Residential Construction Contract Cost Plus

The following comments are intended to provide background information about some of the Document
provisions. The comments do not modify the language of the Document:

1. Relationship between the Parties: The Document contemplates that the Owner is supplying the
Contractor with plans, specifications and/or design documents for the project. Without modification,
this Document is not suitable for a design-build project.

Established case precedent holds that the Owner warrants that the plans and specifications are accurate
and that, if followed, the plans and specifications are adequate to accomplish the purpose of the project.
If there is a problem encountered that is attributable to the design, the Owner bears responsibility as
between the Owner and Contractor.

2. Cost Plus Contract: This Document is written to be a cost plus contract. It is not a fixed price
contract. The Contractor estimates the project cost, but the actual project cost is ultimately determined
by the actual costs of labor and materials supplied by the Contractor. The actual costs of construction
may be higher, equal to, or lower than the cost estimated by the Contractor. This is not a fixed price
or guaranteed maximum price under which the Owner is protected by a lump sum or guaranteed
maximum amount. Rather, the Owner is responsible to pay for actual expenditures by the Contractor
and for comparing expenditures to the amounts estimated by the Contractor. The Owner is to be
provided a control estimate and is entitled to receive notice if the Contactors reimbursable costs
exceed the control estimate by a certain percentage.

3. Components of Costs: Different contractors have different billing practices. For instance, a
Contractors listed hourly rate charged for an employee is usually not what the employee is actually
paid. Therefore, the Document allows the parties to define reimbursable costs (Option A of Section 2.2)
or identify such terms in an exhibit (Option B of Section 2.2). It is left to the parties to negotiate and
agree upon what constitutes reimbursable costs and how much the Contractor will be paid for the Work.

4. Cost Auditing: The Document permits the Owner to review the Contractors cost records (such as
material purchase receipts, subcontractor invoices and labor costs) each time the Contractor submits a
monthly progress billing. Because there is no fixed price or guaranteed maximum price, the Owner
should carefully review payment applications and supporting documentation. In addition, lien release
forms have been provided as Exhibits to the Document.

5. Damages for Late Performance: The Document requires the Contractor to pay the Owner daily
liquidated damages if the specified date of Substantial Completion is not achieved. Because the
contract contains a waiver of consequential damages in Section 6.4, liquidated damages likely represent
the Owners only remedy for late completion of the project. The parties must negotiate the amount of
the daily rate.

6. Bonds, Insurance, Registration: The Contractor and Owner are encouraged to contact their insurance
agents before signing the contract to make sure all the insurance requirements can be met. The
Contractor is required to provide insurance to insure the Work while in progress. Additionally, the
Owner is encouraged to check the status of each potential contractors registration and insurance with
the Florida Department of Labor and Industries. This Document does not require the Contractor to
obtain a payment and performance bond in the amount of the cost of the Work.

7. Contractors Warranty: In the documents, the Contractor warrants to the Owner that the Work will be
in accordance with contract documents and free of material structural defects.

8. Owners Notice of Claims After Completion: TBD

9. Revisions: The Document terms are intended to achieve consistency throughout the Document. If
revisions are made, care should be taken that the changes do not contradict other terms in the
Document.

RESIDENTIAL CONSTRUCTION CONTRACT (Cost Plus)

Parties:Contractor

Owner

Property:Address

Tax Parcel No.

Date:

1.1 Contractors Duties. Contractor shall furnish the material, labor, equipment, tools, and supervision
(the Work) necessary to construct or renovate a single-family residence (the Project) for Owner on
the Property in compliance with the plans and specifications supplied by Owner (the Plans). The
Plans are attached as Exhibit A. This Contract and all of its Exhibits, and all Change Orders after
execution, are the Contract Documents.

Contractor agrees to immediately inform Owner in writing of any discrepancies, errors, or omissions in
the Plans or materially changed or unanticipated conditions and not to proceed with any work affected
by such discrepancy until Owner directs Contractor to do so.

1.2 Permits. [Choose ___Owner or ___Contractor] shall obtain the governmental approvals of the Plans
and all permits for construction of the Project. Owner is responsible for cost of the building permit and
other necessary permits.

