Notice of Hearing 20240730 & Packet MAILED 2024-06069.pdf

2024A-06069-NPC-ROC · Registrar of Contractors · 2024-08-29

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Stoltz Build Co LLC, Case No. 2024-06069

COMPLAINANT, Docket No. 2024A-06069-NPC-ROC

v. NOTICE OF HEARING ON CONTESTED CASE J P Kush Construction LLC License No. ROC 247343,

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

HEARING INFORMATION The hearing is set for:

September 9, 2024 1:00 PM Kay Abramsohn Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person.

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

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

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

STATEMENT OF LEGAL AUTHORITY AND JURISDICTION

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

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

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

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

PARTICULAR ARIZONA STATUTES AND RULES INVOLVED

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

complaint and citation, which were served on the Respondent on June 26, 2024. SHORT AND PLAIN STATEMENT OF THE MATTERS ASSERTED

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

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

be a party to the hearing.

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

argument to the administrative law judge.

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

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

1156(B).

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

HEARING PROCEDURES AND RULES

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

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

REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE

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

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

HEARING PACKET

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

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

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

SUBPOENAS FOR TESTIMONY FROM A WITNESS OR DOCUMENTS

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

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

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

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

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

DISCLOSURE STATEMENT

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

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

CHANGING THE HEARING DATE

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

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

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

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

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

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

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

Complaints – Resolved/Settled/Withdrawn.”

Dated July 30, 2024.

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

Copy mailed via USPS First Class mail July 30, 2024 to:

Respondent(s) J P Kush Construction LLC 16420 N 92nd St Ste. 222 Scottsdale, AZ 85260

Complainant(s) Stoltz Build Co LLC 2214 N 24th St Phoenix, AZ 85008

Copy sent electronically this same date to:

Respondent at email address on record with the Registrar Complainant at email address on record with the Registrar

Case No. 2024-06069 /

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

Hearing Packet FAQ What is the Hearing Packet?

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

Who gets the Hearing Packet?

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

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

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

What is in the Hearing Packet?

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

● Original complaint;

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

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

● Citation; and ● Answer.

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

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

What if there are documents missing from the Hearing Packet?

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

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

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

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

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

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

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

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

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

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

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

May 31, 2024

Via U.S. Mail and Email

Complainant Stoltz Build Co LLC 2214 N 24th St Phoenix, AZ 85008

Via U.S. Mail and Email

Respondent J P Kush Construction LLC 16420 N 92nd St Ste 222 Scottsdale, AZ 85260

Re: Complaint No. 2024-06069

Dear Complainant and Respondent:

The Registrar received a complaint filed against J P Kush Construction LLC for non-payment of materials or services rendered. This complaint is complete and will be substantively reviewed by the Registrar.

Respondent is free to raise any issue or affirmative defense to this complaint by filing a response with the Registrar by June 7, 2024. Please reference the complaint number listed above if you file a response. Respondent may file a response by:

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

The Registrar will not issue a citation before June 7, 2024 and will review Respondent’s response, if one is submitted.

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

Sincerely,

/s/ Shaquira Adebule Shaquira Adebule Legal Assistant II

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 Legal Department Arizona Registrar of Contractors 602-542-1525

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 6/10/24, 4:02 PM State of Arizona Mail - Case 2024-06069 - Notice of No-Pay Complaint Response 06/07/2024 LEGAL RECEIVED

Legal New Mail - AZROC <[email redacted]>

Case 2024-06069 - Notice of No-Pay Complaint Response message

Jason Kush <[email redacted]> Fri, Jun 7, 2024 at 1:46 PM To: "[email redacted]" <[email redacted]>

To whom it may concern,

I received complaint 2024-06069 from Stoltz and the ROC on Monday, here is my response.

1. Stoltz has worked on a total of 4 homes for me in this neighborhood. Lots 1, 2 3 & 5. Lots 1 & 3 are the same model, lots 2 & 5 are the same model. 2. Stoltz billed me and I sent the email below with the attachments. On lot 1 & lot 5 he build me excessively more for the same work, I explained that the cost should be identical. If he planed on Changin the price on the exact same set up, he needed to notify me earlier. 3. In addition, he has been paid in excess of $15K on each house for exterior wood trim work that is still not accepted by the clients and they refuse to complete it. I have also explained that this work that was previously paid for needs to be completed to mine and the customers satisfaction before final payments for any additional and final work was completed. We are at that point. 4. Lastly, Mr Stoltz had a contract with only JP Kush construction. He has taken it upon himself to have confidential conversations with my clients,, not only is that tortious interference, but a clear breach of my contract with Stoltz. That is also attached.

I request that the ROC dismiss this case. Otherwise I would need to file a case against them and waste more ROC time & resources. This is a contractual issue that belongs in the courts, not with the ROC.

Sincerely,

Jason Kush

https://mail.google.com/mail/b/AEoRXRRLi4JL-fvKEc0tKlO7WhrXMf6-MtZ9RdCNXiHCbZ03YWzI/u/0/?ik=d3afebeda9&view=pt&search=all&permthid… 1/3 6/10/24, 4:02 PM State of Arizona Mail - Case 2024-06069 - Notice of No-Pay Complaint Response 06/07/2024 LEGAL RECEIVED

From: Jason Kush <[email redacted]> Date: Wednesday, May 1, 2024 at 10:55 AM To: Trenton Stoltz <[email redacted]> Subject: Outstanding invoices JPK Trent,

I finally had time to audit out some stuff. Please see attached. These are the bills from lot 2. Your bills on 1 & 5 are EXCESSIVELY higher. Please adjust and resubmit.

https://mail.google.com/mail/b/AEoRXRRLi4JL-fvKEc0tKlO7WhrXMf6-MtZ9RdCNXiHCbZ03YWzI/u/0/?ik=d3afebeda9&view=pt&search=all&permthid… 2/3 6/10/24, 4:02 PM State of Arizona Mail - Case 2024-06069 - Notice of No-Pay Complaint Response 06/07/2024 LEGAL RECEIVED

attachments Invoice_1059_from_StoltzCon__ROC_337779.pdf 34K Invoice_1105_from_Stoltz_Build_Co[14].pdf 30K 20240531 Notice of No-Pay Complaint 2024-06069 MAILED.pdf 5191K Trim_Stoltzcon.pdf 1032K

https://mail.google.com/mail/b/AEoRXRRLi4JL-fvKEc0tKlO7WhrXMf6-MtZ9RdCNXiHCbZ03YWzI/u/0/?ik=d3afebeda9&view=pt&search=all&permthid… 3/3 LEGAL RECEIVED 06/07/2024

INVOICE

StoltzCon - ROC 337779 [email redacted] 5303 7th St +1 [number redacted] Phoenix, AZ 85014

Jason Kush

Bill to Ship to Invoice details Jason Kush Jason Kush Invoice no. : 1059 JPK Lomas Verdes Project JPK Lomas Verdes Project Invoice date : 12/23/22 Terms : Due on receipt Due date : 12/23/22

Product or service Amount

1. Closet Build Out 6 units × $250.00 $1,500.00 $250 per Closet

-Master closet -Front Coat closet -4 bedroom/utility closets

2. Pantry Shelves Installation 1 unit × $360.00 $360.00 Installation of Shelving in pantry.

3. Materials for closets $1,427.81 -Board/Lumber -Screws -Caulking

Total $3,287.81 INVOICE LEGAL RECEIVED 06/07/2024

Stoltz Build Co [email redacted] 2214 N 24th St +1 (602) 908-0064 Phoenix, AZ 85008

Jason Kush Bill to Ship to JPK JPK LOT 2 - JPK Lomas Verdes Project LOT 2 - JPK Lomas Verdes Project

Invoice details Invoice no.: 1105 Terms: Due on receipt Invoice date: 02/28/2023 Due date: 02/28/2023

Product or service Amount

1. Interior Door Installation 7 units × $160.00 $1,120.00 Installation of remaining interior doors - Lot 2

2. Exterior Door Installation 1 unit × $350.00 $350.00 Installation of Exterior fire door house/garage

3. Door/Casing Modifications 6 units × $60.00 $360.00 Modifications to 6 doors/casing.

Matt Approved

4. Remove Interior Hung doors for paint $550.00 *Change Order*

Remove all hung interior doors and move into garage

5. Re-hang interior doors $1,000.00 *Change Order*

Re-hang all the interior doors post paint

6. Barn Door $350.00 Install Barn door hardware and Barn door

7. Barn door floor stabilizer $250.00 *Change Order*

Route channel bottom of each barn door for floor stabilizer

8. Barn door modifications $200.00 *Change Order* LEGAL RECEIVED 06/07/2024

Barn door modifications due to heavy weight of the door.

