifications, ARS §32-1154 (A)(3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 10: There are 3 ceiling fixtures, outlets, and branch circuitry missing in the living room. Investigator’s Observation: At this jobsite investigation the complainant showed me where there are 3 ceiling fixtures, outlets, and branch circuitry missing in the living room. See P (6) thru P (8). The respondent shall complete the 3 ceiling fixtures, outlets, and branch circuitry missing in the living room by appropriate means. Governing Rule: ARS §32-1154 (A)(2)(A) Departure from or disregard of plans or specifications, ARS §32-1154 (A)(3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 11: Outlets, branch circuitry, and strip lights are missing in the family room. Investigator’s Observation: At this jobsite investigation I observed and am able to verify there are outlets, branch circuitry, and strip lights missing in the family room. See P (5). The respondent shall complete the outlets, branch circuitry, and strip lights that are missing in the family room by appropriate means. Governing Rule: ARS §32-1154 (A)(2)(A) Departure from or disregard of plans or specifications, ARS §32-1154 (A)(3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 12: The kitchen is missing 2 of the 3 ceiling lights, outlets, and branch circuitry. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the kitchen is missing 2 of the 3 ceiling lights, outlets, and branch circuitry. See P (5) and P (7). The respondent shall complete the ceiling lights, outlets and branch circuitry in the kitchen by appropriate means. Governing Rule: ARS §32-1154 (A)(2)(A) Departure from or disregard of plans or specifications, ARS §32-1154 (A)(3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 13: The lighting above the refrigerator in the kitchen is missing, along with the outlet and branch circuitry. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the lighting above the refrigerator in the kitchen is missing, along with the outlet and branch circuitry. See P (5) and P (7). The respondent shall complete the lighting above the refrigerator in the kitchen that is missing, along with the outlet and branch circuitry by appropriate means. Governing Rule: ARS §32-1154 (A)(2)(A) Departure from or disregard of plans or specifications, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 14: None of the (12) ceiling fans throughout the main residence have been delivered or installed. Investigator’s Observation: At this jobsite investigation I observed and am able to verify there are no ceiling fans installed throughout the main residence and no evidence of the fans being delivered. The respondent shall complete the 12 ceiling fans that are not installed by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 15: The exterior outside lighting off the master bedroom was not run on separate circuits for independent control. Investigator’s Observation: At this jobsite investigation the complainant showed me sets of exterior outside lighting off the master bedroom that are not independently controlled. See P (13) and P (14). Upon reviewing page E1 Lighting Plan I am able to verify the exterior outside lighting off the master bedroom was to be on separate circuits for independent control. The respondent shall correct the exterior outside lighting off the master bedroom that was not run on separate circuits for independent control by appropriate means. Governing Rule: ARS §32-1154 (A)(2)(A) Departure from or disregard of plans or specifications, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 16: There is no indication on what circuit feeds power to the fireplace. Investigator’s Observation: At this jobsite investigation the complainant stated that when the fireplace was serviced for a minor problem the service company will refuse to provide service without knowing where the breaker is for the fireplace. I am able to verify the main electrical service panel does not have a breaker labeled for the fireplace. The respondent shall correct the labeling for the fireplace breaker by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 17: The south and west exterior luminaires are on the same circuit and cannot be independently controlled. Investigator’s Observation: At this jobsite investigation the complainant demonstrated that the south and west exterior luminaires are on the same circuit and cannot be independently controlled and the respondent was sent an email with the lighting circuitry plans. The respondent stated he never received the email with the plans. Upon reviewing page E1 Lighting Plan I am able to verify the south and west exterior luminaires are to be independently controlled. The respondent shall correct the south and west exterior luminaires that are on the same circuit and cannot be independently controlled by appropriate means. Governing Rule: ARS §32-1154 (A)(2)(A) Departure from or disregard of plans or specifications, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 18: The disconnecting means for the HVAC system in the garage closet is not readily accessible. NEC 440.14 Location. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the disconnecting means for the HVAC system in the garage closet is not readily accessible. See P (15), P (20), P (25) and P (26). Per NEC 440.14 Location disconnecting means shall be located within sight from, and readily accessible from, the air-conditioning or refrigerating equipment. The respondent shall correct the disconnecting means for the HVAC system in the garage closet that is not readily accessible by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards. 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 RCC100 11/18

b, HVAC Problems

As more fully set forth in the Expert Report from Stone Engineering, Inc., a copy of which is attached to the Complaint as Exhibit 4, the HVAC failed to comply with applicable codes and deviated from the construction plans in numerous respects. As a practical matter, these defects prevent the house from properly cooling in the summer and properly heating in the winter:

Compliant Item 19: The heat pumps are undersized for the size of the residence in violation of the 2012 International Residential Code (IRC) Section N1103.6 Equipment sizing (Mandatory). Investigator’s Observation: At this jobsite investigation the complainant stated that the respondent was hired and is responsible for the mechanical design, architectural and structural plans and that the respondent changed the HVAC installation. The respondent shall ensure the heat pumps are not undersized for the size of the residence in violation of the 2012 International Residential Code (IRC) Section N1103.6 Equipment sizing (Mandatory) by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 20: The cooling system for the main house was improperly designed in using only two air conditioning units when engineering calculations for the needed cooling capacity show that at least three units were required for this size and design of structure. Investigator’s Observation: At this jobsite investigation I observed 2 AC condenser units installed near the garage utility closet and the other outside the master bedroom. The model numbers indicate a 3 ton installed at the garage and a 5 ton installed outside the master bedroom. Upon reviewing the plans provided page M2 mechanical specs/details I am able to verify both units are to be 4 ton with 1600 CFM and 16.0 SEER (Seasonal Energy Efficiency Ratio) /13.0 EER (Energy Efficiency Ratio). After this jobsite investigation the complainant’s attorney informed this investigator on July 23, 2024 the AC has failed on main side of the house. The compressor is no longer working and appears to have failed. During this jobsite investigation the complainant stated that the respondent was hired and is responsible for the mechanical design, architectural and structural plans and that the respondent changed the HVAC installation. The respondent shall determine cause of the failed AC unit and ensure the cooling system for the main house are properly designed and installed by appropriate means. Governing Rule: ARS §32-1154 (A)(2)(A) Departure from or disregard of plans or specifications, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 21: The system that was designed and installed less than the required SEER rating and is missing variable speed fans that are required for the zone control system to operate. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the SEER rating for the 3 ton AC condenser is 14 and the SEER rating for the 5 ton AC condenser is also 14 SEER and there are no variable speed fans that are required for the zone control system to operate. Upon reviewing the plans provided page M2 mechanical specs/details both units are to be 4 ton with 1600 CFM and 16.0 SEER (Seasonal Energy Efficiency Ratio) /13.0 EER (Energy Efficiency Ratio). The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A)(2)(A) Departure from or disregard of plans or specifications, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 22: The Honeywell Home HZ432 True ZONE air conditioner and zone control management system was not properly installed per the manufacturer’s requirements and is missing the required bypass dampers and was never properly balanced or commissioned. Investigator’s Observation: At this jobsite investigation I observed HVAC air handler units installed at 2 locations at the main house and 1 location at the guest house none of which have bypass dampers. See P (18) thru P (20), P (25) and P (26). The respondent shall correct the Honeywell Home HZ432 True zone air conditioner and zone control management system that is not properly installed per the manufacturer’s requirements and is missing the required bypass dampers and was never properly balanced or commissioned by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (A) Departure from or disregard of plans or specifications, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 23: The thermostats are not in an accessible location. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the thermostats are not installed in an accessible location. See additional photos P (72) and P (73). The respondent shall correct the location of the thermostats that are not in an accessible location by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 24: The installed ducts suffer substantial air leaks and are not sealed as required by 2012 IRC section N1103.2.2 (R403.2.2) Sealing (Mandatory). Investigator’s Observation: At this jobsite investigation in the attic of the home I observed ducting with substantial air leaks that are not sealed per 2015 IRC section N1103.3.2 (R403.2.2) Sealing Mandatory. See P (21) thru P (24) and P (27). The respondent shall correct the installed HVAC ducting with substantial air leaks and are not properly sealed by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 25: The air handler plenums were not insulated or sealed. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the air handler plenum in the garage is not insulated or sealed. It is noted that there are no photos to refer to as the plenums are not accessible with a camera. The respondent shall correct the installed HVAC air handler plenums that are not insulated or sealed by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 26: Many of the ducts are not securely fastened or sealed in violation of 2012 IRC section M1601.4 Installation. Investigator’s Observation: At this jobsite investigation I observed and am able to verify there are numerous HVAC ducts that are not securely fastened or sealed in violation of 2012 and 2018 IRC section M1601.4 Installation. See P (22) thru P (24). The respondent shall correct the installed HVAC ducts that are not securely fastened or sealed by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 27: The ducts in the master bedroom were installed with severe duct transitions. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the ducts in the master bedroom were installed with severe duct transitions. See P (20) and P (21). The respondent shall correct the ducts in the master bedroom that were installed with severe duct transitions by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 28: The air handle disconnect in the master closet is not accessible. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the air handler disconnect in the master closet is not accessible. See P (20). Per NEC 440.14 Location disconnecting means shall be located within sight from, and readily accessible from, the air-conditioning or refrigerating equipment. The respondent shall correct the disconnecting means for the HVAC system in the master closet that is not readily accessible by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 29: The open supply duct joints in the master bedroom and garage were incorrectly designed and/or installed and have failed. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the open supply duct joints in the master bedroom and garage were incorrectly designed and/or installed and have failed. The ducting transition appears to turn 90 degrees within approximately 7 inches. See P (25) and P (27). The respondent shall correct the open supply duct joints in the master bedroom and garage that are incorrectly designed and/or installed and have failed by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 30: In violation of the 2012 IRC section M1601.4 Installation, the ductwork in the attics is missing in some areas and has damaged insulation in others. In addition, the vapor barrier is compromised; the flex duct is unsupported and kinked; two different grades of flex duct was used, one of which was of poor quality and has already failed and the other was not properly installed. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the ductwork in the attic is missing in some areas and has damaged insulation in others. In addition, the vapor barrier is compromised the flex duct is unsupported and kinked with two different grades of flex duct used, one of which was of poor quality and has already failed and the other was not properly installed. See P (22) thru P (24). The respondent shall correct the ductwork throughout the attics that do meet 2015 and 2018 IRC section M1601.4 Installation by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 31: Many of the duct transitions and connections to the air handlers and air filters are only secured with failed metallic tape in violation of 2012 IRC section M1601.4 Installation, and/or are not properly supported as required by the standards set forth by The Sheet Metal and Air Conditioning Contractors National Association, Inc. Investigator’s Observation: At this jobsite investigation I observed and am able to verify many of the duct transitions and connections to the air handlers and air filters are only secured with failed metallic tape in violation of 2012 and 2018 IRC section M1601.4 Installation, See P (21) and P (27). The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 33: The ductwork in the ceiling space above the master bathroom and closet have severe restrictions, precluding them from operating effectively. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the ductwork in the ceiling space above the master bathroom and closet have severe restrictions. See P (22) and P (23). The respondent shall correct the ductwork in the ceiling space above the master bathroom and closet that have severe restrictions by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 34: Many of the ducts and ductwork is undersized for the Project such that the ducts cannot accommodate the airflow that is provided by the air handler. Investigator’s Observation: At this jobsite investigation the complainant stated that the respondent was hired and is responsible for the mechanical design and architectural plans and that the respondent changed the HVAC installation. After this jobsite investigation the complainant’s attorney informed this investigator on July 23, 2024 the AC has failed on main side of the house. The compressor is no longer working and appears to have failed. The complainant stated that the respondent was hired and is responsible for the mechanical design, architectural and structural plans and that the respondent changed the HVAC installation. The respondent shall determine cause of the failed AC unit and ensure the cooling system for the main house is properly designed by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (A) Departure from or disregard of plans or specifications, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 35: Neither the main house nor the casita/guest house has mechanical ventilation as required by 2012 IRC section N1103.5 (R403.5) Mechanical ventilation (Mandatory). Investigator’s Observation: At this jobsite investigation I did not observe any means of mechanical ventilation at the 3 HVAC air handlers observed that is mandatory per 2018 IRC N1103.6 (R403.6). The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 36: The Project did not have air leakage testing as required by the 2012 IRC sections N1102.4 (R402.4) Air Leakage (Mandatory) and N1102.4 (R402.4.1.2) Testing. Investigator’s Observation: At this jobsite investigation the complainant’s 3rd party engineer Tom Stone stated that there is no documentation related to air leakage testing that is required by the 2018 IRC sections N1102.4 (R402.4) Air leakage (Mandatory) and N1102.4.1.2 (R402.4.1.2) Testing. The respondent shall provide documentation that all HVAC systems have the mandatory air leakage testing by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 37: The exterior refrigerant pipe for the Air Conditioning unit was not installed with protection against weather or UV damage as required by IRC Section N1103.4.1 (R403.4.1) Protection of piping insulation. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the exterior refrigerant pipe for the Air Conditioning unit was not installed with protection against weather or UV damage as required by IRC Section N1103.4.1 (R403.4.1) Protection of piping insulation. See P (28) and P (29). The respondent shall correct the exterior refrigerant pipe for the Air Conditioning units that were not installed with protection against weather or UV damage throughout by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

c. Plumbing Defects As more fully set forth in the Expert Report from Stone Engineering, Inc., a copy of which is attached to the Complaint as Exhibit 4, the plumbing on the Project suffers numerous flaws and code violations. These include but are not limited to:

Compliant Item 38: The three air handlers do not have P-Traps as required by the manufacturer. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the three air handlers do not have P-Traps as required by the manufacturer. See P (30). The respondent shall correct the three air handlers do not have P-Traps as required by the manufacturer by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 39: SAS installed on all three mechanical closet doors, louvers that are not required and allow debris into the residence. Investigator’s Observation: At this jobsite investigation I observed and am able to verify all 3 sets of mechanical closet doors have louvers at the bottom of the doors. Prior to this jobsite investigation the complainant’s engineer Tom Stone provided an inspection report that states, the original design used furnaces and the louvered doors are not required and allow debris into the residence. The two main house mechanical closets have propane instantaneous water heaters. The combustion air for the water heaters is taken from inside the closets and the low door grilles are not code compliant for combustion air. Per 2018 IRC G2407.6.1 (304.6.1) Two-permanent-openings method. Two permanent openings, one commencing within 12 inches of the top and one commencing within 12 inches of the bottom of the enclosure, shall be provided. The respondent shall correct the three mechanical closet doors with louvers that are not required and allow debris into the residence by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 40: The instantaneous combustion vent for the water heater in the garage terminated inside and should have been routed outside the building. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the instantaneous combustion vent for the water heater in the garage terminates inside the utility closet. See P (32). Upon reviewing the VST model VRS-150-VRS-199 instantaneous water heater installation manual pages 24 thru 28 I am able to verify all water heaters are prepared at the factory to be direct vent (sealed combustion) water heaters that draw all of their required combustion air directly from outside the building. VST recommends direct air vent installations whenever possible to avoid back drafting cold air through the water heater. The respondent shall correct the instantaneous combustion vent for the water heater in the garage that terminates inside the utility closet by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (A) Departure from or disregard of plans or specifications, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 41: The time it takes hot water to reach the kitchen sink is 2 minutes, which is 90 seconds longer than industry standard. See American Society of Plumbing Engineers (ASPE) Domestic Water Design Manual, Second Edition pages 234 and 235. Investigator’s Observation: At this jobsite investigation upon turning on the hot water at the kitchen sink I am able to verify the hot water did not start coming out of the faucet for approximately 2 minutes. The developed length of hot or tempered water piping, from the source of hot water to the fixtures that require hot or tempered water, shall not exceed 50 feet. Upon reviewing the American Society of Plumbing Engineers (ASPE) Domestic Water Design Manual a delay of 11 to 30 sec is marginal but possibly acceptable, and a time delay longer than 31 sec is normally considered unacceptable and a significant waste of water and energy. The respondent shall correct the time it takes hot water to reach the kitchen sink by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 42: An indoor-only pump with less than half the required capacity was installed outside to pump potable water from the storage tank to the house. Investigator’s Observation: At this jobsite investigation I observed and am able to verify there is a 1 HP indoor use only pump installed outside to pump potable water from the storage tank to the house. See P (33) and P (34). During this jobsite investigation I was informed that the water pump has been replaced more than once. After this jobsite investigation on July 22, 2024 the complainant’s attorney informed me that the water pump is intermittently failing. The respondent shall determine the correct size pump and install a pump rated for outdoor use by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 43: The expansion tank for the external water pump was undersized for the combined capacity of the Main House and the Casita/guest house. Investigator’s Observation: At this jobsite investigation I observed an expansion tank at the indoor use only water pump that appears to be undersized for the combined capacity of the main house and the casita/guest house. See P (33) and P (34). The respondent shall determine the correct expansion tank size and correct by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 44: The PEX hot and cold-water piping is not supported in violation of 2012 IRC Table P2605.1. Investigator’s Observation: At this jobsite investigation I observed hot and cold PEX water supply lines in the attic that are not supported per 2012 and 2018 IRC Table P2605.1. Piping Support. See P (22) and P (24). The respondent shall correct the PEX hot and cold-water piping that is not supported throughout by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 45: The hot water and hot water recirculating piping was not insulated with a minimum of R-3, per 2012 IRC, Section N1103.4.2, Hot water pipe insulation (prescriptive) Investigator’s Observation: At this jobsite investigation I observed and am able to verify the hot water piping is not insulated with a minimum of R-3, per 2012 and 2018 IRC, Section N1103.4 (R403.4). See P (22) and P (24). During this jobsite investigation the respondent’s subcontractor stated there is no recirculating piping system installed. The respondent shall correct the hot water piping that is not insulated with a minimum of R-3 by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 46: There is improperly-sloped 2-inch ABS vent pipe above the master bedroom. Investigator’s Observation: At this jobsite investigation I observed and am able to verify there is improperly-sloped 2-inch ABS vent pipe above the master bedroom. See P (24). The respondent shall correct the improperly-sloped 2-inch ABS vent pipe above the master bedroom by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 47: The propane and water piping running underground and into the walls of the structures is not properly protected from corrosion in violation of IRC Section P2603.3 Breakage and corrosion and IRC Section G2415.9 (404.9) Above-ground piping outdoors and G2415.11 (404.11) Protection against corrosion. Investigator’s Observation: At this jobsite investigation I observed a propane tank installed on the east side of the property with unprotected inadequately supported galvanized piping running into the ground. See P (35) and P (36). Upon reviewing 2018 IRC P2603.3 Protection against corrosion, metallic piping shall not be placed in direct contact with corrosive soil. Upon reviewing 2018 IRC G2415.9 (409) above ground piping outdoors, piping installed outdoors shall be elevated not less than 3-1/2 inches above ground. Piping installed above ground, outdoors shall be securely supported and located where it will be protected from physical damage. Upon reviewing G2415.11 (404.11) Protection against corrosion. Steel pipe or tubing exposed to corrosive action, such as soil condition or moisture shall be protected in accordance with sections G2425.11.1 through G2415.11.5. G2415.11.1 (404.11.1) Galvanizing. Zinc coating shall not be deemed adequate protection for underground gas piping. I am able to verify the propane and water piping running underground and into the walls of the structures is not properly protected from corrosion. The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 48: The propane tank was not installed on a concrete foundation in violation of 2020 Liquefied Petroleum Gas Code NFPA 58 Section 6.8.3.1 and is now unevenly sinking into the ground. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the propane tank was not installed on a concrete foundation in violation of 2020 Liquefied Petroleum Gas Code NFPA 58 Section 6.8.3.1 and is now unevenly sinking into the ground. 2020 Liquefied Petroleum Gas Code NFPA 58 Section 6.8.3.1 reads, Horizontal ASME containers designed for permanent installation in stationary above ground service shall be placed on masonry or other noncombustible structural supports located on concrete or masonry foundations with the container supports. The respondent shall correct the propane tank that is not installed on a concrete foundation in violation of 2020 Liquefied Petroleum Gas Code NFPA 58 Section 6.8.3.1 by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 49: The location and installation of the propane tank (near the driveway) is not protected from vehicle impact in violation of 2012 IFGC, Section 303.4. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the location and installation of the propane tank (near the driveway) is not protected from vehicle impact in violation of 2012 IFGC, Section 303.4. See P (35) and P (36). 303.4 Protection from vehicle impact damage, appliances shall not be installed in a location subject to vehicle impact damage accept where protected by approved means. The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 50: The plumbing for the propane tank is subject to excessive stress and strain in violation of 2012 IPC, Section 305.2. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the plumbing for the propane tank is subject to excessive stress and strain in violation of 2012 IPC, Section 305.2 which reads Stress and strain. Piping in a plumbing system shall be installed so as to prevent strains and stresses that exceed the structural strength of the pipe. Where necessary, provisions shall be made to protect piping from damage resulting from expansion, contraction and structural settlement. The respondent shall correct the plumbing for the propane tank that is subject to excessive stress and strain by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 51: The dishwasher flexible drain hoses are not routed high under the sinks per 2012 IRC section P2717.3 Sink, Dishwasher and food grinder. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the dishwasher flexible drain hose is not routed high under the kitchen sink per 2018 IRC section P2717.2 which reads, Sink and dishwasher. The combined discharge from a dishwasher and a one- or two- compartment sink, with or without a food-waste disposer, shall be served by a trap of not less than 1-1/2 inches in outside diameter. The dishwasher discharge pipe or tubing shall rise to the underside of the counter and be fastened or otherwise held in that position before connecting to the head of the food-waste disposer or to a wye fitting in the sink tailpiece. See P (37). The respondent shall correct the dishwasher flexible drain hose that is not routed high under the sink by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 52: All of the plumbing fixtures stops (valves) in the main house and the guest house have pipe dope on the compression fittings connection to the copper pipe in violation of 2012 IRC, section P2609.2, Installation of materials and the manufacturers’ installation specifications. Investigator’s Observation: At this jobsite investigation I observed 2 stop valves installed under the kitchen sink that have what appears to be pipe dope or other lubricating compound on the compression fitting connections. See P (38). The respondent’s plumber acknowledged that all the stop valves at the main house and guest house were installed using pipe dope on the compression fitting connections. Per 2018 IRC section P2609.2 Installation of materials reads, materials used shall be installed in strict accordance with the standards under which the materials are accepted and approved. In the absence of such installation procedures, the manufacturer’s instructions shall be followed. Where the requirements of referenced standards or manufacturer’s instructions do not conform to the minimum provisions of this code, the provisions of this code shall apply. There has been no documentation provided as to the manufacturer of the plumbing fixture stop valves and there is no specification in the 2018 IRC code section P2609.2 that stipulates you cannot use lubricating compounds or other materials such as Teflon tape on the threads of the compression fitting connections. Governing Rule: No Action

Compliant Item 53: The Casita / Guest House water heater drain pan terminates inside the house but should terminate outside the house. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the Casita / Guest House water heater drain pan terminates inside the utility closet. The water heater pan is installed under the water heater but does not extend outside the utility closet and if water dispenses damage will likely occur to the drywall pedestal. See P (30). The respondent shall correct the Casita / Guest House water heater drain pan that terminates inside the utility closet by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 54: The master bathroom lavatory drainpipe in the main house leaks water in the cabinetry. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the master bathroom lavatory drainpipe in the main house leaks water in the cabinetry. See P (39) and P (40). The respondent shall correct the master bathroom lavatory drainpipe in the main house that leaks water in the cabinetry by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 55: The bathtub faucet was improperly installed such that it cannot fully move without hitting the wall, preventing the bathtub from being used as intended/designed. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the bathtub faucet in the master bathroom is improperly installed and the handle hits the wall preventing the handle from being fully shut off causing the tub faucet to drip. See P (41). The respondent shall correct the master bathtub faucet that hits the wall by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Id. Improper roof installation As more completely set forth in the expert report from WRECORP attached as Exhibit 5 of the Complaint, the roof was improperly installed in violation of applicable code requirements and is showing signs of premature ware as a result.