II. PRICE AND PAYMENT

2.1 Estimated Project Cost. Contractor estimates the total cost of the Work to beDollars ($_________)
as set forth in Exhibit B (the Estimated Project Cost). The Estimated Project Cost is organized by
trade categories and systems. Exhibit B is an estimate only and it is based upon the Plans provided by
Owner. The actual
 total cost of the Work may be higher or lower than the Estimated Project Cost.

2.2 The Cost of the Work (Cost Plus Fee). Owner shall pay Contractor for the performance of the Work
a sum equal to Contractors Actual Costs (defined below) plus a fee of ________________ percent
(_____ %) of the Actual Costs (the Contractors Fee), plus sales tax.

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I. THE WORK

[Option A] Actual Costs include the following:

. (a) On-site Project personnel costs, but limited to those persons necessary for the proper performance
of the Work, at the following hourly rates: (list by job title and hourly rate)

. (b) The costs paid for the purchase, installation and/or use of all materials, structural accessories,
machinery, equipment or other items for the performance of the Work;

. (c) The costs paid for all insurance and governmental fees (except for permits) for the Project;

. (d) The costs paid to subcontractors for their performance of the Work; and

. (e) Actual Costs do not include costs incurred because of Contractor error.

[Option B] Actual Costs are listed in an attachment provided by Contractor and incorporated herein
by this reference.

2.3 Down Payment. Owner shall pay Contractor a down payment of

___________________________________ Dollars ($________) prior to commencement of the Work.
The down payment shall be credited against the Cost of the Work beginning with Contractors first
Progress Payment. Owner has sufficient funds, either personal or through lender financing, in an
amount equal to the Estimated Project Cost.

2.4 Progress Payments. On the first business day of every month, Contractor shall present to Owner an
Application for Payment based on the Actual Costs incurred to that date plus the Contractors Fee and
plus sales tax, less previous payments. Owner shall pay the full amount billed, less retainage, no later
than _______ (___) (Twenty-Five if not filled in) calendar days from the date of receipt of each
Application for Payment. With each Application for Payment the Owner shall have the right to require
Contractor to provide documentation to support those Actual Costs. Contractor shall apply Owners
payment only to the costs and fees of this Project.

2.5 Anticipated Actual Costs Exceeding Estimated Project Costs. If Contractor reasonably believes that
anticipated Actual Costs will exceed any Work component of the Estimated Project Cost in Exhibit B
by more than ten percent (10%), then Contractor shall give prior written notice to Owner of the
anticipated increase before completing that Work component.

2.6 Retainage. Owner shall withhold five percent (5%) as retainage from each progress payment (the
Retainage). Retainage shall be released to Contractor at the time of Final Payment. The Retainage is
a fund for the protection of the Owner (i) from incomplete or defective work by

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Contractor; (ii) for the payment of persons who supplied materials or who worked on the Project and
were not paid by Contractor; and (iii) damages incurred due to other breaches of the Contract.

2.7 Lien Release. Owner shall not be required to make any payment to Contractor unless and until
Contractor provides Owner with an unconditional waiver and lien release form signed by Contractor
and by each subcontractor and supplier who is claiming Two Thousand Five Hundred Dollars
($2,500.00) or more in payment, verifying payment in full, less any retainage, from Owners prior
months payment to Contractor. A form lien release is attached as Exhibit C-1.

2.8 Final Payment. Within ten (10) days after Contractor notifies Owner that the Work is Substantially
Complete, Owner shall inspect the Work with Contractor and deliver to Contractor a comprehensive list
of items to be completed or corrected prior to Final Payment (the Punch List). The Punch List and
other Work shall be finished by Contractor within ________ (___) [Twenty- One if not filled in] days
of Contractors receipt of the Punch List. Final Payment shall be due fourteen (14) days after
Contractor (1) completes the Work in accordance with the Contract Documents; (2) provides Owner
with final lien releases from Contractor and all subcontractors and suppliers, conditioned only on
receipt of Final Payment attached as Exhibit C-2; and (3) makes available the cost records supporting
the final Cost of the Work if requested by Owner. Substantially Complete or Substantial
Completion means the stage in the progress of the Work when Owner has legal occupancy and full and
unrestricted use and benefit of the Project for its intended purpose with only minor incidental work or
correction or repair remaining to be performed by Contractor.

