CONTRACTOR & OWNER AGREEMENT

This Contract made and entered into on this ___ day of __________, 200__, by and between _____________________, hereinafter designated as the Owner, and PCS, Inc., hereinafter designated as the Contractor.

That the Contractor and the Owner agree and bind and obligate themselves as follows:

Contractor to provide the improvements/remodeling/rehabilitation (hereafter "the work"), in a workmanlike manner and in accordance with the plans and specifications provided or in accordance with the attached Scope of Work exhibit, if any, to the property located at the municipal address of _________________________________________________________________________, Louisiana;

Owner agrees, binds, and obligates him/herself to pay Contractor for the work for the sum of $____________________ together with any additional costs including, but not limited to, amounts for change orders, extra work, overages, time & material work, and/or escalated costs of materials.

Commencement of Construction: Construction will commence on or about ___________________. Substantial completion of the work will be approximately _________________________ days after commencement of construction. However, this time period may, at Contractor’s option, be extended one day for each day of delay, if construction is delayed due to weather, fire, strikes, material shortages, or Acts of God, Owner delays, change orders, extra work orders, or other normal variations in the construction process including, but not limited to, the selection, ordering, manufacture, and/or installation of Owner selections. Failure of Contractor to timely complete shall not be considered default. The date of Substantial completion shall be that date when the work is completed sufficiently enough to enable the Owner to occupy, or utilize the work in the manner in which it is intended to be utilized, or a "passed" final inspection by local Code Enforcement agencies if the job is permitted, notwithstanding any punchlist or warranty items.

Owner Obligations: The Owner further agrees and obligates him/herself to select all allowance items, materials, and colors required in a timely manner. Owner also agrees and obligates him/herself to obtain all necessary and/or required approvals and/or acknowledgements from any Architectural Board or Committee whose jurisdiction is relevant to the work. Owner further agrees to cooperate with and make every reasonable effort to refrain from Contractor to have continuous access to premises upon which the work is to be performed during the construction period from the hours of 7o’clock a.m. to 5 o’clock p.m. Such access shall include, but is not limited to leaving the premises unlocked regardless of the presence of Owner. However, in the event that Owner temporarily halts the work, Owner assumes any and all liability and responsibility for any and all costs associated with, related to, and/or arising from the work delay including, but not limited to, wages, loss of income, start-up costs, sub-contractor charges, additional trip charges, delayed material delivery charges, and material loss charges. Owner further understands and agrees that these charges may, at Contractor’s option, be deemed and considered to be extra work and be due and payable as extra work in accordance with the payment schedule below. The parties agree that Owners will only be allowed in the work area when accompanied by Contractor during work hours.

Deposit: A Deposit in the amount of $_____________ shall be paid by Owner to Contractor to secure performance of the work on the Property, absent default of Contractor; Deposit shall be non-refundable and shall be paid upon execution of this Contract.

Payments/Draws: The Owner shall make the remaining payments upon request of the Contractor in accordance with the following schedule:

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The Owner shall make any and all payments to the Contractor within five (5) business days after request is made by Contractor. Punchlist items shall not be deducted from final payment. In the event payments are not made within five (5) days of receipt of request from Contractor, Owner shall be considered in default and owe to the Contractor, the unpaid balance, together with interest from the date payment is due until paid, at a rate of one and one-half percent (1.5%) per month, plus any and all cost of collection, including but not limited to reasonable attorney’s fees, expert witness fees, costs of depositions, filing fees and other court costs.

Partial Draw: In the event Contractor has substantially performed the work necessary to make a particular stage draw as listed above, but one or more items have not been completed due to circumstances beyond Contractor’s control, then Contractor shall be entitled to a partial draw in an amount equal to the percentage of such stage completed by Contractor.

Change Orders: Owner and Contractor hereby agree that changes or overages to the work should be in writing and agreed upon by both the Owner and the Contractor. Owner further understands and agrees that Contractor is neither responsible for Contractor’s employees, sub-contractors, contract labor, representatives, and the like and that Owner is responsible for Contractor’s costs in calculating and implementing changes. In the event that the Owner makes changes without Contractor’s knowledge or Contract, the Owner will be responsible for the overage, All monies /payments/overages/amounts for change orders and/or extra work are due and payable, at Contractor’s option, at the time of authorization of the change or prior to commencement of such changed and/or extra work.