Compliant Item 56: A surface mount reglet was installed directly to the stucco cladding, which is not in keeping with industry standards. Investigator’s Observation: At this jobsite investigation I observed and am able to verify there are surface mounted Reglets installed directly to the stucco cladding. See P (45) and P (46). The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 57: An improper surface-mount flashing was used instead of a stucco- mount flashing, which is allowing moister to enter the stucco walls and leak through electrical and window penetrations in the stucco. Investigator’s Observation: At this jobsite investigation I observed and am able to verify there is improper surface-mount flashing used instead of a stucco-mount flashing. See P (45) and P (46). The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 58: The flashings installed at the head walls above the patio overhangs are not in compliance with industry standards and 2012 IRC Section R903.2.1 Locations. Investigator’s Observation: At this jobsite investigation I observed flashing installed at the head walls above the patio overhangs that are not in compliance with industry standards 2012 and 2018 IRC Section R903.2.1 Locations which reads, Flashings shall be installed at head wall and roof intersections, wherever there is a change in roof slope or direction and around roof openings. A flashing shall be installed to divert the water away from where the eave of a sloped roof intersects a vertical sidewall. See P (42) thru P (46). The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 59: STX flashing is missing entirely on the west (front entrance) of the building. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the STX flashing is missing entirely on the west front entrance of the home. See P (42) and P (43). The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 60: Crickets are missing from the ridge sides in violation of IRC Section R903.2.2. Investigator’s Observation: At this jobsite investigation I observed and am able to verify there are crickets missing from the ridge sides in violation of IRC Section R903.2.2 which reads, a cricket or saddle shall be installed on the ridge side of any chimney or penetration more than 30 inches wide as measured perpendicular to the slope. Cricket or saddle coverings shall be sheet metal or of the same material as the roof covering. The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 61: The weather barriers installed at closures were incorrectly installed and are now releasing / blowing out. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the weather barriers installed at closures were incorrectly installed and are now releasing and blowing out. See P (47) and P (48). The respondent shall correct the weather barriers installed that are releasing and blowing out by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 62: Two roof sections show signs of damage consistent with improper handling during installation that need to be replaced. Investigator’s Observation: At this jobsite investigation I observed and am able to verify there are 2 roof sections that show signs of damage. See P (49) thru P (52). The respondent shall correct the 2 roof sections that show signs of damage consistent with improper handling during installation by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 63: Numerous grommet screws and washers that are intended to secure the roof pieces to each other and the rest of the building are not flush and others have been covered in sealant, suggesting an improper installation with sealant installed as a temporary water-proofing measure that will cause the roof to fail prematurely. Investigator’s Observation: At this jobsite investigation I observed and am able to verify there are numerous grommet screws and washers that are intended to secure the roof pieces to each other and the rest of the building are not flush and others have been covered in sealant. See P (53) thru P (56). The respondent shall correct the numerous grommet screws and washers that are intended to secure the roof pieces to each other and the rest of the building that are not flush and others that have been covered in sealant by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

e. Improper door installation and selection The doors that were installed on the Project suffer numerous defects:

Compliant Item 64: The front door does not close and/or seal correctly. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the front does not close or seal properly. See P (57) thru P (60). During this jobsite investigation I observed the door blow open on its own. The complainant demonstrated that the surface mounted threshold is loose at the bottom and stated that he has video of water coming under the door during a heavy rain event along with insects. The respondent shall correct the front door that does not close and/or seal correctly by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 65: The doors to the exterior patio in the living room are made of a material not suited for exterior doors such that they (a) warp and degrade rapidly and (b) fail to insulate against the heat and cold. Investigator’s Observation: At this jobsite investigation I observed exterior patio doors installed. The doors appear to be made of Knotty Alder and have numerous voids around the knots. I did not observe any warped exterior doors. The complainant acknowledged that there is no specification in the contract as to the type of material the doors are to be made of. There is insufficient evidence that the doors to the exterior patio in the living room are made of a material not suited for exterior doors. Governing Rule: No Action

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 RCC100 11/18

Compliant Item 66: The wood finishing on the exterior wooden doors was either of an improper type and/or was improperly applied. Investigator’s Observation: At this jobsite investigation I observed exterior wooden doors installed throughout the home with a stained finish that appears to be rapidly deteriorating. See P (57) thru P (60) and P (62). Per ROC Workmanship Standards Possible Deficiency - Exterior paint or latex stain peels or deteriorates. Acceptable Tolerance – None. Contractor Responsibility - Contractor should properly prepare and refinish affected areas, matching color as closely as possible. Possible Deficiency Deterioration of stains, varnish or lacquer finishes. Acceptable Tolerance - Finishes on interior woodwork should not deteriorate during the first year of ownership. However, varnish type finishes used on exterior will deteriorate rapidly. Contractor Responsibility - The contractor should correct or repair deteriorating finish one time during the first year of occupancy. The respondent shall correct the wood finishing on the exterior wooden doors by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 67: The glazing on the exterior wood doors was of an improper type and/or was improperly applied. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the glazing on the exterior wood doors at the back patio is improperly applied. The complainant stated that the glass was installed backwards and the glass was reversed and new glazing was poorly applied. See P (61) thru P (64). The respondent shall correct the glazing on the exterior wood doors by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 68: Numerous interior doors and door frames are (a) not straight and/or square; (b) do not properly latch; and/or (c) are difficult to close. Investigator’s Observation: At this jobsite investigation the complainant showed me pocket door at a bathroom that is not straight or square, does not latch and is difficult to close. See P (65) thru P (67). The complainant also showed me the door leading to the garage with a gap at the latch side that is not uniform. See P (68). The complainant stated that the doors were supplied by Infinity and the respondent hired a subcontractor to install all the doors in the south end of the home but does know who that subcontractor is. The respondent shall correct the 1 pocket door observed that is not straight or square, does not properly latch and is difficult to close, the door leading to the garage with a gap that is not uniform and ensure the remaining interior doors operate properly by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

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 RCC100 11/18

Compliant Item 69: The garage door and/or the hardware was improperly installed or was of the wrong kind such that garage door fails to open or close or remain open or closed. Investigator’s Observation: At this jobsite investigation the complainant demonstrated that the garage doors fail to open or close or remain open or closed. See P (71). The respondent shall determine cause and correct by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 70: The Garage door was only partially painted and, instead of a single solid color for all segments, has a “zebra” pattern with missing areas of paint. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the garage door was only partially painted and shows white paint between the door panels when opening. See P (69) and P (70). The respondent shall complete the garage door painting by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

II SAS violated A.R.S. § 32-1154(A)(13) by knowingly hiring unlicensed trades to perform work, including some the work noted above. Mayol’s investigation into the problems with the Project has revealed that SAS hired at least the following unlicensed entities/persons to perform work on the Project.

Compliant Item 71: Joe Begay of AIE Design, which so far as Mayol can determine is not licensed with the Arizona Board of Technical Registration, performed architectural and engineering services on at least some of the Project. Investigator’s Observation: At this jobsite investigation I informed both parties that the ROC does not regulate architects or engineering services. Governing Rule: No Action

Compliant Item 72: Daniel Elzy Trimble of Cave Creek Air performed the HVAC work despite its license (ROC #090514) being revoked in 2002. Investigator’s Observation: At this jobsite investigation the respondent’s HVAC subcontractor Izzy Smith stated that Daniel Elzy Trimble of Cave Creek Air is his father in law and was unaware that ROC 090514 has been revoked since 1-23-2003. The respondent is in violation of aiding or abetting an unlicensed person. Governing Rule: A.R.S. § 32-1154 (A) (9) (A) Aiding or abetting a licensed or unlicensed person. Warning letter issued.

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 RCC100 11/18

III. SAS abandoned the Project in violation of A.R.S. § 32-1154(A)(1).

Complaint Item 73 a: Beginning no later than June of 2023, Mayol notified SAS of numerous problems with and unfinished portions of SAS’ work on the Project and demand that SAS correct those problems and finish the Project. SAS would generally promise to undertake such work to schedule a time to do so, but either never completed the work or scheduled a time to do so. An sampling of Mayol’s communications to SAS demanding SAS complete the Project or make necessary repairs is attached as Exhibit 6 to the Complaint. Though SAS was technically last on site on or about January 1, 2024, it was there to supervise the work of others and has done little to no work on the Project since before that. A partial list of key events is as follows: From approximately September 25, 2023, to October 6, 2023, SAS undertook completion/repair of some punch list items but left the majority unfinished. Investigator’s Observation: At this jobsite investigation I had no knowledge as to when the respondent may have been on the project and undertaken completion/repair of some punch list items. During this jobsite investigation I observed and am able to verify the project is unfinished and incomplete. The respondent shall complete the project per contract. Governing Rule: ARS §32-1154 (A) (1) (Abandonment)

Complaint Item 73 b: Between approximately October 16, 2023, and November 3, 2023, SAS was at the Property allegedly to replace a failed water pump which was done improperly. See item no. 42 above. Investigator’s Observation: This complaint item has been previously addressed in complaint item 42. Governing Rule: No Action

Complaint Item 73 c. On December 28, 2023, SAS was on site to attempt to correct some of the roofing issues, but failed to do so appropriately. See Section I.d above). Investigator’s Observation: This complaint item has been previously addressed in complaint items 56 thru 63. Governing Rule: No Action

Complaint Item 73 d. On January 1, 2024, SAS was on sight with an unlicensed subcontractor (see item no. 71 above) to swap undersized air conditioner compressor units, which failed to cure the problems with the HVAC. See Section I.b above). Investigator’s Observation: This complaint item has been previously addressed in complaint items 18 thru 37. Governing Rule: No Action

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 RCC100 11/18

Mayol initially agreed to pay $1.2 million for SAS to complete the Project (other than certain appliances and furnishings that would be separately agreed to), but to date has paid approximately $2.5 million for the Project, which is not complete and even many of the “completed” portions are not built in compliance with a applicable code or the plans for the Project. Mayol, at SAS’ instruction, paid many of the material suppliers and other trades directly. A selection of proofs of payment are attached to the Complaint as Exhibit 7, and more information regarding payment can be provided if requested.

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 RCC100 11/18

Complainant: Jaime S. Mayol 13637 E Dove Valley Road Scottsdale, AZ 85262

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Respondent: Southern Arizona Structures LLC P.O. Box 2491 Carefree, AZ 85377

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 July 30, 2024

License No. ROC 289023

Re:Complaint No. 2024-05665

WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

After investigation, the Registrar determined that you failed to meet the requirements of A.R.S. § 32-1154(A), and now issues this Directive requiring you to take appropriate corrective action. Failure to comply with this Directive constitutes a violation of A.R.S. § 32-1154(A)(22) and may result in the issuance of a citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-1154(E) of up to $500.00. You must notify the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on Wednesday August 21, 2024.

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

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

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Investigator Notes Continued: 3: At this jobsite investigation the complainant’s attorney explained that a final lien release was provided by the respondent in order to get a final inspection and C of O and a final inspection was passed by Maricopa County Planning and Development and the main electrical panel was passed by SRP.

Complaint Narrative: 1. As Set forth in Sec. I of Exhibit 1, hereto, Contractor violated workmanship standards, 2: As set forth in Sec. II of Exhibit 1 hereto, Contractor used unlicensed subcontractors, 3: As set forth in Sec. III of Exhibit 1 hereto, Contractor abandoned the project. In all, there are 73 complaint items in Exhibit 1, but in (brief) summary: The HV/AC was improperly sized and installed and does not function correctly; There are substantial portions of the electrical work that are incomplete or contrary to plans; There are substantial portions of the plumbing that do not comply with applicable standards; The propane tank was improperly installed in violation of codes; The roof was improperly installed in violation of applicable codes; and The doors were made of the wrong material, improperly finished, and improperly installed.

There are at least four significant problems with the Project that warrant the ROC’s intervention and action: (1) SAS did not perform work in a professional or workmanlike manner, did not follow the Project blueprints, and failed to complete work in compliance with applicable law and industry standards; (2) SAS hired at least two unlicensed trades to perform critical work on the Project, which caused at least some of the defective workmanship issues complained of in this Complaint; and (3) SAS abandoned the Project without completing it or fixing problems that Mayol brought to its attention. For ease of reference and organization, problems are separated into sections and categories, but line items of specific defects are consecutively numbered.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 SAS violated A.R.S. § 32-1158 and AAC § R4-9-108 by failing to complete its work in a workmanlike manner, in compliance with applicable building codes, in compliance with industry standards, and in conformity with the Project plans. Though the Project suffers numerous defects, this Complaint is limited to the most significant problems known to date that preclude the house from being used as intended.

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

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 3: There were no outlets provided and no branch circuitry ran for certain luminaires that are shown in the drawing. Investigator’s Observation: At this jobsite investigation the complainant demonstrated that there are no outlets provided and no branch circuitry ran for certain luminaires. The respondent shall determine the outlets and branch circuitry that are missing and correct by appropriate means. Governing Rule: ARS §32-1154 (A)(2)(A) Departure from or disregard of plans or specifications, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 6: The LED strip light for the master bathroom shower is not installed. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the LED strip light for the master bathroom shower is not installed. See P (9). The complainant stated that the driver for the LED strip light were delivered to the property in November 2022 and the respondent accepted all deliveries into their possession for storage because the materials arrived too soon. The respondent shall complete the LED strip light installation by appropriate means. Governing Rule: ARS §32-1154 (A)(3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 10: There are 3 ceiling fixtures, outlets, and branch circuitry missing in the living room. Investigator’s Observation: At this jobsite investigation the complainant showed me where there are 3 ceiling fixtures, outlets, and branch circuitry missing in the living room. See P (6) thru P (8). The respondent shall complete the 3 ceiling fixtures, outlets, and branch circuitry missing in the living room by appropriate means. Governing Rule: ARS §32-1154 (A)(2)(A) Departure from or disregard of plans or specifications, ARS §32-1154 (A)(3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 14: None of the (12) ceiling fans throughout the main residence have been delivered or installed. Investigator’s Observation: At this jobsite investigation I observed and am able to verify there are no ceiling fans installed throughout the main residence and no evidence of the fans being delivered. The respondent shall complete the 12 ceiling fans that are not installed by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 17: The south and west exterior luminaires are on the same circuit and cannot be independently controlled. Investigator’s Observation: At this jobsite investigation the complainant demonstrated that the south and west exterior luminaires are on the same circuit and cannot be independently controlled and the respondent was sent an email with the lighting circuitry plans. The respondent stated he never received the email with the plans. Upon reviewing page E1 Lighting Plan I am able to verify the south and west exterior luminaires are to be independently controlled. The respondent shall correct the south and west exterior luminaires that are on the same circuit and cannot be independently controlled by appropriate means. Governing Rule: ARS §32-1154 (A)(2)(A) Departure from or disregard of plans or specifications, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 18: The disconnecting means for the HVAC system in the garage closet is not readily accessible. NEC 440.14 Location. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the disconnecting means for the HVAC system in the garage closet is not readily accessible. See P (15), P (20), P (25) and P (26). Per NEC 440.14 Location disconnecting means shall be located within sight from, and readily accessible from, the air- conditioning or refrigerating equipment. The respondent shall correct the disconnecting means for the HVAC system in the garage closet that is not readily accessible by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Ib, HVAC Problems

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 19: The heat pumps are undersized for the size of the residence in violation of the 2012 International Residential Code (IRC) Section N1103.6 Equipment sizing (Mandatory). Investigator’s Observation: At this jobsite investigation the complainant stated that the respondent was hired and is responsible for the mechanical design, architectural and structural plans and that the respondent changed the HVAC installation. The respondent shall ensure the heat pumps are not undersized for the size of the residence in violation of the 2012 International Residential Code (IRC) Section N1103.6 Equipment sizing (Mandatory) by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 21: The system that was designed and installed less than the required SEER rating and is missing variable speed fans that are required for the zone control system to operate. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the SEER rating for the 3 ton AC condenser is 14 and the SEER rating for the 5 ton AC condenser is also 14 SEER and there are no variable speed fans that are required for the zone control system to operate. Upon reviewing the plans provided page M2 mechanical specs/details both units are to be 4 ton with 1600 CFM and 16.0 SEER (Seasonal Energy Efficiency Ratio) /13.0 EER (Energy Efficiency Ratio). The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A)(2)(A) Departure from or disregard of plans or specifications, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 24: The installed ducts suffer substantial air leaks and are not sealed as required by 2012 IRC section N1103.2.2 (R403.2.2) Sealing (Mandatory). Investigator’s Observation: At this jobsite investigation in the attic of the home I observed ducting with substantial air leaks that are not sealed per 2015 IRC section N1103.3.2 (R403.2.2) Sealing Mandatory. See P (21) thru P (24) and P (27). The respondent shall correct the installed HVAC ducting with substantial air leaks and are not properly sealed by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 28: The air handle disconnect in the master closet is not accessible. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the air handler disconnect in the master closet is not accessible. See P (20). Per NEC 440.14 Location disconnecting means shall be located within sight from, and readily accessible from, the air-conditioning or refrigerating equipment. The respondent shall correct the disconnecting means for the HVAC system in the master closet that is not readily accessible by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 31: Many of the duct transitions and connections to the air handlers and air filters are only secured with failed metallic tape in violation of 2012 IRC section M1601.4 Installation, and/or are not properly supported as required by the standards set forth by The Sheet Metal and Air Conditioning Contractors National Association, Inc. Investigator’s Observation: At this jobsite investigation I observed and am able to verify many of the duct transitions and connections to the air handlers and air filters are only secured with failed metallic tape in violation of 2012 and 2018 IRC section M1601.4 Installation, See P (21) and P (27). The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 32: Insufficient airflow is being provided to the office, game room, kitchen, dining room and living room. Investigator’s Observation: At this jobsite investigation I observed interior ducting installed in the office, game room kitchen, dining and living room. See P (5) thru P (7). After this jobsite investigation the complainant’s attorney informed this investigator on July 23, 2024 the AC has failed on main side of the house. The compressor is no longer working and appears to have failed. The complainant stated that the respondent was hired and is responsible for the mechanical design and architectural plans and that the respondent changed the HVAC installation. The respondent shall determine cause of the failed AC unit and ensure the cooling system for the main house is properly designed by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (A) Departure from or disregard of plans or specifications, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards. Compliant Item 33: The ductwork in the ceiling space above the master bathroom and closet have severe restrictions, precluding them from operating effectively. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the ductwork in the ceiling space above the master bathroom and closet have severe restrictions. See P (22) and P (23). The respondent shall correct the ductwork in the ceiling space above the master bathroom and closet that have severe restrictions by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 34: Many of the ducts and ductwork is undersized for the Project such that the ducts cannot accommodate the airflow that is provided by the air handler. Investigator’s Observation: At this jobsite investigation the complainant stated that the respondent was hired and is responsible for the mechanical design, architectural and structural plans and that the respondent changed the HVAC installation. After this jobsite investigation the complainant’s attorney informed this investigator on July 23, 2024 the AC has failed on main side of the house. The compressor is no longer working and appears to have failed. The complainant stated that the respondent was hired and is responsible for the mechanical design and architectural plans and that the respondent changed the HVAC installation. The respondent shall determine cause of the failed AC unit and ensure the cooling system for the main house is properly designed by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (A) Departure from or disregard of plans or specifications, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 37: The exterior refrigerant pipe for the Air Conditioning unit was not installed with protection against weather or UV damage as required by IRC Section N1103.4.1 (R403.4.1) Protection of piping insulation. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the exterior refrigerant pipe for the Air Conditioning unit was not installed with protection against weather or UV damage as required by IRC Section N1103.4.1 (R403.4.1) Protection of piping insulation. See P (28) and P (29). The respondent shall correct the exterior refrigerant pipe for the Air Conditioning units that were not installed with protection against weather or UV damage throughout by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 39: SAS installed on all three mechanical closet doors, louvers that are not required and allow debris into the residence. Investigator’s Observation: At this jobsite investigation I observed and am able to verify all 3 sets of mechanical closet doors have louvers at the bottom of the doors. Prior to this jobsite investigation the complainant’s engineer Tom Stone provided an inspection report that states, the original design used furnaces and the louvered doors are not required and allow debris into the residence. The two main house mechanical closets have propane instantaneous water heaters. The combustion air for the water heaters is taken from inside the closets and the low door grilles are not code compliant for combustion air. Per 2018 IRC G2407.6.1 (304.6.1) Two-permanent-openings method. Two permanent openings, one commencing within 12 inches of the top and one commencing within 12 inches of the bottom of the enclosure, shall be provided. The respondent shall correct the three mechanical closet doors with louvers that are not required and allow debris into the residence by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 41: The time it takes hot water to reach the kitchen sink is 2 minutes, which is 90 seconds longer than industry standard. See American Society of Plumbing Engineers (ASPE) Domestic Water Design Manual, Second Edition pages 234 and 235. Investigator’s Observation: At this jobsite investigation upon turning on the hot water at the kitchen sink I am able to verify the hot water did not start coming out of the faucet for approximately 2 minutes. The developed length of hot or tempered water piping, from the source of hot water to the fixtures that require hot or tempered water, shall not exceed 50 feet. Upon reviewing the American Society of Plumbing Engineers (ASPE) Domestic Water Design Manual a delay of 11 to 30 sec is marginal but possibly acceptable, and a time delay longer than 31 sec is normally considered unacceptable and a significant waste of water and energy. The respondent shall correct the time it takes hot water to reach the kitchen sink by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 42: An indoor-only pump with less than half the required capacity was installed outside to pump potable water from the storage tank to the house. Investigator’s Observation: At this jobsite investigation I observed and am able to verify there is a 1 HP indoor use only pump installed outside to pump potable water from the storage tank to the house. See P (33) and P (34). During this jobsite investigation I was informed that the water pump has been replaced more than once. After this jobsite investigation on July 22, 2024 the complainant’s attorney informed me that the water pump is intermittently failing. The respondent shall determine the correct size pump and install a pump rated for outdoor use by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 43: The expansion tank for the external water pump was undersized for the combined capacity of the Main House and the Casita/guest house. Investigator’s Observation: At this jobsite investigation I observed an expansion tank at the indoor use only water pump that appears to be undersized for the combined capacity of the main house and the casita/guest house. See P (33) and P (34). The respondent shall determine the correct expansion tank size and correct by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 44: The PEX hot and cold-water piping is not supported in violation of 2012 IRC Table P2605.1. Investigator’s Observation: At this jobsite investigation I observed hot and cold PEX water supply lines in the attic that are not supported per 2012 and 2018 IRC Table P2605.1. Piping Support. See P (22) and P (24). The respondent shall correct the PEX hot and cold-water piping that is not supported throughout by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 47: The propane and water piping running underground and into the walls of the structures is not properly protected from corrosion in violation of IRC Section P2603.3 Breakage and corrosion and IRC Section G2415.9 (404.9) Above- ground piping outdoors and G2415.11 (404.11) Protection against corrosion. Investigator’s Observation: At this jobsite investigation I observed a propane tank installed on the east side of the property with unprotected inadequately supported galvanized piping running into the ground. See P (35) and P (36). Upon reviewing 2018 IRC P2603.3 Protection against corrosion, metallic piping shall not be placed in direct contact with corrosive soil. Upon reviewing 2018 IRC G2415.9 (409) above ground piping outdoors, piping installed outdoors shall be elevated not less than 3-1/2 inches above ground. Piping installed above ground, outdoors shall be securely supported and located where it will be protected from physical damage. Upon reviewing G2415.11 (404.11) Protection against corrosion. Steel pipe or tubing exposed to corrosive action, such as soil condition or moisture shall be protected in accordance with sections G2425.11.1 through G2415.11.5. G2415.11.1 (404.11.1) Galvanizing. Zinc coating shall not be deemed adequate protection for underground gas piping. I am able to verify the propane and water piping running underground and into the walls of the structures is not properly protected from corrosion. The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 49: The location and installation of the propane tank (near the driveway) is not protected from vehicle impact in violation of 2012 IFGC, Section 303.4. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the location and installation of the propane tank (near the driveway) is not protected from vehicle impact in violation of 2012 IFGC, Section 303.4. See P (35) and P (36). 303.4 Protection from vehicle impact damage, appliances shall not be installed in a location subject to vehicle impact damage accept where protected by approved means. The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 51: The dishwasher flexible drain hoses are not routed high under the sinks per 2012 IRC section P2717.3 Sink, Dishwasher and food grinder. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the dishwasher flexible drain hose is not routed high under the kitchen sink per 2018 IRC section P2717.2 which reads, Sink and dishwasher. The combined discharge from a dishwasher and a one- or two- compartment sink, with or without a food-waste disposer, shall be served by a trap of not less than 1-1/2 inches in outside diameter. The dishwasher discharge pipe or tubing shall rise to the underside of the counter and be fastened or otherwise held in that position before connecting to the head of the food- waste disposer or to a wye fitting in the sink tailpiece. See P (37). The respondent shall correct the dishwasher flexible drain hose that is not routed high under the sink by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 53: The Casita / Guest House water heater drain pan terminates inside the house but should terminate outside the house. Investigator’s Observation: At this jobsite investigation I observed and am able to verify the Casita / Guest House water heater drain pan terminates inside the utility closet. The water heater pan is installed under the water heater but does not extend outside the utility closet and if water dispenses damage will likely occur to the drywall pedestal. See P (30). The respondent shall correct the Casita / Guest House water heater drain pan that terminates inside the utility closet by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 56: A surface mount reglet was installed directly to the stucco cladding, which is not in keeping with industry standards. Investigator’s Observation: At this jobsite investigation I observed and am able to verify there are surface mounted Reglets installed directly to the stucco cladding. See P (45) and P (46). The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

Compliant Item 57: An improper surface-mount flashing was used instead of a stucco-mount flashing, which is allowing moister to enter the stucco walls and leak through electrical and window penetrations in the stucco. Investigator’s Observation: At this jobsite investigation I observed and am able to verify there is improper surface-mount flashing used instead of a stucco-mount flashing. See P (45) and P (46). The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 60: Crickets are missing from the ridge sides in violation of IRC Section R903.2.2. Investigator’s Observation: At this jobsite investigation I observed and am able to verify there are crickets missing from the ridge sides in violation of IRC Section R903.2.2 which reads, a cricket or saddle shall be installed on the ridge side of any chimney or penetration more than 30 inches wide as measured perpendicular to the slope. Cricket or saddle coverings shall be sheet metal or of the same material as the roof covering. The respondent shall correct by appropriate means. Governing Rule: ARS §32-1154 (A) (2) (B) Departure from or disregard of a building code, ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 e. Improper door installation and selection The doors that were installed on the Project suffer numerous defects:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 68: Numerous interior doors and door frames are (a) not straight and/or square; (b) do not properly latch; and/or (c) are difficult to close. Investigator’s Observation: At this jobsite investigation the complainant showed me pocket door at a bathroom that is not straight or square, does not latch and is difficult to close. See P (65) thru P (67). The complainant also showed me the door leading to the garage with a gap at the latch side that is not uniform. See P (68). The complainant stated that the doors were supplied by Infinity and the respondent hired a subcontractor to install all the doors in the south end of the home but does know who that subcontractor is. The respondent shall correct the 1 pocket door observed that is not straight or square, does not properly latch and is difficult to close, the door leading to the garage with a gap that is not uniform and ensure the remaining interior doors operate properly by appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-9-108, Poor work not performed in accordance with professional industry standards.

