HomeMy WebLinkAbout_SOLR22-1120_Lagudis Conract Final SIGNED26,200
tony@beachcitessolar.com CSLB# 976962 (310) 977-6285
BEACH CITIES SOLAR INC
DESIGN-BUILD CONTRACT
This is a Design-Build Contract made the 27th day of August 2022, by and between Beach Cities Solar
Inc. hereinafter called the Contractor, and Nicola Lagudis hereinafter called the Owner.
You are entitled to a completely filled in copy of this agreement, signed by both you and the contractor,
before any work may be started.
The Contractor and the Owner, for the consideration named, agree as follows:
Description of the Project and Description of the Significant Materials to be Used and Equipment
to be Installed:
The Contractor shall furnish the design, city planning and building permit applications, relevant
applications to electrical utility company, and install additional roof-mounted solar photovoltaic (PV)
solar components, and fully integrated with the existing PV Solar System, hereinafter called the System
at Owner’s property located at:
73460 Agave Lane
Palm Desert CA 92260
The materials to be used are described in Exhibit A, attached hereto.
Contract Price:
The Owner(s) shall reimburse the Contractor $ 26,200 for the Total Project Cost to be performed under
this Contract subject to additions and deductions pursuant to authorized change orders. Pre-existing
undiscovered conditions and incomplete building permits are not included. This system is not designed
to operate off-grid. Additional expense is required for battery backup or conversion to off-grid only.
Progress Payments:
Payments of the Contract shall be paid in the following manner:
Milestone 1 Preliminary System design complete 10%
Milestone 2 City Building Permit issued 10%
Milestone 3 Owner Authorization to proceed with solar installation 50%
Milestone 4 Final inspection passed 20%
Milestone 5 Permission To Operate Granted 10%
Total Project Cost 100%
A down payment if included may not exceed $1,000 or 10 percent of the contract price, whichever is
less. This payment constitutes substantial commencement of work under this contract.
This contract has No Down Payment.
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Project Milestone Description:
The tasks to be performed and materials to be purchased are defined in the project phase descriptions:
Milestone 1 Preliminary design complete – Contractor begins final system design including Planning,
Zoning, HOA applications.
Milestone 2 City Building Permit issued – Contractor prepares and submits utility company
applications for grid-tie compatibility and receives Plan Check approval in preparation for
construction.
Milestone 3 Owner Authorization to proceed with construction – Installation of solar array and all
supporting mounting, electrical equipment and wiring.
Milestone 4 Final inspection passed – The system is complete and functionally ready to operate. It has
been attached to the Main Electrical Service Panel, fully tested including attachment to
the electrical utility, and has passed Final Inspection by the local authority.
Construction Progress Payments to the Contractor are authorize by the Owner.
Milestone 5 Permission To Operate Granted – The Owner has been notified by the utility company the
system should be turned on and will be designated for Net Energy Metering (NEM).
Installation of irrigation system complete and inspected by Owner.
The schedule of progress payments must specifically describe each phase of work, including the type
and amount of work or services scheduled to be supplied in each phase, along with the amount of each
proposed progress payment.
Time of Completion:
The work to be performed under this Contract shall be performed during the time period shown in Exhibit
A, contingent on weather and un-anticipated delays in electrical utility company or City Building Permit
approval process. Substantial completion is defined as successful System installation and passing City
Final Inspection and submittal of the Permission To Operate (PTO) application to the utility company.
Provisions:
Any alteration or deviation from the Description of the Project and Description of the Significant
Materials to be Used and Equipment to be Installed, including but not limited to any such alteration or
deviation involving additional material and/or labor costs, will be executed only upon a written order
for same, signed by Owner(s) and Contractor. Any upgrade or downgrade to the system may result in a
change order with appropriate cost adjustments added to this Contract.
If payment is not made when due, Contractor may suspend work on the job until such time as all
payments due have been made. A failure to make payment for a period in excess of five (5) days from
the due date of the payment shall be deemed a material breach of this Contract.
In addition, the following general provisions apply:
1. Owner(s) is responsible for neighbor signatures from neighbors and/or Homeowner Association.
Contractor shall furnish supporting documents and drawings.
