DHS Plumbing
CSLB #1156850 · Sacramento, California
(916) 769-2116
hello@dhsplumbing.ca
www.dhsplumbing.ca
Sacramento, Placer & El Dorado Counties
Home Improvement Contract
Prepared under California Business & Professions Code §7159. Read this Contract in full before signing.
Contract Parties & Date
Contractor
Customer (Owner)
Job Details & Scope of Work
Schedule & Contract Price
The down payment does not exceed $1,000 or 10 percent of the Contract Price, whichever is less, as required by California Business & Professions Code §7159.
Schedule of Progress Payments
| # | Description | Due Upon | Amount |
|---|---|---|---|
| Total of all payments (should equal Contract Price) | |||
Lien Release on Payment
Under California's mechanics lien law, any contractor, subcontractor, laborer, supplier, or other person or entity who helps improve your property but is not paid for their work or supplies has a right to place a lien on your home. This can happen even if you have paid Contractor in full if the subcontractors, laborers, or suppliers who furnished labor or materials remain unpaid.
Upon receipt of each payment due under the Schedule of Progress Payments above, Contractor will provide Owner with a conditional or unconditional waiver and release of lien, as appropriate, in the form required by California Civil Code §§8400 and 8404, for the amount of that payment. Upon receipt of final payment, Contractor will provide Owner with a final unconditional waiver and release of lien covering all labor, service, equipment, and material furnished for this job.
Documents Incorporated Into This Contract
The following documents, to the extent they exist for this job, are incorporated into and made a part of this Contract:
- This Contract and the Additional Terms and Conditions below
- The written estimate or proposal referenced above, and any revisions
- Any signed Change Orders
- Plans, drawings, or specifications, if any
- Manufacturer product literature and warranties for installed equipment
- Notice of the Three-Day or Five-Day Right to Cancel
- Mechanics Lien Warning
Notice Regarding Contractor's License and Bond
Contractors are required by law to be licensed and regulated by the Contractors State License Board (CSLB), which has jurisdiction to investigate complaints against contractors. A complaint regarding a patent act or omission must be 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 ten years of the date of the alleged violation. Any questions concerning a contractor may be referred to the CSLB, P.O. Box 26000, Sacramento, CA 95826, (800) 321-CSLB (2752), www.cslb.ca.gov.
Contractor is required to maintain a contractor's bond in accordance with California law. Owner may make a claim against that bond for violations of the Contractors State License Law resulting from Contractor's actions or omissions relating to this Contract. Contractor's bond number:
Notice of the Three-Day or Five-Day Right to Cancel
You, the buyer, have the right to cancel this Contract within three (3) business days from the date on which you sign it. If this Contract resulted from a home solicitation for a loan to finance an improvement to your residence, or if this Contract is for repair or restoration made necessary by a state of emergency or major disaster declared by the President or the Governor, you have the right to cancel within five (5) business days instead.
If you cancel, any property traded in, any payments made by you under the Contract, and any negotiable instrument executed by you will be returned within ten (10) days following receipt by Contractor of your cancellation notice, and any security interest arising out of the transaction will be canceled.
If you cancel, you must make available to Contractor, at your residence, in substantially as good condition as when received, any goods delivered to you under this Contract, or you may comply with Contractor's instructions regarding return shipment of the goods at Contractor's expense and risk. If you make the goods available and Contractor does not pick them up within twenty (20) days of the date of your Notice of Cancellation, you may keep them without further obligation. If you fail to make the goods available, or agree to return them and fail to do so, you remain liable for performance of all obligations under this Contract.
To cancel this transaction, mail or deliver a signed and dated copy of this Notice, or any other written notice, to DHS Plumbing at the business address stated above, not later than midnight of the third (3rd), or fifth (5th) if applicable, business day after the date of this transaction.
acknowledging receipt of this Notice of the Three-Day or Five-Day Right to Cancel.
Waiver of Right to Cancel
This waiver applies only where Owner requests that Contractor begin work before the cancellation period described above has expired, in order to address a bona fide emergency condition that could not reasonably have been foreseen at signing, pursuant to California Civil Code §1689.13.
I request that DHS Plumbing begin work immediately, and I waive my right to cancel this Contract within the three (3) or five (5) business day period described in the Notice above. I understand I am giving up this statutory right solely because of the emergency condition described above.
Complete only if this waiver applies. Leave blank if it does not.
Notice of Cancellation
You may cancel this transaction, without any penalty or obligation, within three (3) business days (or five (5) business days, if applicable) from the date above.
If you cancel, any property traded in, any payments made by you under this Contract, and any negotiable instrument executed by you will be returned within ten (10) days following receipt by DHS Plumbing of your cancellation notice, and any security interest arising out of the transaction will be canceled.
