Terms of Service

J.L. Adrian Electric LLC d/b/a Adrian Electric

Version 7 — Effective October 15, 2026
(Applies only to proposals, estimates, quotes, change orders, and booking confirmations signed or accepted on or after this date)

J.L. Adrian Electric LLC d/b/a Adrian Electric • TECL #39231 • P.O. Box 174, El Campo, TX 77437 • (979) 559-3684

Regulated by The Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711, 1-800-803-9202, 512-463-6599; website: www.tdlr.texas.gov

KEY TERMS AT A GLANCE

This summary is for convenience. The full Terms below control.

• Labor rate: $175 per man-hour during normal business hours; after-hours, weekend, and holiday rates are on the Rate Sheet.
• Service calls: A minimum fee is due to schedule. It is non-refundable once a crew is dispatched.
• Projects: 75% deposit when you sign, unless your proposal sets a different schedule. Any remaining balance is due when we issue the Completion Notice.
• Card payments: A card processing fee of up to 3.5% is added in the payment portal. Fee-free payment options, if available, are shown there.
• Free estimates: Phone and photo estimates are free. On-site consultations have a fee that is credited if you accept the proposal.
• Warranty: 1 year on projects, 90 days on service calls and repairs, 30 days on temporary or storm repairs. No warranty on work in recalled, known-hazard, or obsolete equipment.
• Changes: Changes to price or scope must be approved in writing. Our field crews cannot change the price or scope.
• Payments: Pay through the link on your JobTread invoice, or by check payable to J.L. Adrian Electric LLC mailed to P.O. Box 174, El Campo, TX 77437. Our crews do not collect payment. We never change payment instructions by email or text.
• Disputes: Disputes go to binding arbitration in Wharton County, Texas, except small claims, liens, and collections (Section 85).
• Your insurance first: You agree to look to your own property insurance for property damage, and your insurer cannot sue us for what it pays (Section 28.1).
• Limits on our liability: Our liability is limited to the contract price, and we are not responsible for recalled, known-hazard, or obsolete equipment (Sections 20 and 26).
• Time limit: Claims must be filed within two years (Section 55).

PART A — THE AGREEMENT

1. ACCEPTANCE OF THESE TERMS

By signing or approving any proposal, estimate, quote, or change order issued by J.L. Adrian Electric LLC d/b/a Adrian Electric ("Contractor"), whether through JobTread or on paper, the customer ("Client") agrees to these Terms of Service, available at:

https://jladrianelectric.com/terms-of-service-v7

Booking Confirmations: For a first-time service call with no signed proposal, Contractor will send a booking confirmation by text or email that states the service call fee, any travel charge, and a link to these Terms. Client's confirmation of the booking, or payment or card authorization to schedule, is acceptance of these Terms for that call.

Each new proposal, estimate, quote, change order, or booking confirmation is a separate acceptance of these Terms. Where these Terms are embedded in or attached to the signed document, that version governs that document.

Electronic signatures, approvals, and documents (including through JobTread, text, or email) are binding to the same extent as handwritten signatures under the Texas Uniform Electronic Transactions Act.

If Client is a business or other entity, the individual signing represents that they are authorized to bind Client to these Terms.

Online Forms: Client also accepts these Terms by checking a box agreeing to them on Contractor's website, online forms, or booking pages. That acceptance applies to any work Client later requests and Contractor performs, unless a later signed document identifies a different version of these Terms.

Note: Proposals signed through HubSpot before November 2025 remain subject to the Terms in effect when signed. Proposals signed under Version 6 (effective November 14, 2025) remain subject to Version 6, available at https://jladrianelectric.com/terms-of-service-november-2025. New proposals are issued exclusively through JobTread.

2. CONTINUING APPLICATION OF TERMS

Once Client has accepted these Terms, they apply to all later work Contractor performs for Client, including service calls, emergency work, return trips, and warranty visits, until replaced by a new written agreement signed by both parties.

If Contractor issues a new proposal, change order, or booking confirmation for later work, the version of these Terms linked in that document governs it. If no new document is issued, the most recent version Client accepted governs. Labor rates, service call fees, and travel charges for time-and-materials work are those on the Rate Sheet in effect on the date the work is performed (Section 3).

3. DEFINITIONS AND RATE SHEET

• Work: The line items in the signed proposal and any approved change orders, and nothing else (Section 7).
• Man-hour: One worker for one hour. Two workers for one hour is two man-hours.
• Rate Sheet: Contractor's published schedule of labor rates, after-hours rates, holidays, service call minimums, consultation fees, travel zones, remobilization charges, materials markup, and administrative fees, available at https://jladrianelectric.com/rate-sheet and on request. Prices in a signed proposal control for that proposal. The Rate Sheet in effect on the date of work controls for time-and-materials work, service calls, and change orders priced by the hour.
• Normal Business Hours: Monday–Friday, 8:00 AM–5:00 PM, excluding holidays listed on the Rate Sheet.
• Completion Notice: The notice Contractor issues through JobTread when the Work is complete (Section 12).
• Authorized Representative: A person Client names to approve work, changes, and payments (Section 56).
• Owner or Designee: Contractor's owner, Jacob Adrian, or a person he designates in writing.

Acknowledgments and Written Notices Are Optional: These Terms are complete and effective on their own. Where these Terms say Contractor may ask Client to sign an acknowledgment, or may give a recommendation or notice in writing, Contractor is not required to do so. Not doing so does not limit or waive any release, limitation, exclusion, warranty term, or allocation of risk in these Terms. By accepting these Terms, Client acknowledges each recommendation and risk they describe, for every job they cover.

4. PAYMENT TERMS

Payment is processed through Contractor's third-party payment processor, Truss, via the payment link on Contractor's JobTread invoices. Client enters card or bank information at the time of payment. Where offered, Client may choose to save a card with the processor for future invoices. Contractor does not store Client card information outside the PCI-compliant processor.

Card Processing Fee: Payments made by credit card are subject to a card processing fee of up to 3.5% of the payment amount, or the maximum permitted by applicable card network rules and law if lower. The fee is calculated and added by the payment processor in the payment portal and is shown to Client before the payment is submitted; it does not appear as a line item on Contractor's JobTread invoice. The fee is not applied where prohibited, including to debit cards where card network rules prohibit it. Payment methods without a card processing fee, if available, are shown in the payment portal. Where sales tax applies to a job, it may also apply to the card processing fee (Section 4.7).

Field Personnel Do Not Collect Payment: All payments go through the JobTread invoice link, by check mailed to Contractor's P.O. Box, or another method Contractor confirms by phone (Section 66). Contractor's crews do not accept cash, checks, or card information.

All amounts are non-refundable except as provided in Section 4.5 (On-Site Consultations), Section 5.2 (Declined Change Orders), Section 14 (Cancellation), Section 64 (Licensing Continuity), and Section 83 (Three-Day Right to Cancel), or as otherwise required by law.

4.1 Projects

• Deposit: Unless the proposal states a different payment schedule (such as progress billing on commercial or larger jobs), 75% of the proposal price is due when Client signs the proposal, to schedule the work and purchase materials.
• Final Payment: The balance, plus approved change orders, is due when Contractor issues the Completion Notice (Section 12). Waiting on a permit inspection does not delay final payment. Client may withhold only the value of open punch-list items under Section 12.2.
• Saved Cards: If Client saved a card, Client authorizes Contractor to charge it for each payment when due. The final payment will be charged no sooner than 3 business days after the Completion Notice, less the value of any open punch-list items.
• Residential Retainage: Texas Property Code § 53.101 permits an owner to retain 10% of the contract price for 30 days after completion to protect against lien claims by subcontractors and suppliers. Where Contractor uses no subcontractors or suppliers who could claim a lien, Contractor will provide a bills-paid affidavit at final payment on request.

