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HomeMy WebLinkAbout06-2690Date: 4/27/2006 Dauphin County User: LGARCIA Time: 09:43 AM RDA Report Page 1 of 1 +? n -vc%26 l i(?t? ?/Lhl Case: 2006-CV-1230-MP l Current Judge: John F. Cherry Harry L Smith && Sons Incvs.Robert V Gothier Jr, Bonny L Gothier Miscellaneous Petition Date Judge 3/21/2006 New Civil Case Filed This Date. No Judge Plaintiff: Harry L Smith & Sons Inc, Attorney of Record: Roger R Laguna No Judge Jr Filing: Petition Paid by: Laguna, Roger R Jr (attorney for Harry L Smith & No Judge Sons Inc,) Receipt number: 0101677 Dated: 3/21/2006 Amount: $117.00 (Check) Petition To Confirm Arbitration Award and Enter Judgment, filed. John F. Cherry 3/22/2006 Judge assigned to case. John F. Cherry upon consideration of Petitioner/Plaintiff Harry L. Smith & Sons, Inc.'s John F. Cherry Petition to Confirm Arbitration Award and Enter Judgment, a rule is issued upon Respondents/Defendants Robert V. Gothier, Jr., and Bonny L. Gothier to show cause, if any there be, why petitioner/plaintiff's Petition to Confirm Arbitration Award and Enter Judgment should not be granted. Rule returnable within 15 days of receipt of this Order. See RULE TO SHOW CAUSE filed. Copies Dist. by the Court 3-22-06. 4/6/2006 Answer and response to plaintiff's petition to confirm Arbitration Award, filed John F. Cherry 4/21/2006 Upon consideration of Plaintiff Harry L. Smith & Sons, Inc.'s Petition to John F. Cherry Confirm Arbitration Award and Enter Judgment; Defendants Robert V. Gothier, Jr. and Bonny L. Gothier's Answer and Response to Plaintiffs Petition to Confirm Arbitration Award, and upon consideration of the applicable statutory law, IT IS HEREBY ORDERED that plaintiffs petition is DENIED. The Prothonotary of Dauphin County IS HEREBY ORDERED to transfer this matter to the Cumberland County Court of Common Pleas. See MEMORANDUM OPINION AND ORDER filed. Copies Dist. 4-21-06. The above action transferred to the Court of Common Pleas of Cumberland No Judge County. ****NO MORE ENTRIES CASE TRANSFERRED**** No Judge TO THE COURT OF COMMON PLEAS APR 2 7 20 I her€4 c riff, UMt the fore:Ong is a t." artl corn-rt er rnnv f tl w original iti :d. ?rfi;e;;; ICi:i?Y w ZD ?1I f'i v ?- N O 0 o -? O? r? O 1D Tl a n [.> ...., ctt 0 LAGUNA REYES MALONEY, LLP I 1 1 9 NORTH FRONT STREET HARRISBURG, PA 1 7102 TEL.: (71 7) 233-5292 FAX: (71 7) 233-5394 ATTORNEY FOR PLAINTIFF 0 O N °o ^v C cn 7C O ? C ? ; E -0 2 n r ' z c-, -o ? m -C IT CO HARRY L. SMITH & SONS, INC., Plaintiff V. ROBERT V. GOTHIER, JR., and BONNY L. GOTHIER, Defendants § IN THE COURT OF COMMON PLEAS § DAUPHIN COUNTY, PENNSYLVANIA § NO. aDOU W 030 MP PETITION TO CONFIRM ARBITRATION AWARD AND ENTER JUDGMENT 1. Plaintiff is Harry L. Smith & Sons, Inc., ("Smith") a corporation organized and existing under the laws of the Commonwealth with offices located at 5943 Devonshire Heights Road, Harrisburg, Dauphin County, Pennsylvania. 2. Defendants are Robert V. Gothier, Jr., and Bonny L. Gothier, ("Gothier") adult individuals, husband and wife, residing at 99 Manor Drive, Dillsburg, Pennsylvania. 3. On or about May 30, 2002, Smith and Gothier`agreed, in writing, that Smith would construct a new residence and perform remodeling on an old residence, for the sum of $1,025,000.00. A true and correct copy of the aforesaid contract signed by the parties is attached hereto as Exhibit "A". 4. A dispute and claim(s) subsequently arose out of the said Agreement when Gothier's allegedly failed to pay Smith as agreed and, pursuant to the provisions of Article 13 "Arbitration" of the Agreement (Exhibit "A"), Smith demanded binding arbitration. 5. Pursuant to the Agreement, the parties cooperated to select a Panel of Arbitrators; one each and a neutral. The Panel of Arbitrators were Charles E. Friedman, Esquire, John R. Zonarich, Esquire and Richard L. Placey, Esquire. 6. A two day arbitration hearing was conducted in Harrisburg, Dauphin County, Pennsylvania; it commenced on December 6, 2005 and concluded on December 7, 2005 after each of the parties had presented its respective position in regard to the claim. 7. On January 31, 2006, the Arbitration Panel decided in favor of Smith and awarded Plaintiff the sum of $128,317.00, with 1% interest commencing February 15, 2006. See Exhibit "B". 8. The Award (in accordance with the Agreement between the parties) is binding: "Any award rendered by arbitrators shall be final and enforceable by any party to the arbitration, and judgement may be entered upon it in accordance with the applicable law and any court having jurisdiction thereon." Exhibit "A": Article 13 "Arbitration", § 13.6, page 11. 9. Plaintiff, Smith, desires to have the attached Arbitration Award (Exhibit "B") reduced to judgment in order that it may be enforced and collected against the Defendant, Gothier. 10. The Uniform Arbitration Act, 42 Pa.C.S.A. §7342(b) provides that on application of a party made more that 30 days after an award is made by an Arbitrator under Section 7341 (relating to common law arbitration) the court shall enter and Order confirming the Award and shall enter judgment or decree in conformity with the Order. 11. This Court has jurisdiction to enter judgment on this Award at this time because the hearing was conducted in Dauphin County, and more than 30 days have elapsed since the Award was made. WHEREFORE, Plaintiff, Smith, moves that the Court confirm the Arbitration Award of $128,317.00, with 1% interest commencing Februarf IN 2006, and direct the Prothonotary to enter the same Fc6ger R. Lagunhjr., Esquire Attorney for Defendant Supreme Court I.D. No.: 75900 LAGUNA REYES MALONEY, LLP 1119 North Front Street Harrisburg, PA 17102 (717) 233-5292 EXHIBIT "A" t CONSTRUCTION AGREEMENT ,r t THIS CONSTRUCTION AGREEMENT (hereinafter, "Agreement") is made this 3 e day of May, 2002, by and between HARRY L. SMITH & SONS, INC. (hereinafter referred to as "Contractor'), and Robert V. Gothier, Jr. and Bonny L. Gothier (hereinafter collectively referred to as "Owner"), WHEREAS, Owner wishes to erect at 99 Manor Drive, Dillsburg, PA 17109, Monaghan Township, York County, an improved single family dwelling home, and has caused Crabtree Rohrbaugh & Associates, Architects, to prepare drawings and specifications of the Project 1614: Gothier Residence Plan, dated last revised , (hereinafter, the "Plans and Specifications"); and WHEREAS. Contractor has signified his willingness to erect Project 1614: Gothier Residence Plan in accordance with the drawings and specifications attached to this contract and signed by the contractor, owner, and architect, and in accordance with the conditions and for the consideration set forth below. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties, intending to be legally bound hereto, agree to the following terms and conditions. ARTICLE 1 THE CONTRACT WORK 1.1 Contractor agrees to build for Owner an improved dwelling home, described as Project 1614: Gothier Residence, according to the Contract Documents herein defined and provide certain limited renovations to an existing home as hereinafter provided. Said improved dwelling home is to be built on Owner's land situate at 99 Manor Drive, Dillsburg, York County, Pennsylvania. Contractor shall perform his responsibilities in accord with the Contract Documents, which shall include this Construction Agreement, the Plans and Specifications, the Cost Breakdown, and any and all other Addenda issued prior to and all Modifications/Change Orders after execution of this Construction Agreement, which documents form the Contract Documents and are all fully part of this Construction Agreement as if attached to this Construction Agreement or repeated herein. In case of conflict or ambiguity, the Specifications shall control the Plans and Specifications, and the provisions of this Construction Agreement shall control all other contract documents. 1.2 Unless otherwise provided herein or by Addenda, Contractor shall furnish all materials as specified herein, perform all the labor, pay for all subcontractors, supply all necessary tools, equipment and transportation, and provide all necessary supervision and any other responsibilities which may be necessary for the construction and in accord with the Construction Documents herein defined. It is specifically understood that Contractor shall not be liable or otherwise responsible for inaccuracies, errors or omissions with regard to any and all information contained in the Contract Documents supplied by Owner, Ow'ner's architect, engineer or any other agent for Owner. Likewise, if applicable, Contractor shall not be responsible for any work performed by subcontractors retained directly by Owner. Owner understands and acknowledges that this custom home has never been built before and, therefore, Contractor has the right to make minor modifications or adjustments during the construction process, which may result in slight variations of dimensions, and which may become necessary to comply with the general intent of the Contract Documents, without written Change Order, provided such does not change the Contract sum or the time of performance, and Owner agrees to hold Contractor harmless for any such change, modification or adjustment. Contractor reserves the right to substitute the material of like d • quality. It is understood that before Owner takes possession of the new house to be constructed, all outstanding invoices, change orders and extras relating thereto shall be paid in full and settlement made with Contractor. For purposes of clarification and identification, Contractor will additionally be making certain limited renovations to an existing house, the "Existing House", the cost of which is included as an allowance in Paragraph 3.3(cc) and said allowances included in the Contract Price. Owner shall likewise not take possession of the Existing House until all outstanding invoices and change orders and extras related thereto shall be paid full and settlement made with Contractor with regard to the Existing House. ARTICLE 2 CONTRACT PRICE 2.1 The agreed basic construction sum, as may be subject to additions and/or deductions by changes, additions, alterations and allowances, as also described hereinafter, payable to Contractor by Owner, in strict accord with the following paragraph, is the sum of One Million Twenty-five Thousand and 00/100 ($1,025,000.00) Dollars (hereinafter, the "Contract Price"). 2.2 A. Owner agrees to make progress payments to Contractor on account of the Contract Price based upon written applications for progress payments, also known as "draws", submitted to Owner by Contractor at the following times as determined by Contractor: 7% $ 71,750.00 of the Contract Price for Excavation - Footers - Foundation Walls 7% $ 71,750.00 of the Contract Price for one-half of Framing; 10% $102,500.00 of the Contract Price for one-half of Framing, Windows-Installed; 7% $ 71,750.00 of the Contract Price for Roof Shingled, Exterior Doors excluding. Overhead Doors; 10% $102,500.00 of the Contract Price for Rough-ins of Electrical, Plumbing and Heating/Air Conditioning; 10% $102,500.00 of the Contract Price for Insulation and Drywall; 15% $153,750.00 of the Contract Price for Stone and Dryvit; io% $87.500.00 of the Contract Price for Kitchen Tops, Vanity Tops, Appliances: 13% $133,250.00 of the Contract Price:for Interior Trim; 8% $ 82,000.00 of the Contract Price for Painting - Flooring - Lighting installed; 3% $ 30,750.00 of the Contract Price upon substantial completion. B. $15,000.00 payable upon substantial completion of Contractor's responsibility with regard to the Existing House. 2.3 It is understood that Owner is obtaining a construction loan from in the sum of . Before any draws are paid, the application for progress payment and corresponding work required therefore is to be approved by the appropriate representatives of said Institution and of Owner. If Owner's lender mandates a different draw schedule other than above provided, such may be accepted by Contractor, but only if Contractor is provided same on or prior to the execution of this Agreement and does, in writing, approve same, which approval shall not be unreasonably withheld or delayed. Owner specifically authorizes said lender, by execution of this Agreement, to make progress payments directly to Contractor. 2.4 The progress payments shall be due and payable ten (10) days from the date of mailing/issuance by Contractor of an invoice for a progress payment. Payments not paid within said period, absent bona fide dispute, shall bear interest from the date said sum is due at the rate of one percent (1%) per month. Furthermore, if the invoice for any progress payment remains unpaid within ten (10) days following further written notice of non-payment, Contractor may declare Owner in default and suspend any further work until a payment is made and appropriate security and guaranty are given to insure against any future further default. Furthermore, in the event either party is required to institute suit, in addition to any amounts owing to each other, or other relief granted in law or equity.as permitted by law, the prevailing party shall receive, and the non-prevailing party shall be required to pay the prevailing party's reasonable attorneys' fees. 2.5 Final payment, consisting of the unpaid balance of the Contract Price as adjusted by any modifications or Change Orders, shall be due and payable upon substantial completion. At such time the home is substantially completed, and the balance of the Contract Price is due and owing, Contractor shall notify the appropriate municipal authority and obtain an Occupancy Permit, whereupon the parties shall. meet at the dwelling within five (5) days of receipt of the Occupancy Permit, inspect the dwelling home, and develop a written list of items, if any, that remain to be completed. With regard to such list of items, a certain amount shall be withheld, not to exceed one hundred and ten percent (110%) of the estimated cost of completion of such items listed. However, if the item(s) to be completed is an item of work which is an allowance item, as hereinafter described, the amount to be withheld shall be one hundred percent (100%) of the estimated cost of completion. Said list may be supplemented by Owner within one (1) month following actual physical occupancy of the dwelling home although, upon completion of the original punch list developed prior to occupancy, Owner shall be obligated to pay Contractor the full amount withheld without set-off or deduction for any additional punch list items, if any, that may have been added in the one-month period or for any other reason or cause whatsoever. It is agreed that the punch list-as may be supplemented during the one-month period of occupancy, shall be, to the best of the parties' ability, a definitive list and, after this list is satisfactorily completed by Contractor, no further punch list or items of correction, unless a written agreement is specifically entered into, shall be the obligation or responsibility of Contractor. Immediately following receipt of the Occupancy Permit and agreement to the punch list, Owner shall immediately authorize and effectuate payment to Contractor of the final progress payment, less any amount withheld as agreed pending completion of the punch list, whereupon Owner shall then be entitled possession of the dwelling home. It is understood and agreed that Owner accepts the home and its condition except for any items noted on the punch list unless any such conditions are hidden or are not readily observable. Occupancy of the dwelling home by Owner prior to payment of the balance of the Contract Price, as amended, shall cause said sum, regardless of the d stage of completion or substantial completion, to be immediately due and payable, and Contractor shall have the right to suspend further work, if he so chooses, subject however to the provisions of Article G hereof. 2.6 Making the final payment shall furthermore constitute a release and waiver of all claims known or which should reasonably have been known by Owner at such time, except faulty or defective work appearing within one (1) year after substantial completion, or by reason of any implied warranty as arising by operation of law, but as herein limited. ARTICLE 3 ALLOWANCE ITEMS 3.1 Certain allowances are contained in the Construction price and are used to permit Owner as much latitude as possible to design, equip and furnish the home-in a manner suitable to his tastes'and desires. The allowance figure represents a price which Contractor believes quality items may be purchased and installed, and including sales tax, and such allowance amounts as designated and as based on the Plans and Specifications, are included in the Construction price. Thus, the Owner is responsible for staying within his allowance for each item but, if the allowance is exceeded, the Owner will pay the additional cost directly to the subcontractor/supplier whenever possible. If this is not possible to directly pay the subcontractor or supplier, and the cost exceeds the allowance, Owner.shall promptly notify Contractor, who may then bill Owner the overage cost plus twenty (20%) percent to cover any overhead and administration, which must be paid to Contractor prior to installation. Owner shall pay the allowance overage and the service fee, as above stated, within ten (10) days of invoicing from Contractor, which must be received pdgr to ordering, if applicable, or Contractor's installation of any allowance items for such item/category, or may be contained in full in the next regularly scheduled progress payment, at Contractor's option. In the event that allowance for one item identified is not fully utilized, that amount may be credited to another allowance item hereinbefore identified. Furthermore, in the event the total amount of the allowances identified are not utilized, such shall result in a credit to Owner in the total construction price. 3.2 In the course of Owner's selection and purchasing of fixtures, accessories and items of allowance, as identified, the respective suppliers and materialmen will send to Contractor the various invoices for purchase of such fixtures, accessories and items to be charged to Contractor's account. To the best of Contractor's ability, it will promptly transmit to Owner copies of such invoices and if no response is received within seven (7) days of mailing, the Contractor shall assume such invoices to.be correct. In the event such are not correct, or items are subsequently deleted, it shall be Owner's obligation to so timely notify Contractor. In addition, it shall be the Owner's obligation to so timely notify the respective suppliers and materialmen to make the appropriate adjustment to the Contractor's account for all such items subsequently deleted. Furthermore, if any items of allowance are billed to Contractor from the suppliers and materialmen following final payment on the home, and the total, allowances have been previously exceeded, Owner shall remit to the Contractor payment for said additional allowance cost(s) within ten (10) days of billing by Contractor. All such payments for sum(s) in excess of the stated allowance shall be due and owing. without setoff or regard to final payment or any outstanding punch list items that remain to be completed by Contractor. 4 3.3 The Contract Price does include, therefore, the following allowances which,.unless otherwise indicated, include installation and sales tax, as follows: (a) $ 7.500.00 excavation, backfill, trenching and grading;* (b) $ 4.600.00 exterior doors and hardware; (c) $ 2,100.00 fireplace - pre-fab wood burning Master Bedroom (d) $ 6.900.00 plumbing fixtures - whirlpool tub: (e) electrical wiring; (f) $10.000.00 - decorative electrical fixtures; (g) $50.000:00 - cabinetry, vanities, countertops, other built-ins; (h) In Kit Allowance - appliances; (1) $45.020.00 - windows - Lincoln; 0) $ 3.050.00 - overhead doors and openers; (k) $23.846.00 --heating and air conditioning for new home (Existing House heating and air conditioning to be paid by Owner and such is not in the Contract Price/Existing House allowance); (1) $ 2.000.00 - underground propane gas tank; (m) $32.000.00 - painting (new and Existing House total cost)**; (n) $ 1.500.00 - curved maple bench in great room; (o) $ 650.00 - window seat in bedroom #A203;' (p) $40,000.00 - flooring and underlayment (q) $ 1,500.00 - mirrors; bath accessories; shower doors; (r) $ `3,500.00 closet rods and shelves; (s) By Owner - driveway; \ (t) By Owner - raking and seeding; (u) By Owner - landscaping; (v) $ 7.500.00 - septic system; (w) By Owner well and pump; (x) NIA central vac; (y) $ 5.000.00 security system - sound - specialty wiring;. (z) structured wiring; (aa) other; all interior stand and rails; (bb) $ 2.000.00 other: housecleaning before moving; and (cc) $15.000.00 - other; Existing House renovations as per Plans and Specifications; which shall include P.V.C. Shutters to replace existing shutters on Existing House by Contractor. New Aluminum soffits and fascia installed on Existing House included in Contract. Install in Existing Kitchen 12" x 12" Vinyl Stick Down Tile provided by Owner, installed by Contractor. It is specifically noted that these allowances, and several additional allowances, are set forth in the Specifications. All such allowances set forth in the Specifications not contained herein, however, shall be controlled by this Article 3 of the Construction Agreement. . Throughout the development of the specifications and construction of the home. Owner will be confronted by the utilization of allowances. Contractor has utilized allowances, where practical, to allow Owner as much latitude as possible to design and construct their home to suit the Owner's individual tastes and requirements. The dollar figure allocated for each particular item or segment of work a e 3.3 The Contract Price does include, therefore, the following allowances unless otherwise indicated, include installation and sales tax, as follows: (a) (b) (c) (d) (e) M (g) (h) (t) W (k) (1) j (m) (n) (o) (p) (q) ? (s) (t) (u) (v) (w) (x) (Y) (z) ' (aa) (bb) (cc) $ 7,500.00 - excavation, backfill, trenching and grading;* $ 4,600.00 - exterior doors and hardware; $ 2,100.00 - fireplace - pre-fab wood burning Master Bedroom $ 6,900.00 - plumbing fixtures - whirlpool tub; - electrical wiring, $10,000.00 - decorative electrical fixtures; $50.000.00 - cabinetry, vanities, countertops, other built-ins; In Kit Allowance - appliances; $45,020.00 - windows - Lincoln; S3,050.00 - overhead doors and openers; $23,846.00 --heating and air conditioning for new home (Existing House heating and air conditioning to be paid by Owner and such is not in the Contract Price/Existing House allowance); $.2,000.00 - underground propane gas tank; $32,000.00 - painting (new and Existing House total cost)**; $ 1,500.00 - curved maple bench in great room; $ 650.00 - window seat in bedroom #A203; $40,000.00 - flooring and underlayment; $ 1,500..00 - mirrors; bath accessories; shower doors; $ X3,500.00 closet rods and shelves; By Owner - driveway; By Owner - raking and seeding; By Owner - landscaping; $ 7,500,00 - septic system; By Owner - well and pump; N/A central vac; $ 5,000.00 security system - sound - specialty wiring; structured wiring; other; all interior stand and rails; $ 2,000.00 other; housecleaning before moving; and $15,000.00 - other; Existing House renovations as per Plans and Specifications, which shall include P.V.C. Shutters to replace existing shutters on Existing House by Contractor- New Aluminum soffits and fascia installed on Existing House included. in Contract. Install in Existing Kitchen 12" x 12" Vinyl Stick Down Tile provided by Owner, installed by Contractor. It is specifically noted that these allowances, and several additional allowances, are set forth in the Specifications. All such allowances set forth in the, Specifications not contained herein, however, shall be controlled by this Article 3 of the Construction Agreement. Throughout the development of the specifications and construction of the home, Owner will be confronted by the utilization of allowances. Contractor has utilized allowances, where practical, to allow Owner as much latitude as possible to design and construct their home to suit the Owner's individual tastes and requirements. The dollar figure allocated for each particular item or segment of work 4? e generally represents an approximated price for which the contractor believes quality items may be purchased and installed, including sales tax. However, with regard to the proposed dwelling. house, Owner has indicated to Contractor that there are certain items for which it is understood and realized by Owner the allowance number may be exceeded, which items include plumbing, kitchen, painting, floor covering, and lighting fixtures. Indeed, Owner has advised Contractor and recognizes that these items, to the extent in excess of the allowances, will result in an excess of the Contract Price with a variable, depending upon owner's final choices and selections, based upon Owner's current comments of between $75,000.00 to $100,000.00. It is understood that Owner alone is responsible for staying within his allocation for each item and that if he exceeds the allowance, the additional cost will be paid to Contractor at the construction progress payment schedule immediately following agreement as to a particular allowance item as more particularly set forth in the Construction Agreement. ('Contractor will excavate and backfill for the area of construction only. Any additional costs for this work beyond the excavation allowance, including, but not limited to, removal of excess fill, . hauling in of additional fill, additional grading or cutting, which may be required, at Contractor's option, shall be the responsibility of Owner. Contractor will not be responsible for the settlement of any backfill after grading. If backfilled or excavated areas around the foundation of the dwelling home settle during the first year, Contractor will fill the areas one time. Any earthwork outside the area of construction, including the removal of trees, is not included in the excavation allowance and is a separate cost item at additional cost to Owner.) ARTICLE 4 TIME OF COMMENCEMENT 4.1 The approximate date for commencement of the work is as soon as possible after signing contracts, but not before the filing of a Stipulation of Liens executed between the parties. The project is to be substantially completed in twelve (12) months from the date Contractor commences construction, subject to permissible delays. Time shall be of the essence. Such delays include fire, inclement weather. strikes, material shortages, material delays not as a result of any inactions or actions of Contractor, subsoil or surface conditions other than ordinary high, dry earth free of excessive rock, failure of Owner to make timely selections, or any other causes beyond the reasonable control of the Contractor. Contractor shall not be responsible for damages or penalty for permissible delays whatsoever. The dwelling home shall be considered substantially completed when it has been fully constructed in substantial conformance with the Drawings and Specifications and the appropriate municipal authorities have issued an occupancy permit. 4.2 Information, subcontracts or the furnishing of materials or services under Owner's control, including, but not limited to, item selection, shall be furnished by the Owner in a timely manner not to disrupt or delay the orderly and timely construction of the dwelling. A late selection may delay the orderly progress of the work and the completion/move-in date. Not only shall Contractor not be liable for such delay, but the Contractor shall be equitably compensated for any overhead costs occasioned by such delay. In the event the Owner does not make a selection resulting in a substantial delay in the construction schedule, upon reasonable written notice to Owner, Contractor may suspend all actions on the construction and Owner shall, within ten (10) days of invoice, pay to Contractor for all additional o • overhead and damages caused by said delay, if any. If Owner's failure to so reimburse Contractor exceeds thirty (30) days, Contractor may declare a default hereunder without further notice. . ARTICLE 5 SUBSTANTIAL COMPLETION The date of substantial completion of the contract work is the date when the construction is sufficiently completed in accordance with the Contract Documents so the Owner can legally occupy the construction work as evidenced by a Certificate of Occupancy. ARTICLE 6 POSSESSION It is agreed that until Contractor is fully paid all sums due by Owner, Contractor shall retain exclusive possession of the dwelling during construction so long as Contractor fulfills its obligations hereunder, subject, of course, to inspection by Owner and their agents at reasonable times. In the event Owner is in monetary default, not only is Owner not entitled to possession but Contractor has also the tight and is fully justified in refusing to perform any further services hereunder until mutually agreed arrangements are made with regard to payment of Contractor and all balances due for the construction price. It is understood that during construction of the new house, Owner plans to live in the Existing House, and no work will be commenced on the Existing House until Owner vacates same, at which time prior to Owner's movement into the new house, the total Contract Price plus any additions and/or deductions, changes, alterations shall be fully paid to Contractor. ARTICLE 7 INFORMATION AND SERVICES REQUIRED OF THE OWNER The Owner does represent and warrant, as follows: 7.1 Owner has read and understands the terms, conditions, rights and obligations set forth in this Construction Agreement. 7.2 Upon reasonable request of Contractor, timely furnish to Contractor reasonable evidence that Owner has made sufficient financial arrangements to fulfill Owner's obligations under this Construction Agreement. If so requested by Contractor, Contractor's obligation to commence work is dependent upon Owner providing such satisfactory information to Contractor in a timely manner which shall not exceed five (5) business days from the date of receipt of request. 7.3 By signing this Construction Agreement, Owner represents and warrants that the tract of land upon which the improved dwelling home is to be built conforms to all zoning, planning and other building requirements: that the tract of land is suitable for the construction required and provided under the terms of this Construction Agreement; that he is the owner of record of the within described parcel; that title is good and marketable and insurable by any reputable title company; that a perpetual right-of- way exists to the parcel; and, that the parcel is free and clear of any encumbrances, liens, and easements, other than construction financing. Furthermore, Owner represents and warrants to Contractor that, to the best of Owner's knowledge, there are no actions, cause of actions or claims which might at a later date ? e impair title to the aforementioned tract of land. Finally, Owner represents and warrants that he shall, at his own expense, promptly satisfy any conditions (as which may arise at any time during construction) which would cause the title to be unacceptable to any recognized reputable title insurance company. 7.4 Owner represents that he has no knowledge or information of any hazardous substances of any type or kind as defined by appropriate State and Federal statutes, that exists and/or has been stored or disposed upon the subject tract. 7.5 Owner shall timely furnish, prior to commencement of construction, all surveys describing the physical characteristics, legal limitations, if any, utility locations on the tract, and a legal description of the tract. 7.6 Owner shall locate for Contractor upon the tract where and how the improved dwelling home shall be situated, giving appropriate elevations, benchmarks, or other data necessary for this purpose. If Owner fails to so timely locate the improved dwelling home and provide such information prior to the time Contractor commences work, Contractor may delay commencement of work or situate the dwelling in such a position as he deems appropriate and advisable, in which event Contractor shall be in no way legally liable or responsible for improper location or elevation and Contractor, in such event, would provide Owner no less than five (5) business days written notice of Owner's failure to fulfill his obligations under this sub-paragraph prior to Contractor's location of the home on the tract. 7.7 Owner has, at his expense, prepared or caused to be prepared for construction of the improved dwelling home the Plans and Specifications, and Owner warrants that the Plans. and Specifications are true, correct and accurate as of the commencement of work by Contractor. Any material deviation from the Plans and Specifications so warranted shall constitute a Change Order and shall be treated as a Change Order pursuant to the provisions hereof. ARTICLE 8 , OBLIGATIONS OF CONTRACTOR 8.1 Contractor will provide all construction, supervision, inspection, labor, materials, tools, equipment and subcontracted items necessary for the execution and completion of the contract work. Contractor represents that it has the knowledge and skill to perform its duties under this contract properly, promptly and efficiently. 