2. Contractor shall determine whether a City Planning, Zoning variance or property survey is required,
and securing that approval for an additional fee if it is required.
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3. Contractor shall provide to Owner(s) proof of insurance for Workers Compensation, liability, and
automobile public liability-personal property damage used in performance of this contract with
Owner(s) named as co-insured.
4. All work shall be completed in a workmanlike manner and in compliance with all building codes
and other applicable laws.
5. Owner(s) does not require prevailing wage labor.
6. Contractor shall create all necessary drawings, pay all fees, and install the system. There are no
hidden fees.
7. Contractor may at its discretion engage sub-contractors to perform work hereunder, provided
Contractor shall fully pay said sub-contractors and in all instances remain responsible for the proper
completion of this Contract.
8. Contractor shall furnish Owner(s) appropriate releases or waivers of lien for all work performed or
materials provided at the time the next periodic payment shall be due.
9. All change orders shall be in writing and signed both by Owner(s) and Contractor and shall be
incorporated in, and become a part of, this Contract.
10. Contractor agrees to remove all job-related debris and leave work areas in broom clean condition.
11. In the event the Owner(s) fail to make any periodic or installment payments when due, Contractor
may cease work without breach of pending payment or resolution of any dispute.
12. Contractor shall not be liable for any delay due to circumstances beyond their control including but
not limited to delays caused by acts of nature, strikes, casualty or unavailability of materials.
13. Warranties; Solar panels and Micro-Inverters 25 Years. Contractor shall obtain and install warrantied
components for a period of ten (10) years following Final acceptance by the local BSD and the utility
Company.
14. The system is designed to be maintainable by any California licensed electrician once installed and
approved by the local BSD and the utility company.
List of Documents to be Incorporated Into the Contract:
Additional Consumer Notices
Commercial General Liability Insurance
Contractor, Beach Cities Solar Inc., carries commercial general liability insurance written by US
Specialty Insurance Company, Certificate of insurance with Owner(s) named as additional
beneficiary to be provided to Owner(s) by Post Insurance Services, Inc., Torrance CA (310) 328-
3622.
Workers Compensation Insurance - Contractor
Contractor, Beach Cities Solar Inc., carries workers compensation insurance for all its employees
through State Fund; Certificate of insurance to be provided to Owner(s) by State Fund.
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Workers Compensation Insurance - Sub-Contractors
All sub-contractors employed under this contract by the Contractor carry workers compensation
insurance; Certificate of insurance to be provided to Owner(s) by sub-contractor’s insurance
company.
Vehicle Insurance
Contractor, Beach Cities Solar Inc., carries commercial motor vehicle liability insurance covering on-
site and job related transportation written by Mercury Insurance Company. Certificate of insurance
with Owner(s) named as co-insured to be provided to Owner(s) by Fin Martin Insurance Agency,
Torrance (310) 539-3533.
All sub-contractors employed under this contract by the Contractor commercial vehicle insurance
covering on-site and job-related transportation with Owner(s) named as co-insured. Certificate of
insurance to be provided to Owner(s) by sub-contractor’s insurance company.
Mechanics Lien Warning
Contractor, Beach Cities Solar Inc., shall provide Owner(s) with Mechanics Lien releases for all
materials and sub-contractors.
Please Note:
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 to
improve your property may record mechanics liens and sue you in court to foreclose the lien. If a
court finds the lien is 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 lien, each subcontractor and material supplier, must provide you
with a document called a ‘Preliminary Notice.’ This notice is not a lien. The purpose of the notice is
to let you know that the person who sends you the notice has the right to record a lien on your
property if he or she is not paid.
BE CAREFUL. The Preliminary Notice can be sent up to 20 days after the subcontractor starts work
or the supplier provides material. This can be a big problem if you pay your contractor before you
have received the Preliminary Notices.
You will not get Preliminary Notices from your prime contractor or from laborers who work on your
project. The law assumes that you already know they are improving your property.
PROTECT YOURSELF FROM LIENS. You can protect yourself from liens by getting a list from
your contractor of all the subcontractors and material suppliers that work on your project. Find out
from your contractor when these subcontractors started work and when these suppliers delivered
goods or materials. Then wait 20 days, paying attention to the Preliminary Notices you receive.