4.2 Service Calls

A request that Contractor come to the property to check, diagnose, troubleshoot, or repair a problem is a Service Call.

• Minimum Fee: The Service Call minimum fee on the Rate Sheet covers the first hour on site. The normal-hours and after-hours amounts are stated when the call is scheduled.
• Payment to Schedule: Payment of the minimum fee and any travel charge (Section 4.6), or authorization of a card for those amounts, is required to schedule. These amounts are applied to the final service call invoice.
• When the Fee Is Earned: The minimum fee and any travel charge are earned when the crew is dispatched and are non-refundable after dispatch (Section 14). They are due whether or not a repair is performed, including when the problem is caused by the electric utility, a pre-existing condition, or Client's or a third party's equipment; when the problem resolved before or after arrival; when the repair requires materials not on hand; or when Contractor issues a proposal for additional work.
• Proposals After a Service Call: Diagnosis and a written proposal complete the Service Call. Declining a proposal does not reduce the Service Call fee. The fee is not credited toward a later proposal unless that proposal says so in writing and is accepted by its stated deadline.
• Additional Time: Time beyond the first hour is billed per man-hour at the Rate Sheet rate.
• Troubleshooting: Billed hourly as provided in Section 7.
• Materials and Balance: Materials and the balance are due on completion of the Service Call.

4.3 Late Payments

• Invoices unpaid 7 days after the due date are subject to a one-time late administrative fee of $35, which compensates Contractor for the cost of handling the late account and is not interest.
• Beginning 30 days after the due date, unpaid balances accrue simple interest at the lesser of 18% per year or the maximum rate permitted by Texas law, on the unpaid principal.
• Usury Savings: The total of all charges treated as interest under Texas law will not exceed the legal maximum. Any excess will be applied to principal or refunded, and the rate is reduced to the legal maximum.
• Contractor may pursue collection, including legal action or assignment of the debt. Client is responsible for reasonable collection costs, including reasonable attorney's fees.

4.4 Payment Disputes

Client agrees to notify Contractor in writing at office@jladrianelectric.com of any disputed charge within 10 business days of the invoice. Undisputed amounts remain due. Nothing in this Section limits any right Client has under federal or state law, including the right to dispute a charge with Client's card issuer.

4.5 Free Estimates, Rough Estimates, and On-Site Consultations

• Free Estimates: "Free estimate" means an estimate by phone or from photos and measurements Client provides. It does not include a site visit. Free estimates are subject to Sections 5.1 and 5.2.
• Rough Estimates: A Rough Estimate is not a bid, proposal, or final price. It is based only on Client's information, has not been verified on site, and will change if conditions differ. A Rough Estimate cannot be accepted, does not schedule work, and no deposit is collected on it.
• On-Site Consultations: On-site consultations are by appointment with Contractor's Owner or Designee. The consultation fee on the Rate Sheet is due in advance to schedule. If Client accepts the resulting final proposal within its stated validity period (including any written extension), the fee is credited in full toward the project. If the proposal is declined or expires, the fee is non-refundable, except that it will be refunded if Client cancels the appointment more than 24 hours in advance, or as required by law. Contractor may waive or defer the fee.

4.6 Travel Charges

Contractor's labor rates include travel within Contractor's normal service area (up to approximately 30 minutes' one-way drive time from Contractor's El Campo shop). For work beyond that, a flat travel charge by drive-time zone applies, as shown on the Rate Sheet. It is shown as a separate line on the estimate, proposal, or invoice, or stated when a Service Call or consultation is scheduled. Travel charges:

• are earned when the crew is dispatched, on the same terms as the Service Call minimum fee;
• apply to each day of travel on multi-day projects, as stated in the proposal;
• may be divided among multiple jobs on the same trip, at Contractor's discretion;
• do not apply to warranty callbacks for defects in Contractor's workmanship (Section 13); and
• are quoted individually for locations more than about two hours away, and may include lodging and per diem.

Contractor may waive or reduce a travel charge. A waiver applies only to the job for which it is stated.

4.7 Sales Tax

Contractor charges Texas sales tax only where the law requires it.

• Residential Repair and Remodeling, and New Construction: Labor is generally not taxable. Unless the proposal states otherwise, these jobs are priced as lump-sum contracts: the price includes any tax Contractor paid on materials, and no separate sales tax is added.
• Nonresidential Repair, Remodeling, and Maintenance: Labor and materials are generally taxable, and sales tax will be stated separately on the invoice.
• Separated Contracts: If the proposal separately states materials and labor, tax will be handled as the proposal states.
• Changes in Law or Classification: If sales tax is later found to be due on Client's charges, Client agrees to pay it.

4.8 Exemption and Resale Certificates

If Client claims an exemption from sales tax (for example, as a government entity, a qualifying nonprofit, an agricultural or timber exemption, or a contractor buying for resale), Client must give Contractor a properly completed Texas exemption or resale certificate before Contractor invoices the work. Without a valid certificate, Contractor will charge sales tax. If an exemption Client claimed is later denied, Client will pay the tax, penalties, and interest that result.

4.9 Financing (Residential Homeowners Only)

Financing is available only to homeowners for residential projects. It is not offered for commercial, industrial, agricultural, or general contractor work. Contractor may refer a homeowner to HFS Financial, which arranges personal home improvement loans for homeowners. HFS Financial is not a lender or a loan broker, and neither is Contractor. Any loan is a personal loan between Client and the institution that funds it. Contractor does not lend money, arrange loans, set loan terms, or make credit decisions, and is not responsible for whether a loan is approved, funded, or on what terms. Client's obligation to pay Contractor under these Terms does not depend on any loan. If a loan is delayed, denied, or not funded for any reason, Client still owes Contractor in full when payment is due.

4.10 Insurance-Funded Work

If Client expects an insurance company to pay for the Work, Client still owes the full price whether or not the insurer pays, approves, or delays payment. Contractor is not bound by an adjuster's scope or pricing. Any difference between the insurer's payment and Contractor's price is Client's responsibility.

5. PRICE ESCALATION

Quoted prices are valid for 30 days from the estimate date. After that, Contractor may re-price the work. If, before installation, the cost of materials Contractor has not yet purchased, or of any single major item (such as a panel, generator, transformer, or switchgear), increases by more than 5% from the quoted cost, Contractor may increase the price by the documented amount of the increase after written notice. If the start of the Work is delayed more than 90 days after the proposal is signed for reasons not caused by Contractor, Contractor may also re-price labor at the current Rate Sheet rate. Client may accept the adjusted price or cancel and receive a refund of any deposit not already spent on materials, permits, or work performed.

5.1 Client-Provided Measurements and Site Information

Estimates are based on the square footage, room count, wiring distances, and other information Client provides, because Contractor usually does not visit the site before estimating unless an on-site consultation is scheduled under Section 4.5. Client represents that this information is accurate to the best of Client's knowledge.

Where a proposal states the quantities it assumes (for example, "based on a 15 ft underground run as provided by Client") and lists a per-unit price for additional quantities (for example, "additional footage $__/ft installed"), those per-unit prices apply to any additional quantities found on site.

Contractor will verify actual conditions on the scheduled start date. If they differ materially from Client's information, Contractor will document the difference, notify Client before proceeding with the affected work, and issue a change order under Section 9. Client is responsible for the adjusted price, subject to Section 5.2.

Client is encouraged to measure carefully or provide documentation (such as a floor plan, appraisal district record, or builder's plan) before requesting an estimate.