8.2 Contractor will pay all sales, use, gross receipts and similar taxes related to the contract work to be provided by the Contractor, which taxes have been legally enacted at the time of execution of this Agreement. 8.3 Contractor warrants to Owner that all materials and equipment incorporated into the contract work will be new unless otherwise specified,.and that all contract work will be of good and workmanlike quality, in conformance with the contract documents. 8.4 Contractor shall be responsible for the acts and omissions of its employees and all subcontractors engaged by Contractor, their agents and employees, and all other persons performing any of the work or supplying any of the materials under this contract on behalf of or with the Contractor. 8 0 s 8.5 Owner will obtain and pay for all necessary permits or authorizations from all Municipal bureaus or utilities which may be required for the construction or occupancy of said work. Contractor will execute the Owner's name to any applications for such permits or authorizations. Contractor will provide all construction, supervision, inspection, labor, materials, tools, equipment, and subcontracted items necessary for the execution and completion of the Contract Work. The Contractor may substitute materials that are equal in quality to those specified, or shown ina model home, if applicable, and if Contractor deems advisable to do so. ARTICLE 9 CHANGES The Contractor is under no obligation to make any changes, additions, or alterations in the work provided in the Contract Documents. Upon reasonable request ofOwner, Contractor may make changes, additions, or alterations, but the Contractor shall not be required to do so until the parties have executed a written Change Order, which will become part of this Agreement, and Owner has agreed to pay Contractor for changes in the work prior to any Change Order work being performed or with the following progress payment (draw), at the option of Contractor. Owner agrees to make requests concerning any changes, additions, or alterations in the work to Contractor and not to the workers, including subcontractors on thejob. ARTICLE 10 CORRECTION OF WORK 10.1 Contractor shall correct any work that fails to conform. to the requirements of the Contract Documents where such failure to conform appears during the progress of the Work, and shall remedy any defects due to faulty materials, equipment or workmanship which appear within a period of one (1) year from the date of substantial completion. The provisions of this paragraph apply to work done by subcontractors as well as to work done by direct employees of Contractor provided Contractor has met the requirements for substantial completion. 10.2 Contractor shall assign, upon payment of the full contract price, to Owner, to the extent they are applicable, all rights under manufacturer's warranties on appliances, equipment, fixtures and . consumer products included in the house and located on Owner's property, to the extent such warranties are assignable. Contractor provides no warranties relating to manufactured or consumer products. 10.3 The obligation to perform any warranty work by Contractor as provided for in this Agreement or by Contractor's Limited Warranty, shall not begin until Contractor has received full payment for the Project including any Change Order. THIS CONTRACT CONTAINS ALL OF THE REPRESENTATIONS, WARRANTIES AND PROMISES OF CONTRACTOR. NO AGENT OR REPRESENTATIVE OF CONTRACTOR IS AUTHORIZED TO MAKE ANY REPRESENTATION OR PROMISE ON BEHALF OF THE CONTRACTOR OTHER THAN THOSE CONTAINED HEREIN, AND THE CONTRACTOR MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF GOOD WORKMANSHIP, HABITABILITY AND FITNESS OF PURPOSE. 0 0 ARTICLE 11 RELEASE OF LIENS Contractor, with his request for final payment, shall deliver to Owner a complete Release of Liens arising out of this contract and a Stipulation Against Liens filed prior to any commencement of any work, and, if required, shall furnish an affidavit through it as Contractor that the Releases include all labor and material for which a lien could be filed. However, the Contractor may, if any subcontractor refuses to furnish a release or receipt in full, furnish bond satisfactory to Owner to indemnify Owner against any lien. ARTICLE 12 ASSIGNMENT OF CONTRACT Contractor reserves the right to assign any part or parts of this Agreement, but only with the approval of Owner, which approval shall not be unreasonably withheld, delayed or conditioned. Subcontracting of certain portions of the work shall not be considered an assignment subject to Owner's approval. Owner may not assign this Agreement without the written consent of Contractor, which consent shall not be unreasonably withheld, delayed or conditioned. ARTICLE 13 ARBITRATION 13.1 All claims, disputes, and other matters in question between the parties in this contract, arising out of or related to this contract or any breach or alleged breach of this contract, will be decided by arbitration unless the parties otherwise mutually agree in writing. 13.2 If the parties can agree upon one arbitrator, then there shall be one arbitrator; otherwise, there shall be three, one named in writing by each party of the contract within ten (10) days after notice of arbitration is served by either party upon the other, and a third arbitrator selected by these two arbitrators within ten (10) days thereafter. No one shall serve as an arbitrator who is in any way financially interested in this contract or in the affairs of either party hereto. 13.3 Any arbitration arising out of or relating to this Agreement, the Project, the Work, the Contract Documents, or the breach thereof may include by consolidations, joinder or in any other manner, any other entities or persons whom the Owner or Contractor believe to be substantially involved in common questions of fact, law or responsibility thereunder. Contractor shall use his best efforts to require any subcontractors to submit to said arbitration proceeding and the joinder consolidation hereunder. 13.4 In the event either party hereto wishes to request arbitration of any claim, dispute or other matter in question, he shall first timely file a notice of demand for arbitration in writing with the other party specifically describing the claims, disputes and other matters in question which it is wished to be submitted to arbitration. Thereafter, a period of thirty (30) days shall elapse in order to provide available time to amicably resolve such disputes, and failing such, the dispute then may be submitted to an arbitrator as provided herein. The parties agree to proceed in accordance with the rights and 10 d 40 Ixocedures provided by the Pennsylvania Rules of Civil Procedure, including but not limited to the right iu engage in discovery. 13.5 In any case in which either party elects to submit. a claim, dispute or other matter in question to arbitration, as provided herein, such request or demand for arbitration shall be made no later than six (6) months from the date said claim, dispute or other matter was known or should recently have been known by the party requesting arbitration. Any failure to therefore timely demand arbitration shall constitute a bar to prevent the filing of an untimely claim. This provision shall not however expand or extend any date or limitation on institution of legal equitable proceedings would be barred by the applicable statute of limitations. 13.6 This agreement to arbitrate shall be specifically enforceable under the prevailing arbitration law. Any award rendered by arbitrators shall be final and enforceable by any party to the arbitration, and judgment may be entered upon it in accordance with the applicable law and any court having jurisdiction thereon. ARTICLE 14 NOTICE 14.1 Service of all notice under this Construction Agreement shall be sufficient if given personally, by a nationally recognized delivery service, or mailed to the party involved at his or its respective address hereinafter set forth, or at such address as any party may provide in writing from time to time by certified mail, restricted delivery. To the Contractor: Harry L. Smith & Sons, Inc, 5943 Devonshire Heights Road Harrisburg, PA 17112 To the Owner Robert V. Gothier, Jr. and Bonny L. Gothier 1000 North Front Street, Suite 500 Wormleysburg, PA 17043 (717) 731-0700 14.2 All such notices shall be deemed to have been given on the date delivered in person, or mailed by registered or certified mail, postage prepaid, restricted delivery, and which latter event it is deemed to have been given five (5) business days after deposit of any such mailing. ARTICLE 15 INSURANCE 15.1 Indemnity. Contractor agrees to indemnify and hold Owner harmless from all claims for bodily injury and property damage (other than the work itself and other property insured under paragraph 16.2) that may arise from Contractor's operations under this Agreement, except those claims resulting from the negligent or intentional actions of Owner or any subcontractors or materialmen of . Owner or parties under Owner's direction, responsibility or control. a s 15.2 Contractor's Liability Insurance. Contractor shall purchase and maintain such insurance as will protect it from claims under workmen's compensation acts and other employee benefit acts, from claims for damages because of bodily injury, including death, and from claims for damages to property which may arise out of or result from Contractor's operation under this contract, whether such operations be by it or by any subcontractor or anyone directly or indirectly employed by any of them. This insurance shall be written for not less than One Million Dollars ($1,000,000.00) single limit and shall include contractual liability insurance as applicable to Contractor's obligations under this Agreement. All subcontractors will be required to maintain current certification of insurance on file at the Contractor's office showing in force comprehensive general liability, commercial automobile liability, and workmens' compensation insurance. 15.3 Owner's Liability Insurance. Owner shall be responsible for purchasing and maintaining liability insurance in an amount not less than One Million Dollars single limit and shall list Contractor as an additional insured on the policy. 15.4 Owner's Property Insurance. Owner shall purchase and maintain property insurance upon the entire dwelling home at the site to the actual cash value thereof. This insurance shall insure against the perils of fire, extended coverage, vandalism, and malicious mischief. Contractor shall be a certificate holder of Owner's contract at all relevant times which must contain a provision that same will not be canceled with less than fifteen (15) days' notice to Contractor. Furthermore, in the event of casualty loss at any time when there is any outstanding amounts due Contractor, Owner hereby authorizes Contractor to notify such insurance carrier to hold said sum then claimed due in trust prior to payment to Owner pending written agreement of Owner and Contractor. Owner shall provide a copy of the policy to Contractor prior to commencement of work. Furthermore, by obtaining such insurance, Owner waives any and all rights of subrogation against Contractor, his subcontractors, officers, agents and employees for personal injury and/or for loss or damage to the dwelling home to be constructed during the construction to the extent that any such loss or damage is covered by insurance. Owner covenants to timely notify, in writing, the insurance carrier of,this waiver which shall be binding upon owner's tamer(s). 15.5 By obtaining such insurance herein provided, each party shall waive all rights against each other for damages caused by any peril or loss covered by insurance hereunder and covenants to timely notify in writing the insurance carrier of this waiver which shall be binding upon each party's insurance carriers. ARTICLE 16 CONCEALED OR UNKNOWN CONDITIONS 16.1 The Contract Price is for the materials and labor in construction of the contract work. Owner shall pay for any additional costs involved in providing extra engineering or foundation work which may be required if Contractor encounters abnormal or unusual subterranean conditions during, the course of construction including, but not limited to: (A) Cost of removal of any rock in making excavation for foundation walls, sewage or water lines. 12 s e (B) Additional material necessary for the construction of footers and foundation that may be required in excess of blueprint specifications. (C) The cost of labor and.materials needed to divert or control surface water found during the course of construction. 16.2 Contractor shall, before such conditions are disturbed, notify Owner of (1) subsurface or latent physical conditions at the site differing materially from those indicated in this contract or (2) unknown physical conditions at the site that are of an unusual nature. Owner shall promptly investigate the conditions, and if he finds that such conditions do materially so differ and cause an ncrease in Contractor's costs, or of the time required for performance of any part of the work under this contract, whether or not changed as a result of such conditions, a specific cost adjustment shall be made and the Contract Price and time for performance adjusted by Change Order. ARTICLE 17 NOTIFICATION OF DELAYS AND EXTENSIONS OF TIME If Contractor is delayed at any time in the progress of the construction work by any act, failure or neglect of Owner or by changes ordered in the Project or by labor disputes, fire, unusual delay in transportation, adverse weather conditions not reasonably anticipated, unavoidable casualties, or any causes beyond Contractor's control as provided in Article 19, or a delay authorized by Owner, Contractor shall notify Owner in writing within fifteen (15) days of the occurrence and then the date for substantial, completion shall be extended for the period of such delay. ARTICLE 18 FORCE MAJEURE If either party shall be delayed or hindered in or prevented from the performance of any act required hereunder by reason of war, fire or other casualty, an act of God, strike, lock-out, labor trouble, shortage of materials or equipment or inability to procure same, failure of power, restrictive governmental laws or regulations, riot, insurrection, or other causes beyond the control of the party delayed, then performance of such act shall be excused for the period of such delay. ARTICLE 19 RIGHT OF INGRESS AND REGRESS It is a covenant of the contract that Owner does hereby grant and convey to Contractor and its successors and assigns, full and complete rights of ingress, regress and such occupancy or possession of the premises hereinbefore described as shall reasonably be required by Contractor for the aforesaid construction. Any refusal thereof after written notice from Contractor shall be a default by Owner whereupon the full amount of the Contract Price shall become immediately due and payable. 13 C] ARTICLE 20 DEFAULT 20.1 Default by Owner. If Owner shall default hereunder prior to the beginning of instruction work, Contractor shall retain the-money paid by Owner as liquidated damages, and this contract shall thereupon terminate. If no money has been paid, Owner agrees to pay Contractor the sum of $ as liquidated damages and, upon such payment, neither party shall have any further obligations to the other hereunder. The parties have agreed that, by virtue of the difficulty in determining Contractor's damages, said sum is an agreed amount as liquidated damages and not as a penalty. if, following commencement of any work, Owner fails to make a progress payment to Contractor, or the final payment, as herein provided through no fault of Contractor, or to timely fulfill any other material obligation of Owner, specified in this Agreement, Contractor may, upon fifteen (15) days written notice to Owner, terminate the contract and recover from Owner payment for all work completed and for any proven loss sustained, including reasonable profits all damages permitted by law and reasonable attorneys' fees if Owner does not cure within said period. 20.2 Default by Contractor. If Contractor, without good or legal cause, defaults or neglects to carry out the work in accordance with the Contract Documents or fails to perform any material provision of the contract, Owner may, after twenty (20) days' written notice to Contractor specifying the default, and without prejudice to any other remedy he may have, make good such deficiencies and may deduct the cost thereof from the payment then or thereafter due Contractor or, at his option, may terminate the contract and take possession of the site and of all materials, equipment, tools, and construction equipment and machinery thereon owned by Contractor and may finish the work by whatever reasonable method appropriate, and if the unpaid balance of the Contract Price exceeds the expense of finishing the work, such excess shall be paid to Contractor, but if such expense exceeds such unpaid balance, Contractor shall pay the difference to Owner. If Contractor materially breaches this Agreement, and the breach is uncured after the notice period or Contractor has not diligently proceeded to cure said default prior to Owner being entitled to possession, Owner and Contractor shall promptly meet and agree as to the balance due to Contractor for work and materials properly performed. pursuant to this Agreement for which payment has not previously been made, whereupon said sum shall be placed in escrow pending completion of the dwelling which the same said sum shall be paid with any interest accruing thereon to Contractor absent demonstrable increased costs which Owner incurred to complete the home but only in accord with Contractor's plans and specifications. 20.3 The remedies herein provided shall be in addition to and not in substitution for the rights and remedies which would otherwise be vested in either party, under the terms of this Agreement, or otherwise, all of which rights and remedies are specially reserved by each, and the failure to exercise the remedies herein provided shall not preclude the resort to any appropriate remedy, nor shall the use of the special remedies hereby provided prevent the subsequent or concurrent resort to any other remedy which by law would be vested in each for the recovery of damages, moneys due, or otherwise, in the event of a breach of any of the covenants by Owner. ARTICLE 21 OWNERSHIP OF MATERIALS It is mutually agreed that all materials delivered to and/or used in the construction of the premises shall be regarded as the property of Contractor until paid for by Owner. All materials, after use 14 5 0 ui,:onstruction of the premises, shall be regarded as the property of Contractor until paid for by Owner. No materials shall be removed without consent of the Contractor. ARTICLE 22'. SEPTIC SYSTEM After final approval of the installation of the septic system by the Sewage Enforcement Officer, or other officer charged with this duty, of the municipality in which the system is installed, Contractor shall have no further responsibility for any malfunctions or other problems which may be encountered with respect to the system, whether due to design or any other cause whatsoever, except workmanship for one year. Contractor's responsibility for the system shall be limited to Seven Thousand Five Hundred and 00/100 ($7,500.00) Dollars as set forth in the allowance schedule. ARTICLE 23 REAL ESTATE TAXES All real estate taxes, charges and assessments are the responsibility of Owner. Owner shall indemnify and hold harmless Contractor from any and all claims, demands or liabilities, including attorneys' fees, arising from the imposition of any such real estate taxes and assessments. ARTICLE 24 GENERAL PROVISIONS 24.1 It is further hereby understood that Owner reserve their right and that of their agents, to inspect the said premises at any reasonable time that would not unreasonably interfere with Contractor's work. Contractor shall reasonably cooperate with such inspections. Owner assumes all risk for personal injury by doing so. 24.2 In the event of breach of this Agreement by Contractor, Contractor however shall not, in any event, except as provided herein, be liable for any indirect or consequential damages. costs, or expenses to include loss of use, loss of opportunity, loss of market value, loss of rental value or similar such indirect claims. 24.3 Words of any gender herein shall include any other gender, and the singular shall include the plural and visa versa whenever the same is necessary to produce a fair and meaningful construction. 24.4 This Agreement shall not be altered, amended, changed or modified except in writing by the parties. 24.5 No third party shall have any rights or benefits from this Construction Agreement, other than Owner's secured lender. In the event any provision of this Agreement is found to be illegal and unenforceable shall be severable from the contract and the balance of the contract may be enforced as though such provision were not contained herein. 15 0 8 24.6 This Agreement contains the entire agreement between Contractor and Owner. There are m ether terms, obligations, covenants, representations, statements or conditions, oral or otherwise, of ?uiy kind whatsoever concerning the construction, except as stated in writing in this Agreement. 24.7 This Agreement, the rights and obligations as herein provided, shall be binding upon to he benefit of the parties, their respective successors and permitted assignees. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first tbove written. ATTEST: WITNESS: CONTRACTOR HARRY L. SMITH & SONS, INC. By:?-r ry L. Smith / OWN 38675 16 e e NONWARRANTABLE CONDITIONS The following is a statement of conditions that are not subject to Contractor's Limited Warranty and explains some of the changes and maintenance items that may occur in your new home over the first year or so of occupancy. Your home will require more maintenance and care than most products, since it is made up of many different components, each with its own special characteristics. Also, an owner must understand that, like other products made by humans, a house is not perfect. It will show some minor flaws and unforeseeable defects, and it may require some adjustments and touching up. All residential construction goes through a period of settlement and, as the seasons change, periods of expansion or contraction will occur. As a result, the home will experience minor material changes which are unavoidable and are considered normal. The owner should also be aware that he/she is responsible for proper and timely home maintenance. It is helpful to the owner's maintenance program to keep a color chart of the different materials used on the . construction and a small supply of corresponding colored paint, stain or grout for easy touch-up. Damage caused by owner negligence, improper maintenance or changes, alterations or additions performed by anyone other than the Contractor, his employees, or subcontractors directed by the Contractor is excluded from the Warranty. As described in the Limited Warranty provided to you, which this statement of Nonwarrantable Conditions is made part of, Contractor will correct certain effects that arise during defined time periods afer construction is completed. Other items that are not covered by the Contractor's Warranty may be covered by manufacturers' warranties. There are some conditions, however, that are not covered under the Contractor's Warranty. It is important for you to read these carefully and understand that you have not contracted for the Contractor to correct certain types of problems that may occur in your new house. These guidelines will alert you to certain areas of maintenance that are the responsibility of the new homeowner, and that could lead to problems if they are neglected. The following is a list of an outline of some of the conditions and components that are not warranted by the Contractor. Please be sure you understand this list. Ask the Contractor if you have any questions and feel free to consult your attorney before signing the acknowledgment and the Limited Warranty Agreement. s s Nonwarrantabie Conditions Concrete foundations, walks, drives, and patios can develop hairline cracks less an 1/4" inch in width not affecting the structural integrity of the building. There is no known ethod of eliminating this condition, which is caused by characteristics of expansion and ntraction. It does not affect the strength of the building and is not a condition covered by any irranty. 2. Masonry and mortar can develop hairline cracks due to shrinkage in either the mortar or brick. This is normal and should not be considered a defect. It is not covered by any warranty. 3. Wood will sometimes crack or "spread apart" due to the drying out process. This is most often caused by the heat inside the house or the exposure to the sun on the outside. This is normal and considered a maintenance item to be cared for by the homeowner. 4. Drywall (sheetrock) will sometimes develop nail pops or settlement cracks- This is a normal part of the drying out process and an item that can be easily handled by the homeowner with spackling during normal redecorating. However, if the homeowner wishes, we will send in a repairman. at the end of one year and make necessary repairs. Our repairs will not include repainting. 5. Floor Squeaks: After extensive research and writing on the subject, it has been concluded that much has been tried but little can be done about floor squeaks. Accordingly, floor squeaks are not covered by the builder's warranties. Generally, they will appear and disappear overtime with changes in weather. 6. Floors: Your floors are not warranted for damaged caused by neglect or the incidents of use. Wood, tile and carpet all require maintenance. Floor casters are recommended to prevent scratching or chipping of wood or tile; clean stains from carpets or wood or tile immediately to prevent discoloration. Carpet has a tendency to loosen in damp weather and will stretch tight again in dryer weather. 7. Caulking: Exterior and interior caulking in bathtubs, shower stalls, and ceramic the surfaces will crack or bleed somewhat in the months after installation. This is normal and should not be considered a problem. This is not covered by the warranty and is a minor 2 • s occurrence to be maintained by the homeowner. However, if the homeowner wishes, we will send in a repairman at the end of one year and make necessary repairs. 8. Brick. Discoloration: Most bricks may discolor due to the elements, rain run-off, weathering, or bleaching. Thus, the color of the bricks is not considered a warranty item. 9. Broken Glass: Any broken glass or mirrors which are not noted on the final inspection form will not be covered, excluding cracks or broken glass due to improper installation within the warranty period. 10. Frozen Pipes: The homeowner must take precautions to prevent freezing during severe cold weather, such as removing outside hoses from sillcocks, and turning off the water system if the house is to be left for extended periods during cold weather. Frozen pipes or sillcocks not caused. by defects in material or workmanship will not be considered a warranty item. 11. Stained Wood: All items that are stained will normally have a variation of colors, due to the different texture of the woods. Doors that have panels will sometimes dry out and leave a small crack of bare wood. This is due to weather changes. None of these is a warrantable condition (to the extent within normal tolerances). 12. Paint: Good quality paint has been used internally and extemally.on your home. Nevertheless,. exterior paint can sometimes crack or check. This is not a defect in the paint, but it is most often caused by other sources. You should avoid allowing lawn sprinklers to hit painted areas, washing down painted areas, etc. Inside, do not scrub latex-painted walls, and be aware of the newly painted wall as you are moving furniture. The best paint will be stained or chipped if it is not cared for properly. Any defects in painting not caused by defects in materials or initial application that are not noted at final inspection are nonwarrantable conditions. 13. Cosmetic Items: The upkeep of cosmetic aspects of your home is your responsibility. You have not contracted with the Contractor to cover ordinary wear and tear or other occurrences subsequent to construction that affect the condition of features in your home. Chips, scratches, or mares in tile, woodwork, walls, porcelain, brick, mirrors, plumbing fixtures, marble and Formica tops, lighting fixtures, kitchen and other appliances, doors, paneling, siding, 3 0 a screens, windows, carpet, vinyl floors, cabinets, etc., which are not recognized and noted by you at final inspection are nonwarrantable conditions. 14. Plumbing: Dripping faucets not caused by defects in materials or workmanship, toilet adjustments, and toilet seats are covered by the builder's warranty for a thirty-day period only. After that, they are the owner's responsibility. If the plumbing is "stopped up" during the warranty period and the person servicing the plumbing finds foreign material in the line, the owner will be billed for the call. 15. Alterations to Grading: Your lot has been graded to insure proper drainage away from your home. Should you wish to change the drainage pattern due to landscaping, installation of patio or service walks, or other reasons, be sure a proper drainage slope is retained. We assume No Responsibility for the grading or subsequent flooding or stagnant pool formation if the established pattern is altered. 16. Lawn and Shrubs: We accept No Responsibility for the growth of grass or shrubs. Once we grade and properly seed, and/or sod and fertilize, it is for the homeowner to water and spread ground cover to prevent erosion. We will no.t regrade a yard, nor remove or replace any shrubs or trees, except for those which are noted as diseased at final inspection. 17. Roof Damage: After the initial one year period, the warranty on your roof is for material only and is prorated over the period of the lifetime use of the roof. Warranty claims for any defects in materials will be handled with the manufacturer with our assistance. The Contractor will be responsible for any damages caused by walking on the roof or by installing a TV antenna or other item on a roof. 18. Heating and Air Conditioning: Your heating and air conditioning is covered by a manufacturer's warranty. It is the owner's responsibility to be sure that filters are kept clean and changed as required. Failure to do so may void your warranty. It is also a good policy to have the equipment serviced or checked at least yearly. 19. Humidity System: (to be inserted)` r` s w VWe acknowledge having read, understood and received a copy of the above outline of nonwarrantable items. We understand and agree that these are conditions for which we have not contracted and will not hold the Contractor liable. Owner Robert V. Gothier, Jr. Owner: 5"- 81 Bonn . Gothier 38944. 5 a e LIMITED WARRANTY AGREEMENT This LIMITED WARRANTY AGREEMENT is entered into by HARRY L. SMITH & SONS, INC. (hereinafter, "Contractor") and Robert V. Gothier, Jr. and Bonny L. Gothier (hereinafter, ' collectively "Owner") in conjunction with that certain Construction Agreement between Contractor and Owner dated May 10 , 2002 for the construction of an improved dwelling home located at 99 Manor Drive, Dillsburg, Monaghan Township, York County, Pennsylvania. 1. What is Covered by the Warranty. Contractor warrants that all construction related to the home performed by Contractor and subcontractors retained and selected by Contractor has been performed in substantial conformity with the Plans and Specifications and approved change orders pursuant to the Construction Agreement. Contractor warrants that all materials used in construction are new and free from defect and that construction will be of good and workmanlike quality determined by the standards of construction in the Harrisburg, Pennsylvania area. Contractor warrants that for a period of one (1) year from the date of substantial completion, Contractor will adjust or correct minor defects, omissions, or malfunctions, such as missing equipment or hardware; sticking doors, drawers and windows; dripping faucets; and other minor malfunctions reported by Owner upon inspection of the property. Furthermore, within one (1) year from the date of substantial completion, Contractor will repair or replace, at Contractor's option, any defective materials or work (except work not covered) and any latent defects in material or workmanship by the standards of construction relevant in the Harrisburg, Pennsylvania area. A latent defect is defined as one which was not apparent at the time of initial occupancy. Owner agrees to accept a reasonable match in any repair or replacement in the event the original item is no longer available. 