2.9 Failure of Payment. If Owner fails to pay Contractor amounts due within fourteen (14) days of the
time required by Section 2.4, Contractor may, upon providing seven (7) days written notice to Owner,
suspend the Work until the amounts due have been received. If the failure of payment remains uncured
for fourteen (14) days after the first written notice, Contractor may terminate the Contract. Payments
due and unpaid under the Contract Documents shall bear interest at the rate of twelve percent (12%) per
annum from the date payment was due until paid.

2.10 Contractors Registration. A Contractors Disclosure Statement Notice to Customer (Notice) is

 attached as Exhibit D. Under Washington law, Owners signature is required on the Notice. Owner
acknowledges receipt of the Notice and Contractors compliance with the disclosure requirements.

III. CHANGES

3.1 Nature of Change. If Owner or Contractor requests, or one of the parties believes that a change is
necessary, (a Change), then the parties shall comply with the following procedure to reflect a Change
in the Work:

a. The Party requesting or noting the Change shall write a description of the Change and give the other
Party that writing (the Change Notice);

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b. Before proceeding with the changed work, unless excused by an emergency involving safety or
property damage, the Contractor shall provide Owner with a fixed-price written estimate of the cost and
time impact of the requested Change;

c. Owner and Contractor shall execute a Change Order confirming their agreement with the Change, the
fixed-price cost, and the extension of the Substantial Completion date, if any. If the Change cannot be
performed on a fixed-price basis, the Change Order shall identify the agreed method of compensation.

3.2 Change Order Format. A blank Change Order form is included in this Contract as Exhibit E.

IV. SCHEDULE

4.1 Commencement and Completion of the Work. Contractor shall commence the Work within ten (10)
calendar days of receipt of a building permit. Subject to the permitted extensions and delays provided
herein, Contractor shall Substantially Complete the Work within ________ (___) calendar days after
the commencement date. With its first Application for Payment, Contractor shall provide a schedule
indicating proposed subcontractors activity sequences and durations, deadlines for Owners decisions
on material selections, and milestones for delivery of materials. The schedule is included in this
Contract as Exhibit F.

4.2 Construction Time and Liquidated Damages. Contractor agrees that the time in Section 4.1 to reach
Substantial Completion, as reflected by Contractors schedule, provides sufficient time for the
expeditious and practical execution of the Work. If Contractor fails to achieve Substantial Completion
of the Work by the date set forth in Section 4.1, Owner will suffer substantial damages that are both
extremely difficult and impractical to determine. Owner and Contractor agree that if Contractor fails to
meet the Substantial Completion date, then Contractor shall pay Owner liquidated damages at a daily
rate of _________________________ ________________________ Dollars ($__________). The
parties agree that liquidated damages are not a penalty, but rather a reasonable estimate of the amount
of damages Owner will suffer in the event of delay. Owner shall have the right to withhold the amount
of liquidated damages from any sums due to Contractor.
 4.3 Delay. If the Project is delayed by the act, neglect or default of Owner, Owners agent, Owners
design professional, Owners lender, governmental action or inaction, any contractor employed by
Owner, any materials supplier acting for Owner, or any other reason or reasons beyond Contractors
reasonable control, including without limitation damage caused by fire or other casualty, strikes, force
majeure, shortage of materials or labor, transportation delays, weather conditions, change orders, or
deficiencies in the Contract Documents (the Excusable Delay), then the Substantial Completion date
shall be extended for a period reasonably equivalent to the time lost by reason of such delay.

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b.

4.4 Notice of Delay. Within a reasonable time following the date Contractor knows, or within
reasonable diligence should know of an Excusable Delay, but in no event longer than seven (7) days,
Contractor shall notify Owner of the extension of time resulting from such delay. The extension of time
shall be based upon Contractors reasonable determination of the delay period. Any time extension to
the Substantial Completion date shall be documented in a Change Order.

V. INSURANCE

Before commencing the Work and as a condition of payment, Contractor shall purchase and maintain insurance

as described below from an insurer admitted to do business in Washington with an A.M. Best financial strength

rating of A-,VII or better, that will protect it from bodily injury or property damage claims arising out of its

operations under this Contract,

whether the operations are by Contractor, Contractor's consultants or subcontractors, anyone directly or

indirectly employed by any of them, or by anyone for whose acts any of them may be liable.