I. SAS violated A.R.S. § 32-1154(A)(13) by knowingly hiring unlicensed trades to perform work, including some the work noted above. Mayol’s investigation into the problems with the Project has revealed that SAS hired at least the following unlicensed entities/persons to perform work on the Project.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Compliant Item 71: Joe Begay of AIE Design, which so far as Mayol can determine is not licensed with the Arizona Board of Technical Registration, performed architectural and engineering services on at least some of the Project. Investigator’s Observation: At this jobsite investigation I informed both parties that the ROC does not regulate architects or engineering services. Governing Rule: No Action

III. SAS abandoned the Project in violation of A.R.S. § 32-1154(A)(1).

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 ITEMS NOT REQUIRING CORRECTION The following complaint items require no action by the Respondent:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complaint Item 73 c. On December 28, 2023, SAS was on site to attempt to correct some of the roofing issues, but failed to do so appropriately. See Section I.d above). Investigator’s Observation: This complaint item has been previously addressed in complaint items 56 thru 63. Governing Rule: No Action

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

Sincerely,

David Fagerburg, Investigator #210 (602) 771-6735 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007-2812

CC: Respondent Complainant Complainant Attorney

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complainant Attorney: Zachary Rosenberg Esq. 2394 E Camelback Road, Suite 600 Phoenix, AZ 85016

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complainant: Jaime S. Mayol 13637 E Dove Valley Road Scottsdale, AZ 85262

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 August 6, 2024

License No. ROC 289023

Re:Complaint No. 2024-05665

AMENDED WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

After receiving additional information from the complainant’s attorney and the manufacture of the plumbing fixture stop valves “Copperfit Industries” related to complaint item 52 it has been determined that this complaint item requires correction. The respondent shall correct complaint item 52 throughout the main and guest house by appropriate means. All other items listed on the Written Directive issued July 30, 2024 remain standing.

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

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

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

David Fagerburg, Investigator #210 (602) 771-6735 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007-2812

CC: Respondent Complainant Complainant Attorney

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complainant: Jaime S. Mayol 13637 E Dove Valley Road Scottsdale, AZ 85262

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

C012 12/23 Respondent: Southern Arizona Structures LLC DBA: P.O. Box 2491 Carefree, AZ 85377

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

C012 12/23 September 4, 2024

Compliance Jobsite Inspection Notice Re: Complaint No. 2024-05665

Dear Complainant and Respondent:

A Compliance Inspection has been scheduled for at : PM to determine the current status of the items listed on the issued Directive.

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

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

Sincerely,

David Fagerburg, Investigator #210 (602) 771-6735 [email redacted] 1700 W Washington St,Suite 105 Phoenix, AZ 85007-2812

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

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

C012 12/23 (DELETE THIS ADDRESS/PAGE IF NOT WARRANTED)

Complainant Attorney: Zachary Rosenberg Esq. 2394 E Camelback Road, Suite 600 Phoenix, AZ 85016

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

C012 12/23 (DELETE THIS ADDRESS/PAGE IF NOT WARRANTED)

Respondent Attorney:

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

C012 12/23 Complainant: Jaime S. Mayol 13637 E Dove Valley Road Scottsdale, AZ 85262

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

C012 12/23 Respondent: Southern Arizona Structures LLC P.O. Box 2491 Carefree, AZ 85377

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

C012 12/23 September 4, 2024

Compliance Jobsite Inspection Notice Re: Complaint No. 2024-05665

Dear Complainant and Respondent:

A Compliance Inspection has been scheduled for Thursday September 12, 2024 at 1:30 PM to determine the current status of the items listed on the issued Directive.

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

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

Sincerely,

David Fagerburg, Investigator #210 (602) 771-6735 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007-2812

CC: Respondent Complainant Complainant Attorney

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

C012 12/23 Complainant Attorney: Zachary Rosenberg Esq. 2394 E Camelback Road, Suite 600 Phoenix, AZ 85016

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

C012 12/23 Complainant: Jaime S. Mayol 13637 E Dove Valley Road Scottsdale, AZ 85262

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

C012 12/23 Respondent: Southern Arizona Structures LLC P.O. Box 2491 Carefree, AZ 85377

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

C012 12/23 September 5, 2024

Compliance Jobsite Inspection Notice Re: Complaint No. 2024-05665

Dear Complainant and Respondent:

A Compliance Inspection scheduled for Thursday September 12, 2024 at 1:30 PM has been rescheduled for Tuesday September 17, 2024 at 1:30 PM to determine the current status of the items listed on the issued Directive.

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

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

Sincerely,

David Fagerburg, Investigator #210 (602) 771-6735 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007-2812

CC: Respondent Complainant Complainant Attorney

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

C012 12/23 Complainant Attorney: Zachary Rosenberg Esq. 2394 E Camelback Road, Suite 600 Phoenix, AZ 85016

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

C012 12/23 Complainant: Jaime S. Mayol 13637 E Dove Valley Road Scottsdale, AZ 85262

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Respondent: Southern Arizona Structures LLC DBA: P.O. Box 2491 Carefree, AZ 85377

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Case No.: 2024-05665 Investigator: David Fagerburg Inspection Date: Inspection Time: : PM

Compliance Jobsite General Notes:

Compliance Findings:

Compliance Item: - 8: master shower glass not ordered or installed. Investigator’s Observation: Project abandoned. Governing Rule:

Compliance Item: - 13: Baseboards not all removed, none installed Investigator’s Observation: Project abandoned. Governing Rule:

Compliance Item: - 14: Retack- carpet not accomplished. Investigator’s Observation: Project abandoned. Governing Rule:

Compliance Item: - 15: Bath Cabinets master and hall installed-not level wood split out. Investigator’s Observation: Project abandoned. Governing Rule:

Compliance Item: - 16: Final cleaning not accomplished. Investigator’s Observation: Project abandoned. Governing Rule:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: - 17: Guest bath door and frame damaged. Investigator’s Observation: Project abandoned. Governing Rule:

Compliance Item: - 18: Front door treas-hold damaged. Investigator’s Observation: Project abandoned. Governing Rule:

Compliance Item: - 19: Shower walls wrong Investigator’s Observation: Project abandoned. Governing Rule:

Compliance Item: - 20: Change order wall cut to 97 1/2" wrong cabinets ordered. Investigator’s Observation: Project abandoned. Governing Rule:

Compliance Item: - 1: Improper ledge stone installation corner on raised spa. Investigator’s Observation: The corner on the right side facing the spa had a 1" spacing. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - 1: Uncertain if any work was actually done. Was told a new beam and epoxy sealant needed to be done in attic. Investigator’s Observation: There was no sign of any work in the attic being done. There were no new beams installed and no epoxy sealant sprayed anywhere in the attic. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: - 13: Paid for $3,030 change order, back wall not done. Investigator’s Observation: The back wall has not been completed. It needs to be fixed per contract. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - 1: Replace interior doors, exterior front door and patio back door. Investigator’s Observation: There is no need to replace any of the doors. There is finishing work still needed. Governing Rule:

Compliance Item: - 2: Damage to newly painted walls, baseboards and ripped out casement. Investigator’s Observation: Finishing work is still needed on the jobsite. Governing Rule:

Compliance Item: - 3: Damage to stucco around the back patio door. Investigator’s Observation: There is finishing work needed around the back patio door. Governing Rule:

Compliance Item: - 5: Paint issues with the interior doors and casements. Investigator’s Observation: Most of the doors had been repaired by the contractor prior to the inspection. There were a couple of locations still needing repair. Governing Rule:

Compliance Item: - 1: Contractor did not provide correct cabinet doors Investigator’s Observation: Cabinet doors are missing Governing Rule: Violation of any rule adopted by the Registrar; Namely

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - 2: contractor did not have sufficient skin and trim materials to complete job. Investigator’s Observation: Missing items from job. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - 3: Contractor said he would complete job upon receipt of correct doors from MFG. Investigator’s Observation: The work has been abandoned Governing Rule: Abandonment of a contract or refusal to perform after submitting a bid on work without legal excuse for the abandonment or refusal.

Compliance Item: - 4: After a year of excuses contractor did not complete job. Investigator’s Observation: The job has been abandoned Governing Rule: Abandonment of a contract or refusal to perform after submitting a bid on work without legal excuse for the abandonment or refusal.

Compliance Item: - 5: Contractor said he would deliver missing materials but did not show up as promised. Investigator’s Observation: Job has been Abandoned. Governing Rule: Abandonment of a contract or refusal to perform after submitting a bid on work without legal excuse for the abandonment or refusal.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: - 1 Investigator’s Observation: Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - 1 Investigator’s Observation: Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Project not completed in time frame of the contract.” Investigator’s Observation: Substantiated. Contract specifies a project duration of no more than 8 months after project begins. Work began 12/7/2017 and at time of jobsite inspection work had not been completed. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - 1 Investigator’s Observation: Governing Rule: Violation of any rule adopted by the Registrar; Namely

Compliance Item: - 1 Investigator’s Observation: Governing Rule:

Compliance Item: - “Multiple walls are twisted and out of square, need to be reframed.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed that the wall in the foyer adjacent to the kitchen appeared out of square, the wall outside of bedrooms 1-4 was out of square at the top corner, the header beam at the kitchen threshold to the dining room was out of square (appeared twisted), and that the header beam between the foyer and the dining room was out of square (appeared twisted). Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Sheetrock on porch installed improperly.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed the sheetrock on the main house front porch ceiling was installed to the edge of the roofing fascia with no flashing and was cracked and the sheetrock on the guest house front porch ceiling was installed to the edge of the roofing fascia with no flashing. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Tile in front hallway unfinished and not done properly.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed tile work in the front hallway which had not been completed per contract.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Trim work in house is installed improperly.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed trim work in many areas of the house that was installed poorly with excessive gaps present between many pieces, trim installed around doors out of level and with uneven reveals, and planar offsets at the top profile and side profile of many junctions of trim at joints. Additionally, I observed trim installed at closet doors which would prevent closet doors from closing completely. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Electrical outlets, switches, etc are installed incorrectly.” Investigator’s Observation: Substantiated. At time of jobsite inspection complainant advised electrical outlet and light switch cover plates were not level. At time of jobsite inspection I observed many electrical outlet and light switch cover plates which appeared to be out of level. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Ice block windows in master bathroom installed incorrectly and are leaking.” Investigator’s Observation: Substantiated. At time of inspection I observed that there were areas of missing grout from the glass block windows in the master bathroom. I could not determine at time of jobsite inspection if glass block windows were leaking as complainant declined water test. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Incorrect electrical switches installed.” Investigator’s Observation: Substantiated. Complainant advised at time of jobsite inspection that the master bath shower and master bath lavatory were missing switches. I observed a single switch installed in the lavatory while the plans show two switches – one for the light and one for the exhaust fan. I observed a single switch installed for the shower and the plans showed a single switch. Governing Rule: Departure from or disregard of: (a) Plans or specifications in any material respect that is prejudicial to another without consent of the owner or the owner's duly authorized representative and without the consent of the person entitled to have the particular construction project or operation completed in accordance with such plans and specifications and code.

Compliance Item: - “Interior walls damaged have holes. Not patched or painted.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed areas of mismatched paint and areas of incomplete paint. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Drywall shelf located in hallway finished incorrectly.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed that one inside corner of niche was rounded and the other was square. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: - “Faucet holes drilled in granite countertop are not aligned with sink bathrooms.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed the holes cut in granite countertops for the bathroom faucets were not centered to the bathroom sinks. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Faucet holes drilled in granite countertops are not aligned with sink kitchen.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed the hole cut in granite countertops for the kitchen faucet was not centered to the kitchen sink. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Grout is on top of finished tile, needs to be removed.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed grout haze on tiles in showers. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Interior of windows are damaged.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed thin set on the bathroom window and gouges on a bedroom window. Governing Rule: Violation of any rule adopted by the Registrar; Namely

Compliance Item: - “Backsplash in kitchen installed incorrectly.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed that work for this item had not been completed. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Rough cut edges/eneven edges countertops in bathrooms & kitchen.” Investigator’s Observation: Substantiated. Complainant advised of excessive epoxy on kitchen counter tops, rough cut edges on kitchen countertops, and rough cut edges on backs of bathroom countertops. At time of jobsite inspection I observed excessive epoxy on kitchen counter tops which was poorly finished and an unfinished edge on the kitchen counter top to the far right of the counter top at area entering the living room. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Fireplace back tile not finished improperly.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed a poorly done transition of tile at the tile to fireplace junction. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Holes in exterior stucco walls.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 a hole in the exterior of the guest house stucco system on the Southwest wall corner, a hole in the exterior of the guest stucco system on the South wall, and an exposed receptacle on the back porch of the main house on the interior West wall of the back porch. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “PVC drain pipe not installed correctly sticking out of sheetrock.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed an exposed section of plumbing drain pipe in the guest house. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Shower tile installed improperly, in all bathrooms.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed poorly installed tile in showers at the tile to wall junctions, tile to wall corner junctions, and tile to window junctions. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Interior door hinges installed incorrectly in 1 bedroom.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed the hinges on one bedroom door had been re-mortised, the door re-hung, and existing hinge mortises locations were not finished/stained to match the door finish/stain. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: - “Garage doors not functioning.” Investigator’s Observation: Substantiated. This item not completed per contract. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Exterior doors are installed incorrectly.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed the door threshold/sill plate to the interior garage man door/fire door flexed and was installed poorly and the exterior garage man door threshold/sill plate was poorly supported with a gap present under the threshold/sill plate. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - “Kitchen cabinets installed crooked and poorly and are not completed.” Investigator’s Observation: Substantiated. At time of jobsite inspection I observed the upper kitchen cabinet above the refrigerator cut out was not aligned to the adjacent oven cabinet, the end panel for the refrigerator cabinet was installed up against an electrical receptacle cover plate, the 45 degree corner cabinets were installed poorly and not lined up with the 45 degree counter angle below them, the cabinet on the west wall (butler cabinet/desk cabinet) appeared out of level or square with the wall to its left, the end panel on the refrigerator upper cabinet was not securely fastened, and the upper cabinets to be located on the East wall of kitchen had not been installed. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: - 1 Investigator’s Observation: Governing Rule:

Compliance Item: - 1 Investigator’s Observation: Governing Rule:

Compliance Item: - Investigator’s Observation: Governing Rule:

Compliance Item: - Allegation 1 Investigator’s Observation: Substantiated Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: - Allegation 3 Investigator’s Observation: Substantiated Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - 1 Investigator’s Observation: Governing Rule:

Compliance Item: - 1 Investigator’s Observation: Found Governing Rule: Namely, A.R.S. § 32-1151.01: A corporation, association or other organization that is a licensed contractor shall immediately notify the registrar of any transfer of ownership of twenty-five percent or more of the stock or beneficial interest in the company

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: - Hallway Bathroom door trim is all off. door is crooked one part on the tip of the tile the other is not on the tile that they removed Investigator’s Observation: I observed the door jam and the trim with excessive gaps in the joint that were filled in with caulk. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - Master bedroom door doesn't shut right because its crooked and can see light at the top. The bottom of the door was cut off by my table saw they borrowed and destroyed the bottom. Door is so off it rattles when the heater comes on. You can see light throu Investigator’s Observation: I observed the Master bedroom door from the hallway. The door closed I can see the door is not flush with the jamb allowing excessive light from the bedroom to come into the hallway. The bottom of the door is cut uneven and I can see the saw cut. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - Hallway closet door ruined completely destroyed by a nail gun and trim is horrible uneven. Hallway closet removed and threw away trim that had nothing to do with the door Investigator’s Observation: I observed a hollow core door that was modified to fit in the narrow door frame and along the hinge side of the door there are several exposed nails. Inside the closet it appears that the inside trim was not put back on / replaced. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: - Hallway closet now has insulation falling out of the attic, can see up into the attic a mess. hallway door destroyed by Daryl because didn't to wait for 22 in door, made one. Drywall exposed now on the right hand side inside of hallway door because the do Investigator’s Observation: I observed inside the closet which appeared to have previously trimmed inside the closet and now there are areas where the trim appears not to have been replaced. On the right side of the door frame the knock down was pulled off of the dry wall leaving a smooth surface. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - Master Bath, the bottom of the door damaged by workers using a table saw to cut the bottom off. Jagged on the bottom. uneven all around the entire door. the door is filled with 1 inch caulking around the door. It is now settled and caved into and is crack Investigator’s Observation: I observed an uneven cut at the bottom of the door and an excess of caulk used to fill in the trim around the door. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - bedroom 2, Closet door doesn't shut right. the trim is crooked, trim in closets was nailed over bottom trim and sticks out. Bedroom door trim at the top of the door goes from 1 inch to 3 inch totally crooked. looks horrible. very noticeable. Investigator’s Observation: I observed the crooked trim on both doors including the top trim piece is uneven. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: - bedroom 3 Door rattles when the heater on. trim is all of the door is crooked an dpart of the pre hung is on the tile and the other side is on the floor. trim at the top starts out small and gets bigger very noticeable. shaved off some of the door because Investigator’s Observation: I did not observer any of the doors rattling because the heater was not on while there. The door trim is crooked and the top trim piece is very uneven. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: - Per City of Surprise no permits were obtained to build backyard and pool. Investigator’s Observation: I left a message for the city of Surprise, but have not hear back. The Contractor will need to obtain a permit on this job. Governing Rule:

Compliance Item: - Provide bonding to spa motor and metal frame around spa access opening. Investigator’s Observation: The access door to the spa motor was not able to close. this will need to be repaired. Governing Rule:

Compliance Item: - Complete grade at back and east side of house. Investigator’s Observation: The grading does appear to be directed towards the foundation of the house. It also appears that there is not the required space needed for proper drainage in the back of the home. Governing Rule:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: - Fix turf, so water does not drain into my house slab. Investigator’s Observation: The turn and grading are not installed in a manner that would move water from the foundation. Governing Rule:

Compliance Item: - Fix grading of entire property. Investigator’s Observation: There would have needed to have been a grading plan submitted with the permit to the city. This will need to be completed per that plan. Governing Rule:

Compliance Item: - Missing 2 lounge chairs in pool. Investigator’s Observation: Provide chairs as per contract. Governing Rule:

Compliance Item: - 1: All flooring removed Investigator’s Observation: Project abandoned. Governing Rule: Abandonment of a contract or refusal to perform after submitting a bid on work without legal excuse for the abandonment or refusal.

Compliance Item: - 2: New flooring not provided or installed. Investigator’s Observation: Project abandoned. Governing Rule: Abandonment of a contract or refusal to perform after submitting a bid on work without legal excuse for the abandonment or refusal.

Compliance Item: - 3: All tile not provided and not installed in master bath Investigator’s Observation: Project abandoned. Governing Rule:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: - 4: Master pan not installed Investigator’s Observation: Project abandoned. Governing Rule:

Compliance Item: - 5: Shower wall guest-poor workmanship, metal shutter too short. Investigator’s Observation: Project abandoned. Governing Rule:

Compliance Item: - 6: slab 2cm 1-2 chake beige not ordered or installed. Investigator’s Observation: Project abandoned. Governing Rule:

Compliance Item: - 2cm quartz not installed Investigator’s Observation: Project abandoned. Governing Rule:

Compliance Item: - 9: Plumbing vanity sinks not accomplished, master shower valve not complete. Investigator’s Observation: Project abandoned. Governing Rule:

Compliance Item: - 10: plumbing master bathtub not installed. Investigator’s Observation: Project abandoned. Governing Rule:

Compliance Item: - 11: kitchen trim not removed or installed. Investigator’s Observation: Project abandoned. Governing Rule:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: - 12: Toilets one removed not installed #2 not removed or installed Investigator’s Observation: Project abandoned. Governing Rule:

Compliance Item: 1 - Contractor failing to be diligent in performing and completing the project. Initial completion date on original contract was 9/1/2021. Items paid for per draw schedule on 11/5/2021 including windows, exterior doors, garage door and siding have not been in Investigator’s Observation: Due to the Stop Work Order and Respondents questions this has been amended for clarification of requirements. This complaint item is verified. It is not uncommon for unforeseen conditions to occur in the construction industry, however the timeline on this project has exceeded what would be generally acceptably by professional industry standards. Respondent shall perform work in a timely fashion as agreed upon in the contract. Respondent shall complete the project per original contract agreement, properly executed change orders, local building codes, professional industry standards and manufacturer's installation instructions. Governing Rule: Failure to take appropriate corrective action to comply with this chapter or with rules adopted pursuant to this chapter without valid justification within a reasonable period of time after receiving a written directive from the Registrar. The written directive shall set forth the time within which the contractor is to complete the remedial action. The time permitted for compliance shall not be less than fifteen days from the date of issuance of the directive. A license shall not be revoked or suspended nor shall any other penalty be imposed for a violation of this paragraph until after a hearing has been held.

Compliance Item: 1 - Decking separated from tile around the entire pool. Investigator’s Observation: The decking and tile have begun to separate. This issue will need to be repaired by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 1 - Cabinet doors have issues. Investigator’s Observation: The cabinet door panels are discolored around the perimeter. Respondent's supplier has agreed that all doors need to be replaced. t the time of inspection, they have been ordered. Contractor should make repairs by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 1 - Flat overhead between roof eaves is separating and wood is deteriorating. Investigator’s Observation: The soffit between to two roofs is lifted. It looks like there are inadequate supports above it. See pic 2. Contractor should repair by appropriate means Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 1 - Crack over entire ceiling in Great Room after hearing and feeling a large large thud/wood breaking coming from the roof on October 31, 2019. A dry-waller put drywall over it on November 20,2019 and the ceiling re cracked 4 days later. Investigator’s Observation: There was a large crack across the ceiling, It did appear to be where two pieces of drywall meet up. We are waiting for an engineers report. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: 1 - Work was not completed per written contract or written work order Investigator’s Observation: I noted that the work was not completed. Block walls were not finished in all 3 residences shown to me at the jobsite inspection. I noted various block wall sections were blocks were missing, blocks were broken, several block that had holes, and in various areas cap blocks were not installed. I also noted that various sections of the block wall were missing pilasters (columns). The Respondent is responsible for the work they completed up until termination. The Respondent shall ensure the wall is constructed according to plans, specifications and guidelines according to contract. This includes ensuring the appropriate cells are filled and all repairs are done satisfactorily. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 1 - Shower tiles are crooked and spacers not used. Uneven. Investigator’s Observation: Overall tile grout lines are uneven. The tile lines are not straight. Tiles are uneven. Tile should be straight with consistent grout lines and free from lippage.