9. Install Frame Backing $300.00 *Change Order*

Add more frame backing and install a longer rail

10. Re-Hang Barn door Additional Times $150.00 Hang Barn door again, after multiple attempts due to weight of door and rail being incorrect size.

11. Lot 2 pantry closet $453.27 *Change Order*

Additional Closet Shelves bracing at Home Buyers request.

Materials: $103.27 Labor: $350

Total $5,083.27

Overdue 02/28/2023 LEGAL RECEIVED 06/07/2024

J.P. Kush Construction, LLC SUBCONTRACTOR AGREEMENT

This sub-contractor agreement (“Agreement”) is entered into this ______ day of __________2022 november by and between J.P. Kush Construction, an Arizona Limited Liability Company (“Contractor”) and Stoltzcon __________________________________________ (“Sub Contractor”), who holds a current and valid contractor’s License Number: ______________________ 337779 issued by the Arizona Registrar of Contractors.

Subcontractor unless previously agreed to in writing in a Change Order. A Change Order may contain Contractor proposes to develop that certain real property located at the Subdivision/Project provisions for reduction in compensation to Subcontractor for the Work to be performed or deleted address show on the summary sheet annexed ("Property"). Contractor hereby retains pursuant thereto. Said additional payment or reduction in payment may be by unit prices as set forth in Subcontractor to provide an integral part of the development of the Property and the Addendum "A", or an agreed lump sum not to exceed unit prices, if applicable or as otherwise set forth improvements to be constructed thereon (the "Subdivision/Project") in consideration of the full in the Change Order, If applicable, an agreed lump sum price will be determined by Contractor's written performance by Subcontractor of the terms, covenant and conditions of this Agreement. The notice requesting a cost estimate for additional or deleted Work. Subcontractor agrees to execute and parties agree as follows: return such written notice to Contractor within seven (7) days. Noncompliance will result in establishment of a lump sum price solely by Contractor. Contractor shall have the exclusive right to 1. CONTRACT DOCUMENTS: This Agreement together with Addendum "A" attached hereto an made a direct the Change Order Work to be done by Subcontractor on a time and material basis, in Contractor's part hereof, all plans, specifications, lists of materials, sections, details, layouts, profiles and bidder discretion. In such event, Subcontractor shall prepare daily time and material invoices which shall be information furnished by or on behalf of Contractor (collectively the "Contract Documents' are submitted to Contractor on a daily basis. Said daily time and material invoices shall include only direct interrelated documents, and by this reference are incorporated herein as if fully set forth. Subcontractor out-of-pocket material and labor costs with a maximum total markup of fifteen percent (15%). The acknowledges receipt of a copy of this Agreement. fifteen percent (15%) markup on time and material invoices is deemed to be full and complete compensation to Subcontractor or all general and administrative expenses, overhead, supervision and 2. CONFLICTS OR DISCREPANCIES: Subcontractor warrants that it has fully and completely reviewed profit. the Contract Documents and the model homes (if any) to which they relate (The "Models" If Subcontractor finds a conflict or discrepancy within the Contract Documents, or between the Contract 5. TIME FOR PERFORMANCE: Documents and the Models, deficiencies in work already performed or deviations from the Contract Documents which would impair Subcontractor's performance, Subcontractor will not commence or 5.1 Commencement and Resumption. Contractor will provide forty-eight (48) hour advance written will immediately cease performance of the affected portion of the Work and will immediately notify notice to Subcontractor when the Work is to commence ("Start Order") at each specific lot. At the time Contractor's duly appointed representative ("Contractor's Representative”) Unless otherwise directed so specified, Subcontractor will commence and pursue diligently to completion the work in strict by Contractor, the Work shown, described and performed in the Models shall, in the event of conflict, accordance with the construction schedules established from time to time by Contractor. It is be controlling. Subcontractor is responsible for the proper fitting of Subcontractor materials to parts of Subcontractor's responsibility to obtain a construction schedule for the lot/project before beginning any other materials or equipment and to the work(s) of improvement. The description of Work and materials Work thereon. Schedules are non-negotiable. If the Work is suspended by Contractor, Subcontractor to be furnished by Subcontractor as disclosed in any sections of the Plan(s) shall not be deemed to limit agrees to resume Work within forty-eight (48) hours of the receipt of verbal or written notice from the obligations of Subcontractor to perform only such Work or furnish only such material described in Contractor. If Subcontractor (i) fails to commence or resume Work within such forty-eight (48) hour such section(s), if Work or materials coming within the general description of such section(s) is period, (ii) fails to complete all of the Work or (iii) in the opinion of Contractor, improperly performs required by another provision(s) or section(s) of the Plans. said Work, uses defective materials or faulty workmanship or fails to diligently pursue Work to completion per Contractor's schedule, as amended from time to time, Subcontractor shall have breached 3. WORK TO BE PERFORMED: Contractor employs Subcontractor to perform the work ("Work”) this Agreement. described a follows and as described in, and in exact conformity with, the Contract Documents, for: 5.2 Delays: Subcontractor shall not be excused from any delay in the completion of the Work, except Lomas___________________________ Verdes plan 1 & 2 Additionally, Subcontractor shall: for delays which cannot be reasonably anticipated, if any, caused by acts of God, governmental agencies, or public utilities, labor strikes, or other causes beyond the reasonable control of (a) Supervise the Work and cause to be performed all acts necessary to deliver the Work in a completed Subcontractor (but excluding the financial inability of Subcontractor to perform) and which by exercise state and a clean condition; promptly increase its work force, accelerate its performance, work of due diligence and foresight, Subcontractor could not reasonably be expected to avoid. If overtime, without additional compensation (no premium time unless expressed in a Change Order), if Subcontractor is unable to fulfill any obligation by reason of such excusable delay, he shall promptly in the sole discretion of Contractor, the same is necessary to maintain proper progress. remove such inability. Upon any such excusable delay and if Subcontractor shall have promptly, at the inception of the delay, given to Contractor written notice hereof, the reason therefor, an estimate of the (b) Have the sole responsibility for the prompt clean-up of all debris, rubbish, and, as directed by time to be lost by virtue thereof and, at the expiration of such delay, the actual time lost, then the time Contractor, surplus materials resulting from its operations as the work progresses and at completion. for performance hereunder shall be extended by written stipulation for such reasonable time as Subcontractor shall clean finished surfaces soiled by it, plaster patch as required adjacent to it Work Contractor shall determine, but Subcontractor shall not be entitled to any compensation or damages for and replace glass breakage. If Subcontractor fails to do so, Contractor, in addition to any other remedies any such delay. Failure to deliver either such notice shall constitute an irrevocable waiver of any it might have, may and will charge the cost there of plus twenty percent (20%) of such cost for extension of time for performance of the Work by reason of the cause in respect of which such notice Contractor's administrative expense against amounts due Subcontractor. was required. No delay or right on the part of Subcontractor to secure any such delay shall prejudice any right Contractor may have to terminate this Agreement. (c) At its sole cost and expense, take whatever steps are necessary to prevent abnormal dust conditions due to its Work, to the satisfaction of Contractor and in accordance with all regulations. 5.3 Non-Commencement Termination: If, for any reason, Contractor does not issue a Start order, this agreement shall be canceled and void. Neither the Contract Documents, the existence of a (d) Prepare and obtain approval from Contractor for all shop drawings, scale models, details and construction schedule nor the provisions hereof relating to Start Orders shall constitute Contractor’s samples. representation that a minimum, specified or any number of Start Orders will be issued. Contractor, its sole option. may terminate this Agreement at any time and for any reason or no reason, upon notice to (e) Submit to Contractor a proposed list of any tier subcontractor and suppliers for review and approval. Subcontractor. In the event of such termination and if Subcontractor has partially performed pursuant Subcontractor shall not use or employ any tier sub or supplier without written permission of Contractor. hereto, Subcontractor, upon compliance with the terms of Paragraph 8, maybe paid the reasonable value, Subcontractors shall investigate the qualifications of all tier subcontractors and suppliers, including, to the extent consistent with this Agreement, of the material supplied and services actually rendered as but not limited to experience on similar projects, financial condition, ability to bond, management and of the date of termination, which reasonable value is hereby defined to (i) (i) the unit prices, as set forth supervisory capability an, ability to perform, it being expressly understood that it shall be in Addendum "A", or if the same are not contained therein, (ii) the actual cost of Such materials and Subcontractor's absolute obligation to insure that the tier subs are qualified to perform work assigned services furnished as determined by Contractor; provided, however, that if termination shall have been to them. for cause, then Contractor may deduct therefrom the amount of damages sustained by Contractor in 4. CHANGE ORDERS: From time to time the Contract Documents may be subject to change by addition to other remedies provided for herein. Subcontractor shall not be entitled to be paid any loss Contractor as it deems necessary, adding to or deleting from the Work or providing additional instruct of profit on the balance of the Work, nor be paid any damages by reason of such termination ions. Subcontractor will not deviate from the Contract Documents nor perform any Work not described 6. ACCEPTANCE OF PRIOR WORK AND CONDITIONS: Subcontractor has carefully examined a work therein unless and until a written Change Order shall have been executed by authorized agents of the performed insofar as the same applies to the Work, and insofar as the Work relates to work to t parties which, in the case of Contractor, shall be Contractor's Representative or project manager. As performed by other subcontractors and the entire Subdivision. By proceeding with his Work, amended by a Change Order, this Agreement shall remain in full force and effect. There shall be no Subcontractor shall he deemed to have accepted such prior work and Subcontractor shall be solely additional compensation to Subcontractor for additional or extra labor or materials furnished by responsible for any damage to such prior work. Subcontractor has inspected the Property, surveys thereof and the soil test reports pertaining thereto is familiar with and accepts the condition thereof as it exists and there will be no request by Subcontractor for additional compensation due to site LEGAL RECEIVED 06/07/2024