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PAY WITH JOINT CHECKS. One way to protect yourself is to pay with a joint check. When your
contractor tells you it is time to pay for the work of a subcontractor or supplier who has provided
you with a Preliminary Notice, write a joint check payable to both the contractor and the
subcontractor or material supplier.
For other ways to prevent liens visit CSLB’s Internet Web site at www.cslb.ca.gov or call CSLB at
800-321-CSLB (2752).
REMEMBER, IF YOU DO NOTHING, YOU RISK HAVING A LIEN PLACED ON YOUR
HOME. This can mean that you may have to pay twice, or face the forced sale of your home to pay
what you owe.”
Contractor license review
Contractor shall provide to Owner(s) licensure information, including sub-contractors, which
Owner(s) may review via the California State License Board web-site at: www.cslb.ca.gov
Information about the Contractors’ State License Board (CSLB): CSLB is the state consumer
protection agency that licenses and regulates construction contractors.
Contact CSLB for information about the licensed contractor you are considering, including
information about disclosable complaints, disciplinary actions, and civil judgments that are reported
to CSLB.
Use only licensed contractors. If you file a complaint against a licensed contractor within the legal
deadline (usually four years), CSLB has authority to investigate the complaint. If you use an
unlicensed contractor, CSLB may not be able to help you resolve your complaint. Your only remedy
may be in civil court, and you may be liable for damages arising out of any injuries to the unlicensed
contractor or the unlicensed contractor’s employees.
For more information:
Visit CSLB’s Internet Web site at www.cslb.ca.gov
Call CSLB at 800-321-CSLB (2752)
Write CSLB at P.O. Box 26000, Sacramento, CA 95826.
Right to Cancel
You, the buyer, have the right to cancel this contract within three business days after paying the
Milestone 1 fee. You may cancel by e-mailing, mailing, faxing, or delivering a written notice to the
contractor at the contractor’s place of business by midnight of the third business day after you
received a signed and dated copy of the contract that includes this notice. Include your name, your
address, and the date you received the signed copy of the contract and this notice.
If you cancel, the contractor must return to you anything you paid within 10 days of receiving the
notice of cancellation. For your part, you must make available to the contractor at your residence, in
substantially as good condition as you received them, goods delivered to you under this contract or
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sale. Or, you may, if you wish, comply with the contractor’s instructions on how to return the goods
at the contractor’s expense and risk. If you do make the goods available to the contractor and the
contractor does not pick them up within 20 days of the date of your notice of cancellation, you may
keep them without any further obligation. If you fail to make the goods available to the contractor,
or if you agree to return the goods to the contractor and fail to do so, then you remain liable for
performance of all obligations under the contract.
Owner(s) has a 3-day right to cancel this contract from this date:
Owner Signature Date 27 August 2022
“Notice of Cancellation” may be sent to the contractor at the address noted on the contract.
Extra Work and Change Orders
Extra Work and Change Orders become part of the contract once the order is prepared in writing and
signed by the parties prior to the commencement of any work covered by the new change order. The
order must describe the scope of the extra work or change, the cost to be added or subtracted from the
contract, and the effect the order will have on the schedule of progress payments.
Contractor is not required to perform additional work or changes without written approval in a “Change
Order” before any of the new work is started.
Extra work or a change order is not enforceable against a customer unless the change order also identifies
all of the following in writing prior to the commencement of any work covered by the new change order:
• The scope of work encompassed by the order.
• The amount to be added or subtracted from the contract.
• The effect the order will make in the progress payments or the completion date.
• Contractor’s failure to comply with the requirements of this paragraph does not preclude the
recovery of compensation for work performed based upon legal or equitable remedies designed
to prevent unjust enrichment.
Time is of the Essence
Time is of the essence therefore this project shall be completed with due diligence, unpredicted events
such as acts of nature and unpredicted external requirements or the local Home s Association.
Revision
This revised contract supersedes and replaces all previous contracts in their entirety.
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Governing Law
The laws of the State of California shall be applicable to this Contract in its entirety.