Contractor should make repairs by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 1 - Flooring in master bathroom has dip. Investigator’s Observation: There was a dip in the master bath floor. The respondent has since fixed the dip, however the repair has a "ledge" in it between floor boards. The repaired seam in question should not have a noticeable ledge on it. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 The contractor should repair by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 1 - Fence was not fully installed - Steel cap finishing of the fence line was not installed leaving extremely sharp steel edge around the entire fence. Investigator’s Observation: This complaint item is verified. Respondent shall correct by appropriate means. Governing Rule: §32-1154. Grounds for suspension or revocation of license; continuing jurisdiction; civil penalty; recovery fund award A. The holder of a license or any person listed on a license pursuant to this chapter shall not commit any of the following acts or omissions: 1. Abandonment of a contract or refusal to perform after submitting a bid on work without legal excuse for the abandonment or refusal. 3. Violation of any rule adopted by the registrar. RULE 4-9-108 WORKMANSHIP STANDARDS

A. A contractor shall perform all work in a professional manner. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 1 - One of the original leaks was repaired but still leaks. Investigator’s Observation: There was no leak on the day of jobsite inspection. There was evidence of a past leak in the form of stains on the ceiling. The roof should be free from leaks.

Contractor should repair by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 1 - The project was for a full roof replacement both house and garage. When the project was complete and within a couple of weeks, the area around my Pellet Stove up pipe started leaking. They came and repaired it by replacing the cap on the stove pipe. Investigator’s Observation: The Registrar received and investigated your complaint. The Registrar determined that the chimney pipe leaked when water was applied. Contractor will determine cause and repair by appropriate means.

Roofs should not leak and should be installed to withstand winds accompanied by heavy rains. The contractor should not be responsible for leaks caused by alterations, tie-ins or penetrations caused by owner or others after completion of the roof, nor for extreme weather conditions. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 1 - Solar panels have been on my roof since May 2021, I have contacted the Concierge for the Company dozens of times to find out when the final meter will be installed so that my solar is active. No one was able to give me a date due to "COVID". I was then Investigator’s Observation: The complainant relayed that she has been unable to get the respondent to get the system hooked up and functioning. She relayed that she is so fed up that she wants the respondent to remove the installation.

My review of the complaint documents and the contract indicate that the respondent is to handle the hook up of the system with the utility. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Page 6 of the contract relays the following in part:

a. Our work on the Solar System includes:

"acquisition of approval from your Utility"

The respondent is to resolve the condition in an appropriate manner. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 1 - "I need gutters to alleviate flooding in my backyard. I contacted Kanmar Construction. Josh said he would need to replace the patio cover in order to replace the gutters. He said they could do it that weekend or the next. When they didn't come out, I thou Investigator’s Observation: The contract was written 7/20/2020 to rebuild an incorrectly installed rear patio cover, install 6” gutters and downspout on the front and back of the house for $5391. That same day, the homeowner told me and showed where Josh (owner of Kanmar Construction LLC) tarred and caulked a patch on the roof on the front of the house, near where the gutters were to go. That area had been leaking into her house. This item was not on the contract and no compensation was given. This was the only work that was done. On 7/21/2020 The homeowner delivered a check for half in person to Joshua Scott at the Kanmar building. The check was for $2696. Josh advised the homeowner verbally the work would be done within the next two weeks. By the middle of August, the work had not been started. So she contacted Kanmar and asked for at least the gutters to be done. Still no one showed up to do the work. She contacted the office at Kanmar and was told she was on the schedule for September, but still heard nothing. On September 8, 2020, she sent an email and a letter via USPS to

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Kanmar advising she still wanted the work done and asked for a response by 9/19/2020. In October she reports that she called and went to Kanmar’s office several times trying to get the work done. On 10/14/2020 she found Josh at the Kanmar office. He advised he would get back to her the following Friday. She advised he acted as though she had cancelled the contract, which she did not do. He never called her back. At the end of November, she went to Kanmar again and Josh was there. He told her the cost of materials had increased and instead of costing the original amount of $5391, it would not cost her $6927 and he couldn’t give her credit for what she had already paid. He handed her with a new contract that was backdated to 7/20/2020, with the same estimate number. Josh told her he had returned the material for her job and had not received a credit. On 12/1/2020 Josh told her he would give her a $1000 credit for materials he had in the shop. The homeowner, Linda Flynn, provided me with a copy of her written statement during the inspection and a copy of the second bid. She also emailed me copies of a text message thread she had with Josh following his second bid, and copies of the email and letter she had written 9/8/2020 asking them to do the work they had contracted to do in July (before there was any talk of a second bid.) Joshua Scott, Kanmar, was not present for the inspection. On 12/18/2020, I had called and spoke with Josh for the Adverse Action call. He asked why we were setting up an inspection. He said, “We never even started the job. She, she signed the contract and we ordered the material and then she said she didn’t want to do the the patio cover and then so she said she didn’t want to do it so I, I cancelled the order and or well we cancelled the contract and then a couple of months later she came back and said you know what, can I get it done now? And I said we’d have to redo the whole contract.” I asked if he had any documents to verify that and he said he thought so. He said his daughter works the office and he would talk to her. I advised him he was welcome to work this out with the Complainant before the inspection date. On 12/29/2020, a warning letter was sent to Kanmar for elelements of a contract and on 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 12/31/2020 the inspection notice was sent via email and USPS to Kanmar with the date of the inspection. Josh has made no attempts to contact me. The homeowner said that Josh and/or Kanmar did not contact her in the past 30 days and none of her money has been returned. Due to the Respondent cancelling the contract, this appears to be abandonment. Governing Rule: Abandonment of a contract or refusal to perform after submitting a bid on work without legal excuse for the abandonment or refusal.

Compliance Item: 1 - Quartz counter has mismatched color lots. Two slabs adjacent to each other are different shades and from different manufacturing locations Investigator’s Observation: Noted the adjacent two slabs, one to the right of the sink and the peninsula slab were very different in color. The color/grain difference is very noticeable at the joint. Slab on the peninsula appears to be a lighter shade than adjacent slab. Allegations verified Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 2 - lt started leaking once again in the same place when we had snow and moisture on the roof which was in a couple of months. They returned and did some other things to the roof and said it was repaired. They finally sent their "warranty repair crew" who lif Investigator’s Observation: The Registrar received and investigated your complaint. The Registrar determined that the chimney pipe leaked when water was applied. Contractor will determine cause and repair by appropriate means.

Roofs should not leak and should be installed to withstand winds accompanied by heavy rains. The contractor should not be responsible for leaks caused by alterations, tie-ins or 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 penetrations caused by owner or others after completion of the roof, nor for extreme weather conditions. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 2 - Master Shower Investigator’s Observation: Respondent located an a/c supply in the master shower that needs to be relocated. When below dew point will cause condensation. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 2 - No painting was done on existing doors and drawers. Investigator’s Observation: The cabinets are currently not repainted. Contractor should paint cabinets per contract. Contractor should make repairs by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 2 - Travertine facing pool spillway has a very noticeable break in it, requested it be replaced, it is only on section, approx. 12”x12”. Lindahl has refused to address issue. Investigator’s Observation: Two damaged tile observed. CONTRACTOR TAKE CORRECTIVE ACTION. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: 2 - After damage the leak was fixed but the decking that was cut out was never replaced. Investigator’s Observation: The repair patch has not been completed in its repair and needs to be finished. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 2 - Crack in ceiling of dining room (continuation of great room crack). hole has developed where the ceiling meets the wall. Investigator’s Observation: The crack is a continuation of the one in the ceiling that has also gone down the wall. We are waiting for an engineers report. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 2 - Door to the outside hot water heater is coming apart. It appears to be an interior door. Investigator’s Observation: The hot water heater door is coming apart. It is an interior door. See Pic 3. Contractor should replace existing door with an exterior door and paint to match existing. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 2 - Paint incomplete on flashing above garage. Investigator’s Observation: There is a piece of roof-to-wall flashing that is not painted to match the rest of the flashing on the roof.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Contractor should paint the un-painted flashing an appropriate color. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 2 - There are stains on the ceiling as a result of the leaking roof. Investigator’s Observation: There are stains on the ceiling in the living room.

Contractor should repair by appropriate means using an appropriate subcontractor. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 2 - Many insulation leaks throughout the house. Inadequate insulation. Investigator’s Observation: The contractor already re-sprayed the ceiling. The contractor agreed that there are hot spots that were revealed as a result of an infrared test. The contractor should identify hot spots and make repairs by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 2 - Carpet has tack strips poking through. Investigator’s Observation: The tack strips at the thresholds are sticking through creating a puncture hazard.

Contractor should make repairs by appropriate means. Governing Rule:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: 2 - On 10/02/2020 I texted the contractor with concerns about craze cracking along the inside of the pool with images. It showed cracking along the steps and every flat surface of the pool. They replied and said the manufacture would be out to review the work Investigator’s Observation: The condition described were present. I noted several hair line cracks in various areas of the interior pool surface. Cracks that appear within the first 12 months of substantial completion are unacceptable. Respondent shall correct by the appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 3 - Tile at bedroom threshold is broken. Investigator’s Observation: There is a broken tile at the threshold to the bedroom. The tile is displaced indicating there was inadequate thinset under this corner of the tile.

Contractor should repair by appropriate means. Governing Rule:

Compliance Item: 3 - Crack where ceiling and wall meet in dinning room, cracking down the back wall above the dinning room sliding door. Investigator’s Observation: The crack is a continuation of the one in the ceiling that has also gone down the wall. We are waiting for an engineers report. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 3 - Fence pieces on west side installed uneven and crooked. Investigator’s Observation: Governing Rule: §32-1154. Grounds for suspension or revocation of license; continuing jurisdiction; civil penalty; recovery fund award 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 A. The holder of a license or any person listed on a license pursuant to this chapter shall not commit any of the following acts or omissions: 1. Abandonment of a contract or refusal to perform after submitting a bid on work without legal excuse for the abandonment or refusal. 3. Violation of any rule adopted by the registrar. RULE 4-9-108 WORKMANSHIP STANDARD Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 3 - Electrical Investigator’s Observation: Light combo switch for master bath is located in master bedroom not in bathroom. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 3 - The gutter at the back of the home is dented from the respondent's ladder. Investigator’s Observation: There are dents in the middle 10ft section of the gutters on the back of the home.

Contractor should repair by appropriate means. Paint if required to match existing gutters. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 3 - the roof has broken tiles. I contacted the builder and was told that the roof would be inspected and all broken tiles fixed. A team was sent and fixed 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 one tile. I called Meritage and a team replaced a second tile. I hired an independent home inspector Investigator’s Observation: I noted a roof tile at the front right side of the residence ( hip section) that was crocked and not in line with the rest of the tile on that hip roof line. Respondent acknowledged they are planning on correcting this item. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 3 - Last week we had some rain, and it leaked once again in the exact same place. 1have given them three times to get this leak fixed and am not satisfied that they can fix this problem which has been demonstrated by their three attempts. 1 would like to get Investigator’s Observation: The Registrar received and investigated your complaint. The Registrar determined that the chimney pipe leaked when water was applied. Contractor will determine cause and repair by appropriate means.

Compliance Item: 3 - Hot water heater is not installed to code. Investigator’s Observation: The pressure relief pipe is not plumbed to the exterior. See pic 4.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Contractor should plumb the pressure relief pipe to the exterior. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 4 - Crack next to great room sliding doors. Investigator’s Observation: The crack is a continuation of the one in the ceiling that has also gone down the wall. We are waiting for an engineers report. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 4 - Stucco texture pattern not consistent. Investigator’s Observation: Stucco patterns do not match on rear patio area. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 4 - Suction line in the pool for sweep never worked properly. Investigator’s Observation: The suction line will need to be completed as per contract. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 4 - Kitchen cabinet shelf missing. Investigator’s Observation: The cabinet above the microwave has hardware for an additional shelf but no shelf. Contractor should supply a second shelf.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Contractor should make repairs by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 4 - Electric issues, including switches that don't work and multiple problems with circuits being tripped for no apparent reason. Investigator’s Observation: At jobsite inspection the Complainant pointed out multiple lighting fixtures to me. There is a light at the top of the stairs which Complainant contends flickers. At the jobsite inspection I was not able to substantiate this and this particular light appeared to be working properly.

In addition to this, there are some recessed lighting and smart switches on the first floor of the home installed by Respondent that do not function properly. There are two lights in the walls of the staircase which appear to not be functioning. Respondent acknowledged, based on the type of lighting installed, that these lights are known for being unreliable after install. Respondent offered to replace these lights at job site inspection which Complainant indicated was an acceptable solution to this issue. Lighting should function as intended and Respondent shall correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 5 - Creaky floor outside of bathroom fixed by placing a screw through the carpet and pad. screw head easily visible in center of floor Investigator’s Observation: I noted that a screw was run through the carpet into the floor joist. The screw did not made it all the way through the carpet fabric therefore it can be felt and also creates a dimple on the carpet.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Respondent shall correct by the appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 5 - Crack on wall of great room from ceiling to hallway down wall. This crack is about 8-12 inches away from the initial crack in the great room ceiling descried in #1. Investigator’s Observation: The crack is a continuation of the one in the ceiling that has also gone down the wall. We are waiting for an engineers report. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 5 - Decking cracks were never repaired as promised and are now no longer minor repairs. The cracks are widening. Investigator’s Observation: The cracking on the deck are outside acceptable standards, these cracks will nee to be repaired by appreciable means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 5 - Sink not centered. Investigator’s Observation: Under mount sink is visibly off center. Left and front of the sink give the perception of a negative reveal. The right and rear sides of the sink appear as more of a zero or positive reveal. Sink should be equal on all sides. Allegation verified. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: 5 - Safety issue with window screen not fitting in upstairs loft. Screen has never fit. Investigator’s Observation: The window screen for the easternmost window on the second floor loft was observed to not fit appropriately and should be corrected by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 5 - Kitchen cabinet scratch in door. Investigator’s Observation: There is a scuff in the left door above the microwave. The contractor agrees and has contacted the cabinet supplier.

Compliance Item: 5 - Install the Three lights above Kitchen Breakfast Bar Investigator’s Observation: An agreement was reached Complainant will provide lights and Respondent will install. Counsel for Respondent was present. Governing Rule:

Compliance Item: 6 - Crack in ceiling above refrigerator area. Investigator’s Observation: There is a small superficial crack consistent with settling above the refrigerator. These type of repairs are typically a one year punch list repair from the builder. Governing Rule: Violation of any rule adopted by the Registrar; Namely

Compliance Item: 6 - Missing door hardware identified at closing. Investigator’s Observation: There are screws missing in various door knobs throughout the home. Contractor should identify missing hardware, supply and install.

Contractor should make repairs by appropriate means Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 7 - Crack in ceiling in garage. Investigator’s Observation: The crack is consistent with settling. These type of repairs are typically a one year punch list repair from the builder. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 7 - Bare spot gravel needed in front yard identified at closing. Investigator’s Observation: There are some inconsistencies in the gravel coverage in the front yard. The contractor agreed to this at the JSI. Gravel coverage should be consistent.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliance Item: 8 - Crack in ceiling in the hall to laundry room. Investigator’s Observation: The crack is consistent with settling. These type of repairs are typically a one year punch list repair from the builder. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 8 - Incorrect paint matching after recent drywall repairs. Investigator’s Observation: The only areas observed to require attention regarding this allegation are: the inside wall of the pantry surrounding the doorbell transformer, which exhibited inconsistent color and sheen; the ceiling in the upstairs loft area which exhibits inconsistent texture and sheen after repairs; and an upstairs bedroom where a gap in the ceiling/wall junction was filled with some sort of caulking which is still visible and paint does not match the surrounding areas. Respondent shall correct these issues by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 9 - Install all window screens. Investigator’s Observation: Respondent will install missing screen from Rear Spare Bedroom. Counsel for Respondent was present Complainant requested screen doors for two sliding doors. Was not covered in contract. Governing Rule:

Compliance Item: 9 - Large open gap at end of peninsula Investigator’s Observation: It is noted that there is a 1/2 inch gap between the end of the peninsula cabinets and the back side of the quartz waterfall at the end of the peninsula. This exceeds the workmanship standard of 1/8 inch caulk joint. Allegations verified 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 9 - Back wall of house outside patio becoming detached from the patio ceiling. it is over 1/4 wide and appears to be growing. Investigator’s Observation: This crack is in line with the main crack in item #1. We are waiting for an engineers report. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 10 - Multiple walls out-of-square and/or bowed significantly, both upstairs and downstairs. Investigator’s Observation: There are two walls in the home which exhibited the issues referred to in this allegation; the east wall of the upstairs loft and the west wall of the downstairs living room were observed to be out of plumb or "bowed." Respondent has reportedly done some repairs to the upstairs wall but the wall is still not straight. The downstairs living room wall is bulging on the western side; a rep for Respondent acknowledged that there is a plumbing line within the wall which is likely contributing to this issue. Respondent shall correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 11 - Every window in the house has cracks in the window sill. Investigator’s Observation: The crack is consistent with settling. These type of repairs are typically a one year punch list repair from the builder. Governing Rule: Violation of any rule adopted by the Registrar; Namely

Compliance Item: 11 - Tile grout in shower Investigator’s Observation: Though this was not directly mentioned in the complaint, in the interest of good customer relations this item should be corrected by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Compliance Item: 13 - . 02/24/2021 I walked outback, to see that the pump they had placed in the pool was gone, my pump would not turn on and the pool looked terrible with streeks and swirls. I send a text to the contractor again asking what the status is and they responded “H Investigator’s Observation: The condition described were present. I noted several hair line cracks in various areas of the interior pool surface and this part of the complaint item was addressed in complaint item #2. Also a white in color stain was present in various areas of the pool interior surface. Respondent shall correct by the appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Note:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Please review the complaint items listed above. If any of the items have not been corrected at the time of the compliance inspection this complaint will be forwarded to the Registrar’s legal department and a citation may be issued.

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

David Fagerburg, Investigator #210 (602) 771-6735 [email redacted] 1700 W Washington St,Suite 105 Phoenix, AZ 85007-2812

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

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

Complainant Attorney: Zachary Rosenberg Esq. 2394 E Camelback Road, Suite 600 Phoenix, AZ 85016

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

Respondent Attorney:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 David Fagerburg #210 2024-05665 CJSI Photos

September 17, 2024 - 1:30 PM

13637 E Dove Valley Rd Scottsdale, AZ 85262

P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9 P 10 Complainant: Jaime S. Mayol 13637 E Dove Valley Road Scottsdale, AZ 85262

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Respondent: Southern Arizona Structures LLC P.O. Box 2491 Carefree, AZ 85377

Compliance Jobsite General Notes: Both parties were present at this compliance jobsite inspection CJSI photos taken with my Pixel 6 Pro Cell Phone CJSI audio recorded with my Olympus Digital Voice Recorder model DM-720 Photos #1 and #2 are of the complainant’s residence and address.

Investigator Notes: 1: After receiving additional information from the complainant’s attorney and the manufacture of the plumbing fixture stop valves “Copperfit Industries” related to complaint item 52 it has been determined that this complaint item requires correction. The respondent shall correct complaint item 52 throughout the main and guest house by appropriate means. All other items listed on the Written Directive issued July 30, 2024 remain standing. 2: At this compliance jobsite inspection both parties acknowledge that the only 2 items addressed during the directive time frame were complaint itrems 42 and 43. 3: At this compliance jobsite inspection the respondent stated that complaint items 42 and 43 are the only 2 items that can legally be addressed. 4: The complainant’s attorney Zachary Rosenberg was present representing the complainant. 5: Ernest Smith was present representing the respondent.

Compliance Findings:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliant Item 3: There were no outlets provided and no branch circuitry ran for certain luminaires that are shown in the drawing. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 4: The luminaire above the vanity in the master bedroom is non-functional. It appears to require a driver for operation, which is not present. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 5: The outdoor kick lights are non-functional. They do not have the required driver to make them operational. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 6: The LED strip light for the master bathroom shower is not installed. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 7: The special purpose luminaire for the stream bath is not installed. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 8: There is no luminaire above the toilet in the master bathroom. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 9: The half bathroom, adjacent to the game room, is missing a lighting strip and has no circuit to supply power. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 10: There are 3 ceiling fixtures, outlets, and branch circuitry missing in the living room. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliant Item 11: Outlets, branch circuitry, and strip lights are missing in the family room. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 12: The kitchen is missing 2 of the 3 ceiling lights, outlets, and branch circuitry. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 13: The lighting above the refrigerator in the kitchen is missing, along with the outlet and branch circuitry. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 14: None of the (12) ceiling fans throughout the main residence have been delivered or installed. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 15: The exterior outside lighting off the master bedroom was not run on separate circuits for independent control. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 16: There is no indication on what circuit feeds power to the fireplace. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 17: The south and west exterior luminaires are on the same circuit and cannot be independently controlled. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliant Item 18: The disconnecting means for the HVAC system in the garage closet is not readily accessible. NEC 440.14 Location. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 19: The heat pumps are undersized for the size of the residence in violation of the 2012 International Residential Code (IRC) Section N1103.6 Equipment sizing (Mandatory). Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 21: The system that was designed and installed less than the required 16 SEER rating and is missing variable speed fans that are required for the zone control system to operate. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 23: The thermostats are not in an accessible location. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 24: The installed ducts suffer substantial air leaks and are not sealed as required by 2012 IRC section N1103.2.2 (R403.2.2) Sealing (Mandatory). Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliant Item 25: The air handler plenums were not insulated or sealed. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 26: Many of the ducts are not securely fastened or sealed in violation of 2012 IRC section M1601.4 Installation. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 27: The ducts in the master bedroom were installed with severe duct transitions. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 28: The air handle disconnect in the master closet is not accessible. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 29: The open supply duct joints in the master bedroom and garage were incorrectly designed and/or installed and have failed. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliant Item 32: Insufficient airflow is being provided to the office, game room, kitchen, dining room and living room. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 33: The ductwork in the ceiling space above the master bathroom and closet have severe restrictions, precluding them from operating effectively. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 34: Many of the ducts and ductwork is undersized for the Project such that the ducts cannot accommodate the airflow that is provided by the air handler. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 35: Neither the main house nor the casita/guest house has mechanical ventilation as required by 2012 IRC section N1103.5 (R403.5) Mechanical ventilation (Mandatory). Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 36: The Project did not have air leakage testing as required by the 2012 IRC sections N1102.4 (R402.4) Air Leakage (Mandatory) and N1102.4 (R402.4.1.2) Testing. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 38: The three air handlers do not have P-Traps as required by the manufacturer. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliant Item 39: SAS installed on all three mechanical closet doors, louvers that are not required and allow debris into the residence. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 40: The instantaneous combustion vent for the water heater in the garage terminated inside and should have been routed outside the building. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 42: An indoor-only pump with less than half the required capacity was installed outside to pump potable water from the storage tank to the house. Investigator’s Observation: The respondent replaced the indoor only pump with an underground Grundfos pump model 22 SQE 15-220 which I am unable to observe. Reference P (3) and P (4). Prior to this compliance jobsite inspection the complainant’s attorney sent an email with corrective work photos and installation instructions along with other documents dated September 3, 2024 voicing concern that the new pump installed has a 1-1/2” diameter discharge and the respondent bushed down to a 1-1/4” PVC pipe approximately 12” after the pump discharge inside the cistern then expanded back to a 1-1/2” at the original underground pipe. The photo referenced does show a reduction in PVC pipe size after the discharge side of the pump. The respondent acknowledged that the supply piping to the main home and Casita is 1-1/2” diameter. Upon reviewing the Grundfos pump manufacturer installation instructions page 14 discharge port provided by the complainant’s attorney the discharge port is 1-1/2” diameter. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 43: The expansion tank for the external water pump was undersized for the combined capacity of the Main House and the Casita/guest house. Investigator’s Observation: The respondent replaced the expansion tank with a maximum pressure of 70 PSI which normally operates at 60 PSI. Reference P (3) P (6) thru P (9). The expansion tank appears to have a 1-1/4” diameter pipe to the supply and discharge ports and is not compatible with the 1-1/2” discharge piping from the underground pump. Upon reviewing the Grundfos pump model 22 SQE 15-220 graph provided by the complainant’s attorney there is a maximum of 25 GPM at 60 PSI. Governing Rule: The respondent is not in compliance with the directive. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliant Item 44: The PEX hot and cold-water piping is not supported in violation of 2012 IRC Table P2605.1. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 45: The hot water and hot water recirculating piping was not insulated with a minimum of R-3, per 2012 IRC, Section N1103.4.2, Hot water pipe insulation (prescriptive) Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 46: There is improperly-sloped 2-inch ABS vent pipe above the master bedroom. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 48: The propane tank was not installed on a concrete foundation in violation of 2020 Liquefied Petroleum Gas Code NFPA 58 Section 6.8.3.1 and is now unevenly sinking into the ground. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 49: The location and installation of the propane tank (near the driveway) is not protected from vehicle impact in violation of 2012 IFGC, Section 303.4. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 50: The plumbing for the propane tank is subject to excessive stress and strain in violation of 2012 IPC, Section 305.2. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliant Item 51: The dishwasher flexible drain hoses are not routed high under the sinks per 2012 IRC section P2717.3 Sink, Dishwasher and food grinder. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 53: The Casita / Guest House water heater drain pan terminates inside the house but should terminate outside the house. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 54: The master bathroom lavatory drainpipe in the main house leaks water in the cabinetry. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 55: The bathtub faucet was improperly installed such that it cannot fully move without hitting the wall, preventing the bathtub from being used as intended/designed. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 56: A surface mount reglet was installed directly to the stucco cladding, which is not in keeping with industry standards. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliant Item 57: An improper surface-mount flashing was used instead of a stucco-mount flashing, which is allowing moister to enter the stucco walls and leak through electrical and window penetrations in the stucco. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 58: The flashings installed at the head walls above the patio overhangs are not in compliance with industry standards and 2012 IRC Section R903.2.1 Locations. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive. Compliant Item 59: STX flashing is missing entirely on the west (front entrance) of the building. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 60: Crickets are missing from the ridge sides in violation of IRC Section R903.2.2. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 61: The weather barriers installed at closures were incorrectly installed and are now releasing / blowing out. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 62: Two roof sections show signs of damage consistent with improper handling during installation that need to be replaced. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Compliant Item 64: The front door does not close and/or seal correctly. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 66: The wood finishing on the exterior wooden doors was either of an improper type and/or was improperly applied. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 67: The glazing on the exterior wood doors was of an improper type and/or was improperly applied. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 68: Numerous interior doors and door frames are (a) not straight and/or square; (b) do not properly latch; and/or (c) are difficult to close. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 69: The garage door and/or the hardware was improperly installed or was of the wrong kind such that garage door fails to open or close or remain open or closed. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Compliant Item 70: The Garage door was only partially painted and, instead of a single solid color for all segments, has a “zebra” pattern with missing areas of paint. Investigator’s Observation: There was no attempt to correct this complaint item by the respondent. Governing Rule: The respondent is not in compliance with the directive.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Complaint Item 73 a: Beginning no later than June of 2023, Mayol notified SAS of numerous problems with and unfinished portions of SAS’ work on the Project and demand that SAS correct those problems and finish the Project. SAS would generally promise to undertake such work to schedule a time to do so, but either never completed the work or scheduled a time to do so. An sampling of Mayol’s communications to SAS demanding SAS complete the Project or make necessary repairs is attached as Exhibit 6 to the Complaint. Though SAS was technically last on site on or about January 1, 2024, it was there to supervise the work of others and has done little to no work on the Project since before that. A partial list of key events is as follows: From approximately September 25, 2023, to October 6, 2023, SAS undertook completion/repair of some punch list items but left the majority unfinished. Investigator’s Observation: There was no attempt to complete the project by the respondent. Governing Rule: The respondent is not in compliance with the directive.