conditions, surface contours, soil condition power, water, sewer or gas location, drainage, ground (iii) Any damage by Subcontractor to (A) the Property, or (B) to the property of others, whether the water, trees, rock, subsurface conditions, and any other conditions of the Property or any damage is committed on or off the Property, including, without limitation, the property of public utility misunderstanding or misconception of Subcontractor. Subcontractor has consulted with the firms, governmental authority(ies) with jurisdiction over the Property or the Subdivision ("Authority" or "Authorities") and Subcontractor has included within the Contract Price the cost of complying with all (iv) Any breach by Subcontractor of the terms and provisions of this Agreement. conditions that may be required by said Authorities. Subcontractor represents and warrants that it is entering into this Agreement solely in reliance on its own information and investigations and not upon 8.5 Payment Use. All payments to Subcontractor hereunder shall be applied by Subcontractor first to any statement by Contractor. the payment of all costs of labor, materials, supplies, machinery, fixtures, tools, rental equipment, trucking and shipping costs, and other costs incurred by Subcontractor in connection with the performance of the Work before any amounts are retained by Subcontractor for its own overhead and 7. CONTRACT PRICE: Contractor agrees to pay the Subcontractor for the satisfactory performance of profit. Contractor shall have the right at all times to contact Subcontractor's tier subs, suppliers and the Work the sum ("Contract Price") set forth in Addendum "A:' in accordance with Paragraph d subject materialmen to ensure that the same are being timely paid. When payment is due to Subcontractor, to Paragraph 4. The Contract Price includes the cost of, and Subcontractor will furnish at .contractor’s contractor may, at its option, issue or cause to be issued checks drawn jointly in favor of Subcontractor expense, all labor, materials (which shall be new), supplies, tools, equipment and material conditions and the supplier, materialman, tier sub or other person, firm or organization to whom Subcontractor is work, including but not limited to, machinery, ladders, scaffolding, safety equipment and implements, indebted arising out of Subcontractor's performance hereunder. In addition, if in contractor’s opinion, licenses, patents, insurance, trucking and hauling and all other things necessary and required to Subcontractor shall sustain financial difficulty, or shall otherwise be unable to pay Subcontractor's promptly perform and complete the Work in a good and workmanlike manner cording to the highest suppliers, materialmen, permitted tier subs and/or workmen performing Work or shall fail to perform standards of the trade in strict accordance with the Contract Document, private deed restrictions. Subcontractor's covenants herein, Contractor, from funds due or to become due to Subcontractor, in regulations, codes and standards of the Authorities, the VA and/or FHA when applicable), Federal, Contractor's sole discretion, may pay the same and all taxes of any type or nature associated with State, County and City laws, ordinances, codes, rules, regulations and restrictions applicable thereto Subcontractor's performance under this Agreement and which are obligations of Subcontractor, either (and shall give all notices required thereby), the construction schedules designated by Contractor, and with or without the presentation by Subcontractor of approved bills, invoices and other data, and such to the complete satisfaction Of Contractor, the Authorities. Subcontractor will notify Contractor of all payment by Contractor shall apply on account toward the amount otherwise owing Subcontractor conflicts between the Contract Documents, the Models, and any such laws, etc. that come to the pursuant to this Agreement. attention of Subcontractor or should have me to his attention with the exercise of due care, and if Subcontractor shall fail to do so, Subcontractor shall bear all costs arising therefrom. The Contract The Arizona Prompt Payment Act. Section 8.1 – 8.2 serve as Contractor’s written statement Price also includes Subcontractor's overhead, profit, and applicable taxes, including without limitation, providing reasonable detail that any billing submitted to Contractor that does not comply with these transaction privilege taxes, due to the negligence of Subcontractor, any tier sub, anyone directly or paragraphs is not deemed certified or approved for failure to comply with material provisions of the indirectly employed by subcontractor, or for whose acts any of them may be liable, including but not contract. Contractor will endeavor to provide additional written notice; however, if subcontractor has limited to the correction of defective or nonconforming work, disposal of materials and equipment no complied with all provisions of paragraphs 8.1 and 8.2, then subcontractor has not complied with wrongly supplied, or making any damage to property, and if any utility is relocated or rebuilt for the the contract and is not entitled to payment. convenience of Subcontractor, the expense thereof.