5.2 Inaccurate Client Information; Declined Change Orders

If conditions verified on site differ materially from Client's information and Contractor issues a change order, Client may (1) approve the change order, (2) proceed with the original scope if Contractor determines it can still be performed as quoted, or (3) terminate the project. If Client terminates, Client owes: (a) the Service Call minimum fee for the site visit and verification; (b) the cost of special-order or non-returnable materials, plus restocking or return fees on returnable materials; and (c) permit or other costs actually incurred. Contractor will refund the remaining deposit within 10 business days. A change order caused by inaccurate Client information is not a cancellation by Contractor and does not entitle Client to a full refund.

6. CARD AUTHORIZATION, CHARGEBACKS, AND PROCESSING FEES

If Client saves a card in the payment portal, Client authorizes Contractor to charge it for all amounts owed when due, including deposits, final payments, material invoices, late charges, and approved change orders. If Client does not save a card, Client agrees to pay each invoice promptly.

Client agrees to contact Contractor first and try to resolve billing disputes directly before starting a chargeback. Client authorizes Contractor to provide the card issuer and payment processor with these Terms, the signed proposal and change orders, the Completion Notice, photographs, time records, and correspondence.

If a chargeback or payment reversal is withdrawn by Client or decided in Contractor's favor, Client will reimburse the processor's dispute fee and a $50 administrative fee. Work may be suspended while a chargeback is pending and until balances are paid. Client is responsible for processing fees if manual processing is required at Client's request. Nothing in this Section limits any right Client has under federal or state law to dispute a charge with Client's card issuer.

PART B — THE WORK

7. SCOPE OF WORK

• Service Calls: Include inspection, diagnosis, and minor repairs that can be done within the first hour with standard tools and materials. Work beyond the first hour is billed hourly (Section 4.2).
• Projects: The Work consists only of the line items in the signed proposal and any approved change orders. Items marked "recommended," "optional," "not included," or "declined," and any change order Client did not approve, are not part of the Work. Statements, texts, or conversations are not part of the scope unless written into the proposal or an approved change order. Unforeseen conditions requiring more work or materials are handled by change order (Section 9).
• Troubleshooting: All troubleshooting, whether during a service call, project, panel replacement, or other work, is billed hourly at the Rate Sheet rate. No troubleshooting time is included in any flat-rate or fixed-price proposal unless the proposal says so in writing. Troubleshooting is billable even when no fault is found or the problem cannot be reproduced, and when a warranty call is found to be caused by something other than Contractor's work.
• Licensed Scope: Contractor does not install or service fire alarm systems, or perform other work that requires a license Contractor does not hold, unless the proposal states it and the work is performed by a properly licensed person.

7.1 AFCI and GFCI Troubleshooting — Panel Replacements and Upgrades

When Contractor replaces a panel or installs new AFCI, GFCI, or dual-function breakers in a dwelling, pre-existing wiring conditions can cause them to trip. These include shared or cross-connected neutrals between circuits, neutral-to-ground faults, damaged insulation, improper splices, grounding problems, wiring methods no longer allowed by code, and leakage current from connected equipment. These are conditions of the existing wiring, not defects in Contractor's work. No troubleshooting of these trips is included in a panel replacement or upgrade price. If troubleshooting is needed, it is billed hourly and documented by change order before work proceeds. A multiwire branch circuit protected by a listed two-pole AFCI or GFCI breaker is a code-compliant installation, not a defect. Contractor will not remove or bypass code-required AFCI or GFCI protection to stop nuisance tripping (Section 7.6).

7.2 Retrofits

When a component must be retrofitted into existing equipment that is not designed for it, Contractor recommends replacing the equipment instead. This Section is that recommendation, whether or not it is repeated on site. Examples include a main breaker in a panel or switchgear made by a manufacturer that is out of business, has discontinued the product line, or no longer makes compatible parts. If Client chooses the retrofit, or approves work that requires one, Client accepts it under these Terms, whether or not Contractor also asks Client to sign an acknowledgment (Section 3). Retrofit work carries no warranty from Contractor. Section 20 (Known-Hazard, Recalled, and Obsolete Equipment) governs all retrofits, including emergency life-safety retrofits.

7.3 Underground Utilities

Contractor is not responsible for damage to underground utilities, pipes, conduit, or other buried items that were not disclosed or marked before digging, unless caused by Contractor's negligence. Client is responsible for locating and marking all private underground items. Texas 811 notification and trenching are governed by Section 21 and Section 51.

7.4 Scope Types: Power To, Connect, and Start-Up

For equipment work, the proposal will state which of these applies. If none is stated, the scope is "Power To."

• Power To: Contractor provides the circuit, disconnect, or receptacle. Client connects its equipment.
• Connect: Contractor makes the final electrical connection to Client's equipment.
• Start-Up: Contractor connects, energizes, and verifies operation of the equipment.

Contractor does not test, energize, or operate Client's equipment unless Connect or Start-Up is in the signed scope. Any test or energizing of Client's equipment done at Client's request outside that scope is at Client's sole risk.

7.5 No Inspection Beyond Scope; Recommendations; Surge Protection

Unless a system inspection is in the signed proposal, Contractor does not inspect, evaluate, or test any part of Client's electrical system, equipment, or premises outside the Work. Any recommendation about existing conditions is a courtesy based only on what Contractor happened to see. It is not a complete list, and the absence of a recommendation does not mean no problem exists. Except for conditions caused by Contractor's negligence or the Work, Client remains responsible for existing equipment and conditions (Section 19).

Surge Protection: The National Electrical Code requires a surge protective device when a dwelling unit's electrical service is replaced or upgraded. On those jobs, the device is part of the Work and cannot be declined. For all other homes and buildings, Contractor recommends whole-building surge protection and will quote it on request.

7.6 Code and Listing Limits

No acknowledgment, waiver, instruction, or agreement can authorize Contractor to violate the electrical code, an equipment listing, or the law. Contractor will not:

• remove, bypass, or swap out code-required AFCI, GFCI, or surge protection;
• install a breaker or component that is not listed or classified for use in that equipment;
• install equipment it reasonably believes is not listed or acceptable to the authority having jurisdiction (Section 38); or
• leave an installation it knows to be unsafe energized.

Contractor's crews may decline any instruction that would require one of these things (Section 22).

8. ACCESS, SITE PREPARATION, AND FINISH SURFACES

Client grants Contractor access to the areas needed for the Work. Contractor may cut openings in walls, ceilings, floors, or other surfaces to run wiring. Unless the proposal includes it, Contractor does not patch, repair, or restore drywall, tile, paint, flooring, cabinetry, texture, or other finishes, and Client is responsible for restoration. Patching may be offered as an optional proposal line or by change order. Contractor does not perform non-electrical trade work itself; any patching subcontractor requires a signed change order, paid before that work starts.

8.1 Concealed Conditions, Site Conditions, and Property

• Concealed Conditions: Contractor is not responsible for damage to plumbing, ductwork, wiring, or other items concealed in walls, ceilings, floors, or attics that could not reasonably be seen or anticipated, unless caused by Contractor's negligence.
• Septic Systems, Drain Fields, and Buried Items: Client shall disclose the location of septic tanks and lines, drain fields, private water lines, and other buried items before work begins. Contractor is not responsible for damage to undisclosed items, or for ruts or surface damage to lawns or unpaved areas from necessary vehicle and equipment access, unless caused by Contractor's negligence.
• Trench Restoration: Unless the proposal says otherwise, trench restoration means rough backfill only. Sod, landscaping, irrigation repair, concrete, and paving are not included.
• Belongings: Client shall move personal property, stored items, and vehicles out of work areas, attics, and access paths before work begins.
• Animals and Gates: Client shall secure pets and livestock and tell Contractor which gates must stay closed. Client is responsible for animals that escape or are injured, except to the extent caused by Contractor's negligence.
• Children and Occupants: Client shall keep children, pets, and others away from open panels and active work areas.
• Hazardous Materials: See Section 22.
• Roof and Wall Penetrations: Unless the proposal includes it, Contractor does not perform roofing or flashing. Where the Work passes through a roof or exterior wall, Client is responsible for having the penetration flashed and sealed by a roofer or other qualified trade. Contractor is not responsible for water intrusion, mold, or resulting damage at penetrations it did not flash and seal under the proposal.