2. What is Not Covered. A. This Limited Warranty does not cover damage resulting from fires, floods, storms, electrical malfunctions not caused by defective materials or workmanship, accidents, acts of God; or damages from alterations, misuse or abuse of the covered items by any person; or damage,resulting from owner's failure to observe any operating instructions furnished by Contractor at the time of installation: failure of Owner to regularly and properly maintain the home and its systems, such as the humidifier system, for example; or damage resulting solely from a malfunction of telephone, gas company, power company, or water company equipment or lines. B. Any items fiimished or installed by Owner, or subcontractors selected or retained by Owner, are not covered by this Limited Warranty. C. To the extent a manufacturer is responsible, this Limited Warranty does not cover any appliance, piece of equipment, or the item, which is a "consumer product" for the purposes of the Magnuson-Moss Warranty Act, 15 U.S.C. Section 2301 et seq., installed or included in Owner's property. The following are examples of such appliances and equipment, though not a,ery home a a includes all of these items and some homes may include appliances or equipment not in this list: refrigerator, range, space heater, washing machine, dishwasher, garbage disposal, ventilating fan, air conditioner, heat pump or furnace. (l) Contractor represents it has made all such excluded warranties available for Owner's inspection and Owner acknowledges that they have received copies of any such warranties. (Owner's Initials) (2) Contractor hereby assigns, to the extent that they are assignable, and conveys to Owner all warranties provided to Contractor on any manufactured items that have been installed or included in the Owner's property. Owner accepts this assignment and acknowledges that, to the extent such warranties are assignable, Contractor's only responsibility relating to such items is to lend assistance to Owner in settling any claim resulting from the installation of these products- (Owner's Initials) (Contractor's Initials) D. The non-warrantable conditions, and any damage resulting therefrom, as set forth on the five (5) page document titled "Non-Warrantable Conditions" executed between the parties contemporaneously herewith are, of course, not covered by this Limited Warranty. E. Any injury to persons or damages to personal or real property, other than the home. in whole or in part, which may be a consequence of or incident to or result from any defects in materials or performance of the work is excluded. 3. Remedies and Limitations. A. Owner understands that the sole and exclusive remedy under this Limited Warranty Agreement is repair and replacement of any portion of the improved dwelling horse so covered by this Limited Warranty by Contractor at no cost to Owner. (Owner's Initials) B. Owner also understands that, with respect to any claim whatsoever asserted by Owner against Contractor, there will be no right to recover or request compensation for, and Contractor shall not be liable for any monetary damages, or incidental, indirect,.consequential damages, or for secondary, or punitive damages, absent fraud or Contractor's gross negligence. Contractor shall not be responsible for any monetary sum for breach of this Warranty, absent Contractor's knowing failure to perform its obligations hereunder after written notice. Any corrective work shall not extend the term of the Warranty for any non-corrected item, but shall extend the Warranty for a period of one (1) year for only the specific item(s) corrected, repaired or replaced. (Owner's Initials) a s C. This Limited Warranty is personal to the original purchaser and does not run with the Dperty or the items contained in the house. The original purchaser may not assign, transfer, or convey s Warranty without the prior written consent of Contractor, which consent shall not be unreasonably thheld. 4. How to Obtain Warranty Service. If a problem develops during the one (1) year warranty period, Owner shall promptly notify the Contractor of the specific problem, in waiting, and what may be necessary to correct or repair it, if known. Contractor, absent unforeseen circumstances, will commence performing its obligation under this Limited Warranty within thirty (30) days of receipt of request, and will diligently pursue these obligations until completion. Owner shall give Contractor full opportunity to, inspect the claimed defect prior to any work commencing. If the problem may appear to require immediate attention, Owner make a report by telephone or facsimile and Contractor shall use his best efforts to address the matter complained of in a prompt fashion. If Owner is unclear whether the problem is or is not warranty work, Owner shall contact the Contractor. . Repair work will be done during Contractor's normal working hours. Owner agrees to provide Contractor or Contractor's representative access to the house, and the presence during the work of a responsible adult with the authority to approve repair and sign a call-back ticket upon completion of the repair. If the problem is covered under a manufacturer's warranty, Owner shall follow the instructions provided with such warranty. In the absence of a written manufacturer's warranty, Contractor should be contacted to obtain information and assistance in filing a claim. 5. Arbitration. Any claim or controversy arising out of this Limited Warranty or breach thereof shall be controlled by the arbitration provisions set forth in the Construction Agreement between Contractor and Owner. THIS LIMITED WARRANTY IS THE ONLY EXPRESS WARRANTY EXTENDED TO OWNER BY CONTRACTOR. ANY ITEM OR CONDITIONS NOT SPECIFICALLY COVERED BY THIS WARRANTY, OR IN THE DOCUMENTS HEREIN REFERRED, ARE EXCLUDED FROM COVERAGE AND ARE THE RESPONSIBILITY OF OWNER. rf IS EXPRESSLY UNDERSTOOD THAT THIS LIMITED WARRANTY IS IN LIEU OF ANY AND ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, WRITTEN OR ORAL, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR HABITABILITY. • s 6. Specific Legal Rights THIS LIMITED WARRANTY GIVES THE OWNER SPECIFIC LEGAL RIGHTS WHICH iHALL NOT LIMIT OTHER NON-WARRANTY RIGHTS WHICH MAY BE AVAILABLE TO )WNER. . We acknowledge having read, understood and received a copy of this Limited Warranty lgreement. FITNESS: CONTRACTOR: HARRY L. SMITH & SONS, INC. By: ,.2?^? H 90y L. Smith, President Dated: 38762 i f ROBERT V. GOTHIER, JR and BONNY L. GOTHIER, Owner V. HARRY L. SMITH & SONS, INC., Contractor s IN THE COURT OF COMMON PLEAS YORK COUNTY, PENNSYLVANIA NO. STIPULATION AGAINST LIENS WHEREAS, ROBERT V. GOTHIER, SR. and BONNY L. GOTHIER, of 99 Manor Drive, Dillsburg, Pennsylvania 17019 (the "Owner") the owner of the hereinafter described tract of land, has executed or is about to execute contemporaneously herewith a contract with HARRY L. SMITH & SONS, INC. of 5943 Devonshire Heights Road, Harrisburg, Pennsylvania 17112 (the "Contractor") for improvements to the premises located at 99 Manor Drive, Dillsburg, Monaghan Township, York County, Pennsylvania, more particularly described on "Exhibit An attached hereto and made a part hereof (the "Premises"). NOW, May _, 2002, before any authority has been given by said owner to the said Contractor to commence work on said Premises or to otherwise construct any improvements thereto, or to purchase materials for the same, or to enter into any contracts with any subcontractors, or materialmen, or to authorize any purchases by or through any subcontractors or materialmen, in consideration of the making of said contract with the owner and the further consideration of one Dollar ($1.00), to contractor paid by said owner, and with the intent of all parties to be legally bound hereby, it is agreed that no lien shall be filed against the building or Premises or any part thereof, by a 5. the Contractor or any subcontractor, or by any of the materialmen or workmen or any other person for any labor, or materials purchased, or extra labor or materials purchased, for the building and improvements to the Premises (including hereafter changes made thereto), the right to file liens being expressly waived. It is the full intent of the Contractor, for itself and for any subcontractors or materialmen claiming for themselves, or-by, through or under the contract or the Contractor, that the right to file a mechanic's lien, under the provisions of law and/or of Acts of Assembly in such cases made and provided, for.work done or materials furnished in and about the building and improvements to the Premises above described is hereby waived. WITNESS our hands and seals the day and year first above written. fitness Witness a 8 Attest: HAnY L . SMITH & SONS, INC- -- By: a Exhibit A J ALL THAT CERTAIN lot or tract of land situate in Monaghan Township, York County, Pennsylvania, being more particularly bounded and described as follows, to wit: BEGINNING at a point on the southern right-of-way line of the Dillsburg Road, also known as Bailey Road, LR 66001, at the line dividing lands now or formerly of Jacob J. Myers, et al. and lands now or formerly of Florence Eckels; thence along said dividing line, South 12 degrees 47 minutes 34 seconds East, a distance of 2,637.48 feet to a point dividing Lot 8 and Lot 5 on the hereinafter mentioned plan of lots; thence, along the line dividing Lot 8 from Lots 5 and 6 on the hereinafter mentioned plan, South 67 degrees 07 minutes 30 seconds West, a distance, of 1,187.44 feet to a point on the line dividing Lots 8 and 6 on the said plan; thence, continuing along the said dividing line, and along a curve to the left having a radius of 275.00 feet, an arc distance of 370.72 feet to a point on said dividing line; thence, continuing. along said dividing line, South 10 degrees 6 minutes 54 seconds East, a distance of 263.36 feet to a point on said dividing line; thence, continuing along said dividing line, South o9 degrees 09 minutes 01 second East, a distance of 436.79 feet to a point on the northern right-of-way line of Cemetery Road; thence, along said northern right-of-way line, North 73 degrees 22 minutes 46 seconds West, a distance of 55.52 feet to a point at the line of lands now or formerly of the Jennie Fishel Estate; thence, continuing along said lands, North 09 degrees 09 minutes O1 second West, a distance of 422.12 feet to a point at the lands now or formerly of Robert J. Dennison; thence, along said lands, North 10 degrees 06 minutes 54 seconds West, a distance of 262.49 feet to a point; thence along the line dividing Lots 8 and 6A on the hereinafter mentioned plan and along a curve to the right having a radius of 325.00 feet an arc distance of 276.27 feet to a point on the line dividing the said lots; thence, along said dividing line and continuing along lands now or formerly of John W. Heller and wife, North 14 degrees 13 minutes 20 seconds West, a distance of 578.70 feet to a point at said lands; thence, continuing along the line of lands now or formerly of Heller, South 59 degrees 31 minutes 02 seconds West, a distance of 82.19 feet; thence, along lands now or late of Dennison, South 74 degrees 16 minutes 25 seconds West, a distance of 79.21 feet to a point on the line of Elliot Road, as shown on the hereinafter mentioned plan of lots but as is unopened as of this date; thence, North 10 degrees 38 minutes 03 seconds East, a distance of 52.44 feet to a point; thence, continuing along the line of the said Elliot Road, and along a curve to the right having a radius of 125.00 feet an arc distance of 1.50 feet to a point at the corner of Lot 1 on the hereinafter mentioned plan; thence, along said Lot 1, North 78 degrees 35 minutes 54 seconds East, a distance of 891.10 feet to a point; thence continuing along said lot, North 13 degrees 06 minutes 43 seconds West, a distance of 568.39 feet to a point; thence, continuing along Lot 1 and Lot 4 of said plan, North 26 degrees 31 minutes 37 seconds East, a distance of 472.46 feet to a point; thence, along Lot 4, North 61 degrees 17 minutes 27 seconds East, a distance of 593.60 feet to a point on the line of lands now or formerly of Bentzel; thence, along the lands now or formerly of Bentzel, South 48 degrees 57 minutes. 10 seconds East, a distance of 60.49 feet to a point; thence, continuing along lands now or formerly of Bentzel, North 45 degrees 02 minutes 50 seconds East, a distance of 658.35 feet to a point; thence; continuing along the lands now or formerly of Bentzel, North 12, degrees 50 minutes 17 seconds West, a distance of 916.36 feet to a point on the southern right-of-way line of the Dillsburg Road; thence, along said right-of-way line, North 79 degrees 12 minutes 26 seconds East, a distance of 36.20 feet to the point or place of BEGINNING. BEING all of Lot 8 as shown on the final plan of the Deerhead Manor Subdivision prepared for the Myers, Lock, Ashway and Titus, as prepared by William E. Secra and Associates and dated August. 15, 1975, and all as recorded in the Recorder of Deeds Office in and for York County, Pennsylvania, in Plan Book Y, Page 414. said lot containing 54.224 acres, as shown on such plan. TOGETHER with and subject to, for all times now. and in the future, the right of ingress, egress and regress over, through and across a certain private road extending over and across lands adjoining the aforementioned lands to the west and running from the public road leading to Mount Pleasant (being known variously as the Mount Pleasant Road, Manor Drive, and Township Route 894), eastwardly over and across property now or late of Danner to the western boundary line of the aforementioned lot, as the same is now located and maintained, and as the same is shown on the aforementioned plan of lots, and as the same is now used by the Grantors herein, Heller, and Dennison, and to the Grantees, their heirs, assigns, and successors, here and forever hereafter. BEING the same premises The Peter M. Portmann Revocable Declaration of Trust, by deed dated May 25, 2001, and recorded June 11, 2001, in the Office of the Recorder of Deeds in and for York County, Pennsylvania, in Record Book 1441, Page 4654, granted and conveyed unto, Robert V. Gothier, Jr. and Bonny L. Gothier. SPECIFICATIONS 0 New Construction - Residential Owner/Mortgagor: Robert V. Gotbier, Jr. and Bonny L Gothier 1772 North Meadow Drive, Mechanicsburg, PA 17055 Address of Property: 99 Portman Drive, Dillsburg,PA 17019 Contractor. Harry L Smith & Sons, Inc. 5943 Devonshire Heights Road Harrisburg, PA 17112 (717) 545-5842 'Me coomictor shall provide all necessary labor and materials and perform all work required to complete the building within the scope of these specifications and in accordance with the plans attached hereto and made a part hereof The contractor and all sub-contractors shall comply with all building and sub-division ordinances and sanitary laws applicable to this work A survey of the building site will be fiunisbed by the owner. The awrer shall also establish the location of the building and the grade level The contractor is responsible for the laying out of the building. The contractor shall furnish insurance as required by law and to comply with the requirements of the mortgagee. EXCAVATION: All top soil from immediate area of the building and approximately 39 around shall be scraped and piled on the lot away from the building site. Excavation for footers shell extend to solid undisturbed earth, at least 6" below beat first level. FOOTERS: Size- 20" x 10" Material: concrete BASEMENT WALLS: S'ne: 10" concrete, 9' High Material: concrete; crawl space 10" C.M.U.; Garages and Porches 8" C.M.U. Steel I-Beam Size: 10" x 26 Lb. Material: steel Column Supports Type: 4" StedFJi.A. WATERPROOFING: Foundation coating sprayed tar Area Welk, Material: none Size: Drain Tile Size: 8" Form-A- Drain exterior lor drainage / 8" Form-A-Drain for radon interior of footer / Radon piped tlhru roof/ Radon fan by Owner Connected to. Sump Pit pumped to Outside House Top of foundation to be determined above or below crown of road w per plans. BASEMENT FLOOR Mix: 3000 lbs. Thickness: 4" Concrete No. Floor Drama:, I Connected To: Some Pit FR-ArvM,'^v CARPENTRY: Sin Seal on Foundation Wall Sill Size: 2 x 6 Material: pressure treat 1st Floor Joists Size: 12" Material: TH 1st Floor Joists over girder or beam (Yes) or secured by ledger method (No) Sub Floor Size: 3/4" Material: Fir T.G. Plywood How laid: nailed and glued Bridging Material: NIA Spacing: N/A Ll z FRAMING CARPENTRY(CONTINUED): Exterior Wall Studding Sire 2 x 6 Material: spruce EXTERIOR WALL PLATES: Size: 2 x 6 Material: spruce EXTERIOR WALL NO. OF PLATES : Bottom: I Top: 2 } EXTERIOR WALL SHEATING: Size: 1/2" Material: Fs Plywood SIDING: Material: Dryvit and L and S Stone INTERIOR WALL: Stud Size: 2x4 Materiah spruce Plates size: 2 x4 Material: No, Plates Bottom: 1 No. Plates Top: 2 k ia. HEADERS, ALL FRAME WALLS - Each header will bear on at least one jack stud per end. Opening up to 3' Header Size: 2 x 8" Material: spruce Opening Yin 6' Header Size: 2 x10" Material: spruce Opening 6'- 12'Header. Size: 2 x10" Material: spruce Opening over 12' Header Sir: 2 x12" Material. spruce BASEMENT STAIRWAY: Sir Horses: pro-manufficNred Yellow pine No. Hotsw: Rise: Tread: Riser Material and Sim: Tread Material and Size: JOISTS (For Load Carrying Floor): Size: 12" Material: T.LL Placed: 16" o.c. Bridging Material: N/A. Spaced: NIA SUB-FLOORING. Size: 3/4" Material: T.G. Fir Plywood How Laid: nailed and glued CEILING JOISTS: Trusses Area 2' o.c. Size:. Stick Built Areas 2 3 8 Material: Spruce Placed: 16" ox. Bridging Material: NIA Spaced: N/A J 3 ROOF RAFTERS: Trusses Area 2' o.c. Size: Stick Built Areas 2 x 8 Material: spruce Spaced: 16" o.c. RIDGE. Size: 2 x 10 at Stick Built Areas Material. spruce If Hip toot, hip rafter Sim- 2'x 10 Material: Spruce ROOF SHEATHING MATERIAL: CDX Fir Plywood . Size:.12" ROOFING: U Underiaw Material:. 1516. felt Shingle Weight: GAF or ELK Architectural Design 30 Year Warranty Shingle Exposure: 5" How Fastened: nailed - CORNICE: Face Board Material: Spruce Size: 2 x 8 SoffitMateial: Aluminum Alcoa Size: As plans. Rakeboard Material: 2 x 8 Size: As plans. WINDOWS: + Type. Lincoln Aluminum clad with Screens, No Grilles. EXTERIOR DOORS MATERIAL: By Plan - Allowance Jamb Size: 6" Hardware Make: By Allowance Schlage - F Series Plymouth Hardware Finish: bright brass Malec Lock: Plymouth No. Hinges per Door. 3 Size Hinges: 3 1/2" Hinge Finish: bilift brass ATTIC VENTH ATION: Ridge Vent MASONRY ABOVE FOUNDATION: Material: Land S Pre-Manufwtured Stone Size: Random - Manufacturer. L and S _ Mortar Mix: Standard Color INTERIOR FLOORING: carpet- hardwood&finishing- vinyl- all ceramic tile in all areas - underiayman and installation - Allowance. INTERIOR CARPENTRY: Interior Door Style: Thickness: 13/8" Flush Hardboard 6'8" Pre-Primed Material: No. Hinges: 3 Make Hardware: Plymouth Schlage F-series Hardware Finish: 605 Jamb Material: Poplar Size: '/." Paint Grade Door Stop Material: poplar Size: 13/8" Baseboard Material. Poplar - Sim: %" x 5'/, " Sanitary Paint Grade Casing: '/. " x 3 '/z " Sanitary-Paint Grade 4 INTERIOR CARPENTRY (CONTINUED): Window Sill Material: Poplar Size: 1 '/, " x 4 5/8" Closet Rods Material: 1 3/8" round white painted steel rods Closet Shelves Material: Birch plywood Size: %" Plumbing Access Panels Material: N/A Door Bumpers. Ives - Solid Wall mount Interior WallSurfaceType: Drywall Thickness: %," Interior Decorations Wails: Painted Trim: Painted - Spray one coat, Brush one coat Doors. Painted - Spray one coat Walls: Painted -Spray 2coats KITCHEN EQUIPMENT: By Allowance $50,000.00 PLUMBING: Water Supply Pipes Size: 3/4" main line & 1/L" supply to baths: Type L Material: copper Drainage Pipes Size: comply with code requirement Material. p.v.c. Water Supply.. Public or Private: private: Existing Well Sewer Private: New Septic System - Permits By Owner If Private, Size of Septic Tank: By Design No. Feet drain field. Drain connected to: HEAT: Heat system shall be designed to bat all of the living area to a minimum temperature of 75 ^F when exterior temperature Is 0 °F. Type: Size Duct of Pipe: dud Material Duct or Pipe: Fuel: Gas Size Fuel Storage: N/A Register or Radiator Type, register Does Hat Plant Furnish Domestic Hot Water. no ELECTRIC: Entrance Cable Size: 320 AND SERVICE Material: Fuse or Breaker Box Make: breaker No. Circuits: She Wire to Normal Circuits: by code Size Wire to Range and Oven: by code No. Convenience Locations: 350 locations Qa $25.00 No. Fixture Hangings. 105 No. G.F.I. Locations: 7 Inspections No. Overhead Fixtures: light factures allowance No. Outside Lights and Locations: light fixtures allowance Will Ali Outlets be Grounded: yes Will telephone wiring be concealed: yes s r 11 INSULATION: Exterior Wall, Type: R-19 Interior Walt, Type: R-11 Ceiling: R-38 Blown where applicable Type: fiberglass 5 • DRYWALL-NEW AND EXISTING WORK. By Allowance $24,900.00 GUTTER AND DOWNSPOUTS: Size Gutter. 5" Material: Aluminum Size Drop: 3" Material: Aluminum ChimueyFlashingMaterial: Aluminum EXTERIOR GRADING: Slope from House: By Elevation on Plans. No Fill or Topsoil Hauling on or off lot included in Contract. WALKS AND DRIVES: SidewalkL Stamp concrete from New House Front Porch to Existing Sidewalk New Front Porch Material: Stamp concrete Existing Front Porch will not be changed. Garage Floor Material: concrete 3500lbs. Thickness: 4" List any special work or material not covered above: All Permits by Owner. Excavation Allowance ............... ............................................................... ._ $ 7,500.00 Footer Forms will be 8" Form-A Drain-Interior for Radon, Exterior for Drainage. Roofing will be GAF or ELK 30 Year Architeciutal NOT Metal -Do not remove existing House Roof. Lincoln Window Allowance ......... ......................................................... $45,020.00 Two (2) Skylites: 21 '/2 "x 46 7/8", Non vent Velux. Exterior Doors and Locks Allowance .............................................................. $ 4,600.00 Total Porch and Deck Allowance -E-PAY Flooring''/." x 6' boards on Deck including Framing Allowance, ......................................................................... $ 10,270.00 Deck Material above Foyer on Balcony to be Rubber under Floating Trex. Metal Pipe Red 38" High at Deck and Balcony, no rails Powder Coated. _ 19 pair PVC Shutters on Existing House as Plms. . Butt Glazed Suspended Connector 3" Aluminum Frame: One section 13 L.F., One section 11 L.F. Allowance ............................................................ $ 4,650.00 Exterior Stone Work Allowance - Stone will be L and S Syntheti ; Stone, Style bike Barn, Color more Brown and Earth Stone. Includes inside Fireplace Facing ................. $ 39,596.00 Dryvit Allowance - Including Material, Labor, accessories, and caulking ....................... $ 76,162.00 Stamp Concrete Front Porch-New House Stamp Concrete Walt 1iomNewHouse From Porch to Existing Sidewalk. New Metal Biko Door -62" wide, 88" Long. Septic Sand Mound $7,500.00 by Contractor, Design and Permit By Owner. No Landscaping. No Seeding. Find Existing Well. No Well or Pump work included in Contract, No Driveway Cost in Contract: Contractor NOT responsible for repairs or resmfecing existing driveway. _ TN FRT1R Stair Foyer: Poplar Skirts Handrail Birch #6010 Poplar Risers Newell Post #4011 Maple Treads Prime Balusters 45015 11-lateriel Cost Allowance ................................................................... $ 12,384.00 All other Stars including New Stairs in Existing House will be Yellow Pico Stairs, Birch Rails with Handrails #6010 and Newel Post #4011 and Primed Balusters #5015. Horse Head at Staircase by Owner. Muni ,. t t I Kitchen Cabinets and Appliances Allowance - Includes Cabinets in New House and Existing House; and All Tops, All Build=, Vanities and Vanity tops, Hood Vents, refinishing in Existing Kitchen, and all appliances, ducts, and vents. .................... S50,000.00 ett Sauna Purchased by Owner, Installed by Contractor. 1 No Stairs in Garage from Floor to Attic. + . Change Master Bedroom Ceiling as per Changes on Print Attached. ?., t No Framing in Great Room for Entertainment Area Master Bath Shower will be hike Alternate - No Door. . Allowance for Pre-Fabricated Wood Burning Fireplace Unit in Master Bedroom Majestic Model # SHR42 with Two (2) 6" Legs, One (1) 8" Header, and One (1) 20" Deep x 66" Long Hearth .............::............................... S 2,100.00 36" Masonry Fire Box in Great Room Synthetic Stone Face for Great Room Fireplace by L and S Stone. All hocrior Doors will be 13/8" Flush Solid Hardboard Pre-Pruned Painted. Door to Master Bedroom- Solid Hardboard Pte-Primed, 3'0" Pocket Door. _ 12' Folding Glass Wall consisting of Four (4) 3'0" Full view doors with wood stiles hinged together and sliding on an overhead track, All Exterior Doors by Allowance including Hardware ............. ......... .............. ...._. $ 4,600.00 Overhead Doors and Openers by Central State Distributors .................................... $ 3,050.00 Plumbing Allowance - wldch includes Wall Supply Pipes to be Type "L" Copp, " " r S % Copper Main Line and Branch to Baths Y2 Copper P.V.C. Drain fines to meet codes, Two (2) Bradford White 50 Gallou seWatet•Heatcm ......... S 15,090.00 Plumbing Fixtures Allowance - Includes Tub/Shower, Faucets, Drains, Toilets and 756-1/-/,(.`_ - - - Seats, Tub and Shower Doors, Sinks and Faucets, Whirlpools and Faucets : .. _:., with Trim Kits and includes all plumbing fixtures ........................................ S 6,900.00 Heating Allowance - Includes / 1" Floor System One Trine gas-Bred furnace, model TUC120, with an output capacity of 120,000 BTU's per hour to be installed in the basement. One Tram condensing unit, model TTB060, with a cooling capacity of 60,000 BTU's per hour and a cooling coil, model TXA060 to be installed in the plenum of your furnace. Two Honeywell thermostats, model T-8400 will be installed to give you - ' finger -tip control of the system. One Trion media air filter and sleeve will be installed in the return plenum of your fitrnace. One April Air humidifier, model 760 will be installed. ' Included is all necessary EWC zoning equipment to zone the glassed -' - - porch separate from the first floor. 2id Floor System :. One Trane gas-fired furnace, model TUC060, with an output capacity of 60,000 BTU's per hour to be installed in loll. One Trane condensing unit, model TTB036, with a cooling capacity of 36,000 BTU's per hour, and a cooling coil, model TXC042 to be installed in the plenum of your furnace. One Honeywell thermostat, model T-8400 will be installed to give you finger-tip control of the system. One Trion media air filter and sleeve will be installed in the return plenum of your fintnace. It would be advisable for you to have all the exposed duct work In -- your loft wrapped with 6" insulation. This area may be within several degrees of the outside temperature, which eaa cause moisture to form on the ducts. As a result, this moisture then may run out or - run off the exposed ducts. We cannot assume any responsibility for any problems caused by this moisture ............................................. $ 23,846.00 `. _ Gas Propane Tank Allowance ..... ........................................................... S 2,000.00 Electric -320 Amp Service, 350 Locations at $25.00 Each, 105 Fixture Hangings, 7 G.F.Ls, Inspections. Light Fixtures Allowance - which includes Fixtures, Recessed Lighting, Fans, Chimes, -:° Exterior Lights, Fan/Light Combos, and Bulbs ....................................... $ 10,000.00 r # 7 Total Painting Allowance for New and Existing House - includes wall paper stripping, Woodwork paint stripping, and exterior painting ..... ............................... $ 32,004.04) ,. PTMRTnR TRTivf --noftlGrT1 Casing:'/," x 3 '/." Sanitary casing paint grade. Base: ''/," x 5 %n" Sanitary Base paint grade. Closet Allowance ......................................................................... S 3,500.0o Curved Maple Bench in Great Room Allowance ..................................... S 1,500.00 Window Seat in Bedroom #A203 Allowance ........................................ S 650.00 Bath Accessories Allowance -Mirrors ......................................................... $ 1,500.00 Floor Covering Allowance - Including All Ceramic Tile in all areas, Carpet, Vinyl, Hardwood & Finishing, Marble, Underlayment and Installation and Sanding , of Existing floors ......................................................................... $ 40,000.00 Security - Sound - Specialty Wiring Allowance .............................................. S 5,000.00 Interior Door Locks - Plymouth Schlage, F-Series, #605 Finish. House Cleaning before Moving Allowancece .................................................... S 2,000.00 r Labor and Material for Renovatons of Items Listed Below are: Cut Out Brick on Existing House to Connector to New House. New Office Wall and #122 Double Door installed. Two (2) Doors Library to be removed and walled in. Remove existing stairs, install new stairs - rails (in Stair Allowance). Try to use existing Stair Rail parts. New Stairs in Existing House may not be in Compliance with New Building Codes. . Remove - wall - door Living Room to Hall, install Two (2) 4" Permacast Columns. Three (3) window seats in Library (Delete). Remove Gas stove and restore firebox and mantle. Not responsible for Relining or Rebuilding New Chimney. You may have to Reline inside of Chimney to make it safe. Cut opening in masonry wall Rear Exercise Room up to 4' Wide if Possible. Build 2vd floor subfloor to receive New Stairs. These items listed have an Allowance of ........................................... $45,000.00 Refinish Bath and Mud Room Floors are part of Flooring Allowance. New Ceramic Floor in Kitchen are part of Flooring Allowance. All Flooring and Finishing are part of Flooring Allowance. New Kitchen Cabinets and Counter Tops are part of Kitchen Cabinets and Appliances Allowance. Book Shelves in Library are part of Kitchen Cabinets and Appliances Allowance. Refinish and Paint Existing Cabinets also New Hardware are part of Kitchen Cabinets and Appliances Allowance. All New Wallpaper will be by Owner. To Remove Door Hardware and Replace 1' and a floor door locks with New Modem door locks. Will require additional Labor Cost to Furnish, Install, Repair and Patch Existing holes in Doors and Trim Work. Remove all existing wallpaper and refinish wall on 1' and a floors to accept new painting (in Painting Allowance). Strip and refinish existing trim and windows (in Painting Allowance). This Contract does not include installing Drywall or coating over any Existing walls and Ceilings. If Well is in location ofNew Building - No New Well in Contract. PP&L Main Power Lines from Street to House may iur+o to be relocated to build New House. Contractor will coordinate work, but Costs will be by Owner. Existing Windows (It may be Cost Effective to Replace Windows rather than repair and repaint existing windows. All Utility Expenses will be paid in their entirety by Owner. ALLOWANCES: i L7 Throughout these specifications, the owner will be confronted by the occasional utilization of allowances. Allowances are utilized where practical, to allow the owner as much latitude as possible to design and brush their home to suit their individual tastes. The dollar figure represents an approximated price for which the contractor believes quality items may be purchased and installed, including sales tax It is understood that the owner alone is responsible for staying within his allocation for each item and that if he exceeds the allowance, the additional cost will be paid to the contractor at the construction payment scheduled immediately following completion of the mentioned work OWNER POSSESSION AND SETTLEMENT: It shall be understood that before the owner takes possession of the house, all outstanding invoices, change orders and extra's shall be paid in fill and settlement made with Contractor. Contractor reserves right to substitute material as to like quality. Owner Co or EXHIBIT "B" HARRY L. SMITH & SONS, INC., Claimant V. ROBERT V. GOTHIER, JR., and BONNY L. GOTHIER, Respondents BEFORE ARBITRATORS: Charles E. Friedman, Esquire John R. Zonarich, Esquire Richard L. Placey, Esquire ARBITRATORS' AWARD THIS 31" day of January, 2006, the arbitrators award to Harry L. Smith & Sons, Inc., Claimant, and against Respondents, Robert V. Gothier, Jr. and Bonny L. Gothier, the sum of One Hundred Twenty-Eight Three Seventeen ($128,317.00) Dollars, with interest payable on the award at the rate of I% per month commencing February 15, 2006. No award is made to either party for attorneys' fees or costs. Charles E. Fr Adman, Esquire CERTIFICATE OF SERVICE I hereby certify that I have caused a copy of the foregoing document filed in the above-captioned matter to be served upon Defendant/Petitioner's counsel, by first-class U.S. Mail, addressed as follows: Stephen C. Nudel, Es 219 P W?Street Ha scfi burn. PA 1710 L /aq Da Roger R. Lagu Jr., Esquire Supreme Court I. . No. 75900 RE Lt,i,,E0 C7-?(cA OFFICE OF PROTI.,1.:, ]ARY 2006 APR 21 PM 2- 31 HARRY L. SMITH & SONS, INC. : IN THE COURT OF COMMON PLEAS Plaintiff L3A P i i, r ° "ji-: bk(JPHINCOUNTY PENNA' , PENNSYLVANIA VS. ROBERT V. GOTHIER, JR., and BONNY L. GOTHIER, Defendants NO. 1230 CV 2006 MP CIVIL ACTION - LAW MEMORANDUM OPINION Presently before this Court is Plaintiff Harry L. Smith & Sons, Inc.'s (hereinafter plaintiff) Petition to Confirm Arbitration Award and Enter Judgment. Procedurally, plaintiff filed a petition to confirm arbitration award and enter judgment on March 21, 2006. Defendant Robert V. Gothier, Jr. and Bonny L. Gothier (hereinafter defendants) filed an answer and response to plaintiffs petition on April 6, 2006. The facts reveal that on May 30, 2002, plaintiff agreed, for payment of $1,025,000.00, to build a new home for defendants and to remodel another residence. After a dispute arose, -plaintiff demanded binding arbitration, pursuant to Article 13 of the Construction Agreement. Plaintiff informs that a hearing was held on December 6 and 7, 2005 before a panel of arbitrators in Harrisburg. On January 31, 2006, the panel ruled in favor of plaintiff and awarded the sum of $128,317.00, plus one (1) percent interest commencing on February 15, 2006. Pursuant to Article 13 § 13.6,1 plaintiff notes that the award is final, enforceable by either party, and that judgment maybe entered by any court having jurisdiction. Plaintiff seeks to have the award ' Article 13 § 13.6 provides: "This agreement to arbitrate shall be specifically enforceable under the prevailing arbitration law. Any award rendered by arbitrators shall be final and enforceable by any party to the arbitration, and judgment may be entered upon it in accordance with the applicable law and any court having jurisdiction thereon." reduced to judgment. Referencing 41 Pa.C.S.A.