Note:

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

David Fagerburg, Investigator #210 (602) 771-6735 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007-2812

CC: Respondent Complainant Complainant Attorney

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Complainant Attorney: Zachary Rosenberg Esq. 2394 E Camelback Road, Suite 600 Phoenix, AZ 85016

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

Jaime S. Mayol Case No. 2024-05665 COMPLAINANT, v. Southern Arizona Structures LLC CITATION License No. ROC 289023 & 309129,

RESPONDENT.

The Registrar issues this Citation to Southern Arizona Structures LLC (“Respondent”)

under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by October 4, 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 May 16, 2024, Jaime S. Mayol (“Complainant”) filed a written complaint with the

Registrar. A copy of that Complaint is attached to this Citation.

A FORMAL STATEMENT OF THE CHARGES AGAINST RESPONDENT

The Registrar investigated this matter and finds cause to charge Respondent with

violation(s) of Title 32, Chapter 10 of the Arizona Revised Statutes. Respondent is charged

with violating:

Charge 1: A.R.S. § 32-1154(A)(1)

Abandonment of a contract or refusal to perform after submitting a bid on work

without legal excuse for the abandonment or refusal.

of 6

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Charge 2: A.R.S. § 32-1154(A)(2)(a) Departure from or disregard of: (a) Plans or specifications in any material respect that is prejudicial to another without consent of the owner or the owner’s duly authorized representative and without the consent of the person entitled to have the particular construction project or operation completed in accordance with such plans and specifications and code. Charge 3: A.R.S. § 32-1154(A)(2)(b) Departure from or disregard of: (b)A building code of this state or any political subdivision of this state in any material respect that is prejudicial to another. Charge 4: A.R.S. § 32-1154(A)(3) - R4-9-108(a) Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner. Charge 5: A.R.S. § 32-1154(A)(9)(a) Attempting to evade this chapter by: (a) Aiding or abetting a licensed or unlicensed person. Charge 6: A.R.S. § 32-1154(A)(22) Failure to take appropriate corrective action to comply with this chapter or with rules adopted pursuant to this chapter without valid justification within a reasonable period of time after receiving a written directive from the Registrar. The written directive shall set forth the time within which the contractor is to complete the remedial action. The time permitted for compliance shall not be less than fifteen days from the date of issuance of the directive. A license shall not be revoked or suspended nor shall any other penalty be imposed for a violation of this paragraph until after a hearing has been held.

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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 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. 2024-05665. How to File a Written Answer: Respondent’s written answer may be submitted in the following ways: In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 Email: [email redacted]

The Registrar’s normal office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday. If Respondent submits a written answer by mail, it is not filed with the Registrar until the Registrar actually receives it. Deadline for Filing a Written Answer: Respondent must file a written answer with the Registrar no later than October 4, 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.

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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 Consequences for Failing to File a Written Answer: If Respondent fails to answer, Respondent’s failure may be deemed an admission of the act or acts charged in the written complaint. A.R.S. § 32-1155(C). The Registrar may then suspend or revoke Respondent’s license(s). THE ADMINISTRATIVE HEARING If Respondent files a timely written answer contesting any charges in the Complaint, then the Registrar will request the Office of Administrative Hearings set a date for an administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D). INVESTIGATOR’S APPEARANCE AS A WITNESS The Registrar’s assigned investigator will appear as a witness at the hearing. If either party demands the attendance at the hearing of any other person, that party must obtain and serve a subpoena in compliance with the rules and processes established by the Office of Administrative Hearings. RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B).

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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 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 September 19, 2024. By: /s/ Madelyn Hayes Madelyn Hayes Legal Assistant II 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, September 19, 2024 to:

Respondent Certified Mail No: [number redacted]

Southern Arizona Structures LLC P.O. Box 2491 Carefree, AZ 85377 Copy mailed by USPS First Class mail this same date to: Southern Arizona Structures LLC P.O. Box 2491 Carefree, AZ 85377

Complainant Jaime S. Mayol 13637 E Dove Valley Road Scottsdale, AZ 85262

Zachary Rosenberg Esq. 2394 E Camelback Road, Suite 600 Phoenix, AZ 85016 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 Complainant’s Attorney at email address of record with Registrar [email redacted]

Case No. 2024-05665 / 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 DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

Licensed Complaint Form For Current or Suspended Licensees Instructions & Checklist

Instructions • Complete the entire complaint form. Incomplete or unsigned forms may be returned to you, which will delay the complaint process. • Attach copies of documents and information as listed in the checklist below with your complaint form. Include copies of permits, invoices, advertisements, business cards and receipts. Do not send originals as they will not be returned to you. • Do not attach the following information or documentation with your complaint:  Photos (this includes photos stored on a disk or flash drive)  Sets of plans, specifications, drawings, sketches, etc.  Samples (such as flooring, brick, paint, roofing, landscape rock, etc.) • Investigators will take their own photos, review your plans and/or specifications, drawings, sketches, and visually inspect any samples as necessary at the time of the jobsite inspection. Please be sure to have this information and documentation ready for review by the Investigator at that time. The Investigator assigned to your complaint may request to review project information prior to the inspection if necessary.

Checklist 1) Contract a) For written contracts, provide a copy of the original construction contract signed (by both parties) including all addenda and change orders. If the only written documents describing the contract are a proposal, bid, or invoice, please follow the instructions in b) for “if no written contract.” b) If no written contract, provide a written statement describing the agreement that includes the following information: i) The reason a written contract is not being provided (e.g. the contractor did not provide a written contract, the contract is lost, the contract was destroyed); ii) A description of any written documents used to describe the contract, e.g. bids, proposals, invoices, receipts. (If you have copies of any of these documents, please provide them with the Complaint Form.); iii) A description of the work to be performed under the contract (including any addenda or change orders); iv) The names of the people who negotiated the contract; v) The agreed upon payment schedule; vi) An explanation of who was to receive payment; and vii) The date the work was to be completed.

2) Proof of Payment(s); Acceptable forms of proof of payment are copies of: a) Front and back of cancelled checks. Redact account numbers. b) Credit card statements. Redact account numbers. c) Executed lien releases/waivers. d) Bank/Lender documents showing payments/draws actually received by the contractor. Redact account numbers.

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Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees Complaint Number: Mail to: Registrar of Contractors P.O. Box 18243 Phoenix, AZ 85005-8243

Person Filing Complaint Full Name (First Middle Last) Business Name (if a licensed contractor or supplier) ROC License Number(s) (if any) Jaime S. Mayol Mailing Address (Enter jobsite in Contract/Project section) City State Zip 13637 E. Dove Valley Road Scottsdale AZ 85262 Phone Number Email 480-559-0338 [email redacted] I consent to receive communications electronically in connection with this case Yes No Name of Attorney (if any) Zachary Rosenberg & Mario Vasta Street Address of Attorney City State Zip 2394 E. Camelback Rd., Suite 600 Phoenix AZ 85016 Phone Number of Attorney Email of Attorney 602-916-5315 [email redacted] & [email redacted] Contractor Information Name (as shown on contract/invoice) ROC License Number(s) Southern Arizona Structures, LLC 289023 & 309129 Street Address City State Zip 7202 E. Carefree Drive, P.O. Box 2800 Carefree AZ 85377 Phone Number Email 480-652-6698 [email redacted] Name of Person(s) Representing License Earnie Smith & Michele Guy Contract/Project Information Contract Date Contract Amount Amount Paid December 21, 2021 ~$1,700,000 ~$2,500,000 Date Work Started Date Work Stopped Date Work Was Completed 1/1/2024 NA Close of Escrow (New Home) Move-In Date (New-Home) July, 2023 Jobsite Street Address City State Zip 13637 E. Dove Valley Road Scottsdale AZ 85262 Name of Construction Site Owner Construction Site Name (if applicable) Jaime S. Mayol Living Trust Phone Number of Construction Site Owner Email of Construction Site Owner 480-559-0338 [email redacted] This complaint is for Abandonment Poor Work Other I have contacted the contractor by Phone Email Letter N/A Have you filed a complaint in court? Yes No N/A If yes, provide a copy of civil complaint Has any work been corrected? Yes No If yes, by whom? The contract was Written Oral Both All change orders were Written Oral Both N/A This project was Commercial Residential On Tribal Land This project involved New Home Remodel Repair Other A building permit was obtained by Contractor Property Owner Building permit #

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Licensed Complaint Form For Current or Suspended Licensees

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

1. As Set forth in Sec. I of Exhibit 1, hereto, Contractor violated workmanship standards 2.As set forth in Sec. II of Exhibit 1 hereto, Contractor used unlicensed subcontractors 3.As set forth in Sec. III of Exhibit 1 hereto, Contractor abandoned the project. 4. 5.In all, there are 73 complaint items in Exhibit 1, but in (brief) summary: 6.The HV/AC was improperly sized and installed and does not function correctly; 7.There are substantial portions of the electrical work that are incomplete or contrary to plans; 8.There are substantial portions of the plumbing that do not comply with applicable standards; 9.The propane tank was improperly installed in violation of codes; 10.The roof was improperly installed in violation of applicable codes; and 11. The doors were made of the wrong material, improperly finished, and improperly installed. 12. 13. 14. 15. 16. 17. 18. 19. 20. Signature I declare under penalty of perjury that the information and documents contained on this Complaint Form, included with this complaint, or hereafter submitted in support of this complaint are true and accurate to the best of my knowledge. I will assist in the investigation or in the prosecution of the contractor or other parties, and will, if necessary, attend hearings and testify to facts. Printed Name Signature Date Jaime S. Mayol 5-16-24

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Exhibit 1 DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

SPECIFIC ALLEGATIONS In support of the Licensed Complaint Form (“the Complaint”), the following is a recitation of some of the most significant issues with the construction of a new home, which includes a primary residence and a detached casita (“the Project”) that Jaime S. Mayol (“Mayol”) hired Southern Arizona Structures, LLC, ROC License Nos. 289023 & 309129 (“SAS”) to construct at 13637 E. Dove Valley Road, Scottsdale, AZ 85262 (“the Property”). A copy of the contract for the Project is attached as Exhibit 2 to the Complaint. There are at least four significant problems with the Project that warrant the ROC’s intervention and action: (1) SAS did not perform work in a professional or workmanlike manner, did not follow the Project blueprints, and failed to complete work in compliance with applicable law and industry standards; (2) SAS hired at least two unlicensed trades to perform critical work on the Project, which caused at least some of the defective workmanship issues complained of in this Complaint; and (3) SAS abandoned the Project without completing it or fixing problems that Mayol brought to its attention. For ease of reference and organization, problems are separated into sections and categories, but line items of specific defects are consecutively numbered. I. SAS violated A.R.S. § 32-1158 and AAC § R4-9-108 by failing to complete its work in a workmanlike manner, in compliance with applicable building codes, in compliance with industry standards, and in conformity with the Project plans. Though the Project suffers numerous defects, this Complaint is limited to the most significant problems known to date that preclude the house from being used as intended. a. Electrical problems As more completely detailed in the Professional Engineering Report of Anderson Engineering, a copy of which is attached as Exhibit 3 to the Complaint, the Project failed to comply with applicable codes and deviated from the construction plans in the following respects: 1. The electrical panel for the Casita/guest house is supplied by a 100-amp circuit breaker on a 125-Amp electrical subpanel instead of the required 200- amp subpanel, which fails to provide capacity for exterior and landscape lighting that was required by the plans and specifications.

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2. The luminaires are not properly coordinated with the devices that control their operation. The luminaires are not properly paired with the switches / controllers. The coordination issues are found in the living room, the kitchen, hallways, and the game room. 3. There were no outlets provided and no branch circuitry ran for certain luminaires that are shown in the drawing. 4. The luminaire above the vanity in the master bedroom is non-functional. It appears to require a driver for operation, which is not present. 5. The outdoor kick lights are non-functional. They do not have the required driver to make them operational. 6. The LED strip light for the master bathroom shower is not installed. 7. The special purpose luminaire for the stream bath is not installed. 8. There is no luminaire above the toilet in the master bathroom. 9. The half bathroom, adjacent to the game room, is missing a lighting strip and has no circuit to supply power. 10. There are 3 ceiling fixtures, outlets, and branch circuitry missing in the living room. 11. Outlets, branch circuitry, and strip lights are missing in the family room. 12. The kitchen is missing 2 of the 3 ceiling lights, outlets, and branch circuitry. 13. The lighting above the refrigerator in the kitchen is missing, along with the outlet and branch circuitry. 14. None of the (12) ceiling fans throughout the main residence have been delivered or installed. 15. The exterior outside lighting off the master bedroom was not run on separate circuits for independent control. 16. There is no indication on what circuit feeds power to the fireplace. 17. The south and west exterior luminaires are on the same circuit and cannot be independently controlled. 18. The disconnecting means for the HVAC system in the garage closet is not readily accessible. NEC 440.14 Location. b. HVAC Problems As more fully set forth in the Expert Report from Stone Engineering, Inc., a copy of which is attached to the Complaint as Exhibit 4, the HVAC failed to comply with

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applicable codes and deviated from the construction plans in numerous respects. As a practical matter, these defects prevent the house from properly cooling in the summer and properly heating in the winter: 19. The heat pumps are undersized for the size of the residence in violation of the 2012 International Residential Code (IRC) Section N1103.6 Equipment sizing (Mandatory). 20. The cooling system for the main house was improperly designed in using only two air conditioning units when engineering calculations for the needed cooling capacity show that at least three units were required for this size and design of structure. 21. The system that was designed and installed less than the required 16 SEER rating and is missing variable speed fans that are required for the zone control system to operate. 22. The Honeywell Home HZ432 TrueZONE air conditioner and zone control management system was not properly installed per the manufacturer’s requirements and is missing the required bypass dampers and was never properly balanced or commissioned. 23. The thermostats are not in an accessible location. 24. The installed ducts suffer substantial air leaks and are not sealed as required by 2012 IRC section N1103.2.2 (R403.2.2) Sealing (Mandatory). 25. The air handler plenums were not insulated or sealed. 26. Many of the ducts are not securely fastened or sealed in violation of 2012 IRC section M1601.4 Installation. 27. The ducts in the master bedroom were installed with severe duct transitions. 28. The air handle disconnect in the master closet is not accessible. 29. The open supply duct joints in the master bedroom and garage were incorrectly designed and/or installed and have failed. 30. In violation of the 2012 IRC section M1601.4 Installation, the ductwork in the attics is missing in some areas and has damaged insulation in others. In addition, the vapor barrier is compromised; the flex duct is unsupported and kinked; two different grades of flex duct was used, one of which was of poor quality and has already failed and the other was not properly installed.

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31. Many of the duct transitions and connections to the air handlers and air filters are only secured with failed metallic tape in violation of 2012 IRC section M1601.4 Installation, and/or are not properly supported as required by the standards set forth by The Sheet Metal and Air Conditioning Contractors National Association, Inc. 32. Insufficient airflow is being provided to the office, game room, kitchen, dining room and living room. 33. The ductwork in the ceiling space above the master bathroom and closet have severe restrictions, precluding them from operating effectively. 34. Many of the ducts and ductwork is undersized for the Project such that the ducts cannot accommodate the airflow that is provided by the air handler. 35. Neither the main house nor the casita/guest house has mechanical ventilation as required by 2012 IRC section N1103.5 (R403.5) Mechanical ventilation (Mandatory). 36. The Project did not have air leakage testing as required by the 2012 IRC sections N1102.4 (R402.4) Air Leakage (Mandatory) and N1102.4 (R402.4.1.2) Testing. 37. The exterior refrigerant pipe for the Air Conditioning unit was not installed with protection against weather or UV damage as required by IRC Section N1103.4.1 (R403.4.1) Protection of piping insulation. c. Plumbing Defects As more fully set forth in the Expert Report from Stone Engineering, Inc., a copy of which is attached to the Complaint as Exhibit 4, the plumbing on the Project suffers numerous flaws and code violations. These include but are not limited to: 38. The three air handlers do not have P-Traps as required by the manufacturer. 39. SAS installed on all three mechanical closet doors, louvers that are not required and allow debris into the residence. 40. The instantaneous combustion vent for the water heater in the garage terminated inside and should have been routed outside the building. 41. The time it takes hot water to reach the kitchen sink is 2 minutes, which is seconds longer than industry standard. See American Society of Plumbing Engineers (ASPE) Domestic Water Design Manual, Second Edition pages 234 and 235. 42. An indoor-only pump with less than half the required capacity was installed outside to pump potable water from the storage tank to the house.

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43. The expansion tank for the external water pump was undersized for the combined capacity of the Main House and the Casita/guest house. 44. The PEX hot and cold-water piping is not supported in violation of 2012 IRC Table P2605.1. 45. The hot water and hot water recirculating piping was not insulated with a minimum of R-3, per 2012 IRC, Section N1103.4.2, Hot water pipe insulation (prescriptive) 46. There is improperly-sloped 2-inch ABS vent pipe above the master bedroom. 47. The propane and water piping running underground and into the walls of the structures is not properly protected from corrosion in violation of IRC Section P2603.3 Breakage and corrosion and IRC Section G2415.9 (404.9) Above-ground piping outdoors and G2415.11 (404.11) Protection against corrosion. 48. The propane tank was not installed on a concrete foundation in violation of 2020 Liquefied Petroleum Gas Code NFPA 58 Section 6.8.3.1 and is now unevenly sinking into the ground. 49. The location and installation of the propane tank (near the driveway) is not protected from vehicle impact in violation of 2012 IFGC, Section 303.4. 50. The plumbing for the propane tank is subject to excessive stress and strain in violation of 2012 IPC, Section 305.2. 51. The dishwasher flexible drain hoses are not routed high under the sinks per 2012 IRC section P2717.3 Sink, Dishwasher and food grinder. 52. All of the plumbing fixtures stops (valves) in the main house and the guest house have pipe dope on the compression fittings connection to the copper pipe in violation of 2012 IRC, section P2609.2, Installation of materials and the manufacturers’ installation specifications. 53. The Casita / Guest House water heater drain pan terminates inside the house but should terminate outside the house. 54. The master bathroom lavatory drainpipe in the main house leaks water in the cabinetry. 55. The bathtub faucet was improperly installed such that it cannot fully move without hitting the wall, preventing the bathtub from being used as intended/designed.

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d. Improper roof installation As more completely set forth in the expert report from WRECORP attached as Exhibit 5 of the Complaint, the roof was improperly installed in violation of applicable code requirements and is showing signs of premature ware as a result. 56. A surface mount reglet was installed directly to the stucco cladding, which is not in keeping with industry standards. 57. An improper surface-mount flashing was used instead of a stucco-mount flashing, which is allowing moister to enter the stucco walls and leak through electrical and window penetrations in the stucco. 58. The flashings installed at the head walls above the patio overhangs are not in compliance with industry standards and 2012 IRC Section R903.2.1 Locations. 59. STX flashing is missing entirely on the west (front entrance) of the building. 60. Crickets are missing from the ridge sides in violation of IRC Section R903.2.2. 61. The weather barriers installed at closures were incorrectly installed and are now releasing / blowing out. 62. Two roof sections show signs of damage consistent with improper handling during installation that need to be replaced. 63. Numerous grommet screws and washers that are intended to secure the roof pieces to each other and the rest of the building are not flush and others have been covered in sealant, suggesting an improper installation with sealant installed as a temporary water-proofing measure that will cause the roof to fail prematurely. e. Improper door installation and selection The doors that were installed on the Project suffer numerous defects: 64. The front door does not close and/or seal correctly. 65. The doors to the exterior patio in the living room are made of a material not suited for exterior doors such that they (a) warp and degrade rapidly and (b) fail to insulate against the heat and cold. 66. The wood finishing on the exterior wooden doors was either of an improper type and/or was improperly applied. 67. The glazing on the exterior wood doors was of an improper type and/or was improperly applied.

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68. Numerous interior doors and door frames are (a) not straight and/or square; (b) do not properly latch; and/or (c) are difficult to close. 69. The garage door and/or the hardware was improperly installed or was of the wrong kind such that garage door fails to open or close or remain open or closed. 70. The Garage door was only partially painted and, instead of a single solid color for all segments, has a “zebra” pattern with missing areas of paint.

II. SAS violated A.R.S. § 32-1154(A)(13) by knowingly hiring unlicensed trades to perform work, including some the work noted above. Mayol’s investigation into the problems with the Project has revealed that SAS hired at least the following unlicensed entities/persons to perform work on the Project. 71. Joe Begay of AIE Design, which so far as Mayol can determine is not licensed with the Arizona Board of Technical Registration, performed architectural and engineering services on at least some of the Project. 72. Daniel Elzy Trimble of Cave Creek Air performed the HVAC work despite its license (ROC #090514) being revoked in 2002.

