NOTICE TO OWNER

Under the California Mechanic's Lien Law, any contractor, subcontractor, laborer, supplier, or other person or entity who helps to improve your property, but is not paid for his or her work or supplies, has a right to place a lien on your home, land, or property where the work was performed and to sue you in court to obtain payment.

This means that after a court hearing, your home, land, and property could be sold by a court officer and the proceeds of the sale used to satisfy what you owe. This can happen even if you have paid your contractor in full if the contractor's subcontractors, laborers, or suppliers remain unpaid.

To preserve their rights to file a claim or lien against your property, certain claimants such as subcontractors or material suppliers are each required to provide you with a document called a “Preliminary Notice.” Contractors and laborers who contract with owners directly do not have to provide such notice since you are aware of their existence as an owner. A preliminary notice is not a lien against your property. Its purpose is to notify you of persons or entities that may have a right to file a lien against your property if they are not paid. In order to perfect their lien rights, a contractor, subcontractor, supplier, or laborer must file a mechanic’s lien with the county recorder which then becomes a recorded lien against your property. Generally, the maximum time allowed for filing a mechanic's lien against your property is 90 days after substantial completion of your project.

TO INSURE EXTRA PROTECTION FOR YOURSELF AND YOUR PROPERTY, YOU MAY WISH TO TAKE ONE OR MORE OF THE FOLLOWING STEPS:

(1) Require that your contractor supply you with a payment and performance bond (not a license bond), which provides that the bonding company will either complete the project or pay damages up to the amount of the bond. This payment and performance bond as well as a copy of the construction contract should be filed with the county recorder for your further protection. The payment and performance bond will usually cost from 1 to 5 percent of the contract amount depending on the contractor's bonding ability. If a contractor cannot obtain such bonding, it may indicate his or her financial incapacity.

(2) Require that payments be made directly to subcontractors and material suppliers through a joint control. Funding services may be available for a fee, in your area which will establish voucher or other means of payment to your contractor. These services may also provide you with lien waivers and other forms of protection. Any joint control agreement should include the addendum approved by the registrar.

(3) Issue joint checks for payment, made out to both your contractor and subcontractors or material suppliers involved in the project. The joint checks should be made payable to the persons or entities which send preliminary notices to you. Those persons or entities have indicated that they may have lien rights on your property, therefore you need to protect yourself. This will help to insure that all persons due payment are actually paid.

(4) Upon making payment on any completed phase of the project, and before making any further payments, require your contractor to provide you with unconditional “Waiver and Release” forms signed by each material supplier, subcontractor, and laborer involved in that portion of the work for which payment was made. The statutory lien releases are set forth in exact language in Section 3262 of the Civil Code. Most stationery stores will sell the “Waiver and Release” forms if your contractor does not have them. The material suppliers, subcontractors, and laborers that you obtain releases from are those persons or entities who have filed preliminary notices with you. If you are not certain of the material suppliers, subcontractors, and laborers working on your project, you may obtain a list from your contractor. On projects involving improvements to a single-family residence or a duplex owned by individuals, the persons signing these releases lose the right to file a mechanic’s lien claim against your property. In other types of construction, this protection may still be important, but may not be as complete.

To protect yourself under this option, you must be certain that all material suppliers, subcontractors, and laborers have signed the “Waiver and Release” form.

If a mechanic's lien has been filed against your property, it can only be voluntarily released by a recorded “Release of Mechanic’s Lien” signed by the person or entity that filed the mechanic’s lien against your property unless the lawsuit to enforce the lien was not timely filed. You should not make any final payments until any and all such liens are removed. You should consult an attorney if a lien is filed against your property.

Upon satisfactory payment being made for any portion of the work performed, the contractor shall, prior to any further payment being made, furnish to the person contracting for the home improvement or swimming pool a full and unconditional release from any claim or mechanic's lien pursuant to Section 3114 of the Civil Code for that portion of the work for which payment has been made.

Contractors are required by law to be licensed and regulated by the Contractors State License Board which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent act or omission is filed within four years of the date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be filed within 10 years of the date of the alleged violation. Any questions concerning a contractor may be referred to the Registrar, Contractors State License Board, P.O.Box 26000, Sacramento, California 95826.

STATE LAW REQUIRES ANYONE WHO CONTRACTS TO DO CONSTRUCTION WORK TO BE LICENSED BY THE CONTRACTORS STATELICENSE BOARD INTHE LICENSE CATEGORY IN WHICH THE CONTRACTOR IS GOING TO BE WORKING – IF THE TOTAL PRICE OF THE JOB IS $500 OR MORE (INCLUDING LABOR ANDMATERIALS).