§ 7342(b),2 plaintiff asks this Court to enter judgment, since the arbitration hearing was conducted in Dauphin County and since more than thirty (30) days have elapsed since the award was entered. Defendants ask this Court to deny plaintiff's petition to confirm the arbitration award because plaintiffs first application concerning the arbitration was made with the Court of Common Pleas of Cumberland County, wherein the Honorable George E. Hoffer ordered arbitration. Defendants conclude, then, that venue is proper only in Cumberland County, pursuant to 42 Pa.C.S.A. § 7319(3).3 In addition, defendants inform that a motion to modify or vacate the arbitration award has been filed in Cumberland County. As such, defendants reason that the Court may not confirm the award while the motion is pending. 42 Pa.C.S.A. § 7313 a In sum, defendants conclude that venue is improper in Dauphin County because this Court lacks jurisdiction to entertain plaintiff's petition; and the petition is not ripe until the motion to vacate the award is decided by the Court of Common Pleas in Cumberland County. This Court references 42 Pa.C.S.A. § 7319 for guidance in determining whether we, in fact, may properly entertain plaintiffs petition to confirm the arbitration award: '42 Pa.C.S.A. § 7342(b) provides: "Confirmation and judgment. On application of a party made more than 30 days after an award is made by an arbitrator under section 7341 (relating to common law arbitration) the court shall enter an order confirming the award and shall enter a judgment or decree in conformity with the order. Section 7302(dx2) (relating to special application) shall not be applicable to proceedings under this subchapter." s 42 Pa.C.S.A. § 7319 provides: "Venue of court proceedings. Except as otherwise prescribed by general rules: (1) An initial application to a court under this subchapter shall be made to the court of the county in which the agreement prescribes that the arbitration hearing shall be held or, if the hearing has been held, in the county in which the hearing was held. (2) If an application to a court cannot be made under paragraph (1) the application shall be made to the court in the county where the adverse party resides or has a place of business or, if he has no residence or place of business in this Commonwealth, to the court of any county. (3) All subsequent applications to a court shall be made to the court hearing the initial application unless that court otherwise directs." 42 Pa.C.S.A. § 7313 provides: "On application of a party, the court shall confirm an award, unless within the time limits imposed by this subchapter, grounds are urged for vacating or modifying or correcting the award, in which Venue of court proceedings. Except as otherwise prescribed by general rules: (1) An initial application to a court under this subchapter shall be made to the court of the county in which the agreement prescribes that the arbitration hearing shall be held or, if the hearing has been held, in the county in which the hearing was held. (2) If an application to a court cannot be made under paragraph (1) the application shall be made to the court in the county where the adverse party resides or has a place of business or, if he has no residence or place of business in this Commonwealth, to the court of any county. (3) All subsequent applications to a court shall be made to the court hearing the initial application unless that court otherwise directs. Subsection (1) of 42 Pa.C.S.A. § 7319 mandates that initial applications to the court shall be made in the county prescribed by the agreement. However if the hearing previously was held, subsection (1) provides that applications to the Court shall be made in the county wherein the hearing occurred. A review of Article 13 of the Construction Agreement fails to prescribe the county wherein arbitration of a claim or dispute must occur. However, defendants inform that plaintiff filed an initial application with the Cumberland County Court of Common Pleas to compel arbitration, which was ruled upon by the Honorable George E. Hoffer. Although plaintiff suggests that venue is proper in Dauphin County, pursuant to 42 Pa.C.S.A. § 7319(1), because the arbitration hearing was conducted in Harrisburg, Dauphin County, defendants also inform that they previously filed a motion to modify or vacate the arbitration award with the Cumberland County Court. Premised on these facts, this Court is unable to determine under 42 Pa.C.S.A. § 7319(1) whether we may properly entertain plaintiffs petition to confirm the arbitration award. Accordingly, we look to subsection (2) of the statute. 42 Pa.C.S.A. § 7319(2) dictates that, if a determination of venue can not be made under the terms of subsection (1), an application shall be made in the county where the adverse party resides or has a place of business. Article 14 of the Construction Agreement specifies that case the court shall proceed as provided in section 7314 (relating to vacating award by court) or section 7315 service of notice on defendants shall be made at 1000 North Front Street, Suite 500, Wormleysburg, Cumberland County, PA. Premised on subsection (2), we hold that venue is proper in Cumberland County. With respect to plaintiffs petition to confirm arbitration award, however, we look to subsection (3). 42 Pa.C.S.A. § 7319(3) provides that all subsequent applications to a court shall be made to the court hearing the initial application. This Court restates that, pursuant to defendants' answer and response to plaintiffs petition, plaintiff filed a motion to compel arbitration with the Cumberland County Court. In addition, defendants' Motion to Modify or Vacate the Arbitration Award is pending in Cumberland County. Premised on these facts and the mandate of 42 Pa.C.S.A. § 7319, this Court rules that plaintiff should have filed the Petition to Confirm Arbitration Award and Enter Judgment with Cumberland County and that the petition is not properly before this Court. Accordingly, we enter the following: (relating to modification or correction of award by court)." 4 ??i;L1VED OFFICE OF PRi)7LIC, J,0T;,RY 2006 APR 21 PM 2, 31 HARRY L. SMITH & SONS, INC., ?I TE COURT OF COMMON PLEAS Plaintiff D?1i}r PENN A PHIN COUNTY, PENNSYLVANIA Vs. : NO. 1230 CV 2006 MP ROBERT V. GOTHIER, JR., and BONNY L. GOTHIER, Defendants CIVIL ACTION -LAW ORDER AND NOW, this jj?!day of April, 2006, upon consideration of Plaintiff Harry L. Smith & Sons, Inc.'s Petition to Confirm Arbitration Award and Enter Judgment; Defendants Robert V. Gothier, Jr. and Bonny L. Gothier's Answer and Response to Plaintiff's Petition to Confirm Arbitration Award, and upon consideration of the applicable statutory law, IT IS HEREBY ORDERED that plaintiffs petition is DENIED. The Prothonotary of Dauphin County IS HEREBY ORDERED to transfer this matter to the Cumberland County Court of Common Pleas. BY THE COURT: ++% ha- Y ^Ai e; , `dt4f 33iF .eve nGJ is a dui:? ? r??ot ? A Che , Judge Proi?ata,y Distribution on the following page: Roger R. Laguna, Esquire 1119 North Front Street Harrisburg, PA 17102 Stephen C. Nudel, Esquire 219 Pine Street Harrisburg, PA 17101 Deb Freeman, Esquire Deputy Court Administrator Prothonotary of Dauphin County Judge Cherry 3?aa o? HARRY L. SMITH & SONS, INC., Plaintiff IN THE COURT OF COMMON PLEAS DAUPHIN COUNTY, PENNSYLVANIA VS. ROBERT V. GOTHIER, JR., and BONNY L. GOTHEIR, Defendants NO. 1230 CV 2006 MP CIVIL ACTION - LAW RULE TO SHOW CAUSE ?Y -0 - rn : =C, y c 9 a N N -o N W J AND NOW, this _UAL day of March, 2006, upon consideration of Petitioner/Plaintiff Harry L. Smith & Sons, Inc.'s Petition to Confirm Arbitration Award and Enter Judgment, a rule is issued upon Respondents/Defendants Robert V. Gothier, Jr., and Bonny L. Gothier to show cause, if any there be, why petitioner/plaintiff s Petition to Confirm Arbitration Award and Enter Judgment should not be granted. Rule returnable within _ days of receipt of this Order. Distribution: Roger R. Laguna, Esquire 1119 North Front Street Harrisburg, PA 17102 Stephen C. Nudel, Esquire 219 Pine Street Harrisburg, PA 17101 BY THE COURT: ?-o N ?rnC ?i Q tT1 John herry ge 10 U Deb Freeman, Esquire, Deputy Court Administrator Judge Cherry IMAGED HARRY L. SMITH & SONS, INC Plaintiff, V. ROBERT V. GOTHIER, JR. and BONNY L. GOTHIER, Defendants IN THE COURT OF COMMON PLEAS DAUPHIN COUNTY, PENNSYLVANIA NO. 1230 CV 2006 MP ANSWER AND RESPONSE TO PLAINTIFF'S PETITION TO:.. ?z CONFIRM ARBITRATION AWARD cn .c- Pursuant to this Court's March 22, 2006, Rule to Show Cause, Defendants, Robert V. Gothier, Jr. and Bonny L. Gothier, by and through their counsel, Law Offices of Stephen C. Nudel, PC, file this Answer and Response to Plaintiff's Petition to Confirm Arbitration Award, and respectfully submit that the Plaintiff's Petition should be denied because: A. Plaintiff's first application concerning the subject arbitration was made to the Court of Common Pleas of Cumberland County and it was the Honorable George E. Hoffer who entered an Order compelling arbitration. Thus, under 42 Pa.C.S. §7319(3), venue is only proper in Cumberland County. B. Defendants have filed with the Cumberland County Court of Common Pleas, a Motion to Modify or Vacate the Arbitration Award. Pursuant to 42 Pa.C.S. §7313, no confirmation of the award is permitted while the Motion is pending. This Court lacks jurisdiction to entertain the Petition, and the Petition is not proper or ripe until the Motion to Vacate or Modify is decided. Consequently, this Court should deny the Petition because of improper venue and lack of jurisdiction, and because the Petition is not proper or ripe at this time. Answers to Specific Paragraphs of Petition 1. Admitted. 2. Admitted. 3. Admitted that the parties signed the contract dated May 30, 2002, but denied insofar as the contract is a written document that speaks for itself and any characterization thereof is denied. 4. Admitted in Part and Denied. It is admitted that Plaintiff made initial application for Arbitration to the Court of Common Pleas of Cumberland County. No application prior to the subject Petition was made to this Court and the Cumberland County Court of Common Pleas has not directed that applications, such as the Petition, be made to this Court. It is denied that the claim arose out of a failure to pay. The claim arose when Plaintiff failed to perform under the terms of the Agreement. The remaining averments of this paragraph are denied. r ? 5. Admitted that a panel of arbitrators was selected. The remaining averments are denied. 6. Admitted in Part and Denied in Part. It is admitted that a hearing was held on the dates indicated. It is denied that the Defendants were permitted to present their entire position to the panel. It is further stated that the Dauphin County venue for the arbitration was chosen for the convenience of the arbitrators and the parties. 7. Admitted that Exhibit B to the Petition contains the Award, but as a written document it speaks for itself and any characterizations thereof are denied. 8. This is a legal conclusion to which no response is required under the Rules of Civil Procedure. If a response is required, it is Denied. 9. No response required. If a response is required, the Arbitration Award may not now be reduced to Judgment pursuant to 42 Pa.C.S. §7313, as a Petition to Vacate the Arbitration Award has been filed. Further, the proper venue for this Petition, when it becomes ripe, is Cumberland County. 10. The averment is a conclusion of law to which no response is required. If a response is required, it is Denied. As a Petition to Vacate has been properly filed, Y Judgment may not be entered until the Petition to Vacate is heard. 42 Pa.C.S. §7313. 11. The averment is a conclusion of law to which no response is required. If a response is required, it is Denied. Dauphin County is not the proper Venue under 42 Pa.C.S. §7319(3), and no court yet has jurisdiction over the Petition because a Motion to Vacate or Modify has been filed. See 42 Pa.C.S. §7313. WHEREFORE, Defendants respectfully request that Plaintiff's Petition to Confirm Arbitration Award be denied. DEFENDANTS' RESPONSE 12. Paragraphs 1 through 11 set forth above are incorporated herein as if set forth at length. 13. On December 17, 2003, Plaintiff filed a Petition to Compel Arbitration in the Court of Common Pleas of Cumberland County. 14. On December 19, 2003, the Honorable George E. Hoffer, President Judge of the Court of Common Pleas of Cumberland County issued a Rule to Show Cause. 15. On January 20, 2004, the Plaintiff filed a Motion to Make the Rule Absolute, 16. On January 26, 2004, the Honorable Judge Hoffer issued an Order directing the Defendants to Arbitrate. 17. The Parties proceeded to Arbitration, with hearings held before a panel of arbitrators on December 6 and December 7, 2005. 18. The Arbitration Panel issued a decision on January 31, 2006. 19. On March 2, 2006, Defendant filed a Petition to Vacate the Arbitration Award. A true and correct copy of the Defendants' Petition to Vacate is attached hereto as Exhibit "A" 20. Pursuant to the Uniform Arbitration Act, on application of a party, the court shall confirm an arbitration award, unless within the time limits imposed by the Act, a Petition to Vacate and/or Modify the award is filed. If such a Petition is filed, the Court shall proceed with hearing the Petition. 21. The Defendants have filed a Petition to Vacate within the time set forth by the Uniform Arbitration Act. Plaintiff's Petition to Confirm should therefore be denied. This Court lacks jurisdiction to decide the Petition and the Petition is not proper nor ripe until the Motion to Modify or Vacate is decided. 22. Given that the initial application concerning arbitration was made by Plaintiff to the Cumberland County Court of Common Pleas, venue is not proper in this Court. WHEREFORE, Defendants request that Plaintiff's Petition to confirm the Arbitration Award be Denied. Respectfully Submitted, STIEPHEN C. NUDEL, PC Date: Y I? ! y S e C. Nudel, Esquire Pa. ID No. 41703 Andrew T. Kravitz, Esquire Pa. ID No. 80142 219 Pine Street Harrisburg, PA 17101 Attorney's for Defendants EXHIBIT "A" ? y HARRY L. SMITH & SONS, INC. IN THE COURT OF COMMON PL-EAS ,l Petitioner, CUMBERLAND COUNTY, PENNSYLVANIA.-, V. NO. 03-6494 - ROBERT V. GOTHIER, JR. and r BONNY L. GOTHIER, _ Respondents PETITION TO VACATE AND/OR MODIFY AN ARBITRATION AWARD AND NOW comes Respondents, Robert V. Gothier, Jr. and Bonny L. Gothier, by their counsel, Law Offices Stephen C. Nudel, PC, and files this Petition to Vacate and/or Modify an Arbitration Award and avers as follows: 1. Respondents are Robert V. Gothier, Jr. and Bonny L. Gothier, adult individuals, with an address of 99 Manor Drive, Dillsburg, Pennsylvania 17019. 2. Petitioner is Harry S. Smith & Sons, Inc., a Pennsylvania Corporation, with an address of 5943 Devonshire Heights Road, Harrisburg, Dauphin County, Pennsylvania 17112. 3. On or about May 30, 2002, Petitioner and Respondents entered into a Construction Agreement ("Contract") under the terms of which Petitioner agreed to renovate an existing home and attach the same to a new home to be built by Petitioner ("Improvements"). 4. Under the terms of the Contract Petitioner agreed to complete the Improvements for $1,020,000.00 ("Contract Price"). Any change orders would be added to this amount. 5. After Petitioner began the construction of the Improvements, Respondents became concerned with Petitioner's management of the construction and ability to complete the Improvements. 6. Respondents discovered that Petitioner had failed to pay subcontractors pursuant to the terms of the Agreement. 7. Respondents further discovered that, as a result of the failure to pay subcontractors, suppliers and subcontractors were refusing to complete or begin work on the Improvements. 8. Respondents determined, after discussions with Petitioner, that Petitioner would not be able to complete the Improvements pursuant to the terms of the Contract. 9. On May 9, 2003, by letter from counsel for Respondents, Petitioner was put on notice of default for failing to pay subcontractors when due, specifically the HVAC, drywall and masonry contractors. Petitioner was given twenty days to cure the default and proceed diligently on the project. 10. Pursuant to the terms of the Contract, if Petitioner breached the terms of the Contract, and the breach remained uncured after the notice period, Petitioner and Respondents were to meet and agree as to the balance due to Contractor for work and materials properly performed. (Article 20, Paragraph 20.2). 11. On or about July 3, 2003, Respondents met with Petitioner at Respondent's office to discuss the project and the default. 12. At the conclusion of the July 3, 2003, meeting Respondents and Petitioner agreed that Petitioner was in default, that Petitioner would be unable to finish the project in a 2 reasonable time, and, pursuant to the Contract terms, agreed that Respondents owed no money to Petitioner and that Petitioners owed nothing to Respondents. 13. Counsel for Respondents sent a letter to Petitioner dated July 3, 2003, formally terminating the Contract. 14. At the time the Contract was terminated for cause, Respondents had paid Petitioner $548,655.00 of the original Contract Price and $43,188.67 for change orders. 15. Pursuant to the terms of the Contract, upon termination of the Contract by Respondents for Petitioner's default, Respondents were permitted to take possession of the construction site and finish the uncompleted work. (Contract, Article 20, Paragraph 20.2). 16. After the July 3, 2003, meeting, Respondents, relying upon the agreement reached with the Petitioner at the meeting held on July 3, 2003, took possession of the construction site and completed the Improvements. 17. Respondents, without the assistance of a general contractor, took possession of the job site and proceeded to engage contractors and obtain supplies and goods to complete the Improvements. 18. On September 19, 2003, despite the agreement of July 3, 2003, Petitioner sent a letter to Respondents claiming $169,814.11 in indebtedness at the time of termination and $6,175.12 for loss of equipment, tools and scaffolding, and demanded that the matter proceed to arbitration. 3 19. The September 19, 2003, correspondence did not allege a breach by Respondents and did not provide any notice to cure as Petitioner was required to provide if a breach was alleged. (Article 20, Paragraph 20.1 of Contract). 20. Despite Petitioner's claim, Respondents proceeded to diligently finish the Improvements. 21. Respondents were issued an Occupancy Permit on November 6, 2003. 22. On December 17, 2003, Petitioner filed a Motion to Compel Arbitration in the above captioned matter. The parties had agreed to arbitrate after the work was completed, notwithstanding the agreement 23. On January 26, 2004, the Honorable George Hoffer issued an Order directing Respondents to Arbitrate pursuant to the terms of the Contract. 24. The parties established a three person arbitration panel, with each party choosing an arbitrator, and the two chosen arbitrators selecting a neutral arbitrator. 25. On or about December 24, 2004, Petitioner submitted Petitioner's Statement of Claim to the Arbitrators and to Respondents. A true and correct copy of the Petitioner's Statement of Claim is attached hereto as Exhibit "A". 26. Petitioner, despite the July 3, 2003, meeting, and Petitioner's admission that Petitioner had not paid subcontractors and was unable to complete the Improvements pursuant to the terms of the Contract, alleged in the Statement 4 of Claim that Petitioner "had satisfied all conditions precedent and had otherwise performed all obligations" the Petitioner had under the Contract. 27. Petitioner, despite the July 3, 2003, meeting between Petitioner and Respondent Robert V. Gothier, Jr., and the agreement reached at the same, alleged in the Statement of Claim that Petitioner was owed balances from draw requests that were billed by Petitioner to Respondents. (Petitioner's Statement of Claim paragraph 6). 28. Petitioner's Claim was entirely based on the draw requests and amounts billed by Petitioner to Respondents. 29. Petitioner's Claim does not allege any other basis for Petitioner's Claim other than the draw requests. 30. Petitioner's Claim does not allege a breach by the Respondents under Article 20, Paragraph 20.1 of the Contract. 31. On or about January 24, 2005, Respondents filed Respondent's Answer to Statement of Claim and Counter Claim ("Answer and Claim"). A true and correct copy of Respondent's Answer and Claim is attached hereto as Exhibit "B" 32. Respondents averred in their Answer and Claim that, prior to the termination of the Contract, Petitioner defaulted under the terms of the Contract by failing to pay Subcontractors, by submitting fraudulent draw requests, and by failing to complete the construction of the Improvements in a timely manner. 5 33. Respondents averred in their Answer and Claim that as a result of Petitioner's default, subcontractors of the Petitioner were refusing to perform work for Petitioner. 34. Respondents averred in their Answer and Claim that Respondents had been advised by Petitioner's masonry contractor that Petitioner encouraged the masonry contractor to overbill the Respondents to recover amounts owed by the Petitioner. 35. Respondents' Answer and Claim, filed in response to Petitioner's Claim, sought compensation for the time expended by Respondents in finishing the Improvements and the costs for labor and materials to complete the Improvements. 36. Respondents, through its responses and averments as set forth in Respondents' Answer and Claim, asked the Arbitrators to find that Petitioner breached the Contract. 37. Respondents further asked the Arbitrators to determine what amounts were owed to the parties under the terms of the Contract. Respondents averred that Petitioner owed Respondents for amount paid over and above the Contract Price to complete the house. 38. A hearing was held before the Arbitrators on December 6 and December 7, 2005. 39. At the hearings, Respondents sought to present testimony regarding Petitioner's failure to pay subcontractors and their refusal to complete work. 40. At the hearings, despite Respondent's Answer and Claim and fully setting forth its position as to Petitioner's default 6 for failure to pay subcontractors, the Arbitrators refused to hear testimony regarding Petitioner's failure to pay subcontractors. 41. The Arbitrators refused to allow Respondents to question the Petitioner's President, Harry S. Smith, as to Mr. Smith's failure to pay subcontractors and Mr. Smith's admission to the Respondents that he had failed to pay subcontractors. 42. The Arbitrators refused to allow Respondents to question the Petitioner's employees as to Petitioner's failure to pay subcontractors. 43. Respondents also sought to present evidence as to Petitioner's fraud regarding the submission of draw requests. 44. Respondents alleged in their Answer and Claim that Petitioner had submitted and received payments for draws for work not performed and for subcontractors and suppliers not paid. 45. The Arbitrators refused to allow Respondents to present evidence of Petitioner's fraudulent draw requests. 46. Respondents also sought to solicit testimony from the Petitioner regarding the meeting of July 3, 2003, at which meeting Petitioner agreed that no money was due. 47. The Arbitrators limited the Respondents ability to question the Petitioner regarding the July 3, 2003, meeting, the agreement reached and Petitioner's admission that no money was due. 7 48. In contrast, the Arbitrators allowed Petitioner to change its legal and factual theory as originally set forth in the Petitioner's Claim. 49. Petitioner's allegations as presented in Petitioner's Claim are based on the draw schedule as set forth in the Contract. 50. Petitioner's claim as presented to the Arbitrators was based on equity arguments, with no reference to the Petitioner's Claim, the Contract, the July 3, 2003, meeting, or the draw schedule. 51. Petitioner's Claim as presented to the Arbitrators is summarized in Petitioner's Exhibit C-1, which was submitted to the Arbitrators by Petitioner. 52. The change in Petitioner's legal and factual theory is obvious when the Petitioner's Exhibit C-1 is compared to the Petitioner's Claim. 53. A review of Petitioner's Claim shows that the Petitioner's Claim was based on the Contract and the draw schedule, while the Petitioner's claim as presented to the Arbitrators was based on equitable arguments. 54. Despite Petitioner's last minute change in Petitioner's legal and factual theories, the Arbitrators accepted Petitioner's Exhibit C-1 and allowed Petitioner to present evidence in support of Petitioner's new theories of law and fact. 55. On January 31, 2006, the Arbitrators issued a decision, awarding $128,317.00 to the Petitioner. 8 WHEREFORE, Respondents respectfully request that this Court find that the Arbitrators handling of the proceedings were so flawed and manifestly unjust as to cause an unjust, inequitable and/or unconscionable award and further requests that the Arbitration award be vacated. IRREGULARITIES ON THE PART OF THE ARBITRATORS CAUSED AN UNJUST, INEQUITABLE, AND UNCONSCIONABLE AWARD Arbitrators Refusal To Receive Evidence Of Breach 56. Paragraphs 1 through 55 are incorporated herein as if set forth at length 57. Pursuant to the Ruling of the Arbitrators, this matter was arbitrated under Common Law Arbitration. 58. Under Common Law Arbitration, the award of an arbitrator may be vacated when it is clearly shown that an irregularity associated with the arbitration process resulted in an unjust, inequitable, or unconscionable award. 59. Participants in arbitration are entitled to a full hearing with the opportunity to be heard and present evidence. 60. An irregularity occurred in this matter when the Arbitrators failed to allow Respondents to present evidence and testimony as to a material issue. 61. The Arbitrators would not allow Respondents to present testimony regarding Petitioner's breach for failure to pay subcontractors and for submitting fraudulent draw requests. 62. Petitioner's breach of the Contract was a material issue and evidence of the Petitioner's failure to pay 9 subcontractors and submitting fraudulent draw requests was evidence that addressed this material issue. 63. The Arbitrators refusal to receive evidence offered by Respondents as to Petitioner's breach of the Contract was clearly error. 64. The Arbitrators refusal to receive Respondents' evidence of Petitioner's breach of the Contract has lead to an unjust and inequitable result. WHEREFORE, Respondents respectfully requests that this Court find that the Arbitrators failure to receive Respondents' evidence of Petitioner's breach has caused an unjust and inequitable result, and respectfully requests that the Arbitrators award be vacated. Arbitrators Acceptance of New Theories of Law and Fact 65. Paragraph 1 through 64 as set forth above are incorporated herein as if set forth at length. 66. As indicated above, Petitioner, in Petitioner's Claim, set forth a claim against Respondents based upon draw requests billed to Respondents that remain unpaid. (Petitioner's Claim paragraph 6). 67. The Arbitrators permitted Petitioner to completely change Petitioner's legal and factual theories of its Claim. 68. Prior to the hearing before the Arbitrators, Petitioner did not seek leave to amend Petitioner's Claim. 10 Y 69. In support of Petitioner's new legal and factual theories of its Claim Petitioner submitted Petitioner's Exhibit C-1 at the hearing. 70. The Petitioner's submission of Exhibit C-1 evidences Petitioner's change in that Exhibit C-1 sets forth a claim based on amounts actually paid with no reference to the Contract Price, the draw schedule set forth in the Contract, or draw requests. 71. The Arbitrators' acceptance of Exhibit C-1 and the Arbitrators' award clearly show that the Arbitrators permitted the Petitioner's to change the legal and factual theories of Petitioner's Claim, to the detriment of the Respondents. 72. Respondents were clearly prejudiced in their ability to formulate their defense to Petitioner's claim as a result of Petitioner's last minute change in legal and factual theories of Petitioner's Claim, and the Arbitrators acceptance of the new legal and factual theories. WHEREFORE, Respondents respectfully request that this Court find that the Arbitrators acceptance of Petitioner's new legal and factual theories in support of Petitioner's Claim was improper and that said acceptance caused an unjust and inequitable result, and respectfully requests that the Arbitrators award be vacated. Arbitrators Addressed Issues Not Before the Arbitrators 73. Paragraphs 1 through 72 as set forth above are incorporated herein as if set forth at length. 11 74. Under the terms of the Contract, damages as a result of breach were to be determined differently depending on the breaching party. 75. Under the terms of the Contract, if Petitioner was of the position that Respondents as owners breached after the start of work, Petitioner was required to provided Respondents with fifteen days notice with a right to cure any alleged default or breach. Petitioner could not recover anything from the Respondents without providing the fifteen days notice with a right to cure. (Article 20, Paragraph 20.1). 76. Nowhere in the record does the Petitioner allege that Respondents breached the Contract. 77. Nowhere in the record does Petitioner establish that Petitioner provided Respondents notice of a breach or the required notice to cure. 78. It is clear from a review of Petitioner's Claim and Respondents' Answer and Claim that the only issues properly before the Arbitrators included (i) Petitioners breach of Contract and (ii) an amount due to either party under the terms of the Contract. 79. However, it is clear from the Arbitrators award that the Arbitrators did in fact consider issues not set forth in the Petitioners' Claim or the Respondents' Answer and Claim. It is clear that the Arbitrators considered the issue of Respondents breach of Contract, even though this issue was not before the Arbitrators. 12 80. It is clear from the Arbitrators award that the Arbitrators found that the Respondents breached the Contract. 81. Under the terms of the Contract, if Petitioner breached and failed to cure after notice, Respondents could terminate the Contract, finish the work, and if the unpaid balance of the Contract Price exceeds the expense of finishing the work, such excess shall be paid to Contractor. If the expense of finishing the work exceeds the unpaid balance, Contractor shall pay the balance to the owner. 82. Therefore, under the terms of the Contract, Petitioner would and could be entitled to payment upon the completion of the Improvements if it was found that the amount expended by Respondents to complete the Improvements was less than the unpaid balance of the Contract Price at the time the Contract was terminated. 83. As a result of the absence of any alleges of a breach by Respondents in Petitioner's Claim, it is clear that Petitioner's claim is asking the Arbitrators to determine any amounts owed under Article 20, Paragraph 20.2 of the Contract. 84. A review of the record shows that both parties agreed that the Contract Price was $1,020,000.00 (less change orders). 85. A review of the record further shows that both parties agreed that Respondents paid Petitioner $548,655.00 (less change orders). 86. As a result of the undisputed record, the unpaid balance of the Contract Price is $471,345.00. 13 87. Pursuant to Petitioner's Exhibit C-1, Petitioner agreed that Respondents paid $399,289.98.00 in costs and expenses within Contractor's plans and specifications to complete the home. 88. Pursuant to the terms of the Contract and the issues properly before the Arbitrators, namely Petitioner's breach of the Contract and the amount owed after the completion of the Improvements, the most the Arbitrators could have awarded considering the issues properly before them was $72,055.02, the difference between the unpaid balance of the Contract and the amount Petitioner alleges Respondents paid to complete the Improvements. 89. As the Arbitrators awarded the Petitioner $128,317.00, it is clear that the Arbitrators determined the Award upon a finding that Respondents breached the Contract, even though the issue of Respondents breach was not properly before the Arbitrators or alleged by the Petitioner in Petitioner's Claim. 90. It is clear that the Arbitrators went beyond the issues before the Arbitrators. WHEREFORE, Respondents respectfully request that this Court find that the Arbitrators' determination of an award upon a finding of a breach of the Contract by Respondents was improper and that said consideration caused an unjust and inequitable result, and respectfully requests that the Arbitrators award be vacated. Arbitrators Failure to Address July 3, 2003, Agreement 14 91. Paragraphs 1 through 90 as set forth above are incorporated herein as if set forth at length. 