Notice: Before undertaking any repair him/herself, before employing another to undertake repair, or before instituting any action for breach of warranty or contract, the Owner agrees and obligates him/herself to Contractor written notice, by registered or certified mail, within 30 (thirty) days after knowledge and/or discovery of any alleged breach or defect and to allow Contractor at least five (5) business days after Contractor’s receipt of such notice to respond to same notice and/or to inspect the alleged defects and at least thirty (30) business days from date of inspection or response in which to correct and/or repair those alleged defects mutually agreed upon. Owner further understands and agrees that this notice shall set forth all alleged defects and/or claims of Contractor breach. Failure to provide said notice will bar recovery of the same.

Default: The Parties understand and agree that if the owner defaults on this contract, the Contractor shall be entitled to all costs for enforcing said contract, including but not limited to reasonable attorney’s fees, court costs, costs of depositions, and expert witness fees. In the event of Owner’s default, Contractor may suspend work without penalty until Owner cures such default. Contractor shall be under no obligation to complete any punchlist or perform any warranty or any other work until Owner cures all defaults.

Disputes: The parties shall endeavor to resolve any disputes and/or claims arising from or related to the work or this Contract by mediation which, unless the parties mutually agree otherwise, shall be in accordance with the Construction Industry Mediation Rules of the American Arbitration Association currently in effect. Request for mediation shall be filed in writing with the other party to this Contract. The parties shall share the mediator’s fee unless another location is mutually agreed upon. Agreements reached in mediation shall be enforceable as a settlement in any court having jurisdiction thereof.

Arbitration: In the event that mediation is not successful, all claims or disputes between the Contractor and the Owner arising out of, or relating to, this contract or the breach thereof shall be decided by arbitration in accordance with the construction industry arbitration rules of the American Arbitrators Association currently in effect, unless the parties mutually agree otherwise. Notice of the demand for arbitration shall be filed in writing with the other party within a reasonable time after the dispute has arisen. The award rendered by the arbitrators shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof. The non-prevailing party shall be liable to the other party for all costs of said arbitration, including reasonable attorney’s fees.

Punchlist Procedure: Owner shall give a punchlist to Contractor no more than three days after substantial completion of work, or upon request or notification by the Contractor. Any and all items not listed on the final punchlist will be deemed accepted and will have no effect on the final payment and thereafter are subject only to the Contractor’s warranty. All listed punchlist items must be reviewed and accepted by Contractor as legitimate workmanship defects based on the "Residential Construction Performance Guidelines, 1996 NAHB" and/or normal "industry standards".

Contractor Warranty: Contractor warrants for one (1) year that all labor will be performed in a workmanlike manner and that all materials and equipment incorporated into the work will perform to industry standards. Contractor’s quality standards to be determined by the "Residential Construction Performance Guidelines, 1996 NAHB". In the event such item is not covered by said guidelines the "industry standards" and/or "industry tolerances" are to govern. In the event that the work involves an addition, Contractor’s warranty to Owner for the addition portion of the work only is exclusively as specified in the "New Home Warranty Act" (L.R.S. 9:3141et seq) and Owner waives any and all other remedies and/or causes of action, including but not limited to claims for non-pecuniary damages, breach of contract and negligence, against Contractor. In addition to the exclusions under the New Home Warranty Act, and concerning work to which the act does not apply, Owner understands and waives any claim against Contractor for any loss or damage to the home, bodily injury or mental anguish caused by: (a) soil conditions or soil movement, including (but not limited to) cracks in concrete, mortar, bricks or tile, and/or damage to plumbing; (b) Any "fungus (fungi)" or "spore (s)"; (c) Any substance, vapor or gas produced by or arising out of any "fungus(fungi)" or "spore(s)"; or (d) Any material, product, building component, building or structure that contains, harbors, nurtures or acts as median for any "fungus (fungi)" or "spore(s)". "Fungus (fungi)" includes, but is not limited to, any form or type of mold, mushroom or mildew. "Spore(s)" means any reproductive body produced by or arising out of any "fungus (fungi)." Owner further understands and agrees that Contractor’s warranty shall exclude; portions of the property upon which Contractor performed no work; any unforeseen condition, defect, deficiency, or lack of fitness, including but not limited to termite and/or water damage; any condition, defect, deficiency, lack of fitness on any portion of the property that existed prior to commencement of work or that exists through no fault of Contractor. In addition, Owner agrees and understands that Contractor assumes no liability nor responsibility to correct and/or repair any condition, defect, deficiency, or lack of fitness as to portions of the property upon which Contractor performed no work or upon portions of the property not intended by both parties to be included in the work under this Contract. Owner further understands and agrees that structure that is the subject of the Contract is existing and that Contractor will attempt to match material to the existing structure. However, in any remodel project, the exact match of materials is difficult and sometimes impossible to achieve. Owner acknowledges that said differences may be noticeable and accepts same.