8. PAYMENT: 9. COVENANTS AND ADDITIONAL RESPONSIBILITIES OF SUBCONTRACTOR: In addition to the covenants, representations and warranties made by Subcontractor elsewhere herein, subcontractor 8.1 Progress Payments. Payments for Work shall be made in installments at such times for completed covenants, represents and warrants as follows: segments of Work as are set forth in Addendum "A” and are contingent upon and shall be made later than thirty (30) days after inspection and approval of Contractor's Representative and, if required, (a) Subcontractor is experienced and fully capable of performing under and fulfilling the requirements lenders and all government agencies. To obtain any payment, Subcontractor shall submit to contractor of the Contract Documents and is fully licensed by the appropriate Authority to do and perform. all for approval: Work. Subcontractor will not perform any Work on the Property or Subdivision other than during established working hours, as established by Contractor, without the prior approval of Contractor's (a) An invoice for a progress installment payment in accordance with said payment schedule for work Representative. completed in a manner satisfactory to Contractor. Any invoice for labor and/or material which is over ninety (90) days from completion of Work to which it relates will not be honored. (b) Subcontractor shall, throughout Subcontractor's performance of the Work, inspect the Work prior to leaving the Property each day and take such action as is necessary to remove, cover, or protect (b) A list of every person or entity which furnished labor, materials, supplies, machinery, fixtures, against any injury occurring on or about the Property to any person or property, including trespassers tools, rental equipment, trucking or other services to the Property or the Subdivision as of the date for who may enter upon the Property during Subcontractor's absence. Subcontractor shall at all times which any payment is requested by Subcontractor with respect to which a subcontractors', mechanics’ protect the Work, the Subdivision and the Property and be responsible for any and all loss of damages or materialmen's lien could be claimed under applicable law. One or more fully executed waivers of thereto or to any part thereof caused by Subcontractor or its suppliers, materialmen, agents, lien forms from each thereof, as may be required by Contractor, signed by an authorized representative representatives, including damage, if any, to the property or work of Subcontractor any/or other of the party from whom a waiver is sough. subcontractors. Subcontractor shall be responsible for any and all loss or damage to or theft of(i) Subcontractor's materials, supplies, and fixtures until final installation and acceptance by Contractor (c) Preliminary lien release with all invoices. Lender requirement and (ii) the tools and/or equipment of Subcontractor and tier subs, agents, employees and representatives. (d) Any additional requirements imposed by a lender. (c) Subcontractor, in recognition of the relation of trust and confidence established between Subcontractor and Contractor, shall give, furnish and render his best skill, judgment, time, and . 8.2 Additional Final Payment Requirements In addition to the requirements of Paragraph 8.1, supervision in cooperation with Contractor in the performance of this Agreement and, if requested by before Contractor shall be required to process Subcontractor's application for final payment, Contractor, will participate in any arbitration proceeding involving the Subdivision/Project or the subcontractor shall submit to Contractor: Work.

(a) A lien release showing that all payrolls, bills for materials and equipment, and other indebtedness (d) It is the subcontractor’s responsibility to be familiar with and perform according to all applicable connected with the Work for which Contractor, Owner, its property or any surety might in any way be city, county, state and national building codes, to include the most recent changes and updates. liable, have been paid or otherwise satisfied, Subcontractor is also responsible to be knowledgeable of, and perform under, the guidelines of the 1995 OSHA Standards for Construction 29 CFR 1926 as established for subcontractor’s specific trade. (b) Consent of Lender to final payment, if required, (e) It is the subcontractor’s responsibility to insure that subcontractor’s field personnel (and any tier (c) Satisfaction of required close-out procedures including, without limitation, a final inspection herein sub employees) have, onsite, a current, complete set of blueprints for the subdivision/project. Contractor and, if required, representatives of the Authorities shall examine the Work and prepare a Subcontractor is also responsible for insuring that he has received from Contractor, the most current list of items which are required to be finished, corrected or changed to conform to the intent of and complete blueprints and specifications. conditions of the Contract Documents. Subcontractor shall then make such completion, corrections or changes directed by Contractor. (f) Subcontractor shall be responsible for provide and follow an OSHA approved safety plan as well as name a “Competent Person” to implement said plan. The person is to be trained to recognize workplace (d) Other data as required by Contractor, such as receipts, releases, and waivers of liens to the extent hazards and authorized to take appropriate measures to address and correct those hazards. and in such form as may be designated by Contractor, and Subcontractors of applicable trades must provide an OSHA approved fall protection plan and insure that subcontractor’s employees abide by that plan. Subcontractor must provide (prior to starting any (e) All warranties, operation manuals, maintenance instructions, owner's manual and other related work on subdivision/project) with the MSDS for their trade. documents unless specifically waived by Contractor. (g) Subcontractor must insure that employee hand and power tools are maintained in a safe condition. Final Payment will be made by the 30th of the month for invoices received by the 25th of the When power tools are designed to include “guards” said guards shall be in place and in use. previous month. Subcontractor shall insure that all power tools shall be of either the approved double-insulated type or grounded in accordance with OSHA regulations. Subcontractor employees shall be provided with all 8.3 Payment Not Acceptance. No payment by Contractor to Subcontractor nor the lapse of time will necessary protective equipment to include: eye guards, masks, and hard hats and insure that said safety be construed as an acceptance by Contractor of any Work; all work being subject to Final Acceptance. equipment is utilized as required by the specific trade. Final payment shall constitute a waiver of all claims by Subcontractor relating to the work, but shall in no way relieve Subcontractor of ability for the obligations assumed under Paragraph 12, or for faulty (f) For any trench or excavation five (5) feet or less in depth, subcontractor responsible for said or defective Work. excavation shall provide an exit device approved by OSHA. Said exit devices must be installed at every twenty-five (25) feet. Additionally, any trench deeper that five (5) feet shall also shored or sloped, 8.4 Withholdings. as well as having soil piles located no less than two (2) feet from the edge of said trench.

(a) Contractor, in its sole discretion, may withhold and disburse from payments otherwise due to 10. DEFAULT AND REMEDIES: subcontractor such sums as shall be necessary to pay any of the items set forth in this Agreement so that Contractor may protect itself from loss, or anticipated loss on account of any of the following: 10.1 Default. If Subcontractor shall be in breach hereof or otherwise, in the opinion of Contractor, shall fail to perform any of its obligations as set forth in the Contract Documents, Contractor may send (i) Defective or deficient Work not remedied by Subcontractor, including that covered by the warranties Subcontractor a written Notice of Default in the manner set forth in Paragraph 18. Said Notice of Default set forth hereinafter, shall specify the breach or failure to perform and shall state that if Subcontractor fails to eliminate said breach or failure to perform within forty-eight (48) hours, or within eight (8) hours in the event of an (ii) Failure of Subcontractor to make prompt payment to or in respect of claims filed or made, or emergency, it shall thereupon be in default of this Agreement. It shall be a beach hereunder if reasonable evidence indicating the probable filing or presentation of claims against Contractor by, any Subcontractor shall breach or fail to perform its obligations under any other agreement between supplier, materialmen or tier subs of Subcontractor or otherwise in connection with the Work, Subcontractor and Contractor or its affiliates and vice versa. LEGAL RECEIVED 06/07/2024

10.2 No Waiver. If Subcontractor is in default but Contractor permits him to continue to perform a part hereof, protecting against bodily injury, property damage (Broad Form) and personal injury hereunder, Subcontractor shall not thereby be relieved of the obligations arising out of said breach or claims. This coverage shall be maintained during the express warranty period referred to in Paragraph default nor shall such continued performance be construed as a waiver by Contractor of the breach or 12. default, and Contractor may deduct from payments then or thereafter due Subcontractor the amount of all expenses and/or damages incurred by Contractor arising out of said breach or default. (c) Automobile Liability Coverage containing a $1,000,000 per occurrence combined single limit of liability insuring against bodily injury and/or property damage arising out of the operation, 10.3 Remedies. If Subcontractor shall fail to eliminate a breach or failure to perform within said maintenance or use of any auto including, owned, non-owned, hired, and employee auto use. forty-eight (48) or eight (8) hour period referred to above, or shall otherwise be in default of this Agreement, Contractor may take any or all of the following actions in addition to all other remedies (d) Employers' Liability Coverage with limits of not less than: $100,000 each accident; $100,000 each available to Contractor herein or at law or in equity: employee; and $500,000 aggregate policy limit for disease.