92. As indicated above, on July 3, 2003, pursuant to the requirements of the Contract, Respondents and Petitioner met, after Petitioner had failed to cure Petitioner's default under the Contract. 93. The unequivocal record and testimony of record established that the parties attended the July 3, 2003, meeting. 94. As indicated above, at the July 3, 2003, meeting, Petitioners agreed that Respondents did not owe the Petitioners anything under the terms of the contract. 95. As indicated above, Respondents, relying on Petitioners agreement that Respondents did not owe Petitioner anything under the Contract, completed the Improvements at their own cost and expense. 96. At no time during the conduct of the hearing before the Arbitrators did Petitioner deny the agreement. Instead, Petitioner alleged that the same was not binding because it was not in writing. 97. Arbitrators failed to address the July 3, 2003, agreement under the terms of which Petitioner agreed that Respondents did not owe the Petitioner anything under the Contract. 98. Arbitrators' failure to consider the July 3, 2003, agreement is evidenced by the Arbitrators award in favor of Petitioner. 15 WHEREFORE, Respondents respectfully request that this Court find that the Arbitrators failure to consider the July 3, 2003, agreement between the parties was improper and that said failure caused an unjust and inequitable result, and respectfully requests that the Arbitrators award be vacated. Date: -?+O(C' Respectfully submitted, i LAJ -9FTICES4, ST-"HEN C. NUDEL, PC Akdrew T. Kravitz, Esquire Attorney ID #80142 Stephen C. Nudel, Esquire Attorney ID #41703 219 Pine Street Harrisburg, PA 17101 (717) 236-5000 Attorneys for Respondents 16 EXHIBIT "A" Y HARRY L. SMITH & SONS, INC. : BEFORE A PANEL OF ARBITRATORS Claimant V. ROBERT V. GOTHIER, JR., and BONNY L. GOTHIER, Respondents CLAIMATNT'S STATEMENT OF CLAIM AND NOW comes Claimant above-named, by and through its attorneys, John G. Milakovic, Esquire, Elizabeth S. Beckley, Esquire, and Beckley & Madden, of counsel, and serves this Statement of Claim, averring as follows: 1. Claimant is Harry L. Smith & Sons, Inc. ("Smith"), a corporation organized and existing under the laws of the Commonwealth of Pennsylvania, with offices located at 5943 Devonshire Heights Road, Harrisburg, Pennsylvania. 2. Respondents are Robert V. Gothier, Jr., and Bonny L. Gothier (hereinafter referred to collectively as "Gothier"), adult individuals who are husband and wife and who at all tunes material hereto resided at 99 Manor Drive, Dillsburg, Pennsylvania. 3. On or about May 30, 2002, Smith and Gothier agreed, in writing, that Smith would construct a new residence and perform remodeling on the old residence, for the sum of $1,025,000.00 (although said sum was subject to change at the owner's discretion because, inter alia, included in it were numerous allowances which could be exceeded at the owner's discretion and for which the owner would be liable). A true and correct copy of the aforesaid contract is hereto attached marked as Exhibit "A." 4. Additionally, at numerous times throughout the project, Smith had additional work performed at Gothier's direction, as a result of which Smith prepared ten (10) separate work orders for presentation to Gothier. The aforesaid work orders, which reflect the fair and reasonable value of the additional work (and which would result in a revised contract sum of $1,074,633.04), and which occasioned a reasonable increase in the contract time of at least 100 days, are hereto attached marked collectively as Exhibit "B" and incorporated herein. 5. Until the point at which Gothier unilaterally terminated the contract and prevented Smith from further performance, which date was on or about July 3, 2003, Smith had satisfied all conditions precedent and had otherwise performed all obligations on its part to be performed. 6. Attached hereto as Exhibit "C" and incorporated herein is a true and accurate account summary of the scheduled draw amounts, the amounts and dates of all payments and credits as against those scheduled amounts, and the balances remaining as to each such draw amount. As of the date of the Gothier's wrongful termination of Smith, Smith had billed for Draws 1 through 9 (with the exception of Draw 7) and for substantial completion of the existing house, leaving a contract balance due and owing of $163,795.00, which sum is approximate and is subject to further verification by Claimant. 7. Attached hereto as Exhibit "D" and incorporated herein is a true and accurate account summary of the amount of each work order; the amounts and dates of all payments and credits as against those work orders, and the balance remaining of $3,710.93 (relating to Work Orders 9 and 10). 8. Accordingly, the approximate total principal amount due and owing, as of the date Gothier terminated Smith, was $167,495.93, which amount is subject to further verification by Claimant. 9. Despite numerous demands, Gothier has failed and refused to remit this amount. 2 r 10. Additionally, Gothier has refused to allow Smith to return to the site, subsequent to Smith's termination, to observe the state of the site and to preserve evidence as to the state in which Smith left the site by way of photographs or otherwise, and/or to retrieve Smith's equipment and materials which, upon information and belief, Gothier has taken. A listing of the materials and equipment which Smith has been prevented from retrieving, along with the true and reasonable value of same (i.e., $6,175.12), is hereto attached marked as Exhibit "E." WHEREFORE, Smith respectfully requests that the panel enter an award in Smith's favor and against Gothier, in the principal amount of $173,671.05, plus such prejudgment interest, costs, and attorneys' fees as may be awardable, under the terms of the parties' contract, or otherwise, according to law Dated: -/Z;' c,j Respectfully submitted, Of Counsel Beckley & Madden 212 North Third Street O6- G. Milakovic P.O. Box 11998 Harrisburg, PA 17108 (717) 233-7691 Eli- abeEh S. Beckley Attorneys for Claimant 3 ?-?BIT ?` ??- t • CONSTRUCTION AGREEMENT THIS CONSTRUCTION AGREEMENT (hereinafter, "Agreement") is made this 3 e day of May, 2002, by and between HARRY L. SMITH & SONS, INC. (hereinafter referred to as "Contractor"), and Robert V. Gothier, Jr. and Bonny L. Gothier (hereinafter collectively referred to as "Owner"). WHEREAS, Owner wishes to erect at 99 Manor Drive, Dillsburg, PA 17109, Monaghan Township, York County, an improved single family dwelling home, and has caused Crabtree Rohrbaugh & Associates, Architects, to prepare drawings and specifications of the Project 1614: Gothier Residence Plan, dated last revised , (hereinafter, the "Plans and Specifications"); and WHEREAS, Contractor has signified his willingness to erect Project 1614: Gothier Residence Plan in accordance with the drawings and specifications attached to this contract and signed by the contractor, owner, and architect, and in accordance with the conditions and for the consideration set forth below. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties, intending to be legally bound hereto, agree to the following terms and conditions. ARTICLE 1 THE CONTRACT WORK 1.1 Contractor agrees to build for Owner an improved dwelling home, described as Project 1614: Gothier Residence, according to the Contract Documents herein defined and provide certain limited renovations to an existing home as hereinafter provided. Said improved dwelling home is to be built on Owner's land situate at 99 Manor Drive, Dillsburg, York County, Pennsylvania. Contractor shall perform his responsibilities in accord with the Contract Documents, which shall include this Construction Agreement, the Plans and Specifications, the Cost Breakdown, and any and all other Addenda issued prior to and all Modifications/Change Orders after execution of this Construction Agreement, which documents form the Contract Documents and are all fully part of this Construction Agreement as if attached to this Construction Agreement or repeated herein. In case of conflict or ambiguity, the Specifications shall control the Plans and Specifications, and the provisions of this Construction Agreement shall control all other contract documents. 1.2 Unless otherwise provided herein or by Addenda, Contractor shall furnish all materials as specified herein, perform all the labor, pay for all subcontractors, supply all necessary tools, equipment and transportation, and provide all necessary supervision and any other responsibilities which may be necessary for the construction and in accord with the Construction Documents herein defined. It is specifically understood that Contractor shall not be liable or otherwise responsible for inaccuracies, errors or omissions with regard to any and all information contained in the Contract Documents supplied by Owner, Owner's architect, engineer or any other agent for Owner. Likewise, if applicable, Contractor shall not be responsible for any work performed by subcontractors retained directly by Owner. Owner understands and acknowledges that this custom home has never been built before and, therefore, Contractor has the right to make minor modifications or adjustments during the construction process, which may result in slight variations of dimensions, and which may become necessary to comply with the general intent of the Contract Documents, without written Change Order, provided such does not change the Contract sum or the time of performance, and Owner agrees to hold Contractor harmless for any such change, modification or adjustment. Contractor reserves the right to substitute the material of like t • quality. It is understood that before Owner takes possession of the new house to be constructed, all outstanding invoices, change orders and extras relating thereto shall be paid in full and settlement made with Contractor. For purposes of clarification and identification, Contractor will additionally be making certain limited renovations to an existing house, the "Existing House", the cost of which is included as an allowance in Paragraph 3.3(cc) and said allowances included in the Contract Price. Owner shall likewise not take possession of the Existing House until all outstanding invoices and change orders and extras related thereto shall be paid full and settlement made with Contractor with regard to the Existing House. ARTICLE 2 CONTRACT PRICE 2.1 The agreed basic construction sum, as may be subject to additions and/or deductions by changes, additions, alterations and allowances, as also described hereinafter, payable to Contractor by Owner, in strict accord with the following paragraph, is the sum of One Million Twenty-five Thousand and 00/100 ($1,025,000.00) Dollars (hereinafter, the "Contract Price"). 2.2 A. Owner agrees to make progress payments to Contractor on account -of the Contract Price based upon written applications for progress payments, also known as "draws", submitted to Owner by Contractor at the following times as determined by Contractor: 7% $ 71,750.00 of the Contract Price for Excavation - Footers - Foundation Walls 7% $ 71,750.00 of the Contract Price for one-half of Framing; 10% $102,500.00 of the Contract Price for one-half of Framing, Windows-Installed; 7% $ 71,750.00 of the Contract Price for Roof Shingled, Exterior Doors excluding. Overhead Doors; 10% $102,500.00 of the Contract Price for Rough-ins of Electrical, Plumbing and Heating/Air Conditioning; 10% $102,500.00 of the Contract Price for Insulation and Drywall; 15% $153,750.00 of the Contract Price for Stone and Dryvit; 10% $87,500.00 of the Contract Price for Kitchen Tops, Vanity Tops, Appliances: 13% $133,250.00 of the Contract Price:for Interior Trim; 80/0 $ 82,000.00 of the Contract Price for Painting - Flooring - Lighting Installed; 3% $ 30,750.00 of the Contract Price upon substantial completion. B. $15,000.00 payable upon substantial completion of Contractor's responsibility with regard to the Existing House. 2.3 It is understood that Owner is obtaining a construction loan from in the sum of Before any draws are paid, the application for progress payment and corresponding work required therefore is to be approved by the appropriate representatives of said Institution and of Owner. If Owner's lender mandates a different draw schedule other than above provided, such may be accepted by Contractor, but only if Contractor is provided same on or prior to the execution of this Agreement and does, in writing, approve same, which approval shall not be unreasonably withheld or delayed. Owner specifically authorizes said lender, by execution of this Agreement, to make progress payments directly to Contractor. 2.4 The progress payments shall be due and payable ten (10) days from the date of mailing/issuance by Contractor of an invoice for a progress payment. Payments not paid within said period, absent bona fide dispute, shall bear interest from the date said sum is due at the rate of one percent (1%) per month. Furthermore, if the invoice for any progress payment remains unpaid within ten (10) days following further written notice of non-payment, Contractor may declare Owner in default and suspend any further work until a payment is made and appropriate security and guaranty are given to insure against any future further default. Furthermore, in the event either party is required to institute suit, in addition to any amounts owing to each other, or other relief granted in law or equity. as permitted by law, the prevailing party shall receive, and the non-prevailing party shall be required to pay the prevailing party's reasonable attorneys' fees. 2.5 Final payment, consisting of the unpaid balance of the Contract Price as adjusted by any modifications or Change Orders, shall be due and payable upon substantial completion. At such time the home is substantially completed, and the balance of the Contract Price is due and owing, Contractor shall notify the appropriate municipal authority and obtain an Occupancy Permit, whereupon the parties shall meet at the dwelling within five (5) days of receipt of the Occupancy Permit, inspect the dwelling home, and develop a written list of items, if any, that remain to be completed. With regard to such list of items, a certain amount shall be withheld, not to exceed one hundred and ten percent (110%) of the estimated cost of completion of such items listed. However, if the item(s) to be completed is an item of work which is an allowance item, as hereinafter described, the amount to be withheld shall be one hundred percent (100%) of the estimated cost of completion. Said list maybe supplemented by Owner within one (1) month following actual physical occupancy of the dwelling home although, upon completion of the original punch list developed prior to occupancy, Owner shall be obligated to pay Contractor the full amount withheld without set-off or deduction for any additional punch list items, if any, that may have been added in the one-month period or for any other reason or cause whatsoever. It is agreed that the punch list, as may be supplemented during the one-month period of occupancy, shall be, to the best of the parties' ability, a definitive list and, after this list is satisfactorily completed by Contractor, no further punch list or items of correction, unless a written agreement is specifically entered into, shall be the obligation or responsibility of Contractor. Immediately following receipt of the Occupancy Permit and agreement to the punch list, Owner shall immediately authorize and effectuate payment to Contractor of the final progress payment, less any amount withheld as agreed pending completion of the punch list. whereupon Owner shall then be entitled possession of the dwelling home. It is understood and agreed that Owner accepts the home and its condition except for any items noted on the punch list unless any such conditions are hidden or are not readily observable. Occupancy of the dwelling home by Owner prior to payment of the balance of the Contract Price, as amended, shall cause said sum, regardless of the s e stage of completion or substantial completion, to be immediately due and.payable,.and Contractor shall have the right to suspend further work, if he so chooses, subject however to the provisions of Article 6 hereof. 2.6 Making the final payment shall furthermore constitute a release and waiver of all claims known or which should reasonably have been known by Owner at such time, except faulty or defective work appearing within one (1) year after substantial completion, or by reason of any implied warranty as arising by operation of law, but as herein limited. ARTICLE 3 ALLOWANCE ITEMS 3.1 Certain allowances are contained in the Construction price and are used to permit Owner as much latitude as possible to design, equip and furnish the home in a manner suitable to his tastes and desires. The allowance figure represents a price which Contractor believes quality items may be purchased and installed, and including sales tax, and such allowance amounts as designated and as based on the Plans and Specifications, are included in the Construction price. Thus, the Owner is responsible for staying within his allowance for each item but, if the allowance is exceeded, the Owner will pay the additional cost directly to the subcontractor/supplier whenever possible. If this is not possible to directly pay the subcontractor or supplier, and the cost exceeds the allowance. Owner.shall promptly notify Contractor, who may then bill Owner the overage cost plus twenty (20%) percent to cover any overhead and administration, which must be paid to Contractor prior to installation. Owner shall pay the allowance overage and the service fee, as above stated, within ten (10) days of invoicing from Contractor, which must be received prior to ordering, if applicable, or Contractor's installation of any allowance items for such item/category, or may be contained in full in the next regularly scheduled progress payment, at Contractor's option. In the event that allowance for one item identified is not fully utilized, that amount may be credited to another allowance item hereinbefore identified. Furthermore, in the event the total amount of the allowances identified are not utilized, such shall result in a credit to Owner in the total construction price. 3.2 In the course of Owner's selection and purchasing of fixtures, accessories and items of allowance, as identified, the respective suppliers and materialmen will send to Contractor the various invoices for purchase of such fixtures, accessories and items to be charged to Contractor's account. To the best of Contractor's ability, it will promptly transmit to Owner copies of such invoices and if no response is received within seven (7) days of mailing, the Contractor shall assume such invoices to be correct. In the event such are not correct, or items are subsequently deleted, it shall be Owner's obligation to so timely notify Contractor. In addition, it shall be the Owner's obligation to so timely notify the respective suppliers and materalmen to make the appropriate adjustment to the Contractor's account for all such items subsequently deleted. Furthermore, if any items of allowance are billed to Contractor from the suppliers and materialmen following final payment on the home, and the total allowances have been previously exceeded, Owner shall remit to the Contractor payment for said additional allowance cost(s) within ten (10) days of billing by Contractor. All such payments for sum(s) in excess of the stated allowance shall be due and owing without setoff or regard to final payment or any outstanding punch list items that remain to be completed by Contractor. a 0 33 The Contract Price does include, therefore, the following allowances which, unless otherwise indicated, include installation and sales tax, as follows: (a) $ 7.500.00 - excavation, backfill, trenching and grading;* (b) $ 4.600.00 - exterior doors and hardware; (c) $ 2.100.00 - fireplace - pre-fab wood burning Master Bedroom (d) $ 6,900.00 - plumbing fixtures - whirlpool tub; (e) - electrical wiring; (f) $10,000.00 decorative electrical fixtures; (g) $50,000:00 - cabinetry, vanities, countertops, other built-ins; (h) In Kit Allowan ce - appliances; W $45.020.00 - windows - Lincoln; 0) $ 3,050.00 - overhead doors and openers; (k) $23.846.00 --heating and air conditioning for new home (Existing House heating and air conditioning to be paid by Owner and such is not in the Contract Price/Existing House allowance); (1) $ 2.000.00 - underground propane gas tank; (m) $32,000.00 - painting (new and Existing House total cost)**; (n) $ 1.500.00 - curved maple bench in great room; (o) $ 650.00 - window seat in bedroom #A203; (p) $40.000.00 - flooring and underlayment; (q) $ 1,500.00 - mirrors; bath accessories; shower doors; (r) $ •3.500,00 closet rods and shelves; (s) By Owner - driveway; (t) By Owner - raking and seeding; (u) By Owner -landscaping; (v) $ 7,500.00 - septic system; (w) By Owner - well and pump; (x) N/A - central vac; (y) $ 5,000.00 - security system - sound - specialty wiring;. (Z) - structured wiring; (aa) - other; all interior stand and rails; (bb) $ 2,000.00 - other; housecleaning before moving; and (cc) $15.000.00 - other; Existing House renovations as per Plans and Specifications, which shall include P.V.C. Shutters to replace existing shutters on Existing House by Contractor. New Aluminum soffits and fascia installed on Existing House included in Contract. Install in Existing Kitchen 12" x 12" Vinyl Stick Down Tile provided by Owner, installed by Contractor. It is specifically noted that these allowances, and several additional allowances, are set forth in the Specifications. All such allowances set forth in the Specifications not contained herein, however, shall be controlled by this Article 3 of the Construction Agreement. Throughout the development of the specifications and construction of the home, Owner will be confronted by the utilization of allowances. Contractor has utilized allowances, where practical, to allow Owner as much latitude as possible to design and construct their home to suit the Owner's individual tastes and requirements. The dollar figure allocated for each particular item or segment of work t • 3.3 The Contract Price does include, therefore, the following allowances which, unless otherwise indicated, include installation and sales tax, as follows: (a) $ 7,500.00 - excavation, backfill, trenching and grading;' (b) $ 4,600.00 - exterior doors and hardware; (c) $ 2,100.00 - fireplace - pre-fab wood burning Master Bedroom (d) $ 6.900.00 - plumbing fixtures - whirlpool tub; (e) - electrical wiring; (f) $10.000.00 -decorative electrical fixtures; (g) $50,000.00 - cabinetry, vanities, countertops, other built-ins; (h) In Kit Allowance - appliances; (i) $45.020.00 - windows - Lincoln; G) $ 3.050.00 overhead doors and openers; (k) $23.846.00 --heating and air conditioning for new home (Existing House heating and air conditioning to be paid by Owner and such is not in the Contract Price/Existing House allowance); (1) $.2.000.00 - underground propane gas tank; (m) $32,000.00 - painting (new and Existing House total cost)"; (n) $ 1,500.00 - curved maple bench in great room; (o) $ 650.00 - window seat in bedroom #A203; (p) $40.000.00 - flooring and underlayment; (q) $ 1.500..00 - mirrors; bath accessories; shower doors; (r) $ '1500.00 closet rods and shelves; (s) By Owner - driveway; (t) By Owner - raking and seeding; (u) By Owner - landscaping; (v) $ 7.500.00 - septic system; (w) By Owner well and pump; (x) N/A central vac; (Y) $ 5.000.00 security system - sound - specialty wiring; (z) structured wiring; (aa) other; all interior stand and rails; (bb) $ 2,000.00 other; housecleaning before moving; and (cc) S15,000.00 other; Existing House renovations as per Plans and Specifications, which shall include P.V.C. Shutters to replace existing shutters on Existing House by Contractor. New A luminum soffits and fascia installed on Existing House included. in Contract. Install in Existing Kitchen 12" x 12" Vinyl Stick Down Tile provided by Owner, installed by Contractor. It is specifically noted that these allowances, and several additional allowances, are set forth in the Specifications. All such allowances set forth in the, Specifications not contained herein, however, shall be controlled by this Article 3 of the Construction Agreement. Throughout the development of the specifications and construction of the home, Owner will be confronted by the utilization of allowances. Contractor has utilized allowances, where practical, to allow Owner as much latitude as possible to design and construct their home to suit the Owner's individual tastes and requirements. The dollar figure allocated for each particular item or segment of work t • generally represents an approximated price for which the contractor believes quality items may be purchased and installed, including sales tax. However, with regard to the proposed dwelling. house, owner has indicated to Contractor that there are certain items for which it is understood and realized by Owner the allowance number may be exceeded, which items include plumbing, kitchen, painting, floor covering, and lighting fixtures. Indeed, Owner has advised Contractor and recognizes that these items, to the extent in excess of the allowances, will result in an excess of the Contract Price with a variable, depending upon owner's final choices and selections, based upon Owner's current comments of between $75,000.00 to $100,000.00. It is understood that Owner alone is responsible for staying within his allocation for each item and that if he exceeds the allowance, the additional cost will be paid to Contractor at the construction progress payment schedule immediately following agreement as to a particular allowance item as more particularly set forth in the Construction Agreement. (*Contractor will excavate and backfill for the area of construction only. Any additional costs for this work beyond the excavation allowance, including, but not limited to, removal of excess fill, hauling in of additional fill, additional grading or cutting, which may be required, at Contractor's option, shall be the responsibility of Owner. Contractor will not be responsible for the settlement of any backfill after grading. If backfilled or excavated areas around the foundation of the dwelling home settle during the first year, Contractor will fill the areas one time. Any earthwork outside the area of construction, including the removal of trees, is not included in the excavation allowance and is a separate cost item at additional cost to Owner.) ARTICLE 4 TIME OF COMMENCEMENT 4.1 The approximate date for commencement of the work is as soon as possible after signing contracts, but not before the filing of a Stipulation of Liens executed between the parties. The project is to be substantially completed in twelve (12) months from the date Contractor commences construction, subject to permissible delays. Time shall be of the essence. Such delays include fire, inclement weather, strikes, material shortages, material delays not as a result of any inactions or actions of Contractor, subsoil or surface conditions other than ordinary high, dry earth free of excessive rock, failure of Owner to make timely selections, or any other causes beyond the reasonable control of the Contractor. Contractor shall not be responsible for damages or penalty for permissible delays whatsoever. The dwelling home shall be considered substantially completed when it has been fully constructed in substantial conformance with the Drawings and Specifications and the appropriate municipal authorities have issued an occupancy permit. 4.2 Information, subcontracts or the famishing of materials or services under Owner's control, including, but not limited to, item selection, shall be furnished by the Owner in a timely manner not to disrupt or delay the orderly and timely construction of the dwelling. A late selection may delay the orderly progress of the work and the completion/move-in date. Not only shall Contractor not be liable for such delay, but the Contractor shall be equitably compensated for any overhead costs occasioned by such delay. In the event the Owner does not make a selection resulting in a substantial delay in the construction schedule, upon reasonable written notice to Owner, Contractor may suspend all actions on the construction and Owner shall, within ten (10) days of invoice, pay to Contractor for all additional a • overhead and damages caused by said delay, if any. If Owner's failure to so reimburse Contractor exceeds thirty (30) days, Contractor may declare a default hereunder without further notice. ARTICLE 5 SUBSTANTIAL COMPLETION The date of substantial completion of the contract work is the date when the construction is sufficiently completed in accordance with the Contract Documents so the Owner can legally occupy the construction work as evidenced by a Certificate of Occupancy. ARTICLE b It is agreed that until Contractor is fully paid all sums due by Owner, Contractor shall retain exclusive possession of the dwelling during construction so long as Contractor fulfills its obligations hereunder, subject, of course, to inspection by Owner and their agents at reasonable times. In the event Owner is in monetary default, not only is Owner not entitled to possession but Contractor has also the right and is fully justified in refusing to perform any further services hereunder until mutually agreed arrangements are made with regard to payment of Contractor and all balances due for the construction price. It is understood that during construction of the new house, Owner plans to live in the Existing House, and no work will be commenced on the Existing House until Owner vacates same, at which time prior to Owner's movement into the new house, the total Contract Price plus any additions and/or deductions, changes, alterations shall be fully paid to Contractor. ARTICLE 7 INFORMATION AND SERVICES REQUIRED OF THE OWNER The Owner does represent and warrant, as follows: 7.1 Owner has read and understands the terms, conditions, rights and obligations set forth in this Construction Agreement. 7.2 Upon reasonable request of Contractor, timely furnish to Contractor reasonable evidence that Owner has made sufficient financial arrangements to fulfill Owner's obligations under this Construction Agreement. If so requested by Contractor, Contractor's obligation to commence work is dependent upon Owner providing such satisfactory information to Contractor in a timely manner which shall not exceed five (5) business days from the date of receipt of request. 7.3 By signing this Construction Agreement, Owner represents and warrants that the tract of land upon which the improved dwelling home is to be built conforms to all zoning, planning and other building requirements; that the tract of land is suitable for the construction required and provided under the terms of this Construction Agreement; that he is the owner of record of the within described parcel; that title is good and marketable and insurable by any reputable title company; that a perpetual right-of- way exists to the parcel; and, that the parcel is free and clear of any encumbrances, liens, and easements, other than construction financing. Furthermore, Owner represents and warrants to Contractor that, to the best of Owner's knowledge, there are no actions, cause of actions or claims which might at a later date A • impair title to the aforementioned tract of land. Finally, Owner represents and warrants that he shall, at his own expense, promptly satisfy any conditions (as which may arise at any time during construction) which would cause the title to be unacceptable to any recognized reputable title insurance company. 7.4 Owner represents that he has no knowledge or information of any hazardous substances of any type or kind as defined by appropriate State and Federal statutes, that exists and/or has been stored or disposed upon the subject tract. 7.5 Owner shall timely furnish, prior to commencement of construction, all surveys describing the physical characteristics, legal limitations, if any, utility locations on the tract, and a legal description of the tract. 7.5 Owner shall locate for Contractor upon the tract where and how the improved dwelling home shall be situated, giving appropriate elevations, benchmarks, or other data necessary for this purpose. If Owner fails to so timely locate the improved dwelling home and provide such information prior to the time Contractor commences work, Contractor may delay commencement of work or situate the dwelling in such a position as he deems appropriate and advisable, in which event Contractor shall be in no way legally liable or responsible for improper location or elevation and Contractor, in such event, would provide Owner no less than five (5) business days written notice of Owner's failure to fulfill his obligations under this sub-paragraph prior to Contractor's location of the home on the tract. . 