1. Commercial General Liability (CGL) insurance providing bodily injury liability and property damage
liability with combined single limits of not less than $1,000,000 per occurrence, and $2,000,000
general aggregate limits, and Products/Completed Operations aggregate limits of $2,000,000, written
on an occurrence form.

2. Automobile liability insurance with a minimum limit of liability of not less than $300,000 per
occurrence for all owned, non-owned and hired automobiles.

3. If the Owner requires that Contractors general liability policy be endorsed so that the aggregate limits
of insurance apply on this job, both parties must check the appropriate box: Owner [ ] Contractor [ ].

4. Owner shall be included as an additional insured under the CGL policy.

Prior to starting work, Contractor shall provide a copy of the actual additional insured endorsement or
blanket additional insured policy wording to the CGL policy that documents the Owners additional
insured status.

Unless otherwise agreed, Owner shall secure and maintain property insurance upon the Work to its full insurable v
theft and,

including materials delivered to the Property (whether those materials are actually incorporated into or adjacent to
supplies incidental to the Work and temporary structures. If work is to be performed on an existing residential struc
homeowner's policy and delete any exclusion to theft of building materials. Owner's policy limit must be increased
structure and improvements to be added.

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Owner and Contractor hereby waive their rights of subrogation against one another for any losses
covered by the required insurance policies except that Contractor shall be liable for the property
insurance deductible if a claim is made against such property insurance and that claim arises out of
Contractor's negligence.

VI. CONTRACTORS WARRANTY

6.1 Contractors Warranty. Contractor warrants that the Work shall be in accordance with the Contract
Documents and free from material structural defects and shall return and repair any Work not in
accordance with the Contract Documents for a period of one (1) year from the date of Substantial
Completion of the Work (the Warranty Period). All product warranties, if any, are deemed assigned
from Contractor to Owner.

6.2 Cure of Defect. If a defect is discovered within the Warranty Period, then Owner must promptly
notify Contractor in writing following the discovery of that defect (the Warranty Defect Notice) and
must provide Contractor with an opportunity to inspect and an opportunity to either cure the defect in a
manner customary in the industry or to pay to Owner the cost of repair or replacement of the defect as
estimated by Contractor. This Warranty Defect Notice shall serve as the written notice of claim
described in the following paragraph. In no event shall Contractors liability exceed the fair and
reasonable cost of repair or replacement of the warranted defect. Contractor shall not be liable for any
cost or expense incurred by Owner in remedying any warranted defects unless Contractor has been
notified in writing and has been afforded the opportunity to cure the claimed defect or to pay the sums
specified herein. Nothing contained in this section shall be construed to establish a period of limitation
with respect to Contractors other obligations under the Contract Documents

6.3 Notice of Claim. WASHINGTON LAW, CHAPTER 64.50 RCW CONTAINS IMPORTANT
REQUIREMENTS THAT OWNER MUST FOLLOW BEFORE OWNER MAY FILE A LAWSUIT
FOR DEFECTIVE CONSTRUCTION AGAINST CONTRACTOR. FORTY-FIVE (45) DAYS
BEFORE OWNER FILES A LAWSUIT, OWNER MUST DELIVER TO CONTRACTOR A
WRITTEN NOTICE OF ANY CONSTRUCTION CONDITIONS OWNER ALLEGES ARE
DEFECTIVE AND PROVIDE CONTRACTOR THE OPPORTUNITY TO MAKE AN OFFER TO
 REPAIR OR PAY FOR THE DEFECTS. OWNER IS NOT OBLIGATED TO ACCEPT ANY OFFER
MADE BY CONTRACTOR. THERE ARE STRICT DEADLINES AND PROCEDURES UNDER
STATE LAW, AND FAILURE TO FOLLOW THEM MAY AFFECT OWNERS ABILITY TO FILE A
LAWSUIT.

6.4 Limitation of Damages. Contractor and Owner waive claims against each other for consequential
damages. This mutual waiver includes, but is not limited to:

(a) damages incurred by Owner for loss of income, profit, financing, business, and reputation; and

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(b) damages incurred by Contractor for losses of financing, business and reputation, and for loss of
profit except anticipated profit arising directly from the Work.