(a) Direct Subcontractor to vacate the Property and promptly cease all Work and cause the Work to be 13.2 Subcontractor shall add Contractor, Owner and lender(s), if any, as Additional Insured on the above completed or remedied by another, including Contractor. Any expenses incurred by Contractor in liability policies. Each policy shall provide for a waiver of subrogation and contain an endorsement excess of the amount to have been paid to Subcontractor for its performance under this Agreement shall specifying that the insurance provided by Subcontractor shall be considered primary, and insurance of be paid by Subcontractor upon receipt by Subcontractor of a statement from Contractor. Such expenses the Contractor, Owner and lender(s), if any, shall be considered excess, as may be applicable to claims shall include, without limitation, a fee of twenty percent (20%) of such expenses for Contractor's arising out of this Agreement. Subcontractor shall furnish the Contractor with a certificate of Insurance administrative expense, attorney's fees, additional cost in excess of the balance of the contract price for (exemplified in Addendum B), and if requested by the Contractor, certified copies of the above policies. the Work remaining to be performed, real property taxes, insurance and interest on any loan(s) on the Such acknowledgment of insurance from companies issuing same shall accompany and become a part Property (if applicable) incurred by Contractor by reason of Subcontractor's default. of this Agreement. Each Certificate of Insurance shall contain an unqualified clause to the effect that the policy shall not be subject to cancellation, nonrenewable, adverse change, or reduction of amounts (b) If in Contractor's sole judgment, Subcontractor (i) fails to perform its Work in the manner required of coverage without thirty (30) days prior written notice to Contractor. herein, or(ii) fails to cooperate with Contractor and/or any other subcontractors in planning their work so that interference or delays are held to an absolute minimum, or (iii) delays in the furnishing of labor 13.3 If Subcontractor should subcontract any of this Work to a third party, Subcontractor guarantees or materials as required pursuant to the Contract Documents, whether or not in conjunction with delay that such third party shall indemnify Contractor and carry insurance as set forth herein prior to by others, Contractor may require, in addition to all other remedies available to it hereunder, that permitting such third party to commence its work. Subcontractor shall obtain a signed agreement from Subcontractor reimburse Contractor for general, special or liquidated damages, litigation costs, and the such third-party indemnifying Contractor and providing Contractor with evidence of insurance as set loss, damage, liability or potential liability incurred or to be incurred by Contractor in connection forth above. In addition, Subcontractor shall require in its purchase orders that each supplier indemnify therewith. Any reimbursement or payment referred to in the preceding sentence may be withheld by Subcontractor, and Contractor from all losses arising from their material and their delivery thereof. Contractor from payments otherwise due to Subcontractor. 13.4 Any attempt by Subcontractor to cancel or modify such insurance coverage, or any failure by The pursuit of any one remedy shall not act as a waiver of any other available remedy. Subcontractor to maintain such coverage, shall be a default hereunder and, upon such default, Contractor will have the right to terminate this Agreement and/or exercise any of its rights at law or at 11. SATISFACTORY WORKMEN: During the progress of the Work, Subcontractor shall furnish skilled equity. In addition to any other remedies, Contractor may, at its discretion, withhold payment of any workmen of good character and a qualified superintendent or foreman to act as a representative of sums due hereunder until Subcontractor provides the proof of the insurance coverages described herein. Subcontractor on the Subdivision with the right and power to obligate Subcontractor. Such representative shall at all times be satisfactory to Contractor. If Contractor advises Subcontractor that 13.5 The amounts and types of insurance set forth herein are minimums required by Contractor and such representative or any workman is unsatisfactory, Subcontractor shall promptly replace said shall not be substituted for an independent determination by Subcontractor of the amounts and types person. Subcontractor shall not allow any of its workmen to possess or consume alcoholic beverages, of insurance which Subcontractor shall determine to be reasonably necessary to protect itself and the illegal drugs, or chemical substances on the job site nor shall Subcontractor allow radios, tape players Work. or the like at the job site, nor shall Subcontractor allow any pets of Subcontractor or subcontractor’s employees to be brought onto the job site at any time. 14. INDEMNITY: Notwithstanding any of the insurance requirements or limits of liability set forth therein or nay other legal remedy available to Contractor, Subcontractor hereby indemnifies Contractor, 12. EXPRESS AND IMPLIED WARRANTIES: Subcontractor expressly warrants and guarantees to Owner and lender(s), if any, which provide(s) funds for the development of the Subdivision, and their Contractor that all materials installed and workmanship performed by Subcontractor shall be free from respective officers, directors, employees and agents, and shall hold them (in the aggregate and all defects as follows: individually) harmless, to the fullest extent permitted by law, from all liability and claims, demands, incidental and consequential and/or exemplary damages, expenses and costs of every kind and nature, (a) For a period of two (2) years from the date of Final Acceptance if the work in not an integral part of including, without limitation, attorneys' fees and court costs incurred in defending or investigating such the construction of the improvements. claims or actions, arising out of or resulting from or otherwise in connection with the activities of Subcontractor in the performance and/or non-performance of this Agreement, whether said claims, (b) For a period of two (2) years from the date upon which Owner conveys title to the dwelling which demands or damages shall be based upon contract, patent infringement, personal injury, death, property is the subject of the Work and the same is occupied by a third-party purchaser, if the Work is an integral damage, or otherwise, and regardless of whomsoever shall submit such claims or demands, provided part of the construction of said improvements, and that any such claim, damage or demand is not solely caused by the negligence of Contractor. Said claims, damages, demands and costs shall include those of Contractor, if any, and, if applicable, such funds as shall have been disbursed by Contractor in payment of obligations of Subcontractor arising (c) For such longer period of time as is (i) required by law, (ii) specified by or so long as jurisdiction out of the performance of this Agreement which shall exceed the amount set forth in this Agreement over any party hereto for the Work is held by the Arizona Registrar of Contractors, or (iii) as may be and/or the amount of sums wit held by Contractor from those sums due to Subcontractor. All provided elsewhere in the Contract Documents. obligations of Subcontractor to Contractor arising out of this indemnification clause shall bear interest as set forth hereinafter, with interest to accrue from the date that Contractor makes any payment until During said period of time if any faulty or defective materials or workmanship shall be discovered, repaid by Subcontractor. The foregoing indemnity and each and every representation and warranty contractor shall give written notice thereof to Subcontractor requesting that Subcontractor remedy or made by Subcontractor in this Agreement shall in all cases survive termination of this Agreement. repair said defect at the sole expense of Subcontractor. Subcontractor covenants that it shall commence and pursue diligently said repair or remedy within forty-eight (48) hours. This warranty or guarantee is 15. DISCRIMINATION: During the performance of this Agreement, Subcontractor covenants that it will intended to and does hereby obligate Subcontractor to perform any and all corrective work or services not, and will cause its tier subs to not violate any applicable laws or regulations prohibiting which may be reasonably requested by Contractor or the then owners of the Property, or any portion discrimination in employment, and will indemnify and hold harmless Contractor and the Property thereof. Neither final payment nor any other provision in this Agreement shall relieve Subcontractor owner (if not Contractor) from all liabilities arising out of Subcontractor's or any tier sub's violations of the sole responsibility for such corrective work. thereof. Without limiting the generality of the foregoing, Subcontractor will comply and cause its tier subs to comply with all provisions of Executive Order No. 11246 of September 24, 1965, and of the rules, If Subcontractor fails to timely commence such corrective work, then, at its option, Contractor may regulations, and relevant orders of the Secretary of Labor. In the event of Subcontractor's perform said corrective work or have the same performed at the expense of Subcontractor, with noncompliance with the non-discrimination clauses of this Agreement or with any rules, regulations, payment due to Contractor by Subcontractor upon receipt by Subcontractor of a statement for said or orders of the Secretary of Labor, that shall constitute a default hereunder in addition to any liabilities expense, including, without limitation, a fee of twenty percent (20%) of such expense for Contractor's or sanctions imposed by applicable law. administrative expense. 16. SIGNS: Without the prior written consent of Contractor, Subcontractor shall not place nor permit or In addition to the foregoing express warranty, Subcontractor is liable for the breach of such additional cause to be placed or maintained any signs or other advertisements in, on or about the Property, implied warranties as are imposed by law upon his performance under this Agreement, including, exclusive of any signs on vehicles operated by Subcontractor on the Property. without limitation, the implied warranties of merchantability and fitness for use and purpose. Breach of an implied warranty by Subcontractor shall be treated in the same manner as the breach of any 17. ASSIGNMENT: Neither the rights, privileges nor obligations of Subcontractor under this Agreement, express warranty. may be assigned without the prior written consent of Contractor in its sole discretion, including without limitation, the assignment of any funds due or to become due to Subcontractor pursuant to the terms of If the materials installed by Subcontractor are "Consumer Products" as defined in the Magnuson Moss this Agreement. Subject to the foregoing, this Agreement shall be binding upon the heirs, personal Warranty Act or are otherwise subject to federal, state or local governmental legislation or rules, representatives, successors and assigns of the parties hereto. Subcontractor covenants that it will strictly comply with all of the standards and requirement of any such legislation and/or rules. 18. WRITTEN NOTICES: Any written notice to be given under and pursuant to this Agreement may be delivered personally, maybe sent by telegram, or maybe sent by certified mail to the address of the 13. INSURANCE: party set forth herein to whom such notice is to be given. Such written notice shall be deemed given when personally delivered to the party's address (whether or not the addressee is then present) or 13.1 Subcontractor agrees to procure, pay the premiums for, and maintain in full force and effect and forty-eight (48) hours after telegram or mailing as aforesaid. if either party shall change addresses during require all tier subs to do the same, during its performance under this Agreement the following the period that this Agreement is in effect, such change of address shall be sent to the other party insurance, and such other insurance as Contractor may, from time to time, reasonably request: pursuant to the foregoing provisions.