7.7 Owner has, at his expense, prepared or caused to be prepared for construction of the improved dwelling home the Plans and Specifications, and Owner warrants that the Plans. and Specifications are true, correct and accurate as of the commencement of work by Contractor. Any material deviation from the Plans and Specifications so warranted shall constitute a Change Order and shall be treated as a Change Order pursuant to the provisions hereof. ARTICLE 8 OBLIGATIONS OF CONTRACTOR 8.1 Contractor will provide all construction, supervision, inspection, labor, materials, tools, equipment and subcontracted items necessary for the execution and completion of the contract work. Contractor represents that it has the knowledge and skill to perform its duties under this contract properly, promptly and efficiently. 8.2 Contractor will pay all sales, use, gross receipts and similar taxes related to the contract work to be provided by the Contractor, which taxes have been legally enacted at the time of execution of this Agreement. 83 Contractor warrants to Owner that all materials and equipment incorporated into the contract work will be new unless otherwise specified,.and that all contract work will be of good and workmanlike quality, in conformance with the contract documents. 8.4 Contractor shall be responsible for the acts and omissions of its employees and all subcontractors engaged by Contractor, their agents and employees, and all other persons performing any of the work or supplying any of the materials under this contract on behalf of or with the Contractor. 0 s 8.5 Owner will obtain and pay for all necessary permits or authorizations from all municipal bureaus or utilities which may be required for the construction or occupancy of said work. Contractor will execute the Owner's name to any applications for such permits or authorizations. Contractor will provide all construction, supervision, inspection, labor, materials, tools, equipment, and subcontracted items necessary for the execution and completion of the Contract Work. The Contractor may substitute materials that are equal in quality to those specified, or shown ina model home, if applicable, and if Contractor deems advisable to do so. ARTICLE 9 CHANGES The Contractor is under no obligation to make any changes, additions, or alterations in the work provided in the Contract Documents. Upon reasonable request of Owner, Contractor may make changes, additions, or alterations, but the Contractor shall not be required to do so until the parties have executed a written Change Order, which will become part of this Agreement, and Owner has agreed to pay Contractor for changes in the work prior to any Change Order work being performed or with the following progress payment (draw), at the option of Contractor. Owner agrees to make requests concerning any changes, additions, or alterations in the work to Contractor and not to the workers, including subcontractors on the job. ARTICLE 10 CORRECTION OF WORK 10.1 Contractor shall correct any work that fails to conform to the requirements of the Contract Documents where such failure to confonn appears during the progress of the Work, and shall remedy any defects due to faulty materials, equipment or workmanship which appear within a period of one (1) year from the date of substantial completion. The provisions of this paragraph apply to work done by subcontractors as well as to work done by direct employees of Contractor provided Contractor has met the requirements for substantial completion. 10.2 Contractor shall assign, upon payment of the full contract price, to Owner, to the extent they are applicable, all rights under manufacturer's warranties on appliances, equipment, fixtures and consumer products included in the house and located on Owner's property, to the extent such warranties are assignable. Contractor provides no warranties relating to manufactured or consumer products. 10.3 The obligation to perform any warranty work by Contractor as provided for in this Agreement or by Contractor's Limited Warranty, shall not begin until Contractor has received full payment for the Project including any Change Order. THIS CONTRACT CONTAINS ALL OF THE REPRESENTATIONS, WARRANTIES AND PROMISES OF CONTRACTOR. NO AGENT OR REPRESENTATIVE OF CONTRACTOR IS AUTHORIZED TO MAKE ANY REPRESENTATION OR PROMISE ON BEHALF OF THE CONTRACTOR OTHER THAN THOSE CONTAINED HEREIN, AND THE CONTRACTOR MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF GOOD WORKMANSHIP, HABITABILITY AND FITNESS OF PURPOSE. f ARTICLE 11 RELEASE OF LIENS 0 Contractor, with his request for final payment, shall deliver to Owner a complete Release of Liens arising out of this contract and a Stipulation Against Liens filed prior to any commencement of any work, and, if required, shall furnish an affidavit through it as Contractor that the Releases include all labor and material for which a lien could be filed. However, the Contractor may, if any subcontractor refuses to furnish a release or receipt in full, furnish bond satisfactory to Owner to indemnify Owner against any lien. ARTICLE 12 ASSIGNMENT OF CONTRACT Contractor reserves the right to assign any part or parts of this Agreement, but only with the approval of Owner, which approval shall not be unreasonably withheld, delayed or conditioned. Subcontracting of certain portions of the work shall not be considered an assignment subject to Owner's approval. Owner may not assign this Agreement without the written consent of Contractor, which consent shall not be unreasonably withheld, delayed or conditioned. ARTICLE 13 ARBITRATION 13.1 All claims, disputes, and other matters in question between the parties in this contract, arising out of or related to this contract or any breach or alleged breach of this contract, will be decided by arbitration unless the parties otherwise mutually agree in writing. 13.2 If the parties can agree upon one arbitrator, then there shall be one arbitrator; otherwise, there shall be three, one named in writing by each party of the contract within ten (10) days after notice of arbitration is served by either party upon the other, and a third arbitrator selected by these two arbitrators within ten (10) days thereafter. No one shall serve as an arbitrator who is in any way financially interested in this contract or in the affairs of either party hereto. 13.3 Any arbitration arising out of or relating to this Agreement, the Project, the Work, the Contract Documents, or the breach thereof may include by consolidations, joinder or in any other manner, any other entities or persons whom the Owner or Contractor believe to be substantially involved in common questions of fact, law or responsibility thereunder. Contractor shall use his best efforts to require any subcontractors to submit to said arbitration proceeding and the joinder consolidation hereunder. 13.4 In the event either party hereto wishes to request arbitration of any claim, dispute or other matter in question, he shall first timely file a notice of demand for arbitration in writing with the other party specifically describing the claims, disputes and other matters in question which it is wished to be submitted to arbitration. Thereafter, a period of thirty (30) days shall elapse in order to provide available time to amicably resolve such disputes, and failing such, the dispute then may be submitted to an arbitrator as provided herein. The parties agree to proceed in accordance with the rights and 10 ? d procedures provided by the Pennsylvania Rules of Civil Procedure, including but not limited to the right to engage in discovery. 13.5 In any case in which either party elects to submit a claim, dispute or other matter in question to arbitration, as provided herein, such request or demand for arbitration shall be made no later than six (6) months from the date said claim, dispute or other matter was known or should recently have been ]mown by the party requesting arbitration. Any failure to therefore timely demand arbitration shall constitute a bar to prevent the filing of an untimely claim. This provision shall not however expand or extend any date or limitation on institution of legal equitable proceedings would be barred by the applicable statute of limitations. 33.6 This agreement to arbitrate shall be specifically enforceable under the prevailing arbitration law. Any award rendered by arbitrators shall be final and enforceable by any party to the arbitration, and judgment may be entered upon it in accordance with the applicable law and any court having jurisdiction thereon. ARTICLE 14 NOTICE 14.1 Service of all notice under this Construction Agreement shall be sufficient if given personally, by a nationally recognized delivery service, or mailed to the party involved at his or its respective address hereinafter set forth, or at such address as any party may provide in writing from time to time by certified mail, restricted delivery. To the Contractor: Harry L. Smith & Sons, Inc. 5943 Devonshire Heights Road Harrisburg, PA 171 12 To the Owner Robert V. Gothier, Jr. and Bonny L. Gothier 1000 North Front Street, Suite 500 Wormleysburg, PA 17043 (717) 731-0700 14.2 All such notices shall be deemed to have been given on the date delivered in person, or mailed by registered or certified mail, postage prepaid, restricted delivery, and which latter event it is deemed to have been given five (5) business days after deposit of any such mailing. ARTICLE 15 INSURANCE 15.1 Indemnity. Contractor agrees to indemnify and hold Owner harmless from all claims for bodily injury and property damage (other than the work itself and other property insured under paragraph 16.2) that may arise from Contractor's operations under this Agreement, except those claims resulting from the negligent or intentional actions of Owner or any subcontractors or materialmen of Owner or parties under Owner's direction, responsibility or control. ii t • 15.2 Contractor's Liability Insurance. Contractor shall purchase and maintain such insurance as will protect it from claims under workmen's compensation acts and other employee benefit acts, from claims for damages because of bodily injury, including death, and from claims for damages to property which may arise out of or result from Contractor's operation under this contract, whether such operations be by it or by any subcontractor or anyone directly or indirectly employed by any of them. This insurance shall be written for not less than One Million Dollars ($1,000,000.00) single limit and shall include contractual liability insurance as applicable to Contractor's obligations under this Agreement. All subcontractors will be required to maintain current certification of insurance on file at the Contractor's office showing in force comprehensive general liability, commercial automobile liability, and workmens' compensation insurance. 15.3 Owner's Liability Insurance. Owner shall be responsible for purchasing and maintaining liability insurance in an amount not less than One Million Dollars single limit and shall list Contractor as an additional insured on the policy. 15.4 Owner's Property Insurance. Owner shall purchase and maintain property insurance upon the entire dwelling home at the site to the actual cash value thereof. This insurance shall insure against the perils of fire, extended coverage, vandalism, and malicious mischief. Contractor shall be a certificate holder of Owner's contract at all relevant times which must contain a provision that same will not be canceled with less than fifteen (15) days' notice to Contractor. Furthermore, in the event of casualty loss at any time when there is any outstanding amounts due Contractor, Owner hereby authorizes Contractor to notify such insurance carrier to hold said sutra then claimed due in trust prior to payment to Owner pending written agreement of Owner and Contractor. Owner shall provide a copy of the policy to Contractor prior to commencement of work. Furthermore, by obtaining such insurance, Owner waives any and all rights of subrogation against Contractor, his subcontractors, officers, agents and employees for personal injury and/or for loss or damage to the dwelling home to be constructed during the construction to the extent that any such loss or damage is covered by insurance. Owner covenants to timely notify, in writing, the insurance carrier of this waiver which shall be binding upon Owner's carrier(s). 15.5 By obtaining such insurance herein provided, each party shall waive all rights against each other for damages caused by any peril or loss covered by insurance hereunder and covenants'to timely notify in writing the insurance carrier of this waiver which shall be binding upon each party's insurance carriers. ARTICLE 16 CONCEALED OR UNKNOWN CONDITIONS 16.1 The Contract Price is for the materials and labor in constriction of the contract work. Owner shall pay for any additional costs involved in providing extra engineering or foundation work which may be required if Contractor encounters abnormal or unusual subterranean conditions during the course of construction including, but not limited to: (A) Cost of removal of any rock in making excavation for foundation walls, sewage or water lines. 12 r e (B) Additional material necessary for the construction of footers and foundation that may be required in excess of blueprint specifications. (C) The cost of labor and.materials needed to divert or control surface water found during the course of construction. 16.2 Contractor shall, before such conditions are disturbed, notify Owner of (I) subsurface or latent physical conditions at the site differing materially from those indicated in this contract or (2) unknown physical conditions at the site that are of an unusual nature. Owner shall promptly investigate the conditions, and if he finds that such conditions do materially so differ and cause an increase in Contractor's costs, or of the time required for performance of any part of the work under this contract, whether or not changed as a result of such conditions, a specific cost adjustment shall be made and the Contract Price and time for performance adjusted by Change Order. ARTICLE 17 NOTIFICATION OF DELAYS AND EXTENSIONS OF TIME If Contractor is delayed at any time in the progress of the construction work by any act, failure or neglect of Owner or by changes ordered in the Project or by labor disputes, fire, unusual delay in transportation, adverse weather conditions not reasonably anticipated, unavoidable casualties, or any causes beyond Contractor's control as provided in Article 19, or a delay authorized by Owner, Contractor shall notify Owner in writing within fifteen (15) days of the occurrence and then the date for substantial completion shall be extended for the period of such delay. ARTICLE 18 FORCE MAJEURE If either party shall be delayed or hindered in or prevented from the performance of any act required hereunder by reason of war, fire or other casualty, an act of God, strike, lock-out, labor trouble, shortage of materials or equipment or inability to procure same, failure of power, restrictive governmental laws or regulations, riot, insurrection, or other causes beyond the control of the party delayed, then performance of such act shall be excused for the period of such delay. ARTICLE 19 RIGHT OF INGRESS AND REGRESS It is a covenant of the contract that Owner does hereby grant and convey to Contractor and its successors and assigns, full and complete rights of ingress, regress and such occupancy or possession of the premises hereinbefore described as shall reasonably be required by Contractor for the aforesaid construction. Any refusal thereof after written, notice from Contractor shall be a default by Owner whereupon the full amount of the Contract Price shall become immediately due and payable. 13 ARTICLE 20 DEFAULT 20.1 Default by Owner. If Owner shall default hereunder prior to the beginning of construction work, Contractor shall retain the-money paid by Owner as liquidated damages, and this contract shall thereupon terminate. If no money has been paid, Owner agrees to pay Contractor the sum of $ as liquidated damages and, upon such payment, neither party shall have any further obligations to the other hereunder. The parties have agreed that, by virtue of the difficulty in determining Contractor's damages, said sum is an agreed amount as liquidated damages and not as a penalty. If, following commencement of any work, Owner fails to make a progress payment to Contractor, or the final payment, as herein provided through no fault of Contractor, or to timely fulfill any other material obligation of Owner, specified in this Agreement, Contractor may, upon fifteen (15) days written notice to Owner, terminate the contract and recover from Owner payment for all work completed and for any proven loss sustained, including reasonable profits all damages permitted by law and reasonable attorneys' fees if Owner does not cure within said period. 20.2 Default by Contractor. If Contractor, without good or legal cause, defaults or neglects to carry out the work in accordance with the Contract Documents or fails to perform any material provision of the contract, Owner may, after twenty (20) days' written notice to Contractor specifying the default, and without prejudice to any other remedy he may have, make good such deficiencies and may deduct the cost thereof from the paymentthen or thereafter due Contractor or, at his option, may terminate the contract and take possession of the site and of all materials, equipment; tools, and construction equipment and machinery thereon owned by Contractor and may finish the work by whatever reasonable method appropriate, and if the unpaid balance of the Contract Price exceeds the expense of finishing the work, such excess shall be paid to Contractor, but if such expense exceeds such unpaid balance, Contractor shall pay the difference to Owner. If Contractor materially breaches this Agreement, and the breach is uncured after the notice period or Contractor has not diligently proceeded to cure said default prior to Owner being entitled to possession, Owner and Contractor shall promptly meet and agree as to the balance due to Contractor for work and materials properly performed, pursuant to this Agreement for which payment has not previously been made, whereupon said sum shall be placed in escrow pending completion of the dwelling which the same said sum shall be paid with any interest accruing thereon to Contractor absent demonstrable increased costs which Owner incurred to complete the home but only in accord with Contractor's plans and specifications. 20.3 The remedies herein provided shall be in addition to and not in substitution for the rights and remedies which would otherwise be vested in either party, under the terms of this Agreement, or otherwise, all of which rights and remedies are specially reserved by each, and the failure to exercise the remedies herein provided shall not preclude the resort to any appropriate remedy, nor shall the use of the special remedies hereby provided prevent the subsequent or concurrent resort to any other remedy which by law would be. vested in each for the recovery of damages, moneys due, or otherwise, in the event of a breach of any of the covenants by Owner. ARTICLE 21 OWNERSHIP OF MATERIALS It is mutually agreed that all materials delivered to and/or used in the construction of the premises shall be regarded as the property of Contractor until paid for by Owner. All materials, after use 14 in construction of the premises, shall be regarded as the property of Contractor until paid for by Owner. No materials shall be removed without consent of the Contractor. ARTICLE 22 SEPTIC SYSTEM After final approval of the installation of the septic system by the Sewage Enforcement Officer, or other officer charged with this duty, of the municipality in which the system is installed, Contractor shall have no further responsibility for any malfunctions or other problems which may be encountered with respect to the system, whether due to design or any other cause whatsoever, except workmanship for one year. Contractor's responsibility for the system shall be limited to Seven Thousand Five Hundred and 00/100 ($7,500.00) Dollars as set forth in the allowance schedule. ARTICLE 23 REAL ESTATE TAXES All real estate taxes, charges and assessments are the responsibility of Owner. Owner shall indemnify and hold harmless Contractor from any and all claims, demands or liabilities, including attorneys' fees, arising from the imposition of any such real estate taxes and assessments. ARTICLE 24 GENERAL PROVISIONS 24.1 It is further hereby understood that Owner reserve their right and that of their agents, to inspect the said premises at any reasonable time that would not unreasonably interfere with Contractor's work. Contractor shall reasonably cooperate with such inspections. Owner assumes all risk for personal injury by doing so. 24.2 In the event of breach of this Agreement by Contractor, Contractor however shall not, in any event, except as provided herein, be liable for any indirect or consequential damages, costs, or expenses to include loss of use, loss of opportunity, loss of market value, loss of rental value or similar such indirect claims. 24.3 Words of any gender herein shall include any other gender, and the singular shall include the plural and visa versa whenever the same is necessary to produce a fair and meaningful construction 24.4 This Agreement shall not be altered, amended, changed or modified except in writing by the parties. 24.5 No third party shall have any rights or benefits from this Construction Agreement, other than Owner's secured lender. In the event any provision of this Agreement is found to be illegal and unenforceable shall be severable from the contract and the balance of the contract may be enforced as though such provision were not contained herein. 15 s • 24.6 This Agreement contains the entire agreement between Contractor and Owner. There are no other terms, obligations, covenants, representations, statements or conditions, oral or otherwise, of any kind whatsoever concerning the construction, except as stated in writing in this Agreement. 24.7 This Agreement, the rights and obligations as herein provided, shall be binding upon to the benefit of the parties, their respective successors and permitted assignees. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. ATTEST: CONTRACTOR HARRY L. SMITH & SONS, INC. By: ry L. Smith WITNESS: OWN Robe t e r. 38675 16 t NI. NONWARRA.NTABLE CONDITIONS The following is a statement of conditions that are not subject to Contractor's Limited Warranty and explains some of the changes and maintenance items that may occur in your new home over the first year or so of occupancy. Your home will require more maintenance and care than most products, since it is made up of many different components, each with its own special characteristics. Also, an owner must understand that, like other products made by humans, a house is not perfect. It will show some minor flaws and unforeseeable defects, and it may require some adjustments and touching up. All residential construction goes through a period of settlement and, as the seasons change, periods of expansion or contraction will occur. Asa result, the home will experience minor material changes which are unavoidable and are considered normal. The owner should also be aware that he/she is responsible for proper and timely home maintenance. It is helpful to the owner's maintenance program to keep a color chart of the different materials used on the. construction and a small supply of corresponding colored paint, stain or grout for easy touch-up. Damage caused by owner negligence, improper maintenance or changes, alterations or additions performed by anyone other than the Contractor, his employees, or subcontractors directed by the Contractor is excluded from the Warranty. As described in the Limited Warranty provided to you, which this statement of Nonwarrantable Conditions is made part of, Contractor will correct certain effects that arise during defined time periods afer construction is completed. Other items that are not covered by the Contractor's Warranty may be covered by manufacturers' warranties. There are some conditions, however, that are not covered under the Contractor's Warranty. It is important for you to read these carefully and understand that you have not contracted for the Contractor to correct certain types of problems that may occur in your new house. These guidelines will alert you to certain areas of maintenance that are the responsibility of the new homeowner, and that could lead to problems if they are neglected. The following is a list of an outline of some of the conditions and components that are not warranted by the Contractor. Please be sure you understand this list. Ask the Contractor if you have any questions and feel free to consult your attorney before signing the acknowledgment and the Limited Warranty Agreement. • s Nonwarrantabie Conditions 1. Concrete foundations, walks, drives, and patios can develop hairline cracks less than 1/4" inch in width not affecting the structural integrity of the building. There is no known method of eliminating this condition, which is caused by characteristics of expansion and contraction. It does not affect the strength of the building and is not a condition covered by any warranty. 2. Masonry and mortar can develop hairline cracks due to shrinkage in either the mortar or brick. This is normal and should not be considered a defect. It is not covered by any warranty. 3. Wood will sometimes crack or "spread apart" due to the drying out process. This is most often caused by the heat inside the house or the exposure to the sun on the outside. This is normal and considered a maintenance item to be cared for by the homeowner. 4. Drywall (sheetrock) will sometimes develop nail pops or settlement cracks. This is a normal part of the drying out process and an item that can be easily handled by the homeowner with spackling during normal redecorating. However, if the homeowner wishes, we will send in a repairman. at the end of one year and make necessary repairs. Our repairs will not include repainting. 5. Floor Squeaks: After extensive research and writing on the subject, it has been concluded that much has been tried but little can be done about floor squeaks. Accordingly, floor squeaks are not covered by the builder's warranties. Generally, they will appear and disappear over time with changes in weather. 6. Floors: Your floors are not warranted for damaged caused by neglect or the incidents of use. Wood, the and carpet all require maintenance. Floor casters are recommended to prevent scratching or chipping of wood or tile; clean stains from carpets or wood or tile immediately to prevent discoloration. Carpet has a tendency to loosen in damp weather and will stretch tight again in dryer weather. 7. Caulking: Exterior and interior caulking in bathtubs, shower stalls, and ceramic tile surfaces will crack or bleed somewhat in the months after installation. This is normal and should not be considered a problem. This is not covered by the warranty and is a minor 2 occurrence to be maintained by the homeowner. However, if the homeowner wishes, we will send in a repairman at the end of one year and make necessary repairs. 8. Brick. Discoloration: Most bricks may discolor due to the elements, rain run-off, weathering, or bleaching. Thus, the color of the bricks is not considered a warranty item. 9. Broken Glass: Any broken glass or mirrors which are not noted on the final inspection form will not be covered, excludinE cracks or broken Blass due to improper installation within the warranty period. 10. Frozen Pipes: The homeowner must take precautions to prevent freezing during severe cold weather, such as removing outside hoses from sillcocks, and turning off the water system if the house is to be left for extended periods during cold weather. Frozen pipes or sillcocks not caused by defects in material or workmanship will not be considered a warranty item. 11. Stained Wood: All items that are stained will normally have a variation of colors, due to the different texture of the woods. Doors that have panels will sometimes dry out and leave a small crack of bare wood. This is due to weather changes. None of these is a warrantable condition (to the extent within normal tolerances). 12. Paint: Good quality paint has been used internally and externally on your home. Nevertheless,, exterior paint can sometimes crack or check. This is not a defect in the paint, but it is most often caused by other sources. You should avoid allowing lawn sprinklers to hit painted areas, washing down painted areas, etc. Inside, do not scrub latex-painted walls, and be aware of the newly painted wall as you are moving furniture. The best paint will be stained or chipped if it is not cared for properly. Any defects in painting not caused by defects in materials or initial application that are not noted at final inspection are nonwarantable conditions. 13. Cosmetic Items: The upkeep of cosmetic aspects of your home is your responsibility. You have not contracted with the Contractor to cover ordinary wear and tear or other occurrences subsequent to construction that affect the condition of features in your home. Chips, scratches, or mares in tile, woodwork, walls, porcelain, brick, mirrors, plumbing fixtures, marble and Formica tops, lighting fixtures, kitchen and other appliances, doors, paneling, siding, 3 0 0 screens, windows, carpet, vinyl floors, cabinets, etc., which are not recognized and noted by you at final inspection are nonwarrantable conditions. 14. Plumbing: Dripping faucets not caused by defects in materials or workmanship, toilet adjustments, and toilet seats are covered by the builder's warranty for a thirty-day period only. After that, they are the owner's responsibility. If the plumbing is "stopped up" during the warranty period and the person servicing the plumbing finds foreign material in the line, the . owner will be billed for the call. 15. Alterations to Grading: Your lot has been graded to insure proper drainage away from your home. Should you wish to change the drainage pattern due to landscaping, installation of patio or service walks, or other reasons, be sure a proper drainage slope is retained. We assume No Responsibility for the grading or subsequent flooding or stagnant pool formation if the established pattern is altered. 16. Lawn and Shrubs: We accept No Responsibility for the growth of grass or.shrubs. Once we grade and properly seed, and/or sod and fertilize, it is for the homeowner to water and spread ground cover to prevent erosion. We will not regrade a yard, nor remove or replace any shrubs or trees, except for those which are noted as diseased at final inspection. 17. Roof Damage: After the initial one year period, the warranty on your roof is for material only and is prorated over the period of the lifetime use of the roof. Warranty claims for any defects in materials will be handled with the manufacturer with our assistance. The Contractor will be responsible for any damages caused by walking on the roof or by installing a TV antenna or other item on a roof. 18. Heating and Air Conditioning: Your heating and air conditioning is covered by a manufacturer's warranty. It is the owner's responsibility to be sure that filters are kept clean and changed as required. Failure to do so may void your warranty. It is also a good policy to have the equipment serviced or checked at least yearly. 19. Humidity System: (to be inserted)' 4 s I/We acknowledge having read, understood and received a copy of the above outline of nonwarrantable items. We understand and agree that these are conditions for which we have not contracted and will not hold the Contractor liable. Owner: Owner: Robert V. Gothier, Jr. Bonny. Gothier Date: 38944 5 i e LIMITED WARRANTY AGREEMENT This LIMITED WARRANTY AGREEMENT is entered into by HARRY L. SMITH & SONS, INC. (hereinafter, "Contractor") and Robert V. Gothier, Jr. and Bonny L. Gothier (hereinafter, collectively "Owner") in conjunction with that certain Construction Agreement between Contractor and Owner dated May 3 o , 2002 for the construction of an improved dwelling home located at 99 Manor Drive, Dillsburg, Monaghan Township, York County, Pennsylvania. What is Covered by the Warranty. Contractor warrants that all construction related to the home performed by Contractor and subcontractors retained and selected by Contractor has been performed in substantial conformity with the Plans and Specifications and approved change orders pursuant to the Construction Agreement. Contractor warrants that all materials used in construction are new and free from defect and that construction will be of good and workmanlike quality determined by the standards of construction in the Harrisburg, Pennsylvania area. Contractor warrants that for a period of one (1) year from the date of substantial completion, Contractor will adjust or correct minor defects, omissions, or malfunctions. such as missing equipment or hardware; sticking doors, drawers and windows; dripping faucets; and other minor malfunctions reported by Owner upon inspection of the property. Furthermore, within one (1) year from the date of substantial completion, Contractor will repair or replace, at Contractor's option, any defective materials or work (except work not covered) and any latent defects in material or workmanship by the standards of construction relevant in the Harrisburg, Pennsylvania area. A latent defect is defined as one which was not apparent at the time of initial occupancy. Owner agrees to accept a reasonable match in any repair or replacement in the event the original item is no longer available. 