III. SAS abandoned the Project in violation of A.R.S. § 32-1154(A)(1). 73. Beginning no later than June of 2023, Mayol notified SAS of numerous problems with and unfinished portions of SAS’ work on the Project and demand that SAS correct those problems and finish the Project. SAS would generally promise to undertake such work to schedule a time to do so, but either never completed the work or scheduled a time to do so. An sampling of Mayol’s communications to SAS demanding SAS complete the Project or make necessary repairs is attached as Exhibit 6 to the Complaint. Though SAS was technically last on site on or about January 1, 2024, it was there to supervise the work of others and has done little to no work on the Project since before that. A partial list of key events is as follows: a. From approximately September 25, 2023, to October 6, 2023, SAS undertook completion/repair of some punch list items but left the majority unfinished. b. Between approximately October 16, 2023, and November 3, 2023, SAS was at the Property allegedly to replace a failed water pump which was done improperly. See item no. 42 above.

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c. On December 28, 2023, SAS was on site to attempt to correct some of the roofing issues, but failed to do so appropriately. See Section I.d above). d. On January 1, 2024, SAS was on sight with an unlicensed subcontractor (see item no. 71 above) to swap undersized air conditioner compressor units, which failed to cure the problems with the HVAC. See Section I.b above). Mayol initially agreed to pay $1.2 million for SAS to complete the Project (other than certain appliances and furnishings that would be separately agreed to), but to date has paid approximately $2.5 million for the Project, which is not complete and even many of the “completed” portions are not built in compliance with a applicable code or the plans for the Project. Mayol, at SAS’ instruction, paid many of the material suppliers and other trades directly. A selection of proofs of payment are attached to the Complaint as Exhibit 7, and more information regarding payment can be provided if requested.

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Exhibit 2 DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

Construction Management Contract (North) This agreement is made by Southern Arizona Structures, LLC (Contractor) and Jamie S. Mayol (Owner) on the date written beside our signatures. Contractor Southern Arizona Structures, LLC 7202 E. Carefree Drive, P.O. Box 2800 Carefree, Arizona 85377

Work Phone Number: 480-486-2196 (Ernie Smith) Cell Phone Number: 480-652-6698 (Michele Guy) Email Address: [email redacted]

Southern Arizona Structures, LLC is operating as a limited liability company in the state of Arizona. Southern Arizona Structures, LLC will be referred to as Contractor throughout this agreement. Owner Owner Name, Addresses, Telephone, Email

Jamie S. Mayol will be referred to as Owner throughout this agreement.

11971 N. 123rd Way, Scottsdale, AZ 85259 Email: [email redacted] Telephone: 480-559-0338 The Construction Sites Address NORTH Parcel: 13637 E. Dove Valley Road, Scottsdale, AZ 85262 APN 219-40-437A Maricopa County

I. Project Description A. For a price identified below, Contractor agrees to act as construction manager and consultant for Owner on the Work identified in this agreement as the Mayol Residences. Anything in this agreement to the contrary notwithstanding, references to the "Work" means tasks identified under Scope of Work in this agreement and all responsibilities which can be reasonably inferred from those tasks but which are not specifically excluded from the scope of work. References to the "Contract Documents" means this Agreement and all documents incorporated by reference into this Agreement. In the context of work to be performed by others, "Contract Documents" can refer to Plans, Specifications and agreements between the property owner and contractors or suppliers for the construction of the Project. II. Contract Price A. In addition to any other charges specified in this agreement, Owner agrees to pay Contractor a fee of 16% of the construction cost for construction management services provided during completion of the Mayol Residences. For purposes of calculating the fee due Contractor, the following will be considered construction costs:

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1. All labor expenses paid by Owner if reasonably necessary to complete the Mayol Residences, including salary, wages, payroll taxes, insurance based on payroll and benefits such as pension and profit sharing, sick pay, vacation pay, medical and dental benefits. Labor expense may include both Work performed on the Job Site and Work performed at facilities or fabrication yards away from the Job Site. Labor tasks included in the construction cost may include demolition, removal, dismantling, cleanup, repair and construction of temporary structures. 2. All material costs paid by Owner if reasonably necessary to complete the Mayol Residences, including sales or use tax on materials, duties, charges for consumable supplies, small tools, delivery expense, storage and insurance premiums on materials. 3. All Contracts, Subcontracts and service agreements paid by Owner if reasonably necessary to complete the Mayol Residences, including construction Contracts, Subcontracts and professional /consulting services, builders' risk insurance, payment and performance Bond premiums, utility charges, fuel, reproduction services, permits, testing and Inspection fees, professional and consulting fees, royalties, license fees, debris hauling and tippage charges, accounting service fees and scheduling charges. The fee of Contractor is not a construction cost for the purposes of calculating the fee due Contractor. 4. All equipment expense paid by Owner and reasonably necessary to complete the Mayol Residences, including charges for rental of machinery and equipment, small tools, temporary facilities and structures, the cost of moving rented equipment and temporary facilities to and from the Job Site, the cost of installation, erecting and dismantling, and minor repairs made to equipment, machinery and temporary facilities at the Job Site. 5. Costs which will be included in the cost of construction and which are to be considered when calculating the fee due Contractor also include Incidentals, and Additional Services. B. For the purpose of calculating the fee due Contractor, the cost of construction will not include any of the following: the cost of buying, owning or renting land or rights-of-way, financing costs, legal fees, court costs or costs of arbitration and fees or charges imposed by private associations or government authority on the owner of land. C. In addition to the fee paid under this agreement and any additional expenses approved in advance by Owner, Contractor will be reimbursed for the following but only if documented with receipts and submitted to Owner with the next invoice presented by Contractor. 1. Out of pocket expenses reasonably necessary to completion of the Mayol Residences up to $500. III. Scheduled Start of Construction A. Work under this agreement will begin any time after this contract is signed by Contractor and Owner. IV. Scheduled Completion of Construction A. Work under this agreement will be Substantially Complete within 180 calendar days after the date construction begins. B. The Completion Date is an estimate made before Work begins and does not consider any changes which may be required, unusual weather conditions, limitations or requirements of government, unanticipated shortages of labor or materials or contingencies over which neither Owner nor Contractor have an influence. V. Documents Incorporated A. This agreement incorporates by reference certain documents which define and describe the Work Page 2 DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

to be done. The following documents are incorporated as though included in full as part of this agreement. 1. Plans

NORTH PARCEL: Current Plans dated 6/11/2021. Currently consisting of 35 sheets. Prepared by AIE Designs, LLC. And further identified as Approved Building Plans. (Date to be determined.)

VI. Scope of Work A. Review the plans and specs. Contractor will review the Plans and Specifications to ensure that the Mayol Residences can be completed in compliance with applicable laws and ordinances and within the schedule and budget set for the Mayol Residences. Plan review will consider availability of materials and labor and selection of alternate materials or building methods. Contractor will provide a written report on any problems found in the Plans and Specifications and will make a recommendation on dividing work between construction trade contractors. At the request of Owner, Contractor will prepare a preliminary estimate of construction costs and a proposed Construction Schedule based on the latest Plans and Specifications available. B. Review the proposed contract forms. Contractor will review all proposed agreements with Contractors, Subcontractors, Suppliers and service providers and forward an evaluation of each proposal to Owner with a recommendation that Owner either reject or approve the agreement. Contractor will ensure that all work required to complete the Mayol Residences is placed under contract, including temporary facilities and general requirements not associated with any construction trade. Owner will deliver to Contractor a copy of all written agreements when approved by Owner and a written summary of any oral agreements or understandings Owner reaches with Contractors, Subcontractors, Suppliers or service providers. C. Manage construction. Contractor will monitor Work on the Mayol Residences both on and off the Job Site on a daily basis to ensure that construction means, methods, techniques, sequences and procedures followed by Contractors, Suppliers and service providers are in compliance with their contracts and agreements and that construction is proceeding as planned. Discrepancies and defects in the Work and safety violations will be reported in writing to Owner and resolved by Contractor without the intervention of Owner or design professionals whenever possible. When requested by Owner, Contractor will prepare or update the written cost estimate, and project schedule. If any phase of construction is not proceeding as planned in spite of the best efforts by Contractor, Contractor will recommend steps Owner should take to ensure successful completion of the Mayol Residences on time and within budget, if still possible. D. Keep Owner informed of progress. When submitting any invoice for construction management services, Contractor will include a written report to Owner that (1) compares actual costs to date with estimated costs, and (2) notes and explains any problems encountered which might increase costs or extend the Completion Date, and (3) identifies steps being taken by Contractor to ensure completion of the Mayol Residences as scheduled and within budget, if still possible.

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E. Evaluate payment requests. Contractor will review, evaluate and forward to Owner each request for payment received from Contractors, Suppliers, and service providers. Contractor will identify whether the amount requested is correct based on work completed, materials supplied and terms of the applicable contract. Contractor will recommend an adjustment to any request for payment which does not accurately reflect the obligation of Owner for payment. Contractor will include with each request for payment a summary which shows the total Contract Price, payments to date on that contract and Retainage allowed (if any). F. Communicate with contractors and suppliers. Contractor will assist in resolving project development issues which may arise with Contractors, Suppliers, service providers or government authority. Issues which can not be resolved directly by Contractor will be referred to Owner or a design professional for resolution. Contractor will establish channels and procedures which ensure prompt transmission and response to requests for information, correspondence, memoranda, clarifications, Submittals, Shop Drawings, product data and Samples required for completion of the Mayol Residences. When required, Contractor will schedule and conduct meetings to resolve issues which affect schedule, safety, cost or project management. Contractor will ensure that minutes of these meetings are distributed to all concerned, including Owner. G. Assist with change orders. Contractor will respond to each request for a Change Order by ensuring that the form of the request complies with the contractor's agreement. When in compliance, Contractor will forward the request for a Change Order to Owner with a recommendation to either approve or reject the requested change. When a Change Order is approved, Contractor will assist in preparing documentation for the change. H. Assist with construction claims. Contractor will assist in resolving construction disputes by evaluating Claims, negotiating settlements when possible and forwarding complete documentation for any unresolved claim to Owner with a recommendation for acceptance or rejection. Contractor will recommend any action Owner should take after termination or default of any Contractor, Supplier or service provider. If arbitration or a legal action is required to resolve a construction dispute, Contractor agrees to prepare documentation, attend hearings or conferences and offer testimony which may tend to support the position of Owner in denying the Claim, unless the Claim is on behalf of Contractor. A. Scope of Work - Disclaimer 1. Nothing in this contract should be interpreted to require Contractor to perform architectural, engineering, accounting or legal services. All tests, Inspections, surveys, reports and investigations required to complete the Mayol Residences are the responsibility of Owner. 2. Contractor will perform no Work on the construction Site other than to observe progress, communicate with Contractors, Suppliers and service providers and report progress to Owner. Construction means, methods, techniques, sequences, procedures and safety on site are the sole the responsibility of Contractors, Suppliers and service providers working for Owner. Contractor will make best efforts to ensure successful completion of Mayol Residences on schedule and within budget but is not responsible for failure of any Contractor, Supplier or service provider to complete Work as agreed. Contractor takes no responsibility for acts or omissions of any Contractor, Supplier or service provider other than those employed by Contractor. 3. Nothing in this contract should be interpreted as giving Contractor the authority to obligate Owner to pay any amount to a third party or perform any act for a third party or waive any obligation of a third

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party. II. Permits and Fees A. Contractor shall secure all permits, licenses and renewals required by government authority to complete construction of the Mayol Residences. If permits are required for Subcontracted Work, Subcontractors will secure those permits. Owner shall assist Contractor in responding to requests for information from the permit-issuing authority. Contractor shall provide Owner a copy of each permit, license and renewal issued by government authority for the Mayol Residences. B. Owner will pay the building permit fee, Plan check fee, and charges levied by government for testing, Inspection and Re-Inspection of the Mayol Residences. C. Except as provided elsewhere in this agreement, Owner will pay all fees and application charges imposed by government authority, including, but not limited to, grading permit fees, drainage permit fees, traffic control charges, thoroughfare charges, impact fees, special district fees, sewer fees, water fees, planning fees, school fees, charges for temporary access or use of the public right of way, and charges for document processing, hearings, and certifications. Owner will also pay all fees and application charges imposed by any association of property owners having authority over the Job Site. D. Except as provided elsewhere in this agreement, Owner will pay all application fees and connection charges imposed by utility companies or government agencies for bringing service to the Job Site, and for connecting gas, water, electricity, phone, cable, sewer, and drainage lines. III. Owner's Responsibilities A. Owner will respond in writing and with reasonable promptness to written requests from Contractor for information relevant to completion of the Work. Owner will identify a Representative qualified to respond to questions from Contractor when Owner is not available. Contractor is authorized to rely on written responses from Owner and the identified Representative. B. Owner affirms that Owner has the right to enter into this agreement and has the right to contract for construction of the Mayol Residences on the Job Site. Owner shall pay all taxes and assessments due on the Job Site during the period of construction and shall take all reasonable actions required to protect marketable title to the Job Site. C. Owner shall have sole responsibility to secure financing for the Mayol Residences and shall pay all fees, charges, or other costs of such financing, including Inspection fees charged by any lender. The nonperformance of any lender shall not affect the obligation of Owner to Contractor. Owner hereby authorizes and directs any lender on the Mayol Residences to furnish Contractor with full information on undisbursed loan proceeds when requested by Contractor. D. On request of Contractor, Owner shall provide clear and convincing evidence that Owner has access to funds committed to payment of the unpaid balance of the Contract Price. Owner shall inform Contractor of any significant change in the availability of funds committed to make payments required under the Contract Documents. Failure of Owner to comply with the terms of this paragraph shall relieve Contractor of the obligation to begin or continue the Work. E. Owner will not interfere with or permit others to interfere with, stop, hinder, or delay completion of the Work by Contractor or Subcontractors except as provided under this agreement. F. All materials to be furnished by Owner under the Contract Documents shall be on hand and available at the location specified, when required in the normal course of construction. Contractor makes no warrant that materials Furnished by Owner are suitable for use in the Mayol Residences and may reject such materials if Installation would materially increase the cost of construction or substantially delay Page 5 DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

completion of the Mayol Residences. IV. Payment Plan A. Owner will pay to Contractor the Contract Price in installments consisting of bi-weekly progress payments, and a final payment on completion of the Work.

V. Progress Payments A. Processing of Progress Payments 1. Contractor shall submit to Owner an application for payment itemizing charges for Work done in the previous pay period, including adjustments to the Contract Price resulting from approved Change Orders or other changes required by Owner. Invoice payments are due upon receipt. VI. Audit of Records A. All accounting records of Owner relating to the Mayol Residences shall be available for inspection and copying by Contractor during normal working hours at a place designated by Owner. Records made available shall include both electronic and paper versions of accounting records including invoices, statements, receipts, vouchers, purchase orders, contract files, original Bids, estimating worksheets, correspondence, Change Order files (including documentation on negotiated settlements), payroll ledgers, and other documents which relate to the cost of the Work. VII. Interest A. Payments due and not paid under the Contract Documents shall bear interest from the date payment is due at a monthly rate of 1.50 percent or fraction of a month on the unpaid balance. VIII. Reimbursement of Expenses A. Out of pocket expenses reasonably necessary to completion of the Mayol Residences up to $500. Out of pocket expenses will be reimbursed to the Contractor at cost plus 6%. IX. Final Payment A. Contractor will submit an application for final payment to Owner when the Work has been completed in compliance with the Contract Documents. If Owner agrees that Work has been completed, payment is due Contractor for the entire unpaid balance of the contract amount. B. Contractor shall submit to Owner an application for payment itemizing charges for Work done in the previous pay period, including adjustments to the Contract Price resulting from approved Change Orders or other changes required by Owner. Invoice payments are due upon receipt. C. Owner has no obligation to make final payment until conditional waivers of lien in a form satisfactory to Owner, lenders and Sureties have been received from Contractor, Subcontractors, vendors, tradesmen, and all Material Suppliers with lien rights on the Mayol Residences. D. Owner has no obligation to make final payment until all Punch List items have been satisfactorily completed unless Owner agrees to accept a certified check equal to the value of any uncompleted Work. E. Owner has no obligation to make final payment until a temporary certificate of occupancy, or a certificate of occupancy has been issued, or a final Inspection has been completed by the appropriate governing authority. X. Cooperation of the Parties

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A. Both Contractor and Owner pledge that their relations will be conducted with courtesy and consideration in an environment characterized by mutual respect. Owner pledges to respond promptly to requests by Contractor for guidance, assistance and payments when due and agrees to extend to Contractor the deference and latitude a dedicated professional deserves. Contractor pledges to commit the skill and resources required to complete the Mayol Residences in a manner that complies with both the letter and spirit of the Contract Documents and enhances the reputation of Contractor for dependability and professionalism. XI. Insurance A. General Requirements 1. Contractor shall carry Insurance as required by Law and regulation for the protection of Contractor and Owner during progress of the Work. XII. Independent Contractor A. Contractor shall perform all obligations required by this agreement as an independent contractor and not as an employee of Owner. No agent, employee or Subcontractor of Contractor shall accrue leave, pension, insurance, or any other benefit provided to employees of Owner. XIII. Delivery of Notices A. Any written notice required by this contract can be delivered by e-mail to the address listed in this contract with a read receipt requested. Notice sent by e-mail shall be effective on delivery of the read receipt.

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Signatures Notice Requir·ed by Arizona Revised Statutes Section 32-1158-A-9 Owner has the right to file a written complaint with the Registrar of Contractors for any alleged violation of Arizona Revised Statutes Section 32-1154, subsection A, which list 24 grounds for revoking a construction contractor's license. The phone number for the Arizona Registrar of Contractors is (602) 542-1525. The Web site address of the Arizona Registrar of Contractors is http://www.a roc.gov/. Complaints filed with the Arizona Registrar of Contractors must be made within the time period in Arizona Revised Statutes Section 32-1155, subsection A /two years]. Owner acknowledges receiving a copy of this signed contract and a receipt for any initial payment made under this agreement. This agreement is entered into as of the date written below.

, (Si naf re) (Date) 1{11 Lt (xui 'ff( I J4 (Printed Name and Title) 7'4& .i;/\ ,

Page 8 DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

Exhibit 3 DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

Be Arizona Office 9007 South 3rd Street Phoenix, AZ 85042 PHONE: 952.292.6416 TOLL FREE: 800.893.4047 [email redacted]

Professional Engineering Report

File Name: Mayol Residence / Construction Defect

Our File Number: 2024009

Property Address: 13637 East Dove Valley Road Scottsdale, Arizona 85262

Prepared By: Mr. Erik S. Anderson, P.E.

Prepared For: Jaime Mayol [email redacted]

Issue Date: May 15, 2024

Excellence in Engineering® ARIZONA l ILLINOIS l MINNESOTA l WISCONSIN www.aenpi.com l Toll Free: 800.893.4047 DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

Summary

Jaime Mayol entered into an agreement with Architectural Innovation Engineering to design and build a single-story house with an attached garage and a separate guest house at the undeveloped property located at 13637 East Dove Valley Road, Scottsdale, Arizona 85262. The plans for the home and guest house, labeled Mayol Lot – 4 Residence Parcel #219-40- 437 Maricopa County, are dated June 11, 2021. Multiple problems with the residence’s Mechanical, Electrical, and Plumbing (MEP) were discovered during the construction of the buildings.

On December 19, 2023, I was contacted by Jeff Landtiser and requested to assist in the assessment of the electrical system of the home and guest house. I have reviewed the produced documents regarding the electrical system and lighting plans. I have examined the electrical system installed in the house and guest house.

The installation of the electrical system and lighting was not performed as shown in the drawings. The home’s lighting system was not completed. The lighting system omitted several lighting branch circuits and outlets. The lighting layout was not properly coordinated with the lighting controls. None of the home’s ceiling fans have been supplied or installed.

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Table of Contents Summary ...............................................................................................................................2 Introduction ............................................................................................................................4 Background ...........................................................................................................................4 The Electrical System at the Mayol Residence......................................................................4 Examination of the Main Residence Lighting System ............................................................8 Analysis / Discussion ........................................................................................................... 10 Conclusions ......................................................................................................................... 11

Mayol Residence Page 3 of 11 2024009 DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

Introduction

Mayol residence.

On December 19, 2023, I was requested to analyze the electrical system as it was installed and compare it to what was designed at the Mayol residence located at 13637 East Dove Valley Road, Scottsdale, Arizona 85262. The residence is owned by Jaime Mayol. The home was designed by Architectural Innovation Engineering. The electrical design plans are stamped by Manouchehr Javadi and dated March 9, 2021. The lighting layout for the main house was designed by Cosine / Smith Design LLC and dated August 30, 2022.

I met with Jaime Mayol and inspected the electrical system of the residence on February 8, 2024, and March 3, 2024. Mr. Mayol explained to me the expectations of the designed electrical system.

The results of the examinations, along with the opinions formed, will be discussed in this report.

Background

Jaime Mayol went into an agreement with Architectural Innovation Engineering to build a home. Architectural Innovation Engineering produced a set of drawings dated June 11, 2021, for the home built at Parcel #219-40-437. Mr. Mayol has found multiple problems with the mechanical, electrical, and plumbing associated with the residence. I was requested to examine the construction documents provided in comparison to the electrical system as built.

The Electrical System at the Mayol Residence

The residence, as designed, is fed power from an underground lateral supplied by Salt River Project (SRP). The Service Entrance Section (SES) is rated at 400 Amps, 120/240 VAC, single-phase, 3-wire, with a NEMA 3-R rainproof enclosure. The main panelboard has 40 positions and is rated at 200 Amps. An additional 200 Amp service disconnect is supplied with the SES.

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According to the plans sealed by the electrical engineer of record, the main 200 Amp panel was to supply the main residence and the additional 200 Amp service disconnect was to supply power to the guest house subpanel.

SES at residence.

Nameplate / wiring diagram for SES.

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Main panelboard.

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The electrical system that was installed incorporates a 200 Amp subpanel located in a closet behind the kitchen area. This 200 Amp subpanel supplies power for portions of the kitchen and some of the lighting in the main residence. This subpanel is a divergence from the original electrical plans as designed.

Lighting and kitchen subpanel.

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The guest house at the property is served power from a 100 Amp circuit breaker connected to the main panelboard. This is a divergence from the original electrical plans. The guest house subpanel is rated at 125 Amps. The guest house subpanel is filled to capacity with no free positions for circuit breakers. The guest house is located near the front of the property, on the north side. Landscape lighting and yard lighting were to be powered by the guest house subpanel. The guest house subpanel is fully loaded, as built, and will not supply power to the outdoor lighting. The original plans incorporated a 200 Amp subpanel at the guest house. This was reduced to a 100 Amp service.

Guest house subpanel.

Examination of the Main Residence Lighting System

The lighting system in the main residence is controllable by wireless technology. It is capable of being controlled by an app on a wireless device, such as a cell phone. Other video/audio devices are also controllable in this fashion.

The lighting in the home was designed by Cosine / Smith Design LLC. The lighting layout for the main house is shown on the drawing dated March 30, 2022, revision 4. The drawing indicates the placement of various types of luminaires throughout the main house. The luminaires incorporate LED technology. The luminaries require drivers and they are dimmable.

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The luminaires are not properly coordinated with the devices that control their operation. The luminaires are not properly paired with the switches / controllers. The coordination issues are found in the living room, the kitchen, hallways, and the game room.

Certain luminaires were not installed. There were no outlets provided and no branch circuitry ran for certain luminaires that are shown in the drawing. The missing equipment is noticed in multiple locations.

The following is a list of additional inconsistencies with the supplied drawings. It is not meant to be conclusive. More inconsistencies may be determined during the remediation process.

1. The luminaire above the vanity in the master bedroom is non-functional. It appears to require a driver for operation. The driver was not present.

2. The outdoor kick lights are non-functional. They do not have the required driver to make them operational.

3. The LED strip light for the master bathroom shower is not installed.

4. The special purpose luminaire for the stream bath is not installed.

5. There is no luminaire above the toilet in the master bathroom.

6. The half bathroom, adjacent to the game room, is missing a lighting strip and has no circuit to supply power.

7. There are 3 ceiling fixtures, outlets, and branch circuitry missing in the living room.

8. Outlets, branch circuitry, and strip lights are missing in the family room.

9. The kitchen is missing 2 of the 3 ceiling lights, outlets, and branch circuitry.

10. The lighting above the refrigerator in the kitchen is missing, along with the outlet and branch circuitry.

11. None of the (12) ceiling fans throughout the main residence have been delivered or installed.

12. The drivers for the LED ceiling luminaires were not installed correctly and had to be repositioned. The cost of the rework was $26,000.