If you cancel, you must make available to DHS Plumbing at your residence, in substantially as good condition as when received, any goods delivered to you under this Contract, or you may comply with DHS Plumbing's instructions regarding return shipment of the goods at DHS Plumbing's expense and risk. If you make the goods available and DHS Plumbing does not pick them up within twenty (20) days of the date of this Notice of Cancellation, you may keep them without further obligation. If you fail to make the goods available, or agree to return them and fail to do so, you remain liable for performance of all obligations under this Contract.
To cancel this transaction, mail or deliver a signed and dated copy of this Notice of Cancellation, or any other written notice, to DHS Plumbing at the business address stated above, not later than midnight of:
I hereby cancel this transaction.
Additional Terms and Conditions
1. Extra Work and Change Orders
Any alteration or deviation from the scope of work described above involving extra cost will be executed only upon a written Change Order signed by Owner and Contractor, setting out the extra work and the additional charge. Contractor is not obligated to perform extra or changed work absent a signed Change Order, except as necessary to address a condition affecting life, health, or safety.
2. Performance of Change Order Work
Contractor may proceed with Change Order work upon Owner's signature, or upon Owner's written or electronic authorization, including email or text message confirming the scope and price, even where the formal Change Order signature is completed after that work begins. Payment for Change Order work is due as stated on the Change Order, or, if not stated, upon completion of the changed work.
3. Services Not Covered
This Contract covers only the scope of work described above. Unless separately agreed in writing, it does not include: permit fees not itemized in the Contract Price; relocation or repair of pre-existing plumbing outside the described scope; cosmetic finish work beyond the restoration described above; appliance or fixture replacement not listed; or work required by conditions discovered after signing that fall outside the original scope.
4. Owner's Responsibilities and Site Conditions
Owner will provide Contractor and its employees and subcontractors reasonable access to the work area during business hours, will keep pets secured, and will remove or protect furniture, personal property, and landscaping in the work area before work begins. Owner is responsible for identifying, in advance, the location of any private utility lines, septic systems, sprinkler lines, or underground structures not shown in public utility locates.
5. Subcontracts
Contractor may, at its discretion, use qualified, licensed subcontractors to perform portions of the work described in this Contract. Contractor remains responsible for the work of any subcontractor it engages.
6. Concealed Conditions
The Contract Price is based on conditions visible or reasonably discoverable at the time of the estimate. If Contractor encounters concealed or unknown conditions not reasonably anticipated at signing, such as deteriorated piping, inadequate framing, or hazardous materials, Contractor will notify Owner promptly, and any additional cost or time will be documented in a Change Order before Contractor proceeds, except where immediate action is necessary to prevent damage or address a safety hazard.
7. Delays
Contractor is not responsible for delays caused by circumstances beyond its reasonable control, including weather, material or supply shortages, subcontractor or supplier delays, permit or inspection scheduling by the applicable municipal or county authority, labor disputes, or acts of Owner. The Approximate Completion Date stated above is an estimate, not a guaranteed date.
8. Fees, Taxes, and Assessments
The Contract Price includes applicable California sales tax on materials, unless separately stated. Permit fees, if required for this scope of work, are included in the Contract Price only if itemized above; otherwise they are billed at cost. Owner is responsible for any additional fee, assessment, or tax imposed by a governmental authority that is outside Contractor's control.
9. Payment, Completion, and Lien Rights
Payment for each phase of work is due according to the Schedule of Progress Payments above. The down payment does not exceed $1,000 or 10 percent of the contract price, whichever is less, as required by California law.
The progress payment for physical installation of the plumbing units, pipes, and materials is due upon Contractor's completion of that installation and confirmation that the system is operational. This progress payment reflects the value of the installation phase only. It does not represent payment in full for the entire scope of work, and it does not relieve Contractor of its obligations to complete restoration (including patching walls, ceilings, and floors disturbed by the work) and to pass any required municipal or county inspection.
The final payment is due upon substantial completion of the full scope of work, meaning the installation has passed the required inspection and restoration is complete, or, if restoration is delayed solely by Owner's scheduling or by inspection-scheduling delays outside Contractor's control, upon Contractor's completion of its own portion of the restoration work and readiness for inspection. Contractor will not unreasonably delay scheduling of required inspections.
If any payment is not made when due under this schedule, Contractor may stop work and keep the job idle until payment is received, and Owner remains responsible for the contract price regardless of the delay. A failure to pay when due is a material breach of this Agreement. Contractor may charge reasonable collection costs and interest on any past-due balance at the rate stated below (or the maximum rate permitted by law, if lower), and may pursue any lawful remedy available to it, including recording a mechanics lien against the property for the unpaid balance in accordance with California's mechanics lien law (California Civil Code Division 4, Part 6), subject to the notice, timing, and other requirements that law imposes. Continuation of any service, warranty, or maintenance agreement associated with this job is conditioned on Owner's account being current; Contractor will provide notice and a reasonable opportunity to cure before treating any such agreement as suspended for nonpayment.