This mutual waiver is applicable, without limitation, to all consequential damages due to either party's
termination in accordance with Section 9. Nothing contained in this Section 6.4 shall be deemed to
preclude an award of liquidated damages, when applicable, in accordance with Section 4.2. If any court
determines that this section or its application to any person or circumstance is, to any extent, invalid or
unenforceable, the remainder of this Contract shall not be affected thereby and each other term,
covenant or condition of this Contract shall be valid and be enforced to the fullest extent permitted by
law.

VII. SAFETY

Contractor and its subcontractors shall take all reasonably necessary safety precautions, including
compliance with applicable laws, ordinances, regulations, and orders issued by a public authority,
whether federal, state, or local. Contractor shall at all times be responsible for providing a safe job site
and be responsible for the work performance and safety of all employees, personnel, equipment, and
materials within the care, custody, or control of Contractor or its subcontractors of any tier. Contractor
and its subcontractors shall furnish all required safety equipment and ensure all of its employees and
lower-tier subcontractors employees have and wear personal protective equipment in compliance with
applicable safety requirements. Contractor shall promptly provide Owner with written notice of safety
hazard(s) or violation(s) found on the job site or of any injury to its or its subcontractors workers
incurred on the job site.

VIII. INDEMNITY

Contractor agrees to defend, indemnify, and hold harmless (the Indemnity Duty) Owner and its
agents from and against claims, damages, losses and expenses, including but not limited to attorneys
fees and costs and expenses, arising out of or resulting from performance of the Work, provided that
such claim, damage, loss, or expense is attributable to bodily injury, sickness, disease or death, or to
injury to or destruction of tangible property (other than the Work itself) (the Harm), provided,
however, that the Contractor owes no Indemnity Duty if the Harm was caused by or results from the
sole negligence of the Owner or its agents or both, and provided further that in the event of concurrent
 negligence (i) by Contractor or the Contractors subcontractors agents or employees, or both and (ii) by
the Owner or its agents, or both, then the Contractors Indemnity Duty is valid and enforceable only to
the extent of the negligence of Contractor, its agents, and its employees.

Contractor further agrees to defend, indemnify, and hold Owner harmless from all WISHA or other
related claims, demands, proceedings, violations, penalties, assessments, or fines that arise out of or
relate to Contractors failure to comply with any safety-related laws, ordinances, rules, regulations,
orders, or its obligations hereunder.

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For purposes of the foregoing indemnification provision only, and only to the extent of claims against
Contractor by Owner under such indemnification provision, Contractor specifically waives any
immunity it may be granted under the Washington State Industrial Insurance Act, Title 51 RCW. The
indemnification obligation under this Contract shall not be limited in any way by any limitation on the
amount or type of damages, compensation or benefits payable to or for any third party under workers
compensation acts, disabilities benefit acts, or other employee benefit acts.

By initialing here, the parties agree that this clause was mutually negotiated: ____ Contractor ____
Owner

IX. TERMINATION

9.1 Termination by Owner for Cause. Owner may, after giving Contractor seven (7) days written notice
and an opportunity to commence and continue to cure the alleged cause, terminate the Contract if
Contractor violates any material provision of this Contract or:

. (a) refuses or fails to supply enough properly skilled workers or proper materials; or

. (b) fails to make payment to subcontractors for materials or labor in accordance with the respective
agreements between Contractor and the subcontractors; or

. (c) persistently disregards laws, ordinances, rules, regulations or orders of public authorities having
jurisdiction; or

. (d) fails to provide Owner, upon request, reasonable evidence that the Work will be completed by the
date of Substantial Completion.

When termination based on any of the above reasons occurs, Owner may, without prejudice to any
other rights or remedies:

(a) take possession of the site and of all materials, equipment, and machinery thereon owned by
Contractor;

(b) accept assignment of subcontracts;

 (c) finish the Work using reasonable methods. Upon Contractors request, Owner shall furnish to
Contractor a detailed accounting of the costs Owner incurs in finishing the Work; and

(d) charge Contractor the costs of completion in excess of the amounts due to Contractor.