13. The exterior outside lighting off the master bedroom was not run on separate circuits for independent control.

14. There is no indication on what circuit feeds power to the fireplace.

15. The south and west exterior luminaires are on the same circuit and cannot be independently controlled.

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16. The disconnecting means for the HVAC system in the garage closet is not readily accessible. NEC 440.14 Location.

LED luminaires in the living room of the main residence.

Analysis / Discussion

Due to the limited capacity in the guest house subpanel, the power system will need to be redesigned to support the exterior lighting.

The branch circuits for the lighting in the main house will need to be recircuited to have the correct lights controlled as designed. Additional lighting branch circuity will need to be added to provide luminaires in those locations that were not provided for.

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Conclusions

My opinions are based on the information provided, my examination of the Mayol property, and my experience, education, and training. If additional information becomes available, I reserve the right to amend my opinions. Any additional information produced by the reported mechanical and plumbing issues may result in further opinions.

1. The electrical system of the property was not built as shown in the plans. 2. The electrical system will need to be redesigned, reengineered, and modified for exterior yard lighting. 3. The lighting system for the main residence was not built as shown in the plans. 4. The luminaires in the home will need to be recircuited for proper operation. 5. Additional lighting circuits will need to be run and luminaires installed where shown on the drawings. 6. The ceiling fans will need to be supplied and installed.

Respectfully Submitted:

Erik S. Anderson, P.E.

Exp. 30 SEP 2024

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Exhibit 4 DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

STONE ENGINEERING, INC. 232 East Marconi Ave. Phone 602-705-8851 Phoenix, Arizona 85022 [email redacted]

May 13, 2024

Jamie Mayol 13637 E. Dove Valley Road Scottsdale, Arizona 85262

Case Name: Mayol Residence HVAC and Plumbing

SEI Project No: RLB2341

Dear Mr. Mayol:

This preliminary expert report is in regard to the HVAC and Plumbing systems at the residence located at 13637 East Dove Valley Road, Scottsdale, Arizona 85262. Stone Engineering, Inc. may supplement this report if additional information is made available. The administrative authority for the Mayol residence is Maricopa County which was using the 2012 international group of codes during design and construction.

I. SUMMARY

1. The residence does not have enough cooling capacity. The residence has hot and cold areas. The air is not distributed based on the cooling load in the residence.

2. There are substantial air leaks from the ductwork and return air plenums. Ductwork is not supported and not insulated. Ductwork is under sized.

3. The Honeywell Truzone control system does not have bypass dampers and is not properly commissioned. The Honeywell Truzone control system works best with variable fan speed air handlers. Low efficiency constant fan speed air handlers were installed.

4. The split system heat pumps have a lower than required SEER energy rating. Higher efficiency split system heat pumps should have been used with variable fan speed air handlers.

5. The residence does not have ventilation air.

6. The hot water takes too long to reach the kitchen sink.

7. The water pump does not have the capacity to supply water to the house and guest house. The pump is located outside. The pump is rated for indoor use only. The pump has been replaced twice.

8. The PEX water piping is not supported or insulated. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 2 9. The copper water piping and propane piping is not protected from corrosion where penetrating the stucco walls and underground.

10. The propane tank is unevenly sinking into the ground. The propane tank is located on a slope near where vehicles park. The movement of the propane tank places undue stress and strain on the piping and tank.

11. The dishwasher drains are backing up. The drains are not routed high under the sinks.

12. The plumbing fixtures stops (valves) compression fittings were installed with pipe dope and tape which can cause failure and water loss.

13. The guest house water heater pan pipe terminates in the building.

15. The master bath lavatory over flow piping leaks.

16. The master bath roman tub faucet handle is obstructed by the adjacent wall.

Recommendations

1. Replace the main house two existing spit system heat pumps with three split system heat pumps and guest house split system heat pump with sizes based on HVAC cooling loads. New split system heat pumps to be minimum 16 SEER. Air handlers to have variable speed fans to work with the Honeywell Home HZ432 TrueZONE controls.

Replace all damaged duct insulation and flex duct. Support the ductwork. Replace undersized ductwork with new ductwork sized per cooling load calculations. Install bypass dampers for the Honeywell Home HZ432 TrueZONE controls.

3. Relocate the thermostats to an accessible location.

4. Replace refrigerant pipe insulation and cover per manufacturer’s recommendations.

5. Install outside air ventilation systems.

6. Prepare construction drawings for the installation of the new air handlers and modified ductwork.

7. Test the residence for leakage per the IRC. Seal the residence until less than code required leakage is achieved.

8. Commission and air balance the air conditioning systems.

9. Open the ceiling and walls to route the hot water directly to the hot water pipe serving the kitchen island sink. Verify the hot water circulating pipe loop is a complete loop to all fixtures and back to the water heater. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 3 10. Replace the exterior water pump with new water pump and expansion tank sized for the residence water demand. Locate new pump and expansion tank in the garage.

11. Support the PEX water piping per the IRC and pipe manufacturer’s installation instructions. Insulate all hot and hot water circulating piping.

Flash and seal the water and propane gas pipe penetrations through the exterior walls. Replace the direct buried galvanized steel propane pipe with code approved piping.

13. Relocate the propane tank away from the slope on a new concrete pad. Install bollards to prevent vehicle damage

14. Route the dishwasher flexible drain hoses high and secure.

15. Replace all plumbing fixture stops (valves) in the main and guest house.

16. Route the guest house water heater pan drain to the exterior.

17. Repair the master bath lavatory overflow drain leak.

18. Adjust the master bath roman tub faucet handle so that it not obstructed by the wall and has full movement.

III. TABLE OF CONTENTS

I. SUMMARY II. TABLE OF CONTENTS III. AIR CONDITIONING Cooling Capacity Seasonal Energy Efficiency Ratio (SEER) Honeywell Home HZ432 TrueZONE Duct Air Leakage, Duct Transitions and Duct Support Ductwork Size Ventilation Air Residence Air Leakage Testing P-Traps Mechanical Closet Door Grilles Exterior Refrigerant Pipe Insulation IV. PLUMBING Time For Hot Water To Reach Kitchen Sink Water Pump Pipe Support and Insulation Propane and Water Piping Through Exterior Walls and Underground Propane Tank Support and Protection From Damage Dish Washer Drains Plumbing Fixture Angle Stops Guest House Water Heater Drain Pan Dain DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 4 Master Bath Lavatory Drain Pipe Leak Master Bathroom Roman Tub Faucet Clearance V. STATUTES, CODES AND ROC APPENDIX A. Stone Engineering, Inc., Inspection dates and documents reviewed APPENDIX B. HVAC Cooling Load Calculation APPENDIX C. Tab Technology Inc., Report. APPENDIX B. Thomas Stone, P.E. CV.

V. AIR CONDITIONING

Cooling Capacity

The residence does not have enough cooling capacity. The main house has two split system heat pumps, a five ton and a three ton. The five ton split system heat pump that serves the master bedroom, office, game room, kitchen and dining rooms is approximately one ton of cooling short. The three ton unit serving the bedrooms 2 and 3 and the hallway has a four ton air handler located in a closet off the garage. The guest house has one two ton split system heat pump which is approximate one ton of cooling short.

The split system heat pumps are manufactured by Rheem/Rhuud and have a Seasonal Energy Efficiency Ratio (SEER) of 14. The 14 SEER is the lowest SEER rating equipment that can be purchased.

The 2012 International Residential Code (IRC) Section N1103.6 Equipment sizing (Mandatory) requires the residence heating and cooling loads be calculated for the selection of equipment. It is industry standard to provide a summary of the calculation on the drawings.

Architecture Innovation Engineering (AIE design) drawing M1 states, in the General Notes that the equipment has been sized per manual J calculations. Stone Engineering, Inc. would like to obtain the AIE design HVAC cooling load calculations.

Stone Engineering, Inc. has the calculated cooling loads for the main and guest houses. See Appendix B. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 5 Air conditioning systems in the hot, dry environment of Scottsdale are selected using the Sensible cooling load. The sensible cooling load on the main house master bedroom, office, game room, kitchen and dining rooms is approximately 46.9 Btuh. The sensible cooling load on the guest house is approximately 17.3 Btuh. See Appendix B.

Stone Engineering, Inc. contacted Rheem/Rhuud technical support and local distributor. Neither had the extended cooling capacity information at 115 °F ambient temperature. Stone Engineering, Inc. from previous design work has the extended cooling capacity for a similar five ton, 14 SEER Rheem/Rhuud split system heat pump at 115 °F. The similar Rheem/Rhuud unit has a sensible cooling capacity of 38.2 Btuh, which is 46.9 Btuh – 38.2 Btuh = 8.7 Btuh short or 22.8 percent down on cooling capacity.

The main house master bedroom, office, game room, kitchen and dining rooms should have been cooled by two air conditioning systems not one. The master bedroom, office, game room, kitchen and dining rooms have different heat gain profiles and have walls facing North, South, East and West. Five tons is typically the largest residential split system heat pump available. The cooling load is greater than five tons. The master bedroom, bathroom and closet should be on one air conditioning system and the common game room, kitchen and dining on a separate air conditioning system.

The main house, bedrooms 2 and 3 and the hallway are served by mismatched Rheem/Rhuud ton air handler model RH1V48 with a 3 ton condensing unit model RA14AZ36. The 48 in the air handler model number is nominal 4 tons of cooling (48÷12=4 tons) and the 36 in the condensing unit model number is nominal 3 tons of cooling (36÷12=3 tons). The miss matched air handler and condensers can cause problems with the refrigerant cycle. The contractor DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 6 should not install mismatched equipment unless the combination has an Air Conditioning, Heating, and Refrigeration Institute (AHRI) publish SEER rating. The design and sizing of the air conditioner does not require mismatched air handler and condensing unit sizes.

The guest house was originally design by Architecture Innovation Engineering (AIE design) with a 2.5 ton, 16 SEER Goodman Furnace with cooling coil and external condensing unit. The General and Mechanical contractors designed and installed a 2 ton, 14 SEER Rheem/Rhuud split system heat pump, condenser model number RP1424, air handler model RH1T24. The 14 in the condenser model number is the SEER rating the 24 is the nominal tons of cooling. Stone Engineering, Inc. does not have extended cooling capacity information for a 2 ton Rheem/Rhuud split system heat pump.

The AIE design was modified by the general and mechanical contractors. The original design and the contractor modified design have similar zoning and capacity issues.

Recommendations

1. Replace the main house two existing spit system heat pumps with three split system heat pumps and guest house one split system heat pump with new units based on the HVAC cooling loads.

2. Locate the new air handler in a closet created inside the master closet. Provide new ductwork and controls. Locate the new condenser near the existing on the west side of the residence.

3. Prepare construction drawings for the installation of the new split system air condensers and new and modified ductwork.

Seasonal Energy Efficiency Ratio (SEER)

The General and Mechanical contractors designed and installed Rheem/Rhuud, 14 SEER split system heat pumps are the lowest SEER rating that are available. The original AIE design used 16 SEER, Goodman, and Furnaces with cooling coils and external condensing units. The SEER units are also on the low end of efficiency. 18 – 20 SEER air conditioning systems should have been used. AIE design and the general and mechanical contractors should have educated the Mayol’s on air conditioner efficiency, energy usage and equipment costs so an informed decision could be made.

The charts below are from the AIE design, main residence drawing M2. Goodman four ton, 16 SEER equipment was scheduled. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 7 DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 8 From AIE design, drawing A6.4, a Goodman 16 SEER, 2.5 ton condenser was scheduled for the guest house. The 30 in the model number is 2.5 tons (30÷12=2.5). The general and mechanical contractors installed a 2 ton condenser on the guest house.

The Honeywell Home HZ432 TrueZONE air conditioner and zone control management system recommends air handlers with variable speed fans to improve duct static pressure control and reduce the amount of bypass air. From the Honeywell Home HZ432 TrueZONE manual page 4, figure 9. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 9 Recommendations

1. Provide new split system heat pumps with minimum of 16 SEER. Air handlers to have variable speed fans to work with the Honeywell Home HZ432 TrueZONE controls.

Honeywell Home HZ432 TrueZONE

The Honeywell Home HZ432 TrueZONE air conditioner and zone control management system was not properly installed, commissioned and are missing the bypass dampers. The thermostats are in a closet behind the racks for the entertainment and security systems.

The Honeywell Home HZ432 TrueZONE requires a bypass damper between the supply and return ducts near the air handler. When the zone dampers modulate to control zone temperatures the dampers change the air flow and static pressure in the ductwork. To maintain a constant air pressure in the supply duct and maintain minimum required air flow a bypass damper is installed. The bypass damper routes supply air into the return.

From the Honeywell Home HZ432 TrueZONE manual page 2, figure 2. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 10 The air conditioning systems were not properly commissioned. The Honeywell Home HZ432 TrueZONE should have been cycled through its control of the zone dampers and temperatures and the air flows balanced. The process would have made the lack of bypass dampers and temperature control apparent.

The thermostats are in a closet behind the racks for the entertainment and security systems. The thermostats are not accessible.

Thermostats

Photo 1: Thermostats in closet. The rack for the entertainment and security system has been pulled out of the closet.

Recommendations

1. Install bypass dampers near the air handlers.

2. Relocate the thermostats to an accessible location.

3. After the Honeywell Home HZ432 TrueZONE is reinstalled commission and air balance the air conditioning systems. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 11 Duct Air Leakage, Duct Transitions and Duct Support

There is improperly sealed and supported ductwork throughout the residence and guest house. The return air plenums are not sealed or insulated. There is missing and damaged insulation and flex duct. There are high static loss duct transitions at the air handlers. There is improperly sized ductwork. The general and mechanical contractors should have tested the ductwork for air leakage as required by the IRC.

Stone Engineering, Inc. hired Tab Technology, Inc., an AABC certified test and balance company, to measure the air flows of the three air conditioning systems. See Appendix C for Tab Technology, Inc., report.

The 5 ton split system air handler serving the main house master bedroom, office, game room, kitchen and dining rooms has a total measured air flow at the supply grilles of 1285 CFM. Tab Technology, Inc. report page one. A 5 ton split system air handler should have an air flow of approximately 2000 CFM (5ton x 400CFM/ton = 2000 CFM). The supply ductwork is losing 2000 – 1285 = 715 CFM or 36 percent of the air flow. The return air flow measured at the duct drop before the plenum has an air flow of 896 cfm or approximately 2000-896 = 1104 CFM. The approximate 1104 cfm is leaking into (return negative pressure) the return air plenum and connection to the air handler. The air flow leaking into the mechanical closet through the two door grills was 80 CFM.

The 4 ton split system air handler serving bedrooms 2 and 3 and the hallway has a measured total air flow at the supply grilles of 686 CFM. Tab Technology, Inc. report page two. A 4 ton split system air handler should have an air flow of approximately 1600 CFM (4ton x 400CFM/ton = 1600 CFM). The supply ductwork is losing 1600 – 686 = 914 CFM or 57 percent of the air flow. Tab Technology, Inc. could not get a good return air flow reading due to turbulence. The air flow leaking out of the mechanical closet through the two door grills was 140 CFM.

The 2 ton split system air handler serving the guest house has a total measured air flow at the supply grilles of 828 CFM. Tab Technology, Inc. report page three. The measure air flow in the supply duct above the air handler was 891 CFM. The supply ductwork has a loss of 891-828 = CFM. The maximum allowed duct leakage for the supply and return ductwork per 2012 IRC section N1103.2.2 is 4 CFM per 100 square feet of floor area. The guest house has a floor area of 760 sqft for a total system leakage of 4 x (760 ÷ 100) = 30.4 CFM. The supply duct only is leaking twice the IRC allowed air flow. The return duct and plenum also leak air. The return air flow measured at the duct drop before the plenum has an air flow of 648 CFM. The air flow measure at the air handler air filter was 960 CFM. The return duct connection and plenum are leaking 960-648=312 CFM. The air flow leaking into the mechanical closet through the two door grills was 132 CFM. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 12 The general and mechanical contractors should have tested the ductwork for air leakage. The 2012 IRC section N1103.2.2 (R403.2.2) Sealing (Mandatory) has a maximum duct leakage of cfm, per 100 ft² of air conditioned floor area. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 13 The three split system air handler plenums are not insulated or sealed.

Photos 2 & 3: Un-insulated return air plenums, guest house and air handler serving master bedroom.

Photos 4 & 5: Unsealed plenum pipe penetration, drywall and sheet metal. Smoke pulled into plenum in the garage. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 14

Photos 6 & 7: Failed open supply duct joints garage closet and master bedroom unit closet. Note the severe duct transition in the photo on the left. The duct turns 90 degrees in seven inches. The air handler disconnect is not assessable.

The ductwork in the attics has missing and damaged insulation. The vapor barrier is compromised. The flex duct is unsupported and kinked. Two different grades of flex duct was used. The flex duct with the black plastic vapor barrier is very low quality and failing. The flex duct with the metalized jacket is a better quality product when it is properly installed.

Photos 8 & 9: Kinked metalized flex duct to grill and black plastic flex duct un-supported lying on top attic above bedroom 3. Un-insulated spiral round duct and damaged black plastic flex duct, above master closet.

Photos 10 & 11: Un-insulated un-supported ductwork and kinked flex duct. Vapor barrier is not maintained. The sheet metal fittings are not sealed. Left photo above master bathroom right photo guest house. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 15 The Sheet Metal and Air Conditioning Contractors National Association, Inc. (SMACNA) maximum support interval is 4 feet with a maximum sag of ½-inch per foot. From SMACNA HVAC Duct Construction Standards Metal and Flexible, Figure 3-10 Flexible Duct Supports. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 16 The 2012 IRC section M1601.4 Installation requires all ductwork to be securely fastened and sealed. Many of the duct transitions and connections to the air handlers and air filters are secured with metallic tape only. The metallic tape has failed.

From 2012 IRC section M1601.4.1 Joints, seams and connections:

The originally installed supply air duct into the office has zero air flow. A second duct and supply grille was installed by the mechanical contractor in the office which is only providing 47 CFM of supply air flow. The ductwork in the ceiling space above the master bathroom and closet have severe restrictions. See Tab Technology report Appendix C. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 17

Photo 12: Second unpainted galvanized duct into the office. The original duct is painted brown.

Recommendations

1. Replace all damaged and kinked flex duct. Seal all ductwork and fittings with mastic and listed duct tape. Maintain vapor barrier. Support the ductwork.

2. Leak test all ductwork. Seal ductwork until it meets IRC leakage requirements. Provide third party duct leakage report.

Air balance the air flow to each grille based on cooling load calculations. Provide third party air balance report

Ductwork Size

Many of the ducts are undersized. The ductwork does not have the capacity to provide the cooling air CFM required. This is in addition to the unsupported and kinked ductwork above. Below are a few examples.

The bedrooms and hallway served by the air handler in the garage requires approximately 1250 CFM of cooling air. See load calculation Appendix B. The area is served by a ten inch round duct. A ten inch round duct using typical supply duct loss of 0.1-inches of static pressure loss per 100 feet is approximately 440 CFM. The ductwork is 65 percent short on air flow capacity.

The supply duct on the 5-ton air handler serving the master bedroom and main open area of the house is 22.5x10.5-inches. A 5-ton air handler has a nominal air flow of 2000 CFM. The installed 22.5x10.5-inch duct has a capacity of approximately 1500 CFM. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 18

Recommendations

1. Replace all undersized ductwork. Size ductwork based on cooling load calculations.

Ventilation Air

The main house and the guest house do not have mechanical ventilation or outside air as required by the IRC.

The following is the purpose of ventilation from American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc., ASHRAE Standard 62.1-2019, Ventilation for Acceptable Indoor Air Quality, page 2.

1. PURPOSE 1.1 The purpose of this standard is to specify minimum ventilation rates and other measures intended to provide indoor air quality (IAQ) that is acceptable to human occupants and that minimizes adverse health effects.

Mandatory 2012 IRC section N1103.5 (R403.5) Mechanical ventilation (Mandatory) provides information on which IRC code section mechanical ventilation is required to meet. IRC Section M1507 stipulates the methods for providing ventilation and a table to determine the cfm of ventilation air. The residence is approximate 3,900 square feet with 3 bedrooms. Per table M1507.3.3(1) the residence requires 75 CFM of ventilation air. The 760 square feet one bedroom guest house requires 30 CFM of ventilation air. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 19

Recommendations

1. Install outside air ventilation systems with automatic damper, ductwork and exterior louver per the IRC.

Residence Air Leakage Testing

The residence did not have air leakage testing as required by the IRC. Air leakage is a contributing factor for energy usage and occupant comfort. The mechanical ventilation, duct testing and residence air leakage testing are required to provide an energy efficient residence and healthy environment. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 20

Recommendations

1. Test the residence for leakage per the IRC. Seal the residence until less than code required leakage is achieved.

2. Provide a third party air leakage report

P-Traps

The three air handlers do not have P-taps as required by Rheem/Rhuud. There is a diagram on the side of the three air handlers for the P-trap installation.

No P-trap and diagram of P-trap

Photos 13 & 14: Air handler P-trap diagram and white PVC condensate pipe without P-trap.

Recommendations

1. Install air handler manufacturer recommended P-traps.

Mechanical Closet Door Grilles

The three mechanical closets have combustion air door grilles. The door grilles are not required. The original design used furnaces. The door grilles allow dirt and insects to enter the residence. The improperly sealed return air plenums pulls the dirt and insects into the ductwork and residence.

The two main house mechanical closets have propane instantaneous water heaters. The combustion air for the water heaters is taken from the inside the closets. The low door grilles are not code compliant for combustion air. High and low grilles are required 2012 IRC Section G2407.6.1 Two-permanent-openings method. The combustion air pipe for the water heater shout be terminated outside and the door grilles sealed. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 21 The VST model VRS-150-VRS-199 instantaneous water heaters per page 28 of the installation manual come from the factory prepared for direct venting. The air handlers in the mechanical closets subjects the closets to positive and negative air pressures that may affect combustion.

All water heaters are prepared at the factory to be direct vent (sealed combustion) water heaters that draw all of their required combustion air directly from outside the building. VST recommends direct air vent installations whenever possible to avoid back drafting cold air through the water heater. VST recommends direct air vent installations when installing the water heater in your attic to get fresh air into the water heater. If you cannot use a direct vent, ensure that an ample supply of make-up air is available in the installation location.

Photo 15: Guest house mechanical closet low door grilles. The closet is full of dust that gets pulled into the building. The water heater is electric. No combustion air is required. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 22

Combustion air vent

Photo 16: Instantaneous water heater in garage mechanical closet. Route combustion air vent to the exterior.

Recommendations

1. Seal the door grilles from the inside with sheet metal.

2. Terminate the instantaneous water heater combustion air vents outside.

Exterior Refrigerant Pipe Insulation

The exterior refrigerant pipe insulation is not protected from weather or UV damage as required by IRC Section N1103.4.1 (R403.4.1) Protection of piping insulation. The refrigerant pipe has adhesive tape and the penetrations through the exterior walls are not sleeved.

N1103.4.1 (R403.4.1) Protection of piping insulation. Piping insulation exposed to weather shall be protected from damage, including that caused by sunlight, moisture, equipment maintenance and wind, and shall provide shielding from solar radiation that can cause degradation of the material. Adhesive tape shall not be permitted. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 23

Photo 17: Unprotected refrigerant pipe insulation with tape. The stucco wall penetration is not flashed or sealed.

Recommendations

1. Remove all adhesive tape. Replace damaged refrigerant pipe insulation. Flash and seal the refrigerant pipe penetrations through the exterior wall. Repair and paint the stucco to match existing. Paint or cover the refrigerant pipe insulation per the insulation manufacturers’ recommendations. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 24

V. PLUMBING

Time For Hot Water To Reach Kitchen Sink

The time for hot water to reach the kitchen sink is excessive. Hot water takes approximately 2 minutes to reach the kitchen sink.

Hot water should reach the kitchen sink in less than 30 seconds.

From the American Society of Plumbing Engineers (ASPE) Domestic Water Design Manual, Second Edition pages 234 and 235.