(a) Workmen's Compensation Insurance to cover statutory benefits of the Arizona Workmen's 19. ATTORNEY'S FEES AND COSTS: In the event of any litigation arising out of the execution, Compensation Laws and federal laws, if applicable, with supplemental Coverage B Employer's performance, non-performance or breach of this Agreement, the court, in such litigation, or in a separate Liability Coverage (providing protection should the employee elect against workmen's compensation action, shall award reasonable attorneys' fees, costs and expenses to the prevailing party. In the event pursuant to law) in limits acceptable to Contractor. This insurance must include or be accompanied by of any litigation involving parties other than Contractor or Subcontractor in which Contractor becomes a Waiver of Subrogation Endorsement waiving the carrier's right of subrogation with respect to involved, arising out of the execution, performance, non-performance or breach of this Agreement by Contractor and with Master and Servant Endorsement. If any class of employees engaged in the Work Subcontractor, Subcontractor agrees that Contractor shall be entitled to receive from Subcontractor all are not protected by the Workmen's Compensation Statute, Subcontractor shall provide and similarly reasonable attorneys' fees, costs and expenses incurred in any such litigation. shall cause each of its tier subs to provide special insurance for the protection of such employees not otherwise protected similar to the coverage required above. 20. INTEREST ON SUMS DUE: All sums due and payable to Contractor by Subcontractor for any reason, as set forth in this Agreement shall bear interest at the rate of eighteen percent (18%) per annum, (b) Commercial General Liability Insurance on a Claims Occurrence Form containing a per occurrence commencing as of the date any such obligation becomes due. combined single limit in the amount applicable pursuant to Addendum "B" attached hereto and made LEGAL RECEIVED 06/07/2024

21. PLANS AND SPECIFICATIONS: All plans and specifications utilized hereunder shall remain the sole and exclusive property of the Owner and/or Contractor and any unauthorized use of same by Subcontractor or anyone it may deliver same to, or work for, or supply materials and/or equipment to, shall be just cause for the termination of this Agreement by Contractor; and upon such termination, Subcontractor shall forthwith become liable in an amount equal to one hundred percent (100%) of the total costs of the improvements as liquidated damages.

22. MISCELLANEOUS:

(a) Time is of the essence of this Agreement.

(b) For all purposes of the Contract Documents, Subcontractor is an independent contractor and is not an employee of, joint venture with or otherwise associated with Contractor.

(c) Subcontractor hereby waives the right to object to the validity or enforceability of any provision of this Agreement that restricts or eliminates any statutory right or remedy, it being understood and agreed upon by the parties that the provision of this Agreement are reasonable and are necessary for the expeditious and effective resolution of disputes, in the efficient prosecution of the entire Subdivision. Notwithstanding the foregoing, if any provision hereof is found to be void or unenforceable, all of the remaining provisions of the Contract Documents shall be fully effective and shall not be affected by the void or unenforceable provision or provisions.

(d) Whenever the context of this Agreement shall require the masculine shall include the neuter and feminine, the neuter the masculine and feminine, the singular the plural, and the plural the singular.

(e) This Agreement shall be construed as a whole in accordance with its fair meaning, the captions being for the convenience of the parties only. The captions are not intended to fully describe or define the provisions of this Agreement to which they pertain.

23. ENTIRE AGREEMENT: The Contract Documents contain the entire agreement between Contractor and Subcontractor and supersede all prior conversations and negotiations between the parties on the subject matter of the Contract Documents. Contractor and Subcontractor agree that, except as specifically provided herein, neither party has made any representations, warranties or agreements as to any matters concerning the subject matter of this Agreement. This Agreement shall be construed as if both parties prepared this Agreement. Any additional terms requested by the Subcontractor are not binding unless signed by Contractor. If any terms requested by the Subcontractor are inconsistent with the terms of this contract, the terms of this contract shall be controlling.

The parties have executed this Agreement to be effective on the date set forth above:

Agreed to by:

Contractor

11/9/22

Jason P Kush, Owner, J.P. Kush Construction, llc Date:

Sub-Contractor

Name:_________________________________ Date:

Company:_____________________________

ROC#:_____________________________ LEGAL RECEIVED 06/07/2024

ESTIMATE

StoltzCon - ROC 337779 [email redacted] 2214 N 24th St +1 [number redacted] Phoenix, AZ 85008

Jason Kush

Bill to Ship to Estimate details Jason Kush Jason Kush Estimate no. : 1001 JPK Lomas Verdes Project JPK Lomas Verdes Project Estimate date : 11/2/22 Expiration date : 11/16/22

Product or service Amount

1. Barn Door Installation $350.00 Installation of barn door and its included hardware. All hardware and materials to be on site and purchased by owner.

No Trim

*Same price for each barn door to be installed on each Lot*

2. Exterior Door Installation $350.00 Installation of single exterior door on EACH lot. House to Garage

Hinges provided by owner of project.

No Trim

*Price is same for each Door on each lot*

3. Interior French Door Installation $350.00 Installation of interior French Doors on EACH lot.

Hinges provided by owner of project.

No Trim

*Price is same for each French Door on each lot*

4. Interior Pocket Door Installation $350.00 Installation of any pocket doors on any of the lots.

All materials provided by owner of project.

No Trim LEGAL RECEIVED 06/07/2024

*Price is same for each Door on each lot*

5. Standard single swinging door installation $160.00 Installation of standard swinging doors (Left or right hinge)

All hinges provided by owner.

No Trim

*Same price per door for all lots*

6. Interior Door Hardware Installation $35.00 Installation of Interior Door hardware (Levers and Dummy Levers)

Price per Lever installed

7. Exterior Door Hardware Installation $50.00 Installation of Exterior Door hardware (Lever + Deadbolt)

Price per Lever/Deadbolt install

8. Closet Build Out $250.00 Installation of Closet interior: -Single shelf with pole

All materials provided by owner.

*Same price per Closet*

9. Pantry Shelves Installation $360.00 Installation of Shelving in each pantry.

All materials provided by owner

Price per pantry

10. Sliding closet door installation $200.00 Price for any sliding closet door installs on any of the lots

Install only.

Total $2,455.00

Expiry date 11/16/22 LEGAL RECEIVED 06/07/2024

Arizona Form Transaction Privilege Tax Exemption Certificate 5000 x Do not use Form 5000 to claim sale for resale. Use Form 5000A. x Do not use Form 5000 if you are a non-TPT licensed contractor. Use Form 5000M. This Certificate is prescribed by the Department of Revenue pursuant to A.R.S. § 42-5009. The purpose of the Certificate is to document and establish a basis for state and city tax deductions or exemptions. It is to be filled out completely by the purchaser and furnished to the vendor at the time of the sale. The vendor shall retain this Certificate for single transactions or for the specified period as indicated below. Incomplete Certificates are not considered to be accepted in good faith. Only one category of exemption may be claimed on a Certificate.