9. CHANGE ORDERS

All changes to the scope or price require a written change order issued by Contractor through JobTread and approved by Client or Client's Authorized Representative. Approval may be given by signing in JobTread, or by replying "APPROVED" in writing (text or email) to Contractor's change order message. Contractor's issuance of the change order is Contractor's agreement to it. Verbal agreements are not binding change orders.

• Who May Issue Change Orders: Only Contractor's Owner or Designee may issue change orders. Office staff designated in writing may issue change orders for items with pre-set prices in Contractor's price catalog. Field personnel do not price, issue, or approve changes (Section 63).
• Code-Required Changes: Governed by Section 16.

9.1 Field Change Procedure

When a crew finds a condition that requires a change, the crew will: (1) stop the affected work; (2) photograph and document the condition; (3) contact Contractor's office; and (4) wait for Contractor to issue a change order and for Client's approval before doing the changed work. Work not affected by the change may continue.

9.2 Pricing Changes, Credits, and Not-to-Exceed Change Orders

• Added Work: Priced at the per-unit prices in the proposal, if any; otherwise at the Rate Sheet labor rate plus materials at cost plus Contractor's standard markup.
• Deleted Work: Credited using the same method, less materials already purchased that cannot be returned and any restocking fees.
• Unknown Conditions: Where the extent of a condition cannot be known in advance, Contractor may issue a not-to-exceed change order. Contractor will bill actual time and materials up to that amount and will not exceed it without a new approval.

9.3 Response Time, Remobilization, and Paused Jobs

• Response Time: If a change order is needed to continue, and Client does not respond within 4 business hours, Contractor may move the crew to other work. Crew downtime while waiting is billable under Section 15.
• Remobilization: If the crew must leave and return because of a pending approval, a Client delay, or a site that is not ready, a remobilization charge applies as shown on the Rate Sheet.
• Paused Jobs: If Client pauses a job for more than 14 days, Contractor may invoice for work completed and materials purchased to date. If a job stays paused for more than 60 days, Contractor may re-price the remaining work or treat the job as cancelled by Client under Section 14.

10. SCHEDULING AND SITE READINESS

• Schedule Dates: Start and completion dates are good-faith estimates, not guarantees. They depend on site readiness, weather, inspections, the utility, material availability, and other trades.
• Ready Site: A site is ready when Contractor's crew has access to the work areas; the areas are clear (Section 8.1); work by other trades that must come first is done; any needed approvals (Section 54) are in hand; and pets and livestock are secured.
• Grace Period: If the crew cannot get access or the site is not ready within 30 minutes after the scheduled arrival, the crew may leave. The trip is billed as a Service Call minimum and any travel charge on a service call, or as a delay and remobilization on a project (Sections 9.3 and 15).
• When Work Can Start: Where the three-day right to cancel applies (Section 83), work will not start until it ends, unless Client signs a request for immediate performance for an emergency. Where a homestead contract is required (Section 23), work will not start until it is signed and filed.
• No Damages for Delay: Contractor is not liable for damages caused by delay. Client's remedy for delay is an extension of time.

11. MATERIALS

Materials not yet installed remain Contractor's property until paid in full. Ownership does not shift the risk of loss: theft, loss, and damage at the site are Client's risk under Section 52. If unpaid, Contractor may reclaim uninstalled materials under Section 29. For installed materials, Contractor keeps all lien and other rights the law provides (Section 23). Client shall not remove, alter, or dispose of installed but unpaid materials.

12. COMPLETION, PUNCH LIST, AND ACCEPTANCE

12.1 Completion Notice

When the Work is complete and operational, Contractor will issue a Completion Notice through JobTread. The final invoice may serve as the Completion Notice. For a service call, completion is the end of the diagnosis or repair. A pending permit inspection does not delay the Completion Notice or final payment. If the work fails inspection because of Contractor's workmanship, Contractor will correct it at its own cost (Section 54).

12.2 Punch List

Within 3 business days after the Completion Notice, Client may give Contractor one written list of items Client believes are incomplete or incorrect. Contractor will complete the punch-list items within its scope. Until then, Client may withhold only an amount reasonably equal to the value of the open items. The rest of the balance is due under Section 4.1.

12.3 Acceptance

If Client does not give a punch list within 3 business days after the Completion Notice, the Work is accepted. If Client puts any part of the Work into regular use before completion, that part is accepted for payment purposes. Acceptance does not waive claims for hidden defects that were not reasonably discoverable, or Client's warranty rights (Section 13). Items within Contractor's scope that are not on the punch list remain covered by the warranty.

12.4 Completion Record

At completion, Contractor will record the readings and information appropriate to the Work, which may include voltages, phase rotation, receptacle configurations, breaker sizes, and photographs. On three-phase jobs, the record described in Section 39 is part of the completion record. Client may request a copy.

13. WORKMANSHIP WARRANTY

Contractor warrants that the Work will be performed in a safe, good, and workmanlike manner, in accordance with the proposal, these Terms, and the electrical code in effect for the Work (Section 16). If a defect in Contractor's workmanship appears during the warranty period, Client may notify Contractor in writing, and Contractor will repair the defective portion of its work at no charge for labor, materials, or travel.

• Warranty Periods, counted from the date of the Completion Notice:
  • Projects: 1 year.
  • Service calls and repairs: 90 days.
  • Temporary, storm, and emergency repairs: 30 days (Section 45).
  • Work on Known-Hazard or Obsolete Equipment, retrofits, and emergency life-safety retrofits: no warranty (Section 20).
• When It Applies: The warranty applies once the Work is paid in full and runs from the original completion date (Section 71).
• Not Covered: The warranty does not cover, and is void as to any part of the Work affected by: (a) normal wear, misuse, or alteration; (b) work or interference by others (Section 18); (c) power quality, utility, weather, or other external events (Section 34); (d) Client-supplied or Client-specified equipment or materials (Section 38); (e) continued use of equipment or a circuit after a defect or malfunction became apparent, to the extent that use caused or worsened the damage; (f) Known-Hazard Equipment, Obsolete Equipment, retrofits, and emergency retrofits (Section 20); or (g) reused existing wiring or equipment (Section 19).
• Not Our Workmanship: If a warranty call is found to be caused by something other than Contractor's workmanship, it is billed as a Service Call.
• Manufacturer Warranties: Manufacturer warranties on materials and equipment pass through to Client (Section 48).
• Non-Waivable Rights: Nothing in this Section limits any right Client has that cannot be waived under Texas law.
• Original Client Only: The warranty is for the original Client only and does not transfer to later owners, tenants, or buyers.

14. CANCELLATION POLICY

This Section is subject to the three-day right to cancel in Section 83, where it applies.