Nothing in this section is intended to require payment for work not yet completed, or for materials not yet delivered, contrary to California law.
Late payment interest rate: % per month.
acknowledging this Payment, Completion, and Lien Rights section.
10. Clean Up
Contractor will remove construction debris resulting from its work and leave the work area in broom-clean condition at the end of each work day and upon completion. Contractor is not responsible for pre-existing debris or conditions unrelated to this scope of work.
11. Limitations
Any action arising from this Contract, including for breach of contract or defective work, must be commenced within the time period established by California Code of Civil Procedure §337.1 or §337.15, as applicable, or within two years of substantial completion, whichever is longer, except as otherwise required by law.
12. Attorney's Fees
In any action arising out of this Contract, the prevailing party is entitled to recover its reasonable attorney's fees and costs from the other party.
13. Validity and Damages
If any provision of this Contract is held invalid or unenforceable, the remaining provisions remain in full force and effect. Neither party is liable to the other for indirect, incidental, or consequential damages arising from this Contract, except as prohibited by law.
14. Asbestos, Lead, Mold, and Hazardous Substances
This Contract does not include the identification, testing, removal, or remediation of asbestos, lead-based paint, mold, or other hazardous substances. If such conditions are discovered, Contractor will stop work in the affected area and notify Owner. Owner is responsible for engaging a qualified specialist to test and remediate the condition before Contractor resumes work in that area, unless the parties agree in writing to a different arrangement.
15. Weather and Other Damage
Contractor is not responsible for damage to the property caused by weather, acts of God, or pre-existing conditions unrelated to Contractor's work, except to the extent caused by Contractor's negligence.
16. Limited Warranty
Contractor warrants its labor for a period of from the date of substantial completion. Manufacturer warranties on installed equipment and materials are passed through to Owner and are governed by the manufacturer's own terms. This warranty does not cover damage caused by Owner's misuse, neglect, unrelated plumbing work performed by others, normal wear, or water quality conditions outside Contractor's control. No warranties under this Contract shall apply if Contractor was not paid in full for all of the work it performed.
acknowledging the Limited Warranty terms above.
Mechanics Lien Warning
Anyone who helps improve your property, but who is not paid, may record what is called a mechanics lien on your property. A mechanics lien is a claim, like a mortgage or home equity loan, made against your property and recorded with the county recorder.
Even if you pay your contractor in full, unpaid subcontractors, suppliers, and laborers who helped improve your property may record mechanics liens and sue you in court to foreclose the lien. If a court finds the claim valid, you could be forced to pay twice, or have a court officer sell your home to pay the lien. Liens can also affect your credit.
To preserve their right to record a mechanics lien, each subcontractor and material supplier must provide you with a document called a Preliminary Notice. This notice is not a lien. It lets you know that the person who sends it has the right to record a lien against your property if they are not paid.
Be careful. The Preliminary Notice can be sent up to twenty (20) days after the subcontractor starts work or the supplier provides material. This can be a problem if you pay your contractor before you receive the Preliminary Notices. You will not get Preliminary Notices from your prime contractor or from laborers who work on your project; the law assumes you already know they are improving your property.
Protect yourself:
- Require your contractor to supply a list of all subcontractors and material suppliers before starting work, and to update the list if it changes.
- Keep copies of any Preliminary Notices sent to you by subcontractors and material suppliers.
- Ask for evidence, such as cancelled checks, that payments have been made to subcontractors and suppliers.
- Ask your contractor for lien releases from subcontractors and suppliers before making any payment.
- Consider using a joint check payable to both your contractor and its subcontractors or material suppliers.
In addition to any other remedy allowed by law, you may withhold from any payment to your contractor an amount sufficient to cover any unpaid claims by subcontractors and material suppliers.
acknowledging receipt of this Mechanics Lien Warning.
Contractors State License Board (CSLB) Information
DHS Plumbing is licensed, bonded, and insured. CSLB License #1156850.
For information about a contractor's license status, or to file a complaint, contact the CSLB at P.O. Box 26000, Sacramento, CA 95826, (800) 321-CSLB (2752), www.cslb.ca.gov.
Insurance Information
Final Agreement & Signatures
This Contract, together with the documents listed above under Documents Incorporated Into This Contract, constitutes the entire agreement between Owner and Contractor regarding this scope of work, and supersedes all prior discussions, estimates, or agreements, written or oral, regarding the same. This Contract may only be modified by a written Change Order or amendment signed by both parties.
By signing below, Owner acknowledges receipt of a completed copy of this Contract, including the Notice of the Three-Day or Five-Day Right to Cancel and the Mechanics Lien Warning, at the time of signing.
DHS Plumbing · CSLB #1156850 · Sacramento, Placer & El Dorado Counties · (916) 769-2116 · hello@dhsplumbing.ca