A. Purchaser’s Name and Address: B. Check Applicable Box: Name J.P. Kush Construction, llc Single Transaction Certificate Address 16420 7001 N 92nd E Main St Ste 223 St #101 1/1/22 1/1/2021 12/31/22 12/31/2021 X Period From 5/1/2020 Through 12/31/2020 City State ZIP Code (You must choose specific dates for which the certificate will be valid. You Scottsdale AZ 85260 85251 are encouraged not to exceed a 12 month period. However, a certificate will be considered to be accepted in good faith for a period not to exceed 48 months if the Vendor’s Name vendor has documentation the TPT license is valid for each calendar year covered in the certificate.)

C. Choose one transaction type per Certificate: X Transactions with a Business Transactions with Native Americans, Native American Businesses and Tribal Governments (See reason #12.) Arizona Transaction Privilege Tax (TPT) License Number Tribal Business License Number OR Tribal Number 21175035 SSN / EIN Name of Tribe Tribal Government

Other Tax License Number Transactions with a U.S. Government entity 1136200 - City of Scottsdale (See reasons #9 and #10.) If no license, provide reason: Transaction with a Foreign Diplomat (See reason #13.) Precise Nature of Purchaser’s Business. Home building & development

D. Reason for Exemption: Check the box indicating one of the more common exemptions provided below, or use Box 14 or 15 to cite the appropriate authority for another exemption (deduction). Refer to www.azdor.gov/Forms/TransactionPrivilegeTax.aspx for a complete list of state and city exemptions (deductions) and the business classes (codes) under which the deductions apply. 1. Tangible personal property to be leased or rented in the ordinary course of the purchaser’s licensed business. X 2. Tangible personal property to be incorporated into a taxable contracting project, or a maintenance, repair, replacement or alteration project. 3. Food, drink, or condiments purchased by a restaurant business. 4. Pipes or valves four inches in diameter or greater to be used for transportation of oil, natural gas, artificial gas, water or coal slurry. 5. Railroad rolling stock, rails, ties, and signal control equipment. 6. Machinery or equipment used directly in the following business activities: Manufacturing, processing or fabricating. Job printing. Refining or metallurgical operations. Extraction of ores or minerals from the earth for commercial purposes. Extraction of, or drilling for, oil or gas from the earth for commercial purposes. 7. Other income producing capital assets. (Cities only.) 8. Food, drink or condiments for consumption within the premises of any prison, jail or other institution under the jurisdiction of the state department of corrections, the department of public safety, the department of juvenile corrections or a county sheriff. Food, drink, condiments or accessories purchased by a school district for consumption at a public school within the district during school hours. 9. Tangible personal property sold or leased directly to the United States Government or its departments or agencies by a manufacturer, modifier, assembler or repairer. (Retail, personal property rental and mining classifications only.) 10. Fifty percent of the gross proceeds or gross income from the sale of tangible personal property directly to the United States Government or its departments or agencies. (Retail classification only.) ADOR 10308 (3/19) Continued on page 2 Î LEGAL RECEIVED 06/07/2024 Your Name (as shown on page 1) Arizona Transaction Privilege Tax License Number

11. Electricity, natural gas or liquefied petroleum gas sold to a qualified manufacturing or smelting business. A manufacturing or smelting business that claims this exemption authorizes the release by the vendor of the information required to be provided to the Department of Revenue pursuant to A.R.S. §42-5063(C)(6). (Utilities classification only.) 12. Sale or lease of tangible personal property to affiliated Native Americans if the solicitation for sale, signing of the contract, delivery of the goods and payment for the goods all occur on the reservation. NOTE: The vendor shall retain adequate documentation to substantiate the transaction. 13. Foreign diplomat. NOTE: Limited to authorization on the U.S. Department of State Diplomatic Tax Exemption Card. The vendor shall retain a copy of the U.S. Department of State Diplomatic Tax Exemption Card and any other documentation issued by the U.S. Department of State. Motor vehicle purchases or leases must be pre-authorized by the Office of Foreign Missions (“OFM”). See “Vehicle Tax Exemption” at www.state.gov/ofm/tax/

14.*Other Deduction: Cite the Arizona Revised Statutes authority for the deduction. A.R.S. § Description:

15.*Other Cities Deduction: Cite the Model City Tax Code authority for the deduction. M.C.T.C § Description:

*Refer to www.azdor.gov/TransactionPrivilegeTax(TPT)/RatesandDeductionCodes.aspx for a complete list of state and city exemptions (deductions) and the business classes (codes) under which the deductions apply.

E. Describe the tangible personal property or service purchased or leased and its use below. (Use additional pages if needed.)

F. Certification A vendor that has reason to believe that this Certificate is not accurate or complete will not be relieved of the burden of proving entitlement to the exemption. A vendor that accepts a Certificate in good faith will be relieved of the burden of proof and the purchaser may be required to establish the accuracy of the claimed exemption. If the purchaser cannot establish the accuracy and completeness of the information provided in the Certificate, the purchaser is liable for an amount equal to the transaction privilege tax, penalty and interest which the vendor would have been required to pay if the vendor had not accepted the Certificate. Misuse of this Certificate will subject the purchaser to payment of the A.R.S. § 42-5009 amount equal to any tax, penalty or interest. Willful misuse of this Certificate will subject the purchaser to criminal penalties of a felony pursuant to A.R.S. § 42-1127(B).

I, (print full name) Jason Kush , hereby certify that these transactions are exempt from Arizona transaction privilege tax and that the information on this Certificate is true, accurate and complete. Further, if purchasing or leasing as an agent or officer, I certify that I am authorized to execute this Certificate on behalf of the purchaser named above. 1/1/22 1/1/21 5/1/20 President SIGNATURE OF PURCHASER DATE TITLE ADOR 10308 (3/19) Page 2 of 2 Print Form Reset Form LEGAL RECEIVED 06/07/2024

May 31, 2024

Via U.S. Mail and Email

Complainant Stoltz Build Co LLC 2214 N 24th St Phoenix, AZ 85008

Via U.S. Mail and Email

Respondent J P Kush Construction LLC 16420 N 92nd St Ste 222 Scottsdale, AZ 85260

Re: Complaint No. 2024-06069

Dear Complainant and Respondent:

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

The Registrar will not issue a citation before June 7, 2024 and will review Respondent’s response, if one is submitted.

Sincerely,

/s/ Shaquira Adebule Shaquira Adebule Legal Assistant II

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 LEGAL RECEIVED 06/07/2024

Legal Department Arizona Registrar of Contractors 602-542-1525

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 LEGAL RECEIVED 06/07/2024 LEGAL RECEIVED 06/07/2024 LEGAL RECEIVED 06/07/2024 LEGAL RECEIVED 06/07/2024 LEGAL RECEIVED 06/07/2024 LEGAL RECEIVED 06/07/2024 LEGAL RECEIVED 06/07/2024 LEGAL RECEIVED 06/07/2024 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Case No. 2024-06069 Stoltz Build Co LLC,

COMPLAINANT, CITATION v. J P Kush Construction LLC License No. ROC 247343,

RESPONDENT.

The Registrar issues this Citation to J P Kush Construction LLC (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by July 11, 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 28, 2024, Stoltz Build Co LLC (“Complainant”) filed a written complaint with the Registrar. A copy of that Complaint is attached to this Citation. A FORMAL STATEMENT OF THE CHARGES AGAINST RESPONDENT The Registrar investigated this matter and finds cause to charge Respondent with violation(s) of Title 32, Chapter 10 of the Arizona Revised Statutes. Respondent is charged with violating:

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

If the matter proceeds to a hearing and the administrative law judge determines that any

of the charges listed above are supported by a preponderance of the evidence, then

Respondent’s 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. 2024-06069.