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9.2 Termination by Owner for Convenience. Owner may terminate the Contract for Owners
convenience. Upon receipt of written notice from Owner of such termination, Contractor shall:

. (a) cease operations as directed by Owner in the notice;

. (b) take actions necessary, or that Owner may direct, for the protection and preservation of the Work;
and

. (c) except for Work directed to be performed prior to the effective date of termination stated in the
notice, terminate all existing subcontracts and purchase orders and enter into no further subcontracts
and purchase orders.

In case of Termination by Owner for Convenience, Contractor shall be entitled to receive payment for
Work executed to the effective date of termination, including Actual Costs and Contractors Fee, plus
those costs necessary to satisfy the obligations incurred as a result of the requirements of subsections
(a)-(c), above.

9.3 Termination by Contractor for Cause. In addition to Contractors right to terminate the Contract
pursuant to Section 2.9, the Contractor may terminate the Contract for cause if the Owner breaches any
material provision of the Contract Documents. Prior to terminating the Contract for cause under this
Section, Contractor shall first provide Owner seven (7) days written notice of the alleged breach. If
Owner fails to cure the breach within seven (7) days of receipt of such notice, or fails to commence and
diligently continue with cure efforts if the breach cannot reasonably be cured within seven (7) days, the
Contractor may terminate the Contract.

X. MEDIATION

The parties agree to attempt to resolve any dispute through good faith negotiation as a condition
precedent to commencing litigation, except where commencing litigation is necessary to preserve lien
or other similar rights. If negotiation is not successful, then before beginning any legal proceeding,
other than to enforce this Section, the parties agree to engage in non-binding mediation conducted by a
mediator selected by them and in accordance with the Washington State version of the Uniform
Mediation Act. Unless the parties agree otherwise, the mediation will be in accordance with the Home
Construction Mediation Procedures of the American Arbitration Association (AAA). Either party
may give written notice to the other party requesting mediation and the parties agree to use their best
efforts to conduct the mediation within sixty (60) days of the notice. The parties will share the cost of
mediation equally. The mediation notice and mediation process are not a condition to satisfying the
notice requirements identified in Section 6 of this Contract or the recording of a mechanics lien.
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XI. GENERAL

11.1 Survival. In the event any clause or provision of this Contract shall be held to be invalid, then the
remaining clauses and provisions shall nevertheless be and remain in full force and effect.

11.2 Entire Agreement. The Contract Documents contain the entire agreement between the parties with
respect to construction of the Project. All other agreements, oral or written, are hereby merged into and
superseded by this Contract. There are no other agreements which modify or affect the terms hereof. No
amendment hereto shall be binding unless the terms thereof are in writing and signed by both parties.
No verbal or other agreements modify or affect this Contract.

11.3 Binding Effect. This Contract shall be binding upon the parties hereto, and their heirs, successors,
executors, administrators and assigns.

11.4 Assignment. Neither party shall assign nor transfer this Contract or any rights hereunder without
the prior written consent of the other.

11.5 Notices. All notices which may be required under this Contract are to be in writing and delivered
(a) to the attention of the party at the address listed on the signature page; or (b) by email to the email
address on the signature page; or (c) by fax to the fax number on the signature page, or (d) mailed by
certified mail, postage prepaid, to the address listed on the signature page. All notices shall be deemed
served upon delivery, successful transmission, or two (2) days following deposit of the notice in the
U.S. mail as required herein.

11.6 Governing Law, Venue. The performance and interpretation of this Contract shall be governed in
accordance with the laws of the State of Washington. Any litigation arising out of or in connection with
this Contract shall be conducted in the County where work is performed.

CONTRACTOR:

By:Printed Name: Title:E-Mail:Fax:Address:

OWNER:

By:Printed Name: Title:E-Mail:Fax:Address:

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10

Contractor Registration No.:

Exhibits:

A PlansB Estimated Project Cost datedC-1 Unconditional Lien Release FormC-2 Conditional
Lien Release On Final Payment Form D Disclosure Statement Notice to CustomerE Change Order
FormF Project Schedule

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11

List of Plans provided by Owner:

1. 2. 3. 4.