2. What is Not Covered. A. This Limited Warranty does not cover damage resulting from fires, floods, storms. electrical malfunctions not caused by defective materials or workmanship, accidents, acts of God; or damages from alterations, misuse or abuse of the covered items by any person, or damage resulting from Owner's failure to observe any operating instructions furnished by Contractor at the time of installation: failure of Owner to regularly and properly maintain the home and its systems, such as the humidifier system, for example; or damage resulting solely from a malfunction of telephone, gas company, power company, or water company equipment or lines. B. Any items furnished or installed by Owner, or subcontractors selected or retained by Owner, are not covered by this Limited Warranty. C. To the extent a manufacturer is responsible, this Limited Warranty does not cover any appliance, piece of equipment, or the item, which is a "consumer product" for the purposes of the Magnuson-Moss Warranty Act, 15 U.S.C. Section 2301 et seq., installed or included in Owner's property. The following are examples of such appliances; and equipment, though not every home f f includes all of these items and some homes may include appliances or equipment not in this list: refrigerator, range, space heater, washing machine, dishwasher, garbage disposal, ventilating fan, air conditioner, heat pump or furnace. (1) Contractor represents it has made all such excluded warranties available for Owner's inspection and Owner acknowledges that they have received copies of any such warranties. (Owner's Initials) (2) Contractor hereby assigns, to the extent that they are assignable, and conveys to owner all warranties provided to Contractor on any manufactured items that have been installed or included in the Owner's property. Owner accepts this assignment and acknowledges that, to the extent such warranties are assignable, Contractor's only responsibility relating to such items is to lend assistance to Owner in settling any claim resulting from the installation of these products. (Owner's Initials) (Contractor's Initials) D. The non-warrantable conditions, and any damage resulting therefrom, as set forth on the five (5) page document titled "Non-Warrantable Conditions" executed between the parties contemporaneously herewith are, of course, not covered by this Limited Warranty. E. Any injury to persons or damages to personal or real property, other than the home. in whole or in part, which may be a consequence of or incident to or result from any defects in materials or performance of the work is excluded. 3. Remedies and Limitations. A. Owner understands that the sole and exclusive remedy under this Limited Warranty Agreement is repair and replacement of any portion of the improved dwelling horse so covered by this Limited Warranty by Contractor at no cost to Owner. (Owner's Initials) B. Owner also understands that, with respect to any claim whatsoever asserted by Owner against Contractor, there will be no right to recover or request compensation for, and Contractor shall not be liable for any monetary damages, or incidental, indirect, consequential damages, or for secondary, or punitive damages, absent fraud or Contractor's gross negligence. Contractor shall not be responsible for any monetary sum for breach of this Warranty, absent Contractor's knowing failure to perform its obligations hereunder after written notice. Any corrective work shall not extend the term of the Warranty for any non-corrected item, but shall extend the Warranty for a period of one (1) year for only the specific item(s) corrected, repaired or replaced. (Owner's Initials) 2 t a C. This Limited Warranty is personal to the original purchaser and does not run with the property or the items contained in the house. The original purchaser may not assign, transfer. or convey this Warranty without the prior written consent of Contractor, which consent shall not be unreasonably withheld. 4. How to Obtain Warranty Service. If a problem develops during the one (1) year warranty period, Owner shalt promptly notify the Contractor of the specific problem, in writing, and what may be necessary to correct or repair it, if known. Contractor, absent unforeseen circumstances, will commence performing its obligation under this Limited Warranty within thirty (30) days of receipt of request, and will diligently pursue these obligations until completion. Owner shall give Contractor full opportunity tc inspect the claimed defect prior to any work commencing. If the problem may appear to require immediate attention,. Owner make a report by telephone or facsimile and Contractor shall use his best efforts to address the matter complained of in a prompt fashion. If Owner is unclear whether the problem is or is not warranty work, Owner shall contact the Contractor. Repair work will be done during Contractor's normal working hours. Owner agrees to provide Contractor or Contractor's representative access to the house, and the presence during the work of a responsible adult with the authority to approve repair and sign a call-back ticket upon completion of the repair. If the problem is covered under a manufacturer's warranty, Owner shall follow the instructions provided with such warranty. In the absence of a written manufacturer's warranty. Contractor should be contacted to obtain information and assistance in filing a claim. 5. Arbitration. Any claim or controversy arising out of this Limited Warranty or breach thereof shall be controlled by the arbitration provisions set forth in the Construction Agreement between Contractor and Owner. THIS LIMITED WARRANTY IS THE ONLY EXPRESS WARRANTY EXTENDED TO OWNER BY CONTRACTOR. ANY ITEM OR CONDITIONS NOT SPECIFICALLY COVERED BY THIS WARRANTY, OR IN THE DOCUMENTS HEREIN REFERRED, ARE EXCLUDED FROM COVERAGE AND ARE THE RESPONSIBILITY OF OWNER. IT IS EXPRESSLY UNDERSTOOD THAT THIS LIMITED WARRANTY IS IN LIEU OF ANY AND ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, WRITTEN OR ORAL, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR HABITABILITY. t s 6. Specific Legal Rights THIS LIMITED WARRANTY GIVES THE OWNER SPECIFIC LEGAL RIGHTS WHICH SHALL NOT LIMIT OTHER NON-WARRANTY RIGHTS WHICH MAY BE AVAILABLE TO OWNER. We acknowledge having read, understood and received a copy of this Limited Warranty Agreement. WITNESS: CONTRACTOR: HARRY L. SMITH & SONS, INC. By: H . L. Smith, President Dated: 38762 4 f • ROBERT V BONNY L. GOTHIER, JR and GOTHIER, Owner IN THE COURT OF COMMON PLEAS YORK COUNTY, PENNSYLVANIA V. HARRY L. SMITH & SONS, INC., Contractor NO. STIPULATION AGAINST L2 NS WHEREAS, ROBERT V. GOTHIER, JR. and BONNY L. GOTHIER, of 99 Manor Drive, Dillsburg, Pennsylvania 17019 (the "Owner") the owner of the hereinafter described tract of land, has executed or is about to execute contemporaneously herewith a contract with HARRY L. SMITH & SONS, INC. of 5943 Devonshire Heights Road, Harrisburg, Pennsylvania 17112 (the "Contractor") for improvements to the premises located at 99 Manor Drive, Dillsburg, Monaghan Township, York County, Pennsylvania, more particularly described on "Exhibit All attached hereto and made a part hereof (the "Premises"). NOW, May _, 2002, before any authority has been given by said owner to the said Contractor to commence work on said Premises or to otherwise construct any improvements thereto, or to purchase materials for the same, or to enter into any contracts with any subcontractors, or materialmen, or to authorize any purchases by or through any subcontractors or materialmen, in consideration of the making of said contract with the owner and the further consideration of one Dollar ($1.00), to Contractor paid by said Owner, and with the intent of all parties to be legally bound hereby, it is agreed that no lien shall be filed against the building or Premises or any part thereof, by the Contractor or any subcontractor, or by any of the materialmen or workmen or any other person for any labor, or materials purchased, or extra labor or materials purchased, for the building and improvements to the Premises (including hereafter changes made thereto), the right to file liens being expressly waived. It is the full intent of the Contractor, for itself and for any subcontractors or materialmen claiming for themselves, or by, through or under the contract or the Contractor, that the right to file a mechanic's lien, under the provisions of law and/or of Acts of Assembly in such cases made and provided, for work done or materials furnished in and about the building and improvements to the Premises above described is hereby waived. WITNESS our hands and seals the day and year first above written. K?l fitness / le' Witness 8 8 BARMY L Sr4I'1 SOBS , INC Attest* By? Exhibit A ALL THAT CERTAIN lot or tract of land situate in Monaghan Township, York County, Pennsylvania, being more particularly bounded and described as follows, to wit: BEGINNING at a point on the southern right-of-way line of the Dillsburg Road, also known as Bailey Road, LR 66001, at the line dividing lands now or formerly of Jacob J. Myers, et al. and lands now or formerly of Florence Eckels; thence along said dividing line, South 12 degrees 47 minutes 34 seconds East, a distance of 2,637.48 feet to a point dividing Lot 8 and Lot 5 on the hereinafter mentioned plan of lots; thence, along the line dividing Lot 8 from Lots 5 and 6 on the hereinafter mentioned plan, South 67 degrees 07 minutes 30 seconds West, a distance of 1,187.44 feet to a point on the line dividing Lots 8 and 6 on the said plan; thence, continuing along the said dividing line, and along a curve to the left having a radius of 275.00 feet, an arc distance of 370.72 feet to a point on said dividing line; thence, continuing. along said dividing line, South 10 degrees 6 minutes 54 seconds East, a distance of 263.36 feet to a point on said dividing line; thence, continuing along said dividing line, South 09 degrees 09 minutes 01 second East, a distance of 436.79 feet to a point on the northern right-of-way line of Cemetery Road; thence, along said northern right-of-way line, North 73 degrees 22 minutes 46 seconds West, a distance of 55.52 feet to a point at the line of lands now or formerly of the Jennie Fishel Estate; thence, continuing along said lands, North 09 degrees 09 minutes 01 second West, a distance of 422.12 feet to a point at the lands now or formerly of Robert J. Dennison; thence, along said lands, North 10 degrees 06 minutes 54 seconds West, a distance of 262.49 feet to a point; thence along the line dividing Lots 8 and 6A on the hereinafter mentioned plan and along a curve to the right having a radius of 325.00 feet an arc distance of 276.27 feet to a point on the line dividing the said lots; thence, along said dividing line and continuing along lands now or formerly of John W. Heller and wife, North 14 degrees 13 minutes 20 seconds West, a distance of 578.70 feet to a point at said lands; thence, continuing along the line of lands now or formerly of Heller, South 59 degrees 31 minutes 02 seconds West, a distance of 82.19 feet; thence, along lands now or late of Dennison, South 74 degrees 16 minutes 25 seconds West, a distance of 79.21 feet to a point on the line of Elliot Road, as shown on the hereinafter mentioned plan of lots but as is unopened as of this date; thence, North 10 degrees 38 minutes 03 seconds East, a distance of 52.44 feet to a point; thence, continuing along the line of the said Elliot Road, and along a curve to the right having a radius of 125.00 feet an arc distance of 1.50 feet to a point at the corner of Lot 1 on the hereinafter mentioned plan; thence, along said Lot 1, North 78 degrees 35 minutes 54 seconds East, a distance of 891.10 feet to a point; thence continuing along said lot, North 13 degrees 06 minutes 43 seconds West, a distance of 568.39 feet to a point; thence, continuing along Lot 1 and Lot 4 of said plan, North 26 degrees 31 minutes 37 seconds East, a distance of 472.46 feet to a point; thence, along Lot 4, North 61 degrees 17 minutes 27 seconds East, a distance of 593.60 feet to a point on the line of lands now or formerly of Bentzel; thence, along the lands now or formerly of Bentzel, South 48 degrees 57 minutes. 10 seconds East, a distance of 60.49 feet to a point; thence, continuing along lands now or formerly of Bentzel, North 45 degrees 02 minutes 50 seconds East, a distance of 658.35 feet to a point; thence, continuing along the lands now or formerly of Bentzel, North 12 degrees 50 minutes 17 seconds West, a distance of 916.36 feet to a point on the southern right-of-way line of the Dillsburg Road; thence, along said right-of-way line, North 79 degrees 12 minutes 26 seconds East, a distance of 36.20 feet to the point or place of BEGINNING.. BEING all of Lot 8 as shown on the final plan of the Deerhead Manor Subdivision prepared for the Myers, Lock, Ashway and Titus, as prepared by William E. Secra and Associates and dated August 15, 1975, and all as recorded in the Recorder of Deeds Office in and for York County, Pennsylvania, in Plan Book Y, Page 414. Said lot containing 54.224 acres, as shown on such plan. TOGETHER with and subject to, for all times now and in the future, the right of ingress, egress and regress over, through and across a certain private road extending over and across lands adjoining the aforementioned lands to the west and running from the public road leading to Mount Pleasant (being known variously as the Mount Pleasant Road, Manor Drive, and Township Route 894), eastwardly over and across property now or late of Danner to the western boundary line of the aforementioned lot, as the same is now located and maintained, and as the same is shown on the aforementioned plan of lots, and as the same is now used by the Grantors herein, Heller, and Dennison, and to the Grantees, their heirs, assigns, and successors, here and forever hereafter. BEING the same premises The Peter M. Portmann Revocable Declaration of Trust, by deed dated May 25, 2001, and recorded June 11, 2001, in the Office of the Recorder of Deeds in and for York County, Pennsylvania, in Record Book 1441, Page 4654, granted and conveyed unto, Robert V. Gothier, Jr. and Bonny L. Gothier. SPECIFICATIONS New Construction - Residential OwnerfA4ortgagor. Robert V. Gothier, Jr. and Bonny L. Gothier 1772 North Meadow Drive, Mechanicsburg, PA 17055 Address of Property: 99 Portman Drive, D llsburg, PA 17019 Contractor. Harry L. Smith & Sons, Inc. 5943 Devonshire Heights Road Harrisburg, PA 17112 (717) 545-5842 The contractor shall provide all necessary labor and materials and perform all work required to complete the building within the scope of these specifications and in accordance with the plans attached hereto and made a part hereof The contractor and all eub contractors sha4 comply with all building and sub-division ordinances and sanitary laws applicable to this work. A survey of the budding site will be furnished by the owner. The owner shall also establish the location of the building and die grade level, The contractor is responsible for the laying out of the budding. The contractor shall fiuvish insurance as required by law and to comply with the requirements of the mortgagee. EXCAVATION: All top soil from immediate area of the building and approximately 30' around shall be scraped and piled on the lot away from the building site. Excavation for footers shalt extend to solid undisturbed earth, at least 6" below kreal frost level. FOOTERS: Size. 20" x 10" Material: concrete BASEMENT WALLS: Svc: 10" concrete, 9 High Material: concrete; crawl space 10" ClvLU.; Garages and Porches 8" C.MU. Steel I-Beam Size: 10" x 25 Lb. Material: steel Column Supports Type: 4" SteelFHA. WATERPROOFING: Foundation coating sprayed tar Area Weils, MateriaL• none Size: Drain 'illeSize: 8" Form-A-Drain exterior for drainage ( 8" Form-A-Drain for radon interior of footer / Radon piped thin roof/ Radon fan by Owner Connected to: Sump Pit pumped to Outside House Top of foundation to be determined above or below crown of road as per plans. BASEMENT FLOOR: Mu: 3000 N. Thickness: 4" Concrete No. Floor Drains: I Connected To: Sumn Pit FRLUTIR"G CAR EYTYY: Sill Seal on Foundation Wall Sill Size: 2 x 6 Material: pressure treat 1st Floor Joists Size: 12" Materiab T3I 1st Floor Joists over girder or beam (Yes) or secured by ledger method (No) Sub Floor Size: 3/4" Material: Fir T.G. Plywood How laid. nailed and glued Bridging Material: QUA Spacing: NIA 0 FRAMING CARPENTRY(CONTIIIUM): Exterior Wall Studding Ske: 2 x 6 Material: spruce EXTERIOR WALL PLATES: Size: 2x6 Material: spruce EXTERIOR WALL NO. OF PLATES Bottom: 1 Top: 2 EXTERIOR WALL SHEATING: Size: 1/2" Material: FirPlywood SIDING: Material: Dryvit and L and S Stone INTERIOR WALL: Stud Size: 2x4 Material: spruce Plates size: 2 x 4 Material: No. Plates Bottom: 1 No. Plates Top: 2 2 HEADERS, ALL FRAME WALLS - Each header will bear on at least one jack stud per end. Opening up to 3' Header Size: 2 x V Material, spruce Opening Y to 6' Header Size: 2 x10" Material: spruce Opening 6' -12' Header Size: 2 x10" Material: spruce Opening over 12' Header Size: 2 x12" Material: spruce BASEMENT STAIRWAY: Size Horses: pre-manubeured Yellow pine No. Horses: Rise: Tread: Riser Material and Size: Tread Material and Size: JOISTS (For Load Carrying Floor)% Size IT' Material: T.JS. Placed: 16" o.o. Bridging Material* N/A. Spaced: N/A SUB-FLOORING: Size:.3/4" Material: T.G. Fir Plywood How Laid: nailed and glued - CEILING JOISTS: Trusses Area 2' o.m Size:. Stick Built Areas 2 s 3 Material: Spruce Placed: 16" O.c. Bridging Material: N/A Spaced: N/A 0 3 ROOF RAFTERS: Trusses Area 2' o.e Size: Stick Built Areas 2 x 8 Material: spruce Spaced: 16" o.c, RIDGE. Size: 2 x 10 at Stick Built Areas Materiah spruce If Hip roof, hip rafter Size: 2x 10 Material: Spruce ROOF SHEATHING MATERIAL: CDX Fir Plywood , Size: l/2" ROOFING: 0 Slnderiaw Material: 15 lb. felt Shingle Weight: GAF or EIX Architectural Design 30 Year Warranty Shingle Exposure: 5" How Fastened: nailed CORNICE: Face Board Material: Spruce Size: 2x8 Soffit Material: Aluminum Alcoa Size: As plans. Rakeboard Material: 2 x 8 Size: As plans. WINDOWS: Type: Lincoln Aluminum clad with Screens, No Grilles. Hardware Finish: bright brass Model Luck: Plymouth No. Hinges per Door. 3 Size Hinges: 3 lt2" Hinge Finish: bright brass ATTIC VENTILATION: Ridge Vent EXTERIOR DOORS MATERIAL: By Plan - Allowance Jamb Size: 6" Hardware Make: By Allowance Schlage - F Series Plymouth MASONRY ABOVE FOUNDATION: Material: Land S Pre-Manuigctured Stone Size: Random Manufacturer. Land S Mortar Mlx: Standard Color INTERIOR FLOORING. carpet - hardwood Br finishing - vinyl - all ceramic the in all areas - underlayman and installation - Allowance. INTERIOR CARPENTRY: Interior Door Style: Thickness: 13/8" Flush Hardboard 6'8" Pre-Primed Material: No. Hinges: 3 Make Hardware: Plymouth Schlage F-series Hardware Finish: 605 Jamb Material: Poplar Size: '/."Paint Grade Door Stop Material: poplar Size: 1318" Baseboard Material: Poplar - Sae: '/:' x 5-%, " Sanitary Paint Crrade Casing: '/. " x 3 Y: " SaniteryPaint Grade ll'ITERIOR CARPENTRY (CONTINUED): Window Sill Material: Poplar Size: 1 '1/4 " x 4 5/8" Closet Rods Material: 1 3/8'.' round white painted steel rods Closet Shelves Material: Birch plywood Size: '/4" Plumbing Access Panels Material: N/A Door Bumpers: Ives-Solid Wallmount - Interior Wall Surface Type: Drywall Thickness: %d' Interior Decorations Walls: Painted Trim: Painted - Spray one coat, Brnsh one coat Doors: Painted -Spray one coat ?Nails: Painted- Spray 2 cow KITCHEN EQUIPMENT: By Allowance $50,000.00 PLUMBING: Water Supply Pipes Size: 3/4" main line & 1/2" supply to baths: Type L Material: copper Drainage Pipes Size: comply with code requitement Material: pv.c. Water Supply.. Public or Private: private: Existing Well Sewer Private: New Septic System - Permits By Owner It Private, Size of Septic Tank: By Design No. Feet drain field: Drain connected to: HEAT: Heat system shall be designed to heat all of the living area to a minimum temperature of 75 °F When exterior temperature is 0 °F. Type: Size Duct of Pipe: duct Material Duct or Pipe: Fuel: Gas Size Fuel Storage: N/A _ Register or Radiator Type: register Does Heat Plant Furoisb Domestic Hot Water. no ELECTRIC: Entrance Cable Size: 320 AMP SERVICE Materiah Fuse or Breaker Boa Make: breaker No. Circuits: Sine Wire to Normal Circuits: by code Size Wire to Range and Oven: by code No. Convenience Locations: 350 locations @ $25.00 No. Fixture Hangings: 105 No. G.F.I. Locations: 7 Inspections - No. Overhead Fixtures: light fixtures allowance _ No. Outside Lights and Locations: light Ixttaes allowance Will All Outlets he Grounded: yes Will telephone wiring be concealed: yes 5 INSULATION: Exterior Wall, Type: R-19 Interior Wall, Type: R-11 Ceiling: R-38 Blown where applicable Type: fiberglass 11 DRYWALL-NEW AND EXISTING WORK: By Alloww=S24,900.00 GUTTER AND DOWNSPOUTS: - Size Gutter. 5" Material: Aluminum Size Drop. 3" Material: Alumimmm Chimney Flashing Material: Aluminum EXTERIOR GRADING: Slope from house: By Elevation on Plans. No Fill or Topsoil hauling on or off lot included in Contract. 4 y _ <, WALKS AND DRIVES: Sidewalk: Stamp concrete fromNew House Front Porch to Existing Sidewalk. New Front Porch Material: Stamp concrete Existing Front Porch will not be changed. GarageFloorMaterial: concrete 3500lbs. Thickness: 4" Llst any special work or material not covered above: All Permits by Owner. J FSTF,R OR Excavation Allowance. . ................. ....... ............................... ........... . $ 7,500.00 Footer Forms will be 8" Form A-Drain-Interior for Radon, Exterior for Drainage. Roofing will be GAF or ELK 30 Year Architectural NOT Metal -Do not remove existing House Roof. Lincoln Window Allowance ......................................................................... $ 45,020.00 Two (2) Skylites: 21 `h "x 46 TV, Non vent Vehm Exterior Doors ardLocks Allows= .......... ...._........................................... ... $ 4,600.00 Total Porch and Deck Allowance - E-PAY Flooring 1/4" x G' boards on Deck including Framing Allowance ................ ..................... .............................. ...... $ 10,270.00 Deck Material above Foyer on Balcony to be Rubber under Floating Trex. Metal Pipe Rail 38" High at Deck and Balcony, no rails Powder Coated. 19 pair PVC Shutters on Existing House as Plans. Butt Glazed Suspended Connector 3" Aluminum Frame: One section 13 L.F., One section I I L.F. Allowance ............................................................ $ 4,650.00 Exterior Stone Work. Allowance - Stone will be L and S Syrnhetk Stone, Style like Barn, Color more Brown and Earth Stone. Includes inside Fireplace Facing ................. $ 39,596.00 - DryvitAllowance -Including Materiai,Labor, accessories,ard cauking ....................... $76,162.00 Stamp Concrete Front Porch - New House Stamp Concrete Walk from New House Front Porch to Existing Sidewalk. New Metal Bilco Door - 62" wide, 88" Long. Septic Sand Mound $7,500.00 by Contractor, Design and Permit By Owner. No Landscapiag. No Seeding. Find Existing Wel. No Well or Purnp work included in Contract. No Driveway Cost in Contract: Contractor NOT responsible for repairs or resurfacing existing driveway. ))?I48 Stair Foyer: Poplar Skirts Handrail Birch 46010 Poplar Risers Newell Post 94011 Maple Treads Pane Balusters 45015 - Material Cost A2owance ................................................................. $ 12,384.00 All other Stairs including New Stairs in Existing House will be Yellow Pine Stairs, - Birch mails with Handrails 46010 and Newel Post Wl 1 and Primed Balusters ;#5015 . Horse Head at Staircase by Owner. e Kitchen Cabinets and Appliances Allowance -Includes Cabinets in New House and Existing House; and All Tops, All Buikins, Vanillas and Vanity tops, Hood Vents, refinishing in Existing Kitchen, and all appliances, ducts, and vents ..................... S50,000.00 Sauna Purchased by Owner, Installed by Contractor. No Stairs in Garage from Floor to Attic. ° Change Master Bedroom Ceiling as per Changes on Print Attached. No Framing in Great Room for Entertainment Area. Master Bath Shower will be like Alternate -No Door. Allowance for Pm-Fabricated Wood Burning Fireplace Unit in Master Bedroom Majestic Model d SHR42 with Two (2) 6" Legs, One (1) 8" Header, and One (I) 20" Deep x 66" Long Hearth .............................................. S 2,100.00 36" Masonry Fire Box in Great Room Synthetic Stone Face for Great Room Fireplace by L and S Stone. All interior Doors will be 13/8" Flush Solid Hardboard Pre-Primed painted. - - Door to Master Bedroom- Solid Hardboard Pre-Primed, TO" Pocket Door. 12' Folding Glass Wall consisting of Four (4) 3'0" Full view doors with wood stiles hinged together and sliding on an overhead track. Ali Exterior Doors by Allowance including Hardware ............................................ S 4,600.00 .;. :. Overhead Doors and Openers by Central State Distributors .................................... $ 3,050.00 Plumbing Allowance - which includes Wall Supply Pipes to be Type "L" Copper, " Copper Main Line and Branch to Baths %:" Copper P.V.C. Drain lines s ?r to meet codes, Two (2) Bradford White 50 Gallon ie IVatefHeaters.......... $ 15,090.00 Plumbing Fixtures Allowance-Includes Tubighower, Faucets, Drains, Toilets and - - Seats, Tub and Shower Doors, Sinks and Faucets, Whirlpools and Faucets with Trim Kits and includes all plumbing fixtures ........................................ S 6,900.00 Heating Allowance - Includes / V Floor System One Tmne gas-fired furnace, model TUC120, with an output capacity of 120,000 BTU's per hour to be installed in the basement. One Trane condensing unit, model TTB060, with a cooling capacity of 60,000 BTU's per hour and a cooling coil, model TXA060 to be installed - in the plenum of your furnace. Two Honeywell thermostats, model T-8400 will be installed to give you finger -tip control of the system One Trion media air filter and sleeve will be installed in the return plenum of your initiate, One April Air hutrAdifier, model 760 will be installed. Included is all necessary F,WC zoning equipment to zone the glassed porch separate from the first floor. 2nd Floor System One Trane gas-fired furnace, model TUC060, with an output capacity of 60,000 BTU's per hour to be installed in loft. One Trane condensing unit, model TTB036, with a cooling capacity of 36,000 BTU's per hour, and a cooling coil, model TXCO42 to be installed - in the plenum of your furnace. One Honeywell thermostat, model T-8400 will be installed to give you - finger -tip control of the system One Trion media air filter and sleeve will be installed in the return plenum of your furnace. It would be advisable for you to have all the exposed duct work in your loft wrapped with 6" insulation. This area may be within several degrees of the outside temperature, which can cause moisture to form on the ducts, As a result, this moisture then may run out or run of the exposed ducts. We cannot assume any responsibility for any problems caused by this moisture..: ......................................... S 23,846.00 Gas Propane Tank Allowance .................................................................... $ 2,000.00 Electric - 320 Amp Service, 350 Locations at $25.00 Each, 105 Fixture Hangings, 7 G.F.Ls, Inspections. - Light Fixtures Allowance - which includes Fixtures, Recessed Lighting, Fans, Chimes, -. .: `: Exterior Lights, Fan/Light Combos, and Bulbs ....................................... $ 10,000.00 7 Total Painting Allowance for New and Existing House - includes wall paper stripping, Woodwork paint stripping, and exterior painting ..................................... AITFRlr)R TRIM S32,000.00 Casing: '/," x 3 '/+" Sanitary casing paint grade. Base: ''/," x 5 %z' Sanitary Base paint grade. Closet Allowance........ - ............................................................... S 3,500.00 Curved Maple Bench in Great Room Allowance ..................................... 5 1,500.00 Window Seat in Bedroom 4A203 Allowance ........................................ S 650.00 Bath Accessories Allowance - Mirrors ......................................................... $ 1,500.00 Floor Covering Allowance - Including All Ceramic Tile in all areas, Carpet, Vinyl, - Hardwood & Finishing, Marble, Underlayment and Installation and Sanding .41?u?z , of Existing floors .................................... ............ ........................ 540,000-00 Security - Sound - Specialty Wiring Allowance .............................................. S 5,000.00 Interior Door Locks - Plymouth Schlage, F-Series, #605 Finish. House Cleaning before Moving Allowance ............... .. ........ ........................... F_V1 9 C TgDl14F S 2,000.00 Labor and Material for Renovators of Items Listed Below ate: Cut Out Brick on Existing House to Connector to New House. New Office Wall and #122 Double Door installed. Two (2) Doors Library to be removed and walled in. Remove existing stairs, install new stairs - rails (in Stair Allowance). Try to use existing Stair Rail parts. New Stairs in Existing House may not be in Compliance with New Building Codes. Remove -wall -door Living Room to Hall, install Two (2) 4" Permacast Columns . Three (3) window seats in Library (Delete). Remove Gas stove and restore firebox and mantle. Not responsible for Relining or Rebuilding New Chimney. You may have to Reflue inside of Chimney to make it safe. Cut opening in masonry wall Rear Exercise Room up to 4' Wide if Possible. Build 2od floor subfloor to receive New Stairs. - These items listed have an Allowance of ........................................... 5.15,000.00 Refinish Bath and Mud Room Floors are part of Flooring Allowance. New Ceramic Floor in Kitchen are part of Flooring Allowance. All Flooring and Finishing are part of Flooring Allowance. New Kitchen Cabinets and Counter Tops are part of Kitchen Cabinets and Appliances Allowance. Book Shelves in Library are part of Kitchen Cabinets and Appliances Allowance. Refinish and Paint Existing Cabinets also New Hardware are part of Kitchen Cabinets and Appliances Allowance. All New Wallpaper will be by Owner. To Remove Door Hardware and Replace 1" and 2" floor door locks with New Modem door locks. Will require additional Labor Cost to Furnish, Install, Repair and Patch Existing holes in Doors and Trim Work. Remove all existing wallpaper and refinish wag on la and 2°d floors to accept new painting (in Painting Allowance). Strip and refinish existing trim and windows (in Painting Allowance). This Contract does not include installing Drywall or coating over any Existing walls and Ceilings. If Well is in location ofNew Building -No New Well in Contract. PP&L Main Power Lines from Street to House may have to be relocated to build New House. Contractor will coordinate work, but Costs will be by Owner. Existing Windows (It may be Cost Effective to Replace Windows rather than repair and repaint existing windows. All Utility Expenses will be paid in their entirety by Owner. 8 ALLOWANCES: Throughout these specifications, the owner will be confronted by the occasional utilization of allowances. Allowances are utilized where practical, to allow the owner as much latitude as possible to design and firnish then home to suit their individual tastes. The dollar figure represents an approximated price for which the con ractor believes quality items may be purchased and installed, irobding sales tax. It is understood that the owner atone is responsible for staying within his allocation for each item and that Die exceeds the allowance, the additional cost will be paid to the contractor at the construction payment scheduled i irtiediatety following completion of the rnentioned work. OWNER POSSESSION AND SETTLEMENT: It shall be understood that before the owner takes possession of the house, all outstanding invoices, change orders and e.,== shall be paid in full and settlement made with Contractor. Contractor reserves right to substitute material as to like quality. Owner/ Co or ORDER DOCUMENT PROJECT: Robert V. Gothier, Jr. and Bonny L Gothier 99 Manor Drive Dillsburg, PA 17019 CONTRACTOR: HARRY L. SMITH 8 SONS, INC. 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 WORK ORDER NUMBER: 1 DATE: September 11, 2002 ARCHITECTS PROJECT NO.: CONTRACT DATE: May 30, 2002 CONTRACT FOR:$1,025,W0.00 THE CONTRACT IS CHANGED AS FOLLOWS: to 15 hours ............. Put in ditch 100 LF of 4" PVC ............................................................................. $156.03 Pitt in ditch 200 LF of 1 1/2" PVC ........................................................................ $265.74 ZA amne un unv? ........................................ ,................. ........................... .v.,.?.a.? 90XT Skidicacer to vmrK On electnc line. ausi. Oraae tTenn ....................................... a I,WO.w 1. 111L V I\IV,I I,,--11. v. v. vv.......v ........................................................... ?., 2. NET CHANGE BY PREVIOUSLY AUTHORIZED WORK ORDERS ......................... $0.00 3. THE CONTRACT SUM PRIOR TO THIS WORK ORDER WAS.............. ............... $1,025,000.00 4. THE CONTRACT SUM WILL BE INCREASED BY THIS WORK ORDER IN THE AMOUNT OF ....................................................................................... $6,695.35 5. THE NEW CONTRACT SUM INCLUDING THIS WORK ORDER WILL BE .............. $1,031,695.35 THE CONTRACT TIME WILL BE EXTENDED BY FOUR WEEKS (28) DAYS. THE DATE OF SUBSTANTIAL COMPLETION AS OF THE DATE OF THIS WORK ORDER THEREFORE IS: HARRY L. SMITH CONTRACTOR 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 BY: DATE: BY: DA" ORDER DOCUMENT PROJECT: Robert V. Gothier, Jr. and Sonny L. Gothier WORK ORDER NUMBER: 2 99 Manor Drive DATE: September 25, 2002 Dilisburg, PA 17019 ARCHITECTS PROJECT NO.: CONTRACT DATE: May 30, 2002 CONTRACT FOR:$1,025,000.00 CONTRACTOR: HARRY L. SMITH & SONS, INC. 