How to File a Written Answer: Respondent’s written answer may be submitted in the

following ways:

In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 Email: [email redacted] The Registrar’s normal office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday. If Respondent submits a written answer by mail, it is not filed with the Registrar until the

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Registrar actually receives it. Deadline for Filing a Written Answer: Respondent must file a written answer with the Registrar no later than July 11, 2024. This deadline is calculated under A.R.S. §§ 32-1155(A) and (B), which provides a deadline ten days after service of the Citation. Service of the Citation and Complaint is complete five days after the Registrar mails a copy of the Citation and Complaint to Respondent’s latest address of record in the Registrar’s office. Consequences for Failing to File a Written Answer: If Respondent fails to answer, Respondent’s failure may be deemed an admission of the act or acts charged in the written complaint. A.R.S. § 32-1155(C). The Registrar may then suspend or revoke Respondent’s license(s). THE ADMINISTRATIVE HEARING If Respondent files a timely written answer contesting any charges in the Complaint, then the Registrar will request the Office of Administrative Hearings set a date for an administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D). RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations, are inadmissible in the administrative hearing. A.R.S. § 41-1092.06(B). RESPONDENT’S PRIOR RECORD Under A.A.C. R4-9-117, in determining the appropriate discipline, the administrative law judge and the Registrar may consider not only facts in the current case, but also facts in prior cases and any documents regarding Respondent on file with the Registrar. Respondent’s prior disciplinary record and current license(s) status may be considered as a mitigating or aggravating factor in determining the appropriate discipline. EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to the Citation and Complaint, showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). This Citation does not constitute proof that any charge or allegation in Complainant’s written complaint is in fact true. This Citation does not constitute proof that Respondent violated any statutory provision or rule adopted by the Registrar. Dated June 26, 2024. By: /s/ Margaret Lindsey Margaret Lindsey Assistant General Counsel Legal Department Arizona Registrar of Contractors

COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, June 26, 2024 to:

Respondent Certified Mail No: [number redacted] of 5

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 J P Kush Construction LLC 16420 N 92nd St Ste 222 Scottsdale, AZ 85260

Copy mailed by USPS First Class mail this same date to: Respondent J P Kush Construction LLC 16420 N 92nd St Ste 222 Scottsdale, AZ 85260 Complainant Stoltz Build Co LLC 2214 N 24th St Phoenix, AZ 85008 Copy sent electronically this same date to:

Respondent at email address on record with the Registrar Complainant at email address on record with the Registrar Case No. 2024-06069

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Received 7/11/2024 ROC Legal

REGISTRAR OF CONTRACTORS

THE STATE OF ARIZONA

Stoltz Build Co, llc Case No.:

Complainant,

v. CASE NO 2024-06069

J P KUSH CONSTRUCTION LLC, MOTION FOR STAY OF ENFORCEMENT OR MOTION TO TERMINATE CITATION LICENSE NO. ROC 247343,

Respondent,

Respondent J.P. Kush Construction, LLC (“Kush Construction”) hereby moves for relief from default for three reasons: 1) There is a contractual dispute that the contract clearly lays out ways to resolve, and ROC complaints are not one of them 2) a situation exists where it would be appropriate for the Arizona Registrar of Contractors (“ROC”) to exercise its discretion. In the alternative, Kush Construction requests the ROC stay enforcement of the current order to allow Kush Construction to appeal to the Superior Court. 3) Complainant has refused to do repairs/warranty work on jobs they have been paid on full for, and per the contract the respondent has the right to withhold additional funds owed respondent to cover those repairs. 4) Complainant has billed incorrectly, failed to supply docs needed for final payments & has been notified of those incorrect bills and has yet to correct those invoices. I. Contractual terms for disputes Per the contract attached with the complainant’s complaint, section 10 clearly lays out disputes and dispute resolution. II. Exercise Discretion

In addition to lack of service, this is a situation that warrants the ROC exercising the discretion afforded it in A.R.S. §32-1155(C). Under this statute, the ROC is not required to find the lack of an answer as an admission. (“Failure of the licensee to answer within ten days after service may be deemed an admission...”)(emphasis added). This statute further gives the ROC the ability to exercise discretion when the failure to answer is “attributable to excusable neglect on the part of the licensee.” CASE NO 2024-06069MOTION FOR STAY OF ENFORCEMENT OR MOTION TO TERMINATE CITATION - Received 7/11/2024 ROC Legal

Deciding a case on the merits should always be the goal and denying a Respondent that right due to a technical procedural violation does not serve justice. When exercising discretion, courts have made clear that courts “shall be liberal in relieving parties of defaults caused by inadvertence and excusable neglect.” Brown v. Beck, 64 Ariz. 299, 302, 169 P. 2d 855, 857 (1946). Setting aside the default is appropriate here as Kush Construction can show both excusable neglect and that it has a valid defense on the merits. The exercise of the ROC’s discretion should tend “to bring about a judgment on the very merits of a case; and when the circumstances are such as to lead to a court to hesitate upon a motion to open a default, it is better, as a general rule, that the doubt shall be resolved in favor of the application.” See Brown v. Beck, 64 Ariz. 299, 302, 169 P. 2d 855, 857 (1946). In the instant situation, the ROC should exercise its discretion and relieve the Respondent from default. Kush Construction’s failure to respond was inadvertent and due to personal matters. III. Warranty Work Section 12 & 8.4 clearly lays out the terms for final payment and warranty work. Both of which the complainant have failed to finish per the terms of the contract. IV. Final payment

Sections 8.2 through 8.5 clearly lay out the terms for final payment that the complainant has still failed to supply all required documents and correct invoices.

V. Conclusion

Kush Construction is a two-person company which has served the Valley for nearly two decades. This is clearly a contractual dispute that the complainant is attempting to weaponize the roc to resolve. Respondent request this complaint be removed and awarded in the respondents favor. The original was filed this day 11th day of July, 2024, with: Arizona Registrar of Contractors

1700 W. Washington St., Ste. 105 Phoenix, AZ 85007

www.Roc.az.gov [email redacted] CASE NO 2024-06069MOTION FOR STAY OF ENFORCEMENT OR MOTION TO TERMINATE CITATION - Received 7/11/2024 ROC Legal

A copy of this was mailed, postage prepaid, to the Complainant at: Stoltz Construction 2214 N 24th St

Phoenix, AZ 85008

Dated this 28th of May, 2024.

Jason Kush

CASE NO 2024-06069MOTION FOR STAY OF ENFORCEMENT OR MOTION TO TERMINATE CITATION - Received 7/11/24, 10:52 AM State of Arizona Mail - Complaint CASE NO 2024-06069 Respondent response 7/11/2024 ROC Legal

Answers - AZROC <[email redacted]>

Complaint CASE NO 2024-06069 Respondent response message

Jason Kush <[email redacted]> Thu, Jul 11, 2024 at 10:10 AM To: "[email redacted]" <[email redacted]>

Please see attached response for CASE NO 2024-06069.

Registrar of contractors Stoltz response.pdf 145K

https://mail.google.com/mail/b/AEoRXRSj09Q3Jm1AYzCUicbINj594TR8jtYMrWHMXOFnkhsRC9IY/u/0/?ik=581c53cf5c&view=pt&search=all&permthi… 1/1 Mediation Notice

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

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

v. JOINT REQUEST FOR MEDIATION _________________________ RESPONDENT.

REQUEST

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

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

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

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

_____________________________________ _______________________ Respondent (or representative) Date

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

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

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

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

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

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

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

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

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

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

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

4. Subject Matter of Expected Testimony

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

4. Subject Matter of Expected Testimony

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

4. Subject Matter of Expected Testimony

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

4. Subject Matter of Expected Testimony

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

Exhibit Exhibit Name

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

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

Print Name Signature Date

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