Entire Contract
The foregoing represents the Contract in its entirety between Owner(s) and Contractor and supersedes
all other prior or contemporaneous Contracts or understandings whether written or oral, with respect to
services performed by Contractor for Owner(s).
Performance Bond
The Owner(s) has the right to require the Contractor to have a performance and payment bond at extra
cost to this Contract.
Signatures
Name of Owner(s) Nicola Lagudis
Signature of Owner
Address of Owner 73460 Agave Ln, Palm Desert CA 92260
Name of Owner(s) Agent Jonathan Schneider
Signature of Owner
Address of Owner 73460 Agave Ln, Palm Desert CA 92260
Name of Contractor Tony Tamalunas - Beach Cities Solar Inc.
Signature of Contractor
Address of Contractor 1147 W Amar St, San Pedro, CA 90732
Contractor License CSLB# 976962 C-46 Solar Contractor
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Notice of Cancellation
Transaction entered into on. 27 August 2022
You may cancel this transaction, without any penalty or obligation, within three business days from the
above date.
If you cancel, any property traded in, any payments made by you under the contract or sale, and any
negotiable instrument executed by you will be returned within 10 days following receipt by the seller of
your cancellation notice, and any security interest arising out of the transaction will be canceled.
If you cancel, you must make available to the seller at your residence, in substantially as good condition
as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply
with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and
risk.
If you do make the goods available to the seller and the seller does not pick them up within 20 days of
the date of your notice of cancellation, you may retain or dispose of the goods without any further
obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the
seller and fail to do so, then you remain liable for performance of all obligations under the contract.
To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice, or any
other written notice, or send a telegram to:
Beach Cities Solar Inc.
3348 Crownview Drive
Rancho Palos Verdes, CA 90275
no later than midnight of __/__/__.
I hereby cancel this transaction.
Date: __/__/__
______________________________
Signature of Buyer
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EXHIBIT A
Description of the Project, Significant Materials, and Equipment to be Installed
Design
1. Detail design shall start on 27 August 2022 and be completed by 30 September 2022.
2. The system annual energy yield, estimated by SCE Power Clerk estimating program is predicted
at 10,200 KWH, which provides 100% offset of purchased energy for the previous 12 months
plus an Owner specified allowance for increased air conditioning usage.
3. System will consist of a 6.4 KWdc-stc PV Solar array and compatible with the existing system.
4. The system can be upgraded in the future to add an Enphase battery backup subsystem.
5. Prepare necessary documentation for HOA approval and the City Building Permit.
6. Apply on Owner’s behalf to the electrical utility company for grid-tie authorization, and for PTO
after Final inspection has been passed.
7. There is no foliage shading the array on the designated location.
8. Maintenance of foliage and trees on the property to minimize future shading of the solar arrays
is essential for continued optimum performance and is the responsibility of the Owner.
9. Federal Renewables Tax Credit of 26% is available if system is installed in 2022.
10. No Incentive Payments are available from the utility company or the state of California
Major Components
8. The system shall consist of 16 Hanwha PV solar modules or equivalent, 400 Watts (STC) each;
16 Enphase IQ8Plus Micro-inverters or equivalent. Contractor retains the right to substitute
equivalent equipment of this capacity based on availability.
9. Solar panel frames will be black.
10. Low profile roof-mounted photovoltaic solar arrays located as shown in Exhibit B approved by
Owner
11. Electrical connection to the existing PV Solar components.
12. The PV solar system will be attached to the existing owner-accessible real-time monitoring unit
and on-line portal to the monitor manufacturer’s management system for reports and fault
isolation.
Implementation
13. Obtain building permit and SCE Net Energy Metering approval prior to construction.
14. Downsize Main Breaker in the Main Electrical Service Panel.
15. Procure all materials and pay all shipping fees and sales taxes.
16. PV Solar arrays to be low profile in order to minimize visibility from neighbors.
17. Install the PV solar array and micro inverters.
18. Include a landscape sprinkler subsystem attached to the existing sprinkler system
19. Complete all installation tasks and pass final building permit inspection.
20. Provide all applicable lien releases after receiving final payment.
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EXHIBIT B
Approved Array Location
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