Recommendations

1. Open the ceiling and walls to route the hot water directly to the hot water pipe serving the kitchen island sink. Verify the hot water circulating pipe loop is a complete loop to all fixtures and back to the water heater.

Water Pump

The installed water pump is for indoor use only. The pump is located outside near the cistern. The pump and expansion tank are too small. The small pump and expansion tank cause flow, pressure and short cycling issues. The water calculation on AIE Design, drawing P-1 does not include the guest house plumbing. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 25

Photos 18 & 19: Water pump with integral expansion talk and label from the Drummond, 1hp pump “ACCEPTABLE FOR INDOOR USE ONLY”.

The Drummond pump is an inexpensive pump, available at Harbor Freight Tools, Amazon, eBay and other fine retailers for about $149.99. The UPC number [number redacted] is not a listing number from IAPMO. It is a bar code number for product identification.

The Drummond pump curve could not be located. The pump has a maximum water flow of 950 GPH or 15.8 GPM which would be at 30 PSI, the pumps minimum operating pressure. The pumps maximum water pressure is 50 PSI which would be at minimum water flow. The minimum water pressure per the 2012 IRC, section P2903.3 is 40 PSI. The Drummond pump does not have the capacity to supply the main house and guest house with water. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 26 The indoor use only pump is an electric shock hazard in an exterior environment. Per Mr. Mayol the pump has been replaced twice by the plumbing contractor. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 27 The water calculation on the AIE Design, drawing P-1 does not include the guest house plumbing. Stone Engineering, Inc. marked up the AIE Design water calculation adding the guest house. The main house and guest house requires a pump capable of 25 GPM at 70 PSI. Recommend moving the pump and the expansion tank to the garage to get out of the weather. The expansion tank should be a bladder type with a minimum 25 gallon acceptance.

Recommendations

1. Replace the exterior water pump with new water pump and expansion tank sized for the residence water demand. Locate new pump and expansion tank in the garage. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 28 Pipe Support and Insulation

The PEX hot and cold water piping is not supported. There is water hammer at plumbing fixtures. The hot water and hot water return piping is not insulated. There is unsupported improperly sloped ABS vent piping.

The 2012 IRC Table P2605.1 requires PEX piping to be supported at a maximum of 32-inch spacing and ABS vent piping maximum of 4 feet.

The hot water and hot water recirculating piping is to be insulated to a minimum of R-3, per 2012 IRC, Section N1103.4.2, Hot water pipe insulation (prescriptive). DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 29

Photo 20. Unsupported blue cold water PEX piping, master bedroom.

Photo 21. Unsupported blue cold water PEX piping, guest house.

Photo 22. Unsupported PEX hot and cold water piping master bedroom. The Red hot water piping is not insulated. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 30

Photos 23 & 24: Unsupported improperly sloped 2-inch ABS vent pipe and unsupported un- insulated red PEX hot water piping, master bedroom.

There is water hammer in the master bedroom at all three shower valves and both lavatories.

Recommendations

1. Support the PEX water piping per the IRC and pipe manufacturer’s installation instructions.

2. Insulate all hot and hot water circulating piping.

3. Support and slope the plumbing vent piping in the attics.

4. Install water hammer arrestors at plumbing fixture stops that have water hammer.

Propane and Water Piping Through Exterior Walls and Underground

The propane and water pipes through the exterior walls are not properly protected from corrosion. The stucco and soil is corrosive to the piping. There is galvanized steel propane piping routed underground.

IRC Section P2603.3 Breakage and corrosion. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 31

IRC Section G2415.9 (404.9) Above-ground piping outdoors and G2415.11 (404.11) Protection against corrosion, requires natural gas piping to be protected from corrosion. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 32

Photos 25 & 26: Galvanized propane pipe routed underground and un-supported above ground.

Photos 27 & 28: Copper water pipe and steel propane pipe not flashed and sealed. The steel pipe is corroding.

Recommendations

1. Replace the direct buried galvanized steel propane pipe code approved piping. Support the propane piping routed above ground.

2. Flash and seal the water and propane gas pipe penetrations through the exterior stucco walls. Repair and paint stucco.

3. Clean the corrosion from the propane piping and fittings and paint. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 33 Propane Tank Support and Protection From Damage

The propane tank is unevenly sinking into the ground. The propane tank is located on a slope near where vehicles park. The movement of the propane tank places undue stress and strain on the piping and tank.

Photo 29: Propane tank sinking into the ground on a slope next to a vehicle. Note the tank is not centered on the concrete blocks and is sliding to the left down the slope.

The National Fire Protection Association (NFPA), 2020 Liquefied Petroleum Gas Code NFPA Section 6.8.3.1, requires horizontal propane tanks to be installed on a concrete foundation.

6.8.3.1 Horizontal ASME containers designed for permanent installation in stationary aboveground service shall be placed on masonry or other noncombustible structural supports located on concrete or masonry foundations with the container supports.

The propane tank and piping is susceptible to vehicle damage and must be protected. From the 2012 IFGC, Section 303.4 Protection from vehicle impact damage.

The 2012 IPC, Section 305.2 Stress and Strain, requires piping to be installed to prevent stress and stain and to be protected from structural settlement. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 34

Recommendations

1. Relocate the propane tank away from the slope on a new concrete pad.

2. Install bollards to prevent vehicle damage.

Dish Washer Drains

The dishwater drain in the main house and guest house are backing up. The dishwasher flexible drain hoses are not routed high under the sinks per 2012 IRC section P2717.3 Sink, Dishwasher and food grinder. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 35

Dishwasher drain hoses

Photos 30 & 31: Main house and guest house kitchen sink dishwasher drain hoses not routed high.

Recommendations

1. Route the dishwasher flexible drain hoses high and secure.

Plumbing Fixture Angle Stops

All of the plumbing fixtures stops (valves) in the main house and the guest house have pipe dope on the compression fittings connection to the copper pipe. Some of the PEX faucet connectors’ compression fittings have tape. The stops are manufactures by MI FLEX. The compression fittings should not be installed with pipe dope or tape. The pipe dope and tape can lead to failure and water loss. The pipe dope and tape place stress on the fittings. The fitting nut cannot be torqued properly. The pipe dope makes replacement difficult.

Plumbing materials are to be installed per code and manufacturer’s installation instructions per 2012 IRC, section P2609.2, Installation of materials. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 36

Photo 32: Faucet stop with pipe dope on compression fitting connection to the copper pipe and tape on faucet connector in the guest house. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 37 The MI FLEX stops installation instructions were provide by Copper Fitt Industries the distributor for MI FLEX products. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 38 Recommendations

1. Replace all stops (valves) in the main house and guest house.

2. Replace plumbing fixture connectors where tape has been used in the main house and guest house.

Guest House Water Heater Drain Pan Dain

The guest house water heater drain pan drain pipe is terminated inside the guest house. If there is a water heater leak in will flood the guest house.

Photo 33: Guest house water heater drain pan inside termination.

Recommendation

1. Route the water heater drain pipe to the exterior.

Master Bath Lavatory Drain Pipe Leak

The master bath lavatory over flow drain pipe leaks water into the cabinetry.

Photo 34: Master bath overflow leaking water. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 39

Recommendations

1. Repair the master bedroom lavatory overflow drain leak.

Master Bathroom Roman Tub Faucet Clearance

The master bathroom roman tub faucet handle contacts the wall not allowing full movement.

Photo 35: Master bedroom roman tub faucet.

Recommendations

1. Adjust the faucet handle so that it not obstructed by the wall and has full movement.

V. STATUTES, CODES AND ROC

Architecture Innovation Engineering is providing architectural and engineering services without having Arizona professional registration in architecture or engineering or firm registration. Joe Begay is not a licensed architect or engineer. There is no record of AIE design or Mr. Begay on the Arizona Board of Technical Registration website.

AIE Design drawing boarder. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 40 From AIE design website http://www.aiedesign.net/

From the Arizona Board of Technical Registration, Statutes: 32-141. Firm registration

C. A firm wishing to offer professional services in this state shall file with the board an application for registration on a form that is provided by the board and accompanied by the appropriate application fee as prescribed by the board. Firms shall also identify responsible registrants by the registrant's registration certificate number. Each firm shall list a description of the services the firm is offering to the public.

A. A firm shall not engage in the practice of any board-regulated profession or occupation unless the firm is registered with the board and the professional services are conducted under the full authority and responsible charge of a principal of the firm, who is also a registrant.

Stone Engineering, Inc. would like to obtain Mr. Mr. Begay’s qualifications to do mechanical and plumbing engineering.

Architect and engineers are required to comply with all codes and regulations pertaining to the registrants’ area of practice. This would include the International Code Council codes as adopted by the Maricopa County, manufacturer installation instructions and other codes and standards.

From the Arizona Board of Technical Registration, Arizona Administrative Code Title 4, Chapter 30, ARTICLE 3. REGULATORY PROVISIONS, R4-30-301. Rules of Professional Conduct, page 23, item 4. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 41 The general, mechanical and plumbing contractors are required to follow codes and manufacturers’ installation instructions.

Contractors are required to perform work per code and industry standards. From the STATE OF ARIZONA REGISTRAR OF CONTRACTORS Workmanship Standards For Licensed Contractors, 2009, Page 1.

RULE 4-9-108 WORKMANSHIP STANDARDS A. A contractor shall perform all work in a professional and workmanlike manner. B. A contractor shall perform all work in accordance with any applicable building codes and professional industry standards.

The 2012 International Residential Code (IRC), SECTIONS M1301.3 and P2609.2, Installation of Materials requires contactors to install equipment per the manufacturer's installation instructions and Code.

The issuance of a building permit or certificate of occupancy is not be construed as approval of a code violation. IRC Sections R105.4 Validity of permit and R110.1 Use and occupancy. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 42

Contractors are required to build per plans, specifications, and codes.

From the Arizona Registrar of Contractors Statues, 2015, Pages 37 and 38.

§32-1154. Grounds for suspension or revocation of license; continuing jurisdiction; civil penalty; recovery fund award A. The holder of a license or any person listed on a license pursuant to this chapter shall not commit any of the following acts or omissions:

1. Abandonment of a contract or refusal to perform after submitting a bid on work without legal excuse for the abandonment or refusal. 2. Departure from or disregard of plans or specifications or any building codes of the state or any political subdivision of the state in any material respect that is prejudicial to another without consent of the owner or the owner's duly authorized representative and without the consent of the person entitled to have the particular construction project or operation completed in accordance with such plans and specifications and code.

11. Failure of a contractor to comply with any safety or labor laws or codes of the federal government, state or political subdivisions of the state. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 43

Best regards,

Thomas Stone, P.E.

APPENDIX A

Stone Engineering, Inc. inspected the Mayol residence on 02-08-24 and 02-22-24. Tab Technology was at the residence on 02-22-24.

Stone Engineering, Inc. has reviewed the following case documents:

1. AIE design, Mayol Lot-4 Residence, Parcel #212-40-437, Maricopa Country, 05-01-21, Delta 1, drawings, 35 sheets. 2. Smith Design, LLC, Lighting Specification Book, Revision 4-2022.08.30. 3. Rheem Classic Series Heat Pump, Publication, FORM NO. P11-810 REV. 5 4. Rheem Endeavor Line Classic Series iM Air Conditioners, Publication, FORM NO. A11- 337 REV. 2. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 44 APPENDIX B DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 45 DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 46 DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 47 APPENDIX C

TII Page 1

TAB Technology, Inc. Termina I Device Schedule Project: Mayol Residence Date: 02122/24 System: 5 Ton Unit Main House Tech: BW Print ID: Room Terminal Required Prelimina,y Final "KH Notes Number No_ Size Velocity CFM Velocity CF/1..1 Velocity CFM Master 1 ·12'"x.6" '1.00 NA 57 Master 2 ·12'"x6" 1_00 NA 57 Master Bath 3 10"x'IO" 1.00 NA 65 Master RR 4 7"x7'' 1 _0(] NA 34 Master Close 5 7"x7" 1_00 NA 40 Master Close 6 7"x7" "1.00 NA 32 Master 7 'l4"xfi" 1.00 NA 66 Restroom 8 7"x7" '1_00 NA 22 Office 9 '14"x.6" '1_00 NA _ _c Office 10 "14"x6" 1.00 NA 47 Game Room ·11 ·14"x6" 1 _0(] NA 152 Game Room 12 14"xfi" 1_00 NA 143 Game Room '13 14'"x6" 1_00 NA 130 Pantry '14 7"x7" 1 00 NA 20 Kitchen '15 '16'"x4" '1.00 NA 27 Kitchen '16 '16"x4" 1_00 NA 32 Living Room '17 "14"x6" "1.00 NA 70 Living Room -is '14"x6" 1.00 NA 71 Living Room '19 14"xfi" '1_00 NA 56 Livinc::Ri oom 20 14"x6" 1.00 NA 36 Living Room 2·1 14"x6" 1.00 NA 62 Living Room 22 14"x.6" '1.00 NA 66 Ton Supply Total '1,285

All ou:tlets tested wit11 a digital flow 1100d, which is self-compensating for altitude and back pressure_ Remarks: DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 48 Page 2 TII TAB Technology, Inc. Terminail Device Schedule Project: Mayol Residence Date: 02/22/24 System: 4 Ton Unit Mai11 Ho1Jse Tech: BW -- -- Print ID: Room Terminal Required Preliminary Final "K" Notes- Number No Size Velocity CFM Velocity CFM Velocity CFM E11tre 1 ·I4"x6" 1.00 NA 146 Laundry 2 7"xT' 1.00 NA 58 ·1st Bed Rm 3 ·I4"x6" '1.00 NA 50 '1st Bed Rm 4 M"x6" 1_00 NA 60 Closet 5 7"x7" 1.00 NA 4!1 !Restroom 6 7"x7" ·1.00 NA 4!8 2nd Bed Rm 7 14"x6" ·1.00 NA 72 2nd Bed Rm 8 14"x6" 1.00 NA 80 Restroom g, 7"x7" 1.00 NA 32 Closet 10 7"x7" ·1.00 NA 26 Hallway '11 'I4"x6" 1.00 NA 73 Ton Supply Total 686

All outlets tested with a digirtal flow hood, which is self-compensating for altitude and badk pressure_ Remarks·: DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 49

TII TAB Technology, Inc. Terminal Device Schedul,e Project: Mayol Residence Date: 02/22/24 System: 2 Ton Unit Guest House Tech: BW Print ID: Room Terminal Required Preliminary Final nK1r Notes Number No_ Size Velocity CFM Velocity CFM Velocity CFM Ki1tche11 "1 'I4"x6" 1_00 NA 0 Living Room 2 l2".x6" 1_00 NA 204 Living Room 3 'l2"x6'' 1_00 NA 233 Bed Room 4 '14"x6" -,_oo NA '106 Bed Room 5 14"x6" -1-00 NA 120 Bathroom 6 8"x8" -,_oo NA 76 Restroom 7 6"x6" -1.00 NA 49 Closet 8 6"x6" 1_00 NA 40 Ton Supply Total 828

All outlets tested with a digital flow hood, which is self-compensating for amtude and back pressure. .Remarks: DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 50

TTI Page4

TAB Technology Inc. Duct Traverse Test Sheet Project: Mayol Residence Date: --0- 21221 24 - - -- System: Traverse Tecih: BW --- - --- Print ID: System Duct Area Design Pre/imina1y Final Zone/Branch Size (sq. ft.) FPM CFM FPM CFM FPM CFM Static Pressure Ton Supply 10.5"x22.5" '1.640 1220 2000 496 8'13 0.28 Ton Return 10"x24" 1.660 1205 2000 540 896 -0_11

Ton Supply 18B'x11-5" ·1_550 '1032 '1600 587 9'10 0.32 Ton Return 20"x17-5" 2.420 66'1 "1600 769 1B61 -0.27 ('I)

TonSupply ·12"x16" 1.330 602 800 670 89'1 0_'18 Ton 'Return '16"x16" 1.770 452 800 540 956 -0_'15

Remarks: ·1Inlet condition is to turbulent fm an accurate measurement DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 51 APPENDIX D

Thomas Stone, P.E. 232 East Marconi, Ave., Phoenix, Arizona 85022 Phone: 602-705-8851 [email redacted]

Professional Aug. 01 - Present Stone Engineering, Inc. Phoenix, Arizona President experience • Owner/President mechanical engineering consulting firm. • Expert Witness, HVAC, Plumbing and Fire Protection. • Construction documents, contract administration, cost estimates, engineering reports and analysis of building HVAC, Plumbing and Fire Protection systems. Sept. 00 – Aug. 01 Clark Engineers, Inc. Phoenix, Arizona Vice President, Mechanical Department Head • Manage mechanical engineering department. • Project management, Supervise engineers, designers and drafters. • Marketing, proposals, budgets, hiring. • Mechanical design, construction administration, design build, HVAC, Plumbing and Fire Protection. • Engineering reports, costs and analyses of building systems. Jan. 97 – Sept. 00 Johnston Engineering, Inc. Scottsdale, Arizona Sr. Design Engineer • Project management and design HVAC, Plumbing for museums, hospitals, schools, government buildings, post offices, prisons, restaurants, apartments, industrial plants and office buildings. • Design projects include central plants for buildings and industrial processes, Direct Digital Control, pumping systems, variable frequency drives, heat exchangers, free cooling, boilers, sewage ejectors, water source heat pumps, cooling towers, evaporative cooling, make up water systems, kitchen hoods and carbon dioxide control. • Energy analysis and reports for central plants and various heating and cooling methods. • Construction administration of projects, specifications, meetings, field visits, punch lists, change orders, cost estimates, training and project closeout. • Forensic investigations including, HVAC, Plumbing, Fire Protection and installation practices. Aug. 94 – Sept 95 Albers Air Conditioning Corp. Tempe, Arizona Engineer/Technician • Designed, built and tested components in the research and development of air conditioning equipment. • Designed controls for boilers, three phase, single phase and DC components. • Experimented tested and evaluated air conditioning components, systems and units in house and at independent test facilities in Britain. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

• Page 52

Education • Bachelor of Education, Lakehead University, Thunder Bay Ontario, 1996. • Environmental Assessment Certificate, Lakehead University, Thunder Bay Ontario, 1995. • Bachelor of Science, Physics, Lakehead University, Thunder Bay Ontario, 1994. • Small Business Management, Confederation College, Thunder Bay Ontario, 1992. • Mechanical Engineering, Lakehead University, Thunder Bay Ontario, 1988. • Aircraft Maintenance Technician, Confederation College, Thunder Bay Ontario, 1985.

• Professional Mechanical Engineer, Arizona, California, Massachusetts and Virginia. The following Professional licenses have been allowed to lapse due to none use, Georgia, Oklahoma, Michigan and Pennsylvania. membership • National Council of Examiners for Engineering and Surveying, P.E. Certification. • ASHRAE, IAPMO and ICC. DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

Exhibit 5 DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

May 13, 2024

Jeffrey G. Landtiser Rider Levett Bucknall 4343 East Camelback Road, Suite 350 Phoenix, AZ 85018

Email: [email redacted] Phone: 602-443-4848

PROJECT NAME: Jaimie & Lawrence Mayol 13637 East Dove Valley Road Scottsdale, AZ 85262

Inspector: Bryan Hill, RRC, RRO

WRECORP was retained to inspect the roof system at above listed address. This report contains WRECORP’s opinions on the existing conditions found at the time of inspection.

All opinions, conclusions and/or recommendations within this report are subject to change in the event that any additional information is discovered or brought to the attention of WRECORP.

Industry standards use: IRC (International Residence Code), NRCA (National Roofing Contractors Association) and industry standards.

Summary

The building was constructed in 2022 and consists of metal framed structure with metal decking. The roof system consists of a PBR (Purlin Bearing Roof) system with an average slope of 1-1/8” per foot slope. See roof profile example 1.1. The exterior walls consist of a painted stucco cladding.

PBR Panel Profile 1.1

WRECORP (Western Roof Evaluation Corporation) 6829 W. Corrine Drive, Peoria, AZ 85381 (623) 878-7117 / [email redacted] DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

The PBR metal panel is a structural panel system, and is commonly used in commercial and residential construction and is a higher-ribbed profile. The PBR panel is installed with exposed fasteners, securing the panels to the structural and to the adjacent panel. The minimum roof slope required for PBR panels to be installed 1/2" per foot.

In review of the architectural plans, no specification is noted for the PBR metal roof system and states to be installed per the manufacturers guidelines. No roofing submittals were provided and the manufacturer of the metal installed is unknown, therefore the roof inspection performed will be compared to IRC code and industry standards

Roof Sections

For roof identification purposes for this report, the following sections will be identified as below.

DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

Investigation

During the roof investigation/evaluation and prior to walking the roof system, I walked around the residence with Jeffrey Landtiser. During the exterior walk, Mr. Landtiser noted multiple areas of water stains / streaks that are at multiple locations, along with an electrical junction box at the northwest corner of the residence that has been observed by the owner of water leaking out of during rain events. The windows and the electrical junction box are on the exterior and are under metal PBR overhangs / patio coverings.

Once the roof was accessed, the patio overhangs above the windows and electrical box were inspected. It was noted that a surface mount reglet was installed directly to the stucco cladding and is not in compliance with industry standards. Stucco is designed to manage and release moisture without damage to the structure, meaning water permeates the stucco system. When stucco takes on water, the system is designed to allow the water to drain out of the weep screed that is located at the bottom of the system. The weep screed is to direct any moisture that gets absorbed and trapped behind the stucco to drain at the concrete foundation. When the surface mount wall flashing that was installed at the head wall locations, the fasteners penetrated the stucco and its components which can allow moisture within the multiple layers of the stucco system.

In lieu of a surface mount flashing that was installed during construction, a STX (Stucco) flashing should have been installed, which would be fastened and counter flashed behind the stucco cladding eliminating any and all fasteners that penetrated through the exterior surface. The improper flashing installed is allowing moisture to enter the stucco until it runs into a penetration (Windows & Electrical Penetration) and escapes at those penetrations. See below two typical STX flashing that should have been installed during original construction.

DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

The flashings installed at the head walls above the patio overhangs are not in compliance with industry standards and 2012 IRC (International Residential Code). Per Section R903.2.1 – Flashings shall be installed at wall and roof intersections, wherever there is a change in roof slope or direction and around roof openings. The flashing installed does not adhere to IRC code.

The STX flashing is missing entirely on the west (front entrance) of the building. Mr. Landtiser stated during the roof inspection that he believes the west side of the patio / awnings are in progress. If this is the case, it should be mentioned to the contractor performing the work, that a STX flashing should be installed in lieu of a surface mount flashing.

Upon further investigation of the PBR roof system, it was noted that no crickets were installed high side / ridge to divert water off the roof system. Ponding water is noted at these locations, with the sealants applied at the metal end laps peeling and flaking from continuous exposure to moisture. Per IRC Section R903.2.2 a cricket should be installed on the ridge side or penetration that that is more than 30 inches in width. If crickets were installed at these locations, it would allow proper water drainage preventing any probability of leaking inside the structure.

DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

The other typical / systemic condition noted on the roof sections are the weather barriers installed at the closures are releasing / blowing out. No sealant and or tape sealer was applied to the top and bottom of the closures. The closures were installed in place in hopes of the metal flashings to secure them in place. The closures are gradually working themselves loose. The closures are installed to help seal the panels from moisture entry, noise reduction, to help prevent critters from enter the roof system and structure, along with minimizing the lights that is caused due to reflectivity. With building movement (expansion and contraction) and high winds, the closure strips will be gone entirely, which in turn effect the performance of the PBR roof system. See below typical construction detail showing securement of the closure strips.

On two roof sections (roof sections 2 & 5), it was observed that the PBR panels are creased / kinked from rake edge to rake edge. This condition appears to have been done from original construction and is usually caused by improper handling the metal panels while unloading or moving a stack of panels and can also be due to the metal panels being installed on an uneven purlin / and or substrate. The paint at the creased locations are starting to flake and chip, which will start to rust in with age due to the protective coatings failing. See photos 13-15 & 29-31

DocuSign Envelope ID: CAE280A1-9166-4B87-87BA-5E8B82AC0E51

It was also noted that that in sporadic locations that the grommet screws and washers installed to secure the PBR panels to each other and to the structure are backing out or were not installed flush with the metal panel surface. The washers are incorporated into the screws to provide a watertight seal for surface mounting panels and flashings. If the washers are not installed properly and allows a gap between the surface of the roof surface and fastener, moisture entry can enter th