LICENSED CONTRACTORS ARE REGULATED BY LAWS DESIGNED TO PROTECT THE PUBLIC. IF YOU CONTRACT WITH SOMEONE WHO DOES NOT HAVEA LICENSE, THE CONTRACTORS STATE LICENSE BOARD MAY BE UNABLE TO ASSIST YOU WITH A COMPLAINT. YOUR ONLY REMEDY AGAINST AN UNLICENSED CONTRACTOR MAYBE IN CIVIL COURT, AND YOU MAYBE LIABLE FOR DAMAGES ARISING OUT OF ANY INJURIES TO THE CONTRACTOR OR HIS OR HER EMPLOYEES.

YOU MAYCONTACT THE CONTRACTOR’S STATELICENSE BOARD TO FIND OUT IF THIS CONTRACTOR HAS A VALIDLICENSE. THE BOARD HAS COMPLETE INFORMATION ON THE HISTORY OF LICENSED CONTRACTORS, INCLUDING ANY POSSIBLE SUSPENSIONS, REVOCATIONS, JUDGMENTS, AND CITATIONS. THE BOARD HAS OFFICES THROUGHOUT CALIFORNIA. PLEASE CHECK THE GOVERNMENT PAGES OF THE WHITE PAGESFOR THE OFFICE NEAREST YOU OR CALL 1-800-321-CSLB FOR MORE INFORMATION.

RESPONSIBILITIES OF CUSTOMER: Customer represents that, except as described in the request for service, all existing electrical is in good repair and condition and agrees to hold The Electric Connection harmless for the discovery of defective conditions, including, but not limited to the following:

Improper or faulty electrical wiring
Broken or faulty conduit
Existing illegal conditions
Electrical defects
Inadequate circuitry
Inadequate panel size
Defective electrical devices – i.e.: switches, receptacles, appliances, panels, etc.

RESPONSIBILITIES OF THE ELECTRIC CONNECTION – CONDITIONS AND LIMITATIONS: The Electric Connection shall do all work in a competent, workmanlike manner. The Electric Connection is not responsible for any existing illegal conditions, bad workmanship or delays caused by the customer, other contractors, building inspectors, utility companies, or any person who is not an employee of The Electric Connection.

LIFETIME LIMITED WARRANTY: The Electric Connection warrants its work to be free from defects in material for 30 days and has a Lifetime Warranty on its labor unless otherwise stated in writing on the face hereof. All warranties are void if payment is not made when due. Warranties extend only to the customer and are not transferable. If a defect in materials or labor covered by this warranty occurs, The Electric Connection will, with reasonable promptness during normal working hours, remedy the defect. In no event shall The Electric Connection be held liable for water or other damage caused by any delay in remedying a defect. To obtain warranty performance, notify The Electric Connection of any defect or claims for breach at the address and telephone number on the face hereof or telephone The Electric Connection headquarters at (818) 446-0888.

EXCLUSIONS AND LIMITATIONS: CUSTOMERS RIGHT TO REPAIR AND REPLACEMENT OF DEFECTIVE MATERIALS ARE THE EXCLUSIVE REMEDIES, AND THE ELECTRIC CONNECTION SHALL NOT BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULTING FROM THE MATERIALS PROVIDED FOR IN THIS CONTRACT.

The Electric Connection is not responsible for the following which are excluded from warranty:

Defective conditions listed under the above “Responsibilities of Customer.”
Work performed by or materials installed by others not in this agreement.
Defects and failures from mistreatment or neglect.

This limited warranty is the only express warranty The Electric Connection gives. IMPLIED WARRANTIES, Including, but not limited to, warranties of merchantability and fitness for a particular purpose, are limited to a duration of thirty (30) days from date of completion.

PROTECTION OF CUSTOMER’S PROPERTY: Customer agrees to remove or protect any personal property, inside and out, including, but not limited to, carpets, rugs, shrubs, and planting, and The Electric Connection shall not be responsible for said items. Nor shall The Electric Conne ction be held responsible for the natural consequences of The Electric Connection’s work which may cause damage to improvements to real property, including, but not limited to, curbs, sidewalks, walks, driveways, garages, patios, lawns, shrubs, sprinkler systems, wallpaper, paint, drywall, stucco, wood, tile, cabinets and other appurtenances to the residence or other real property.

The Electric Connection shall not be held responsible for damage to personal property, real property, or any improvements to real property caused by persons delivering materials or equipment or keeping gates and doors closed for children or animals.

ENTIRE AGREEMENT: This is the entire agreement. The parties are not bound by any oral expression or representation by any agent purporting to act, or on their behalf, or by any commitment, or arrangement not to set forth herein. The agreement binds jointly and severally all signing as Customer, their heirs, representatives, successors and assigns.

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