• On-Site Consultations: Governed by Section 4.5.
• Service Calls: If Client cancels before the crew is dispatched, Contractor will refund the Service Call fee and travel charge in full. Once the crew is dispatched, the Service Call fee and any travel charge are fully earned and non-refundable, plus the cost of any materials purchased for the call.
• Projects — More Than 24 Hours Before the Scheduled Start: Contractor will refund the deposit, less: the cost of materials and special-order items already purchased (or restocking and return fees if they can be returned); permit fees paid; and a $100 administrative fee. The refund will be made within 10 business days.
• Projects — Within 24 Hours of the Scheduled Start: Client owes all costs Contractor incurred to that point (labor, materials including special-order and non-returnable items, restocking fees, permits, travel, and subcontractors), plus liquidated damages of the greater of $500 or 10% of the contract price for lost scheduling capacity and overhead. The balance of the deposit, if any, will be refunded within 10 business days.
• Projects — After Work Begins: Client owes all costs incurred to date, plus liquidated damages of 10% of the unbilled balance of the contract price for lost overhead and profit.
• Liquidated Damages: The parties agree that Contractor's damages from a late cancellation are difficult to estimate and that these amounts are a reasonable forecast of them, not a penalty.
• Inaccurate Client Information: If Client terminates after a change order caused by inaccurate Client information, Section 5.2 governs.

15. CLIENT DELAYS

If Client causes delays (for example, by not providing access, delaying approvals, or not having the site ready), Contractor may charge crew downtime at the Rate Sheet labor rate for each worker on site, plus remobilization and rescheduling costs. Contractor will notify Client of the delay in writing (text or email) when practical. These charges are invoiced through JobTread and due on receipt.

16. PERMITS AND CODE COMPLIANCE

Unless the proposal states otherwise, Client is responsible for obtaining and paying for required permits. Where the authority having jurisdiction requires the licensed electrical contractor to obtain the electrical permit, Contractor will obtain it and the permit fee is passed through to Client.

Contractor will perform the Work in accordance with the edition of the National Electrical Code adopted by the Texas Department of Licensing and Regulation under 16 Tex. Admin. Code § 73.100, and any local amendments adopted by the authority having jurisdiction, as in effect on the date the permit is issued (or, if no permit is required, the date the Work begins). Where there is no local authority having jurisdiction, Contractor still performs the Work to the National Electrical Code and equipment listings.

Pre-existing code violations discovered during the Work are Client's responsibility and are not in the original scope unless a change order is approved.

• Code-Required Work: Where the code or the authority having jurisdiction requires additional work because of the Work (for example, AFCI or GFCI protection, surge protection, grounding and bonding, or service equipment corrections), that work will be priced by change order and cannot be declined. If Client declines it, Contractor may stop work under Section 22, and Client owes costs incurred to that point.
• Utility and Inspector Requirements: Contractor is not responsible for delays caused by the electric utility or the authority having jurisdiction. Additional work they require (for example, meter base location, clearances, or code interpretations) will be priced by change order.
• Emergency Work: For emergency work, Contractor will obtain any required permit as soon as practicable after the work. Permit fees are passed through to Client.

17. SUBCONTRACTORS

Contractor may use licensed or qualified subcontractors for portions of the Work under Contractor's supervision. Contractor is not liable for the acts or omissions of contractors or vendors Client hires directly, or for the independent acts of subcontractors outside the scope of the Work and beyond Contractor's direct control.

18. THIRD-PARTY WORK

Contractor is not responsible for delays, damage, or warranty voids caused by work of other contractors, Client's own repairs, or any third-party interference with the Work, unless Contractor approved that involvement in writing in advance.

Other Contractors During an Open Job: Until Contractor issues the Completion Notice, Client shall not allow anyone else to alter, repair, connect to, or perform electrical work on any part of the Work, or on the circuits, panels, or equipment in the work area, without first giving Contractor written notice. If Client does:

1. Contractor may suspend work until it can inspect and document the condition of the Work, and that inspection is billable;
2. the warranty is void as to any part of the Work touched, altered, or affected by others;
3. Client shall pay for all work performed and materials supplied through the date of notice; and
4. except to the extent caused by Contractor's negligence, Client is responsible for loss, damage, or code problems resulting from the other person's work.

Nothing in this Section limits Client's right to get emergency repairs needed to prevent imminent injury or property damage. In that case, Client shall notify Contractor as soon as practicable and keep removed parts under Section 55.

19. PRE-EXISTING CONDITIONS

Contractor is not liable for damages, delays, additional costs, or safety hazards arising from pre-existing conditions of the electrical system, including outdated panels, non-compliant wiring, undersized conductors, improper grounding, damaged insulation, or prior unpermitted work, unless caused by Contractor's own negligence or modification. If Client declines recommended corrective work, Client assumes the associated risks, and Contractor may ask Client to sign a Declined Work Acknowledgment.

• Fragile Existing Components: Older breakers, devices, panels, and wiring insulation may break or fail when handled during normal work. Replacing them is billable by change order and is not a defect in Contractor's work, unless caused by Contractor's negligence.
• Reuse of Existing Wiring: If Client asks Contractor to reuse existing conductors, raceways, or equipment instead of replacing them, the warranty does not extend to the reused items, whether or not Client signs a separate acknowledgment (Section 3).

19.1 Grounding, Bonding, and Gas Piping

When Contractor replaces or upgrades a service or works on grounding, the code may require Contractor to correct the grounding electrode system or to bond metal water piping, gas piping, or corrugated stainless steel tubing (CSST) as required by code and the gas piping manufacturer. Where earlier plumbing work replaced metal water pipe with plastic, the building may have lost a grounding electrode, and a new electrode may be required. These corrections are code-required work priced by change order (Section 16).

19.2 Ungrounded Wiring

Many older buildings have two-wire circuits with no equipment ground. Contractor recommends rewiring these circuits. If Client chooses to replace devices without rewiring, Contractor will use one of the options the electrical code allows: a non-grounding replacement receptacle; a GFCI receptacle or GFCI breaker, labeled "No Equipment Ground"; or a grounding-type receptacle protected by an upstream GFCI and labeled "GFCI Protected" and "No Equipment Ground." Contractor will not install a grounding-type receptacle on an ungrounded circuit without GFCI protection (Section 7.6).

GFCI protection reduces the risk of shock but does not provide an equipment ground. Surge protectors, surge strips, and some electronics, computers, and appliances need an equipment ground to work properly or to be protected, and may be damaged or fail to work on an ungrounded circuit. By choosing device replacement instead of rewiring, Client accepts these limitations and the risks of the existing ungrounded wiring, whether or not Client signs a separate acknowledgment (Section 3). The existing wiring carries no warranty (Section 19). Contractor's warranty covers only the new devices it installs.

20. KNOWN-HAZARD, RECALLED, AND OBSOLETE EQUIPMENT

20.1 Definitions

Some panels, breakers, and wiring have known safety problems, recalls, or poor failure histories. These include, but are not limited to:

• Federal Pacific Electric (FPE) "Stab-Lok" panels and breakers;
• Zinsco and Sylvania-Zinsco panels and breakers;
• Pushmatic (Bulldog and ITE) panels;
• certain Challenger panels and breakers;
• single-strand aluminum branch-circuit wiring;
• knob-and-tube wiring; and
• any panel, breaker, or device that a manufacturer, the U.S. Consumer Product Safety Commission, or a court has identified in a recall, safety notice, or settlement for any model, date range, or production run, including products of manufacturers still in business.

Together, these are "Known-Hazard Equipment." Equipment whose manufacturer is out of business, has discontinued the product line, or no longer makes direct replacement parts is "Obsolete Equipment."

20.2 No Duty to Research Recalls

Contractor does not research the recall, listing, or safety history of existing equipment. If Contractor does not warn Client about a piece of equipment, that does not mean the equipment is safe or free of recalls. Client may check recall status at www.saferproducts.gov.

20.3 Contractor's Options

Contractor recommends replacing Known-Hazard and Obsolete Equipment. Contractor may decline to work on, add to, or re-energize it, or may limit the Work to making it safe. If Client keeps the equipment and asks Contractor to work on it (including installing a manufacturer-approved or classified replacement breaker), Client accepts this Section 20 by requesting or approving that work, whether or not Contractor also asks Client to sign an acknowledgment (Section 3). Contractor will install only breakers and parts that are listed or classified for use in that equipment (Section 7.6).