EXHIBIT A

PLANS

(To be provided by Contractor)

EXHIBIT B

ESTIMATED PROJECT COST

EXHIBIT C-1

CONDITIONAL WAIVER AND RELEASE UPON PROGRESS PAYMENT

The undersigned has been paid and has received a progress payment in the sum of $_______________

for labor, services, equipment, or material furnished to ______________________________ on the job

of (Maker of Check)

_____________________________ located at
_______________________________________________ (Owner) (Job Description)

and when the check has been properly endorsed and has been paid by the bank upon which it is drawn,
the undersigned does hereby release any mechanics lien, stop notice, or bond right that the undersigned
has on the above referenced job to the following extent. This release covers a progress payment for
labor, services, equipment, or materials furnished to ___________________________ through
____________ only and does not cover any retentions retained before or after the release date; extras
furnished before the release date for which payment has not been received; or extras or items furnished
after the release date. Rights based upon work performed or items furnished under a written change
order which has been fully executed by the parties prior to the release date are covered by this release
unless specifically reserved by the claimant in this release. This release of any mechanic's lien, stop
notice, or bond right shall not otherwise affect the contract rights, including rights between parties to
the contract based upon a rescission, abandonment, or breach of the contract, or the right of the
undersigned to recover compensation for furnished labor, services, equipment, or material covered by
this release if that furnished labor, services, equipment, or material was not compensated by the
progress payment.

Dated: ________________ _____________________________ (Contractor)

By___________________________________ ____________________ (Print Name)

____________________ (Title)

EXHIBIT C-2

CONDITIONAL WAIVER AND RELEASE UPON FINAL PAYMENT

Upon receipt by the undersigned of a check from _________________________________ in the

(Maker of Check)

sum of $________________ payable to ____________________________________ and when the

check (Payee)

has been properly endorsed and has been paid by the bank upon which it is drawn, this document shall

become effective to release any mechanic's lien, stop notice, or bond right the undersigned has on the
job

of ________________________________ located at
_________________________________________. (Owner) (Job Description & Address)

This release covers the final payment to undersigned for all labor, services, equipment, or material
furnished on the job. Before any recipient of this document relies on it, the party should verify evidence
of payment to the undersigned.Dated: ________________

_____________________________ (Contractor)

By___________________________________ ____________________ (Print Name)

____________________ (Title)

EXHIBIT D

DISCLOSURE STATEMENT / NOTICE TO CUSTOMER

This Contractor is registered with the State of Washington, Registration No.and has posted with the
state a bond or deposit of $ for the purpose of satisfying claims against the
Contractor for breach of contract including negligent or improper work in the conduct of the
Contractors business. The expiration date of this Contractors Registration is
.

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT
ARISE FROM THE WORK DONE UNDER YOUR CONTRACT.

This bond or deposit is not for your exclusive use because it covers all work performed by this
Contractor. The bond or deposit is intended to pay valid claims up to $that you and other customers,
suppliers, subcontractors, or taxing authorities may have.

FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT.

You may withhold a contractually defined percentage of your construction contract as retainage for a
stated period of time to provide protection to you and help insure that your project will be completed as
required by your contract.

YOUR PROPERTY MAY BE LIENED.

If a supplier of materials used in your construction project or an employee or subcontractor of your

Contractor or subcontractors is not paid, your property may be liened to force payment and you could
pay twice for the same work.

FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE

YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR
SUBCONTRACTOR AT YOUR PROJECT.

The Contractor is required to provide you with further information about lien release documents if you
request it. General information is also available from the Washington State Department of Labor and
Industries.

I have received a copy of this Disclosure Statement.Dated this day of of the year .

Signature of Customer

The Contractor must retain a signed copy of the Disclosure Statement in his or her files for a minimum
of three (3) years, and produce a signed or electronic signature copy of the Disclosure Statement to the
Department upon request.
 EXHIBIT E CHANGE ORDER

Date ______________

Address

3. Job Description

4. Property Address or Legal Description:

5. Contractor hereby agrees to make the change(s) specified below: See Attachment A

1. Number

2. Contractor

_______________________________

6. Fixed Price of Change(s)

7. Previous Change Orders

8. Reason for Change:

9. Contract Time Extension:

10. NewCompletionDate:

Add: $ Deduct: $ $

See Attachment A

ACCEPTANCE: The terms of this change order are satisfactory and are hereby accepted:

OWNER APPROVAL DATE

CONTRACTOR APPROVAL DATE

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Attachment A Change Order No. ___