Concealed Conditions: Contractor makes no statement as to the fitness of the site or of an existing structure and is not liable for subsurface or latent physical conditions at the site or in an existing structure that differ from (a) those indicated or referred to in the Contract documents or (b) those ordinarily encountered and generally recognized as inherent in the work of the character provided for in this Contract.

After receiving notice of the condition, the Owner shall investigate the condition within five (5) working days. If the condition will increase (a) the Contractor’s cost of performance of any part of the work under this Contract or (b) the time required for that work, the partied may sign a change order agreement incorporating the necessary revisions, or the Owner may terminate the Contract.

In the event that the Owner terminates the Contract, such termination shall be subject to the conditions of Termination herein.

Selections/subcontractors: The work is to be accomplished through Contractor’s approved suppliers and subcontractors. In the event items are furnished by the Owner, their suppliers or other subcontractors, no warranty will be provided by the Contractor and the Owner’s sole remedy will be the product warranty by the manufacturer or installer for which the Contractor will not be responsible. Owner further agrees and obligates him/herself not to contract with any other builder, contractor, and/or sub-contractor to perform, in whole or in part, any portion of, additions to, and/or changes to the work or plans and specifications unless same is authorized in writing by Contractor.

Indemnity: Owners agree to indemnify and hold harmless Contractor in the event any claim, demand, suit, right or cause of action is brought, by any person, firm, sub-contractor, or corporation arising out of or related to this contract. Owner further understands and agrees that, inasmuch as the repair, remodeling, and/or rehabilitation of an existing building or structure requires that certain assumptions be made regarding the conditions then existing in the building or structure, and because these assumption may be verifiable without expending additional sums of money or destroying otherwise adequate or serviceable portions of the building or structure, Owner shall, to the fullest extent provided by law, indemnify and hold harmless the Contractor from any claim liability, or costs (including reasonable attorney’s fees and costs of defense) for any and all damages, economic loss, property damage, bodily injury, mental anguish, and/or any other loss arising or allegedly arising from the work and/or under this Contract, excepting those damages due solely to the intentional misconduct of Contractor.

Termination: Contractor shall be entitled to terminate this contract without penalty. In the event that Owner terminates Contractor, Contractor shall be entitled to the cost of all work performed, authorized and/or material in place, and /or ordered at that time plus 15%, and costs incurred by reason of such termination, along with reasonable overhead and profit on the work not executed.

Severability: If any provision of this Contract is held to be illegal, invalid or unenforceable, the remainder of this Contract will be enforceable to the maximum extent allowed by law.

Applicable Law: This Contract shall be construed in accordance with the laws of the State of Louisiana and the ordinances of the City of __________________________, and the Parish of ______________________________.

Other Agreements: Owner hereby authorizes Contractor to request credit reports on Owner from any credit reporting agencies and/or local service business references in order to verify credit (at least two local service business references may be requested by Contractor from Customer to verify honorable payment history for services rendered).

Owner acknowledges receipt of the pamphlet entitled "Protect Your Family From Lead in Your Home", required by the U.S.E.P.A. to be distributed by professional remodelers to owner and tenants of pre-1978 housing. Owner further understands the risks of potential lead hazard exposure from any renovation and/or remodeling activity to be performed on pre-1978 structures.

All agreements and stipulations herein contained, and all obligations herein assumed, shall assure to the benefit of and to binding upon the heirs, successors, and assigns of the respective parties hereto.

Any errors, omission, and/or ambiguities with regard to the meaning of terms and/or conditions herein stated shall not be construed against the maker of this document.

Whereas, all partied state that they have read and understand the terms and conditions of this Contract and have signed this Contract, the day month and year below written.

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Owner / Date

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Owner / Date

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Contractor-Authorized Signature / Date

*This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.