20.4 No Warranty

Work on or in Known-Hazard or Obsolete Equipment, including retrofits under Section 7.2 and emergency retrofits under Section 20.6, carries no workmanship warranty from Contractor, including under Section 13. Breakers and parts installed in that equipment carry only the manufacturer's warranty, if any. If Texas law imposes a warranty that cannot be waived, it is limited to performing the physical installation in a good and workmanlike manner.

20.5 Release

CLIENT RELEASES CONTRACTOR FROM, AND AGREES CONTRACTOR IS NOT LIABLE FOR, ANY LOSS, DAMAGE, FIRE, OR CLAIM ARISING FROM THE CONDITION, DESIGN, AGE, DEFECT, RECALL, OR FAILURE OF KNOWN-HAZARD OR OBSOLETE EQUIPMENT, OR OF ANY RETROFIT, WHETHER IT OCCURS DURING OR AFTER THE WORK, AND EVEN IF CONTRACTOR OPENED, WORKED ON, OR ADDED A BREAKER OR PART TO THAT EQUIPMENT, INCLUDING CLAIMS THAT CONTRACTOR'S OWN NEGLIGENCE CONTRIBUTED. THIS RELEASE DOES NOT APPLY TO BODILY INJURY OR DEATH, CONTRACTOR'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR ANY RIGHT THAT CANNOT BE WAIVED UNDER TEXAS LAW.

20.6 Emergency Life-Safety Retrofits

When an equipment failure or outage creates an immediate threat to health or safety, Contractor may perform a temporary retrofit to restore power. Examples include occupants on oxygen or medical equipment, dangerous heat or cold, people who cannot safely leave the building, and hospitals or care facilities. This applies even when Known-Hazard or Obsolete Equipment cannot be replaced quickly, or when Client declines to replace it.

• Authorization: Verbal, text, or email approval from Client or an Authorized Representative (including the emergency approvals described in Section 56) is enough to start. Sections 20.4, 20.5, and this Section apply to every emergency retrofit, whether or not Contractor asks Client to sign an acknowledgment (Section 3).
• Temporary Only: An emergency retrofit restores power. It does not repair or upgrade the equipment. Contractor recommends that Client replace the equipment within 30 days. This Section is that recommendation; Contractor may also send it in writing. The decision to replace it, and when, is Client's alone. After that period, Contractor may decline to service the retrofitted equipment until it is replaced.
• Approvals and Testing: If the authority having jurisdiction requires a permit, field evaluation, or other approval of the retrofit, its cost is Client's.
• Billing: Emergency retrofits are billed under Section 45.
• No Warranty; Release: Sections 20.4 and 20.5 apply.
• Client's Decision Not to Replace: If Client declines or delays replacement, Client accepts all risk from the continued use of that equipment.
• Occupants and Tenants: Client is responsible for notifying tenants and occupants. Client shall defend and indemnify Contractor against claims by tenants, occupants, or others, to the extent the claims arise from the condition of Client's equipment, Client's decision to retrofit instead of replace, or Client's delay in replacing it.

21. UNDERGROUND FACILITIES, TRENCHING, PROPERTY LINES, AND PRIVATE LOCATES

Client represents that all information Client gives Contractor about property lines, easements, desired routing, and the location of private underground facilities (irrigation, landscape lighting, septic lines and drain fields, private water wells, pet fences, and similar items) is accurate and complete. Client shall provide a current survey or plat if requested.

Where Contractor performs the excavation, Contractor will request a Texas 811 locate as required by law. Where Client or another party excavates, that party is responsible for the 811 request. Texas 811 does not locate private facilities; Client is responsible for locating and marking them. Contractor will locate and dig in accordance with:

• (a) Client's written or clearly marked instructions;
• (b) the Texas 811 marks; and
• (c) any private locator marks paid for and provided by Client.

If, solely because of inaccurate or incomplete information supplied by Client or Client's agents (surveyor, locator, etc.):

• installed facilities turn out to be on neighboring property or in an easement;
• facilities must be relocated, removed, or abandoned; or
• a neighbor, utility, or government authority asserts a claim, lien, fine, trespass action, or damage,

then:

• Client remains responsible for the full contract price, which is not subject to offset or refund;
• the cost to relocate, repair, defend, or settle is Client's and is billed as extra work; and
• Client shall defend, indemnify, and hold Contractor harmless from those claims, damages, costs, fines, and attorney's fees, except to the extent caused by Contractor's negligence.

Contractor's responsibility for repair or relocation is limited to cases where Contractor deviated from Client's written instructions or the Texas 811 or private locator marks without Client's prior written approval. In those cases only, Contractor will bear the reasonable direct cost to relocate its own facilities, but not consequential damages or third-party repair bills.

Contractor is not a licensed surveyor or private utility locator and relies on the information and marks provided by Client, Texas 811, or Client-paid locators. Trenching conditions are governed by Section 51.

22. STOP WORK, SAFETY, AND REFUSAL OF SERVICE

22.1 Unsafe Conditions

Contractor's personnel may decline to start, or may stop and leave, if they reasonably believe conditions are unsafe or unsanitary, including structural hazards, exposed hazardous materials, aggressive animals, vermin, animal waste, or sewage.

• Hazardous Materials: If Contractor encounters suspected asbestos (including in popcorn ceilings, insulation, or old wiring), lead paint, mold, vermiculite insulation, or other hazardous materials, Contractor will stop work in the affected area. Testing and abatement are Client's responsibility and are not part of the Work. Lead-safe practices for pre-1978 buildings are addressed in Section 22.8.
• Flood- or Water-Damaged Equipment: Client shall disclose any flooding or water exposure affecting electrical equipment. Submerged or water-damaged panels, breakers, receptacles, and equipment generally must be replaced, not re-energized. Contractor will not re-energize equipment it believes is unsafe. If Client conceals water exposure or directs re-energizing against Contractor's recommendation, Client assumes all resulting risk.

22.2 Threats, Harassment, and Abuse

Contractor's personnel may stop and leave if anyone on site threatens, harasses, or verbally or physically abuses them. This includes threats of violence, displaying a weapon in a threatening way, unwanted physical contact, sexual harassment, and slurs or harassment based on race, religion, sex, national origin, or any other protected characteristic.

22.3 Code and Law

Contractor's personnel may refuse to perform any work, or follow any instruction, that would violate the electrical code, an equipment listing, a safety rule, or the law (Section 7.6).

22.4 Nonpayment

Contractor may stop work if any payment is declined, overdue, or disputed in bad faith. Work resumes only after payment is verified and Contractor confirms in writing.

22.5 Lockout and Tagout

When Contractor de-energizes, locks, or tags out any equipment or circuit, Client shall not remove the lock or tag, re-energize the equipment, or allow anyone else to, until Contractor releases it. Client is responsible for injury or damage resulting from re-energizing equipment Contractor has locked or tagged out.

22.6 Making Work Safe Is Not Disconnecting for Collection

De-energizing, isolating, or capping work to make it safe is a safety measure, not a collection tool. Contractor will not disconnect power to an occupied residence, or where disconnection would create a safety hazard (including to medical equipment, livestock, or perishable product), as a means of collection.

22.7 Billing, Resumption, and Termination

Contractor will tell Client the reason for any stoppage. Time and travel already incurred are billable: as a Service Call under Section 4.2, or for a project as a cancellation or delay under Sections 14 and 15. Work resumes only after the condition is corrected; for safety hazards, Client must confirm the correction in writing. If threatening or abusive conduct occurs, or a condition is repeated after notice, Contractor may terminate under Section 32. Client remains responsible for all costs incurred before the stoppage or termination. Contractor is not liable for damages or delays resulting from a stoppage under this Section.