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 THE CONTRACT IS CHANGED AS FOLLOWS: nIIU s Lauri !VI cjG "U w ................................................................................... 7 w. Materials from Yale Electric ................................................................................ $1,369.08 lines are installed, labor to oracle dust ............................................................... $810.00 Homestead Excavating backfllling electric, spread dust after fine installed, 10 hours...... $600.00 Stone dust from Penney ..................................................................................... $663.27 1. THE ORIGINAL CONTRACT SUM WAS ............................................................0 i,utD,vvv.Uv 2. NET CHANGE BY PREVIOUSLY AUTHORIZED WORK ORDERS ......................... $6,695.35 3. THE CONTRACT SUM PRIOR TO THIS WORK ORDER WAS ............................. $1,031,695.35 4. THE CONTRACT SUM WILL BE INCREASED BY THIS WORK ORDER IN THE AMOUNT OF ....................................................................................... $4,442.35 5. THE NEW CONTRACT SUM INCLUDING THIS WORK ORDER WILL BE............ $1,036,137.70 THE CONTRACT TIME WILL BE EXTENDED BY L_) DAYS. THE DATE OF SUBSTANTIAL COMPLETION AS OF THE DATE OF THIS WORK ORDER THEREFORE IS: HARRY L. SMITH CONTRACTOR 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 BY: DA' BY: DATE: ORDER DOCUMENT PROJECT: Robert V. Gothier, Jr. and Bonny L. Gothier WORK ORDER NUMBER: 3 99 Manor Drive DATE: October 21, 2002 Dillsburg, PA 17019 ARCHITECTS PROJECT NO.: CONTRACT DATE: May 30, 2002 CONTRACT FOR:$1,025,000.00 CONTRACTOR: HARRY L SMITH & SONS, INC. 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 THE CONTRACT IS CHANGED AS FOLLOWS: Credit for installing Advantech subtlcoring ............................................................. 4449.10 NOl 1. THE ORIGINAL CONTRACT SUM WAS ........................................................... $1,025,000.00 2. NET CHANGE BY PREVIOUSLY AUTHORIZED WORK ORDERS ......................... $11,137.70 3. THE CONTRACT SUM PRIOR TO THIS WORK ORDER WAS ............................. $1,036,137.70 4. THE CONTRACT SUM WILL BE INCREASED BY THIS WORK ORDER IN THE AMOUNT OF ....................................................................................... -$449.10 5. THE NEW CONTRACT SUM INCLUDING THIS WORK ORDER WILL BE............ $1,035,688.60 THE CONTRACT TIME WILL BE EXTENDED BY L-) DAYS. THE DATE OF SUBSTANTIAL COMPLETION AS OF THE DATE OF THIS WORK ORDER THEREFORE IS: HARRY L. SMITH CONTRACTOR 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 BY: BY: DATE: DATE: VVORK ORDER DOCUMENT PROJECT: Robert V. Gothier, Jr. and Bonny L. Gothier WORK ORDER NUMBER: d 99 Manor Drive DATE: January 9, 2003 Dillsburg, PA 17019 ARCHITECTS PROJECT NO., CONTRACT DATE: May 30, 2002 CONTRACT FOR:$1,025,000.00 CONTRACTOR: HARRY L. SMITH & SONS, INC. 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 THE CONTRACT IS CHANGED AS FOLLOWS: Arress dear from Plav room to Attic and build walkwav - and enclose oval window: $1,772.27 ..........................---.......... ........ $1,772.27 $2,947.58........_ ................................................. $2,947.58 Pocket Door at Kitchen Area wW) 3'0" x 68" doors; now (2) 3'0" x 8'0" dM . $655.50 .......................................................... $655.50 water Goset room remove rvizuenai gnu Lawr ............................................................... ........................ $280.00 1. THE ORIGINAL CONTRACT SUM WAS ........................................................... $1,025,000.00 2. NET CHANGE BY PREVIOUSLY AUTHORIZED WORK ORDERS. ... ......... ...$10,688.60 3. THE CONTRACT SUM PRIOR TO THIS WORK ORDER WAS ............................. $1,035;688.60 4. THE CONTRACT SUM WILL BE INCREASED BY THIS WORK ORDER IN THE AMOUNT OF ................................. ..... ........... ....... -......... ............. ...... $8.824.68 5. THE NEW CONTRACT SUM INCLUDING THIS WORK ORDER WILL BE............ $1,044,51328 THE CONTRACT TIME WILL BE EXTENDED BY (_j DAYS. THE DATE OF SUBSTANTIAL COMPLETION AS OF THE DATE OF THIS WORK ORDER ? THEREFORE IS: HARRY L. SMITH CONTRACTOR 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 BY: DA' ?? Lf lJ 1 ?4r??' BY: DATE: fr'? L Labor to install Sauna vs. Labor and Material to install Steamer... No Charge .............. $0.00 ORDER DOCUMENT PROJECT: Robert V. Gothier, Jr. and Bonny L. Gothier 99 Manor Drive Dillsburg, PA 17019 CONTRACTOR: HARRY L. SMITH & SONS, INC. 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 WORK ORDER NUMBER: 5 DATE: February 26, 2003 ARCHITECTS PROJECT NO.: CONTRACT DATE: May 30, 2002 CONTRACT FOR:$1,025,000.00 THE CONTRACT IS CHANGED AS FOLLOWS: Cut out concrete Pour Footers 1. THE ORIGINAL CONTRACT SUM WAS ............................................................. $1,025,000.00 2. NET CHANGE BY PREVIOUSLY AUTHORIZED WORK ORDERS .......................... $19,513.26 3. THE CONTRACT SUM PRIOR TO THIS WORK ORDER WAS ............................... $1,044,513.28 4. THE CONTRACT SUM WILL BE INCREASED BY THIS WORK ORDER IN THE AMOUNT OF ............. ............................................................... ............ $10.014.20 5. THE NEW CONTRACT SUM INCLUDING THIS WORK ORDER WILL BE............ $1,054,527.48 THE CONTRACT TIME WILL BE EXTENDED BY C_) DAYS. THE DATE OF SUBSTANTIAL COMPLETION AS OF THE DATE OF THIS WORK ORDER THEREFORE IS: HARRY L. SMITH CONTRACTOR 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 BY: BY: JYORK ORDER DOCUMENT PROJECT: Robert V. Gothier, Jr. and Bonny L. Gothier 99 Manor Drive Dillsburg, PA 17019 CONTRACTOR: HARRY L. SMITH & SONS, INC. 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 WORK ORDER NUMBER: 6 DATE: April 22, 2003 ARCHITECTS PROJECT NO.: CONTRACT DATE: May 30, 2002 CONTRACT FOR:$1,025,000.00 THE CONTRACT IS CHANGED AS FOLLOWS: NOT VALID UNTIL SIGNED BY OWNER AND CONTRACTOR 6 GFI Circuits (d). $45.00---- ............................ $360.00 r 1 ' 1. THE ORIGINAL CONTRACT UM WAS ........................................... $1,025,000.00 2. NET CHANGE BY PREVIO AUTHORIZED WORK ORDERS....... $29,527.48 3. THE CONTRACT SUM PRIG TO THIS WORK ORDER WAS ................................. $1,054,52748 4. THE CONTRACT SUM WILL BE INCREASED BY THIS WORK ORDER IN THE AMOUNT OF... ..................... .................................. ..................... ........ $12,911.63 5. THE NEW CONTRACT SUM INCLUDING THIS WORK ORDER WILL BE............ $1,067,439.11 THE CONTRACT TIME WILL BE EXTENDED BY TWO WEEKS (14) DAYS. THE DATE OF SUBSTANTIAL COMPLETION AS OF THE DATE OF THIS WORK ORDER THEREFORE IS: HARRY L. SMITH CONTRACTOR 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 BY: BY: DATE: DA &ORK ORDER DOCUMENT PROJECT: Robert V. Gothier, Jr. and Bonny L. Gothier 99 Manor Drive Dillsburg, PA 17019 CONTRACTOR: HARRY L SMITH & SONS, INC. 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 WORK ORDER NUMBER: 7 DATE: May 6. 2003 ARCHITECTS PROJECT NO.: CONTRACT DATE: May 30, 2002 CONTRACT FOR11,025,000.00 THE CONTRACT IS CHANGED AS FOLLOWS: to Durango Levers on the First Floor and Dark Bronze Patina Winchester Knobs on 5econo Patina Hinnas This quote does not include the replacement of knobs or hinges of axistinn Lincoln Glass Doors ......................... ........................................_............... $3,093.00 NOT VALID UNTIL SIGNED BY OWNER AND CONTRACTOR 1. THE ORIGINAL CONTRACT SUM WAS......... .............. 51,025,000.00 2. NET CHANGE BY PREVIOUSLY AUTHORIZED WORK ORDERS ............................ $42,439.11 ... $1,067,439.11 3. THE CONTRACT SUM PRIOR TO THIS WORK ORDER WAS... --- ........ ..... ... 4. THE CONTRACT SUM WILL BE INCREASED BY THIS WORK ORDER IN THE AMOUNT OF .......................................................................................... $3,093.00 5. THE NEW CONTRACT SUM INCLUDING THIS WORK ORDER WILL BE........ _.. $1,070,532.11 THE CONTRACT TIME WILL BE EXTENDED BY TWO WEEKS (14) DAYS. THE DATE OF SUBSTANTIAL COMPLETION AS OF THE DATE OF THIS WORK ORDER THEREFORE IS: HARRY L. SMITH CONTRACTOR 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 BY BY: DATE: DA ORDER DOCUMENT PROJECT: Robert V. Gothier, Jr. and Bonny L. Gothier 99 Manor Drive Dillsburg, PA 17019 CONTRACTOR: HARRY L. SMITH & SONS, INC. 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 WORK ORDER NUMBER: 8 DATE: May 6, 2003 ARCHITECTS PROJECT NO.: CONTRACT DATE: May 30, 2002 CONTRACT FOR:$1,025,000.00 THE CONTRACT IS CHANGED AS FOLLOWS: -- Upgrade the Master e rcom Double Doors from Solid Double Doors 5'0" x 68" to True Style Custom V Grade 60" x TO ...................................................................... $400.00 1. 1 rlt UYUbINAL I UIN I FCHL I JUM VVAS .... .......................................................... $1,025,000.00 2. NET CHANGE BY PREVIOUSLY AUTHORIZED WORK ORDERS ............................ $45,532.11 3. THE CONTRACT SUM PRIOR TO THIS WORK ORDER WAS ...................... ....... ... $1,070,532.11 4. THE CONTRACT SUM WILL BE INCREASED BY THIS WORK ORDER IN THE AMOUNT OF .......................................................................................... $400.00 5. THE NEW CONTRACT SUM INCLUDING THIS WORK ORDER WILL BE............ $1,070,932.11 THE CONTRACT TIME WILL BE EXTENDED BY TWO WEEKS (14) DAYS. THE DATE OF SUBSTANTIAL COMPLETION AS OF THE DATE OF THIS WORK ORDER THEREFORE IS: HARRY L. SMITH CONTRACTOR 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 BY: BY. DATE: DA- ORDER DOCUMENT PROJECT: Robert V. Gothier, Jr. and Bonny L. Gothier 99 Manor Drive Dillsburg, PA 17019 CONTRACTOR: HARRY L SMITH & SONS, INC. 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 WORK ORDER NUMBER: 9 DATE: June 6, 2003 ARCHITECTS PROJECT NO.: CONTRACT DATE: May 30, 2002 CONTRACT FOR:$1,025,000.00 1. THE ORIGINAL CONTRACT SUM WAS ............................................................... ?51,uzb,uuu.uu 2. NET CHANGE BY PREVIOUSLY AUTHORIZED WORK ORDERS ............................ $45,932.11 3. THE CONTRACT SUM PRIOR TO THIS WORK ORDER WAS ................................. $1,070,932.11 4. THE CONTRACT SUM WILL BE INCREASED BY THIS WORK ORDER IN THE AMOUNT OF .......................................................................................... $2,484.00 5. THE NEW CONTRACT SUM INCLUDING THIS WORK ORDER WILL BE............ $1,073,416.11 THE CONTRACT TIME WILL BE EXTENDED BY TWO WEEKS (14) DAYS. THE DATE OF SUBSTANTIAL COMPLETION AS OF THE DATE OF THIS WORK ORDER THEREFORE IS: HARRY L. SMITH CONTRACTOR 5943 DEVONSHIRE I-iARRISSURG, PA HEIGHTS ROAD 17112 BY: BY: THE CONTRACT IS CHANGED AS FOLLOWS: ORDER DOCUMENT PROJECT: Robert V. Gothier, Jr. and Bonny L. Gothier 99 Manor Drive Dillsburg, PA 17019 CONTRACTOR: HARRY L. SMITH & SONS, INC. 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 WORK ORDER NUMBER: 10 DATE: June 9, 2003 ARCHITECTS PROJECT NO.: CONTRACT DATE: May 30, 2002 CONTRACT FOR:$1,025,000.00 THE CONTRACT IS CHANGED AS FOLLOWS: 15%.......... $ 158.73 $1,216.93 $1,216.93 1. THE ORIGINAL CONTRACT SUM WAS ....... .............. ................._......._................ $1,025,000.00 2. NET CHANGE BY PREVIOUSLY AUTHORIZED WORK ORDERS... ...... .................... $48,416.11 3. THE CONTRACT SUM PRIOR TO THIS WORK ORDER WAS ................... ......... $1,073,416.11 4. THE CONTRACT SUM WILL BE INCREASED BY THIS WORK ORDER IN THE AMOUNT OF ............................................................................................ $1,216.93 5. THE NEW CONTRACT SUM INCLUDING THIS WORK ORDER WILL BE............ $1,074,633.04 THE CONTRACT TIME WILL BE EXTENDED BY TWO WEEKS (14) DAYS. THE DATE OF SUBSTANTIAL COMPLETION AS OF THE DATE OF THIS WORK ORDER THEREFORE IS: HARRY L. SMITH CONTRACTOR 5943 DEVONSHIRE HEIGHTS ROAD HARRISBURG, PA 17112 BY: DATE: BY: 141 --VtjT TP -VT4TTP TT n g m Z o Q m z o 0 a 0 O x 3 x p 5c c o s O rn O O O m i m G1 m s m m (D N # a < a W N O N C N 3 CD v,ca m ?m co N ,Ao m @ a O W CL a m . - x. O m m Ca Q N N G m CD m o o=o m'o' m$ ?aCD Q n CD g '3 H 0.. y C M C O= m T . -F T n a n m c o ff CD N m ° m N r Q m C1 O ' O T CD 0 m CD D) 3 to m m m 3 -n D Na m '? 3 n CL G) am m ? a a c m m ° o o ` w 0 a N N ? O O C Q W Q O p W A O) O A T ?Oo A A IV Co co A O A 00 cc N Cr N Qr ? ? ? W W p v (b O O CT (T t` (T A C1 N s ` 1 -? 0 N N N N N w m m O O O O N 0 F3 iZ5 O 0 0 O O 0 0 O W W W w W 00 N N 0 N N O O M w N 0 a m rj Cp ,.. ,.. <o CO N N N N + a co A O OOs b. IC J co A A O CQ O O A O A O co N Cn O O N O C1 O y W W p p 0 A (b O O O 4.n CO m m m m m CC m m m m m m m N b CD 0 0 coo O m ?Q o < ? m o . m p ao Q m W? ° . m Q o C D p in o b c o c o c o o c o ni c o c c o o m o m 0 m 00 m o m 0 m v-m? F O yam cod N G a <O ym s m m ;o zz 0 m O z z r O O 2 m 3 O C w a CD m N mm Q n m CL m. m' a CL Z o O a ? ? O m m x' O 3 ? O ? a # 3 a m_ G m m .-1 m D o In . m m B 0 o m ? ' n 4 + D m O O N m N 6 ? CD N II 6 m @ ? CD O 03 ro n -z to D o o m ? ? m a N W N co ? d m m N W a N .P W 3 a ? O 6s p a i0 O W ., I N 1 t .w 3 N 1 O? O G O TF VT-TTT:l Tom' T? ? 1? UO of Equipment at the Gothier Job Descri tion Price per piece Total luminum Pole Jacks 331.10 662.20 luminum Pole Jacks 176.00 704.00 inum Pole Extensions 71.50 143.00 110.00 440.00 Braces 49.50 198.00 lank 430.10 430.10 fete sets of metal Scaffolds 123.20 492.80 old brace - orie r set 1 18.81 75.24 Safe Rail Brackets 350.00 Nails 300.00 20 Jacks Roof 35.19 703.78 llaneous Tools and Su lies 1,500.00 l• Ban 88.00 176.00 5,175.12 EXHIBIT "B" RRY I L. SMT & SONS, INC. BEFORE A PANEL OF a FBITR LTORS Claimant V. ROBERT' V. GOTHEER, JR. and BONNY L. GO=R Respondents RESPONDENTS' ANSWER TO STATEMENT OF CLALM AND COUNTERCLALM AND NOW comes Respondents, Robert V. Gothier, Jr. and Bonny L. Gothier, by and through their counsel, Law Offices Stephen C. Nudel, PC, averring as follows: Admitted. 2. Admitted. 3. Admitted in part, Denied in part. It is admitted that the parties entered into a construction agreement (Claimant's Exhibit "A") on or about May 30, 2002 ("Agreement"). The Agreement is a document that speaks for itself, therefore any characterizations of it are Denied. 4. Admitted in part, Denied in part. It is admitted that the Respondents requested work necessitating the preparation of separate work. The work orders are documents that speak for themselves, therefore any characterization of them is Denied. By way of further answer, the work orders do not necessarily represent the agreement of the parties. The work orders attached at E:diibit "B" are all unsigned. With respect to work orders nine and ten, Respondents never received these work orders, never authorized the work therein and do not owe Claimant for these work orders. Respondents incorporate the allegations in their counterclaims into this paragraph. All remaining allegations are Denied. Change orders one and six through 10 provide for a total of 98 additional days which was never agreed to by Respondents, and which would not accurately reflect time required to complete the change orders. 5. Denied. By way of frther answer, Claimant was provided a notice of default on May 9, 2003. Claimant took no action to correct the default causing Respondents to terminate the contract on July 3, 2003 and find substitute contractors to finish performance of the Agreement. True and correct copies of the Letters sent to Claimant are attached as Exhibit "F"' By way of further answer, the ultimate termination of the Agreement was consentual. 6. Denied. Claimant was paid for all work it performed. Respondents rightfully terminated the Agreement. Respondents incorporate the allegations in this counterclaim into this paragraph. In addition, this paragraph contains a conclusion of law, to which no response is required. To the extent a response is required, the paragraph is Denied. By way of further answer, Claimant's Exhibit C does not accurately reflect a summary of the costs of the project. With respect to Exhibit C, Claimant and Respondents agr. ee that Claimant is not owed any money from Draws one, Dvo, three and four. Claimant and Respondents also agree chat Claimant performed no work with respect to draw seven and that Claimant Resaondenrs will continue =he labels used or he exhibits by Cia=ants to =rl; ;xa con_fusiou. Because C'.a== aCached E°,tiibirs .k-E :0 -,Is comDiast. Respondenrs ??ll star. ?Hnr e7,hfhirs wirh Exhibn F. 2 is not owed any money for draw seven. However, with respect to draws one, two and four, Respondents incurred additional expenses to complete or repair the work done'oy Claimant. With respect to draw five, Claimant has a balance because it was not paying its subcontractors and the work was incomplete and Respondents incurred additional expenses to complete the work under draw five. W`rh respect to draw six, Claimant has a balance because it was not paying it subcontractors and the work was incomplete and Respondents incurred additional expenses to complete the work under draw six. As a result of the Claimant's breach of the Agreement, Respondent was required to pay a subcontractor directly under draw six in order to facilitate the project. With respect to draw eight, Claimant performed no work under this draw and Respondents incurred additional expenses to complete the work. With respect to draw nine, Claimant did not complete the work under this draw and Respondents incurred additional expenses to complete the work. With respect to draw ten, Claimant performed no work under this draw and Respondents incu-.ed additional expenses to complete the work. With respect to draw eleven, Claimant did not achieve substantial completion of the project as defined under the Agreement, and accordingly, Claimant is not entitled to any money from this draw. With respect to the claim for substantial completion o_f wor'on the existing house, Claimant did not complete the work on the exisring house and Respondents incurred additional expenses in completing the work. Respondents' Exhibit "G" accurately re lects a 3 V, V -nancial summary of the amount paid to Claimant and additional amounts scent by Respondents. 7. Admitted in part, Denied in parr.. The Claimant's Exhibit "D" does accurately reflect the amount and payments made on work orders one through eight. With respect to work orders nine and ten, Exhibit "D" does not accurately reflect what is owed. The response to paragraph 4 is incorporated herein. 8. Denied. Proof of any amount owing is demanded at hearing. Ir. fact, Claimant owes Respondents $118,706.58, plus costs and attomey fees as provided in the Agreement. 9. It is admitted that Respondents have refused to pay Claimant any further amount, because Claimant was paid for all work it performed under the Agreement. 10. Denied. On or about July 3, 2003, by agreement of the parties, Respondents allowed vlr. Smith and his son to take their equipment off the project site. Respondents do not possess any of the equipment listed on Claimant's Exhibit E. and are unaware of the whereabouts of the equipment listed in Exhibit E. Proof of the value of the equipment is demanded at hearing. Byway of further answer, the Agreement, in section 202, allows Respondents to retain equipment and materials in the event of a default by the Claimant. Counterclaim of Respondents 11_. During the spring of 2003, it was reported o Respondents that Claimant, despite'oeing paid by Respondents, was act paying the subcontractors performing the work under the Agreement. 12. Claimant was submitting requests for draws under the Agreement for work that was not performed. 13. Claimant was not completing construction on the project in a timely manner as outlined in the Agreement. The Agreement provides that completion must occur within one year. 14. At that time, the HVAC and drywall contractor had not been paid by Claimant, despite Claimant billing for and Respondents paying Claimant for their respective work. 15. The-HVAC contractor refused to perform any further work until payment was made by Claimant. 16. The masonry subcontractor refused to perform any work on Respondents' project as a result of unpaid invoices by Claimant on this project and other projects with the Claimant. 17. On May 9, 2003, Claimant was given notice of default for failure to pay the subcontractors. See Exhibit 'T' 18. Around this time, the electrical and plumbing subcontractors/employees of Claimant informed the Respondents that they quit performing work on [he proiect because of a lack of payment by Claimant. 5 ? ,J? y 19 Based on information and belief, Claimant encouraged the masonry subcontractor to overbill Respondents the amount Claimant owed the masonry subcontractor on otherjobs. 20. Based upon information and belief, many suppliers.were unwilling to supply Claimant with materials for this project due, in part, to his lack of payment. 21. Having failed to cure the default, Respondents terminated the Agreement on July'), 2003. See Exhibit F°. 22. - After a meeting between the parties, Claimant and Respondent agreed that the termination would be consentual. 23. The Agreement provides that Claimant is liable to Respondents for costs to complete the Agreement in excess of the stated amount. 24. Respondents incurred substantial expenses in engaging substitute contractors to finish the work not performed by Claimant under the Agreement, in paying subcontractors that were not paid by Claimant, and in repairing defective or incomplete work of Claimant. Attached hereto and incorporated herein as Exhibit "0" is a summary of the payments made to Claimant and the payments made to substitute contractors to complete the work contemplated by the Agreement. 25. As a result of the defaults and delays of the Claimant, Respondent Robert God-der had to expend an enormous amount of time coordinating and facilitating the project. 6 T *' • 26. Due to Respondent Robert Gotbier's professional experience, he was able to perform the function of managing the project himself rather than hire a substitute to perform this function. 27. From on or about Vtay 2003, Respondent spent an enormous amount of time and resources to further the completion or the project that would not have othe-Rise been aecessarv but for Claimant's default. Robert V. Gothier continues to spend management time for the project. 23. Respondent Robert Gothier was able to act in this capacity due to his professional experience. Were he not able to do so, Respondents would have needed to hire a general contractor to oversee the project after Claimant defaulted and the subsequent termination of the Agreement. 29. As a result, Respondent is entitled to be awarded the $30,750 for substantial completion as damages for the time and resources he expended to manage and complete the project. 30. Allowing Claimant a credit for substantial completion would be a windfall for Claimant because Respondent had the necessary expertise to act in his own 'oehalf with respect to completing the project. Granting Claimant a credit for substantial completion would be an unjust result. 31. Tile Respondents incurred °;117,956.58 or costs/damages over and above the contracted price to secure substitute performance, which amount is subject to further verification by Respondents. 32. The Agreement urovides for he award of costs and attorneys fees to the prevailing party. s r, s . 33. Several items of work performed by Claimant needed to be replaced or redone at the expense of Respondents. 34. Claimant's work was incomplete or defective in several areas causing damage to Respondents. 35. A sink and two spigots in the garage require installation. 36. The floors of the basement and garage evert- installed and subsequently repaired incorrectly and require replacement at a cost to the Respondents. 37. The wiring in the kitchen is not installed in accordance with the applicable code and requires additional expense to r,-;,oair. WHEREFORE, Respondents request that the Claimants prayer for relief be Denied and Judgment be found in favor of Respondents in the amount of $113,706.58, plus costs of attomeys fees, interest and costs to correct ongoing deficiencies. Respectf?illy submitted, LAW OFFICES STEPHEN C. N=L, PC Date: January 24, 2005 3 PA iD No. 41 /O3 219 Pine Street Harrisburg; PA 17101 (717) 236-5000 Counsel JO Respondents f. 4- x HARRY L. SMITH & SONS, INC Petitioner, V. ROBERT V. GOTHIER, JR. and BONNY L. GOTHIER, Respondents . IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 03-6494 CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing has been duly served upon the following, by depositing a copy of the same in the United States Mail, first-class, postage prepaid, at Harrisburg, Pennsylvania, as follows: Roger R. Laguna, Jr., Esquire Laguna Reyes Maloney, LLP 1119 North Front Street Harrisburg, PA 17102 Date: S-j Attorney ID #80142 219 Pine Street Harrisburg, PA 17101 (717) 236-5000 Attorney for Respondents HARRY L. SMITH & SONS, INC. Plaintiff, V. ROBERT V. GOTHIER, JR. and BONNY L. GOTHIER, Defendants IN THE COURT OF COMMON PLEAS DAUPHIN COUNTY, PENNSYLVANIA NO. 1230 CV 2006 MP CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing has been duly served upon the following, by depositing a copy of the same in the United States Mail, first-class, postage prepaid, at Harrisburg, Pennsylvania, as follows: Roger R. Laguna, Jr., Esquire Laguna Reyes Maloney, LLP 1119 North Front Street Harrisburg, PA 17102 Date: ;I,6-4 Andrew T. Kravitz, Esquire Attorney ID 480142 219 Pine Street Harrisburg, PA 17101 (717) 236-5000 Attorney for Defendants viAGFD, IN THE COURT OF COMMON PLEAS FOR DAUPHIN COUNTY, PENNSYLVANIA G & C ASSOCIATES, LLC, 2933 N. Front Street Harrisburg, PA 17110 PLAINTIFF CIVIL ACTION - LAW CJ NO.: 2006 ITT 1203 DJ VS. CLARISSA TAYLOR 420 Harris Street Harrisburg, PA 17102 DEFENDANT r N j c:_ TO: G & C Associates, LLC: o You are hereby notified to file a written response to the enclosed Counterclaim within`lY twenty(20) days from service hereof or a judgment may be entered against you. ANSWER TO COMPLAINT AND COUNTERCLAIM AND NOW comes Clarissa Taylor, by and through her attorney, James W. Harris, Esquire and states the following: 1. Admitted to the extent that it alleges such. 2. Admitted. 3. Denied. 4. Admitted. 5. No answer is required as the Plaintiff did not allege anything. 6. Admitted. 7. Admitted. 8. Denied. 9. It is denied that Defendant owes any amount to the Plaintiff. 10. See Answer #9 above. 11. Denied. It is alleged and asserted that Defendant could not owe this amount. 12. Admitted but Defendant is not liable for utility incurred before she took possession of the premises. 13. See Answer #12 above. 14. Admitted. 15. See Answer 412 above. 16. Denied. Defendant has refused to pay that portion of the bill, which she did not use. 17. Denied. It is alleged and asserted that Plaintiff did not render any services to the Defendant. COUNT 2: BREACH OF IMPLIED CONTRACT 18. No answer is required. 19. Admitted. 20. Admitted to the extent she would pay for services used. 21. See Answer #16 above. 22. Denied. See Answer #16 above. 23. Denied. See Answer #16 above. 24. Denied. See Answer #16 above. COUNT 3: OUANTUM MERUIT 25. No answer is required. 26. Denied. It is alleged that defendant did not breach the lease. 27. See Answer #16 above and #26. 28. Denied. See Answer #26 above. 29. See Answer #26 above. 30. See Answer #26 above. 31. Denied. See Answer #16 above. WHEREFORE, Defendant demands judgment in her favor including costs. COUNTERCLAIM: DEFENDANT vs. PLAINTIFF 32. Plaintiff incorporates her above answers set forth at length herein. 33. Plaintiff Clarissa Taylor (Thereafter "Plaintiff") resides at 420 Harris Street, Harrisburg, PA 17102. 34. G & C Associates, LLC (Hereafter "Defendant") is a Pennsylvania limited Liability Company with its registered office located at 2933 North Front Street, Harrisburg, PA 17110. 35. The dwelling is located in Dauphin County, Pennsylvania. 36. On or about November 1, 2005, Plaintiff rented a dwelling located at 1932 Susquehanna Street, Harrisburg, PA at a rate of five hundred fifty ($550.00) dollars per month. 37. The Defendant represented that the dwelling was habitable, safe and in good condition. 38. This representation was fraudulent and designed to mislead the Plaintiff. 39. In January 2006, Plaintiff was descending the stair steps inside the dwelling when one of the steps gave way causing her to fall breaking her right leg. 40. The aforesaid accident was caused by the negligence, carelessness and/or recklessness of Defendant, acting individually and/or by and through their agents (ostensible, apparent and/or actual), servants, workmen and/or employees and consisting, inter alia, of the following: (a) carelessly and negligently allowing and permitting a defect to exist in said dwelling; (b) carelessly and negligently allowing and permitting the existence of the dangerous and/or defective stair steps; (c) carelessly and negligently allowing and permitting said steps to exist in state of disrepair; (d) negligently creating a defect on said steps; (e) negligently creating a dangerous and/or defective condition or conditions on said steps; (f) failing to maintain said steps in a safe and proper condition; (g) failing to maintain said steps so as to allow the dangerous and/or defective condition of same; (h) failing to regularly inspect said steps so as to insure they were in a proper and safe condition; (i) failing to warn and/or notify Plaintiff of the existence of a defect on said steps; (j) failing to warn and/or notify Plaintiff of the degree of disrepair of said steps; (k) failing to warn and/or notify Plaintiff of the degree of disrepair of said steps; (1) failing to remedy the defect on said steps; (m) failing to remedy the dangerous and/or defective steps; (n) failing to remedy the disrepair of said steps; (o) failing to provide safe stair steps for her to travel in the dwelling; (p) negligently creating the dangerous condition inside the dwelling; (q) negligently creating the dangerous condition of the stairway in the dwelling; (r) violating the ordinances of the City of Harrisburg and the statutes of the Commonwealth of Pennsylvania; and (s) otherwise failing to exercise due care under the circumstances as pled above. 41. As a result of Defendant's negligence as aforesaid, Plaintiff sustained a fracture and dislocation of her right foot, which condition is of a permanent nature. Plaintiff also makes a claim herein for such injuries, conditions and consequences of which she has no present knowledge. 42. As a further result of this accident and by reason of the injuries sustained, Plaintiff has in the past been obliged to receive and undergo medical attention and care and to expend various sums of money and/or to incur various expenses for the injury she has suffered, and she may in the future continue to be obliged to expend such sums or to incur such excess of $1,500.00. 43. As a further result of this accident and by reason of the injuries sustained, Plaintiff has sustained an impairment of her earning capacity and power. 44. As a further result of this accident and by reason of the injuries sustained, Plaintiff has in the past incurred and may in the future continue to incur other financial expenses or losses. 45. As a further result of this accident and by reason of the injuries sustained, Plaintiff has in the past suffered and may in the future continue to suffer great pain, agony, mental anguish, embarrassment and humiliation, and has in the past been hindered and may in the future continue to be hindered from attending to her daily duties, functions and occupation, to her great detriment and loss. WHEREFORE, Plaintiff demands judgment against the named Defendant, individually, jointly and/or severally, in a sum in excess of Fifty Thousand ($50,000.00) Dollars. Res ly sub FSAW By: James W. Harris, Esquire Attorney for the Plaintiff 48 East Princess Street York, Pennsylvania 17403 (717) 845-3505 I.D. #10373 VERIFICATION I verify that the statements made in this ANSWER TO COMPLAINT AND COUNTERCLAIM are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. section 4904 relating to unsworn falsification to authorities. • Date: James W. Harris, Esquire Attorney for the Defendant 48 East Princess Street York, Pennsylvania 17403 (717) 845-3505 I.D.#10373 CERTIFICATE OF SERVICE AND NOW, this day of 2005, I, James W. Harris, W 4W Esquire, hereby certify that a true and correct copy of the foregoing ANSWER TO COMPLAINT AND COUNTERCLAIM was served on Michael B. Volk, Esquire by United States Mail, first class, postage prepaid, addressed as follows: Michael B. Volk, Esquire Capozzi & Associates, P.C. 2933 North Front Street Harrisburg, Pennsylvania 17110 By. • James W. Harris, Esquire Attorney for the Defendant 48 East Princess Street York, Pennsylvania 17403 (717) 845-3505 I.D. #10373 Curtis R. Long Prothonotary Office of the Protbonotarp Cumberranb Countp Renee K. Simpson Deputy Prothonotary John E. Slike Solicitor nL -*-) L9(5 CVIL TERM ORDER OF TERMINATION OF COURT CASES AND NOW THIS 28TH DAY OF OCTOBER, 2009, AFTER MAILING NOTICE OF INTENTION TO PROCEED AND RECEIVING NO RESPONSE - THE ABOVE CASE IS HEREBY TERMINATED WITH PREJUDICE IN ACCORDANCE WITH PA R C P 230.2. BY THE COURT, CURTIS R. LONG PROTHONOTARY One Courthouse Square • Carlisle, Pennsylvania 17013 • (717) 240-6195 • Fax (717) 240-6573