22.8 Homes and Child-Occupied Buildings Built Before 1978

Client will tell Contractor the year the building was built. For pre-1978 housing or child-occupied facilities, where the Work will disturb painted surfaces above the limits in the EPA Renovation, Repair and Painting Rule, Contractor will provide the EPA "Renovate Right" pamphlet before work begins and will follow the lead-safe work practices that rule requires. Client will sign the pamphlet acknowledgment. Lead testing, abatement, and work beyond those practices are not included unless stated in the proposal.

23. LIEN RIGHTS

Contractor, its subcontractors, and its suppliers reserve all rights under Texas Property Code Chapter 53 and the constitutional lien under Article XVI, § 37 of the Texas Constitution, on both residential and commercial projects. Nothing in this agreement waives Contractor's constitutional lien rights.

• Notices: CLIENT EXPRESSLY AUTHORIZES Contractor to send any notice Chapter 53 requires or permits for Contractor's role on the project (as original contractor or as a subcontractor), by any method permitted by law, including electronic delivery where allowed. Chapter 53 deadlines that fall on a Saturday, Sunday, or legal holiday are extended to the next business day.
• Filing and Enforcement: Contractor may file a lien affidavit within the deadlines set by Texas Property Code § 53.052 for the type of project and Contractor's role, and may enforce the lien by suit within the time set by § 53.158, in the court and county required by law. Lien filings and foreclosure actions are excluded from arbitration (Section 85). The prevailing party in a lien action may recover attorney's fees and costs as allowed by law.
• Residential Projects: Contractor will provide the disclosure statement required by Texas Property Code § 53.255 before the contract is signed (Section 81) and, where Contractor is the original contractor, the list of subcontractors and suppliers required by § 53.256 before work begins, unless Client waives it in writing.
• Homestead Projects: A lien on a homestead requires a written contract signed by the owner and, if married, the owner's spouse before work begins or materials are furnished, and filed with the county clerk, as required by Texas Property Code § 53.254 and the Texas Constitution. Where Contractor requires lien security on a homestead project, Contractor may require a separate homestead contract meeting those requirements.
• Indemnity: Client shall indemnify Contractor for lien-related expenses arising from Client's failure to pay Contractor, or from liens asserted by contractors or suppliers Client hired directly. This indemnity does not apply to liens arising from Contractor's failure to pay its own subcontractors or suppliers.

24. INTELLECTUAL PROPERTY

All drawings, plans, designs, specifications, and documents prepared by Contractor remain Contractor's property and may not be reproduced or used by Client until paid in full.

25. FORCE MAJEURE

Contractor is not liable for delays or failure to perform caused by weather, natural disasters, supply chain disruptions, material shortages, acts of God, utility outages, utility or ERCOT curtailments or orders, actions of the electric utility, government orders, fire, flood, wildlife, accidents, labor disputes, or any other cause beyond Contractor's reasonable control. Contractor will notify Client of the delay when practical, and the schedule is extended by the length of the delay. Documented material cost increases caused by these events may be handled under Section 5.

26. LIMITATION OF LIABILITY

TO THE FULLEST EXTENT PERMITTED BY LAW, CONTRACTOR'S TOTAL LIABILITY TO CLIENT FOR ALL CLAIMS ARISING OUT OF OR RELATING TO THE WORK OR THESE TERMS, WHETHER IN CONTRACT, TORT (INCLUDING CONTRACTOR'S OWN NEGLIGENCE), WARRANTY, OR ANY OTHER THEORY, IS LIMITED TO THE TOTAL CONTRACT PRICE (INCLUDING APPROVED CHANGE ORDERS) FOR THE SPECIFIC SERVICE OR PROJECT GIVING RISE TO THE CLAIM, OR ANY HIGHER LIMIT AGREED UNDER SECTION 68.

THIS LIMITATION DOES NOT APPLY TO: (A) BODILY INJURY OR DEATH CAUSED BY CONTRACTOR; (B) CONTRACTOR'S GROSS NEGLIGENCE, WILLFUL MISCONDUCT, OR FRAUD; OR (C) ANY LIABILITY OR RIGHT THAT CANNOT BE LIMITED OR WAIVED UNDER TEXAS LAW.

27. CONSEQUENTIAL DAMAGES WAIVER

TO THE FULLEST EXTENT PERMITTED BY LAW, CONTRACTOR IS NOT LIABLE FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, OR PUNITIVE DAMAGES, INCLUDING LOSS OF USE, LOST PROFITS, LOST PRODUCTION, BUSINESS INTERRUPTION OR DOWNTIME, SPOILED FOOD OR PRODUCT, LIVESTOCK OR CROP LOSS, LOST DATA, OR INCONVENIENCE, WHETHER IN CONTRACT, TORT (INCLUDING CONTRACTOR'S OWN NEGLIGENCE), WARRANTY, OR ANY OTHER THEORY, EVEN IF ADVISED OF THE POSSIBILITY. THIS WAIVER DOES NOT APPLY TO CONTRACTOR'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR TO ANY RIGHT THAT CANNOT BE WAIVED UNDER TEXAS LAW.

28. INDEMNIFICATION

Client agrees to defend, indemnify, and hold harmless Contractor, its employees, agents, and subcontractors from claims, damages, losses, and expenses (including attorney's fees) to the extent arising from: Client's negligence; Client's failure to disclose known hazards or pre-existing conditions; Client's equipment, or load or modifications Client adds after the Work; work by contractors Client hires; or Client's breach of these Terms. This indemnity does not require Client to indemnify Contractor for Contractor's own negligence.

28.1 Property Insurance; Waiver of Subrogation

CLIENT WILL LOOK FIRST TO ITS OWN PROPERTY INSURANCE FOR ANY LOSS OR DAMAGE TO THE PROPERTY OR ITS CONTENTS, INCLUDING LOSS CLAIMED TO RESULT FROM CONTRACTOR'S NEGLIGENCE. TO THE EXTENT THAT INSURANCE COVERS THE LOSS, CLIENT WAIVES ALL RIGHTS AGAINST CONTRACTOR, AND CLIENT'S INSURER WILL HAVE NO RIGHTS AGAINST CONTRACTOR THROUGH CLIENT. CLIENT WILL NOTIFY ITS INSURER OF THIS WAIVER IF ITS POLICY REQUIRES.

29. RIGHT TO ENTER PROPERTY AND RECOVER MATERIALS

If any balance remains unpaid 7 days after it is due, Contractor may, after 24 hours' written notice (email or certified mail), enter the service location during Normal Business Hours to remove materials or equipment Contractor supplied that have not been installed, or that can be removed without damaging the property. Client grants an irrevocable license for this purpose. Contractor is not liable for incidental damage if it uses reasonable care.

• No Removal Over Objection: Contractor will not remove materials over the objection of anyone present, or by force. If anyone objects, the crew will leave and Contractor will rely on its lien and collection rights.
• No Disconnection for Collection: Section 22.6 applies.
• Installed Materials: For installed materials that cannot be removed without damage, Contractor will rely on its lien and collection rights (Sections 4.3 and 23).
• Reasonable Care means the care a reasonably prudent electrical contractor would use in similar circumstances, including appropriate tools and methods. It does not include liability for normal wear, pre-existing conditions, or unavoidable incidental damage during removal.

30. NO ASSIGNMENT

Client may not assign or transfer any rights or obligations under these Terms without Contractor's prior written consent. Contractor may assign its rights, including the right to collect payment, without Client's consent.

31. INSPECTION-ONLY LIABILITY

When Contractor inspects, tests, operates, or briefly handles existing electrical equipment while diagnosing or troubleshooting, Contractor is not liable for pre-existing failures, hazards, or damage that become apparent or occur during or after that inspection, unless directly caused by Contractor's own negligence. If Client declines recommended corrective action after an inspection, Client assumes the associated risk.

32. CONTRACTOR'S RIGHT TO TERMINATE

Contractor may terminate this agreement before completion on written notice to Client, including for repeated non-payment, an invalid payment method, threatening or abusive conduct (Section 22.2), or material breach of these Terms. If Contractor terminates, Client shall pay for all labor performed, materials supplied, permits obtained, subcontractor costs, and other costs actually incurred through the termination date, plus reasonable overhead and profit on the work performed. Deposits and progress payments are applied first to those amounts, and any excess will be refunded within 10 business days. Section 33 applies.

33. LEAVING THE WORK SAFE IF THE JOB ENDS EARLY

If the Work stops before completion for any reason (including cancellation, termination, nonpayment, or Client's decision to use another contractor), Contractor will leave its work in a safe condition, which may include de-energizing, capping, labeling, or isolating incomplete circuits. Time and materials to make the work safe are billable. After that, Client is responsible for securing the site and the incomplete work until it is completed by Contractor or another licensed electrical contractor, and Contractor is not responsible for incomplete work finished by others.

PART C — POWER, EQUIPMENT, AND SPECIAL SYSTEMS

34. POWER QUALITY, UTILITY EVENTS, AND EXTERNAL EVENTS

PLEASE READ CAREFULLY. THIS SECTION ALLOCATES RISKS THAT CONTRACTOR DOES NOT CONTROL. IT DOES NOT EXCUSE CONTRACTOR'S OWN NEGLIGENCE OR DEFECTIVE WORK.

• What Contractor Does Not Control: Contractor does not generate, transmit, or deliver electricity and does not own or operate the utility's or cooperative's lines, transformers, meters, or switching equipment. Client's electric utility or cooperative controls the quality and continuity of the power delivered.
• Utility-Side and External Events: Except to the extent caused by Contractor's negligence, defective work, or breach of these Terms, Contractor is not responsible for loss or damage to Client's equipment, property, products, animals, or data caused by: (1) loss of a phase (single-phasing), an open or lost neutral on the utility's side, voltage sags or swells, surges, spikes, transients, or lightning; (2) harmonics or waveform distortion originating outside the Work; (3) outages, momentary interruptions, voltage reductions, utility switching, or utility disconnection or reconnection, including any change in phase rotation or crossing of phases by the utility; (4) weather, flood, fire, wildlife, trees or limbs on overhead lines, vehicles striking poles or equipment, or other acts of third parties; or (5) acts or orders of government, the utility, or ERCOT.
• Phase Rotation After Utility Work: After any utility outage, repair, or reconnection, Client is responsible for verifying motor rotation before operating three-phase equipment, or for asking Contractor to verify it as a billable Service Call.
• Protective Devices: Contractor recommends surge protective devices and, for three-phase motor loads, phase-loss and phase-reversal monitoring. Where Contractor offers such a device on a proposal and Client declines it, Client accepts the risk of the damage that device was meant to reduce, and that decision may be considered in determining responsibility for any loss. Devices required by code are part of the Work and cannot be declined (Section 7.5). Surge protective devices and other protective devices reduce risk but do not prevent all damage from surges, lightning, or utility events, and they are not a guarantee.
• Nuisance Tripping: GFCI and AFCI protection is required by code in many locations. Tripping caused by connected equipment, appliances, tools, moisture, or leakage current is not a defect in the Work, and diagnostic time is billable unless the cause is Contractor's installation.
• Protective Devices Working as Designed: GFCI, AFCI, and other protective devices are designed to shut off power when they detect a fault, leakage current, or overload, and the electrical code requires them in many locations, including receptacles that serve refrigerators and freezers. A protective device that trips or shuts off power is not a defect in the Work. Except to the extent caused by Contractor's negligence or defective installation, Contractor is not responsible for spoiled food, medicine, or product, livestock or crop loss, or other loss that results when a protective device operates. Client is responsible for checking refrigerators, freezers, and other critical equipment regularly, and for using temperature or power-loss alarms where a loss would be costly.

35. POWER INTERRUPTIONS AND LIFE-SUPPORT EQUIPMENT

• No Promise of Continuous Power: Contractor does not supply electricity and does not promise continuous power. Power may be off during the Work, including during planned shutdowns (Section 36) and unplanned shutdowns when equipment fails, the utility acts, or Contractor finds an imminent hazard.
• Emergency De-Energizing: Contractor may de-energize any circuit or equipment without advance notice if Contractor believes there is an imminent risk of fire, shock, or injury. De-energizing to perform the Work or to make a hazard safe is not negligence and is not a breach of these Terms.
• Client's Duties: Before work begins, Client shall tell Contractor about anyone at the property who depends on electrically powered medical or life-support equipment (such as oxygen concentrators, ventilators, dialysis, or refrigerated medication). Client is responsible for:
  • providing backup power or other arrangements for those people;
  • enrolling them in the electric utility's critical-care or medical-need program, where one is available; and
  • notifying tenants and occupants of any shutdown.
• No Responsibility for Outage Losses: Except to the extent caused by Contractor's negligence in performing the Work, Contractor is not responsible for loss, damage, injury, or death resulting from loss of power to any equipment during a planned or unplanned outage, including medical and life-support equipment, HVAC, refrigeration, livestock systems, and business equipment. Making a hazard safe under this Section is not negligence.

36. PLANNED SHUTDOWNS AND CLIENT SYSTEMS

• Notice: For planned shutdowns, Contractor will give advance notice of the expected date, time, and duration and, where practical, let Client choose the window.
• Client's Responsibilities: During a planned shutdown, Client is responsible for protecting perishable products; livestock and poultry (including ventilation and water); irrigation, drying, and process loads; computers and data (including backups); and medical or life-support equipment (Section 35), including arranging temporary power, refrigeration, or animal care. Client is responsible for notifying its alarm monitoring company, and for any false-alarm fees.
• Systems That Reset: Gate openers, garage doors, well pump controls, tankless water heaters, pool and irrigation timers, internet, security systems, HVAC controls, and similar systems may need to be reset or reprogrammed after power is restored. That is Client's responsibility unless it is in the scope.
• Losses: Except to the extent caused by Contractor's negligence or failure to follow this Section, Contractor is not responsible for spoiled product, livestock or crop loss, lost data, alarm fees, or business interruption during a shutdown Client approved.
• Rental Properties: Where the property is occupied by tenants, Client is responsible for notifying tenants of shutdowns and for tenant claims arising from them, except to the extent caused by Contractor's negligence.

37. CLIENT EQUIPMENT, SPECIFICATIONS, AND CHANGES AFTER INSTALLATION

• Client Equipment: Client is solely responsible for its own equipment, appliances, machinery, and their cords, plugs, cord caps, adapters, extension cords, and internal wiring, and for confirming before connection that each item is compatible with the voltage, phase, amperage, frequency, rotation, and receptacle configuration supplied. The Work ends at the receptacle, disconnect, or termination point identified in the proposal (Section 7.4).
• Reliance on Specifications: Contractor may rely on equipment nameplates, specifications, manuals, drawings, and information provided by Client or Client's manufacturer, engineer, or supplier, and on Client's verbal description where no nameplate or specification is provided. Contractor is not responsible for damage resulting from errors in that information or from equipment that does not perform at its stated rating.
• Changes After Installation: Contractor is not responsible for damage or malfunction caused by: equipment that is incompatible, defective, or miswired by others; changes to plugs, cord caps, or adapters; moving equipment to a different circuit or receptacle; replacing equipment with equipment of different requirements; or load Client adds after the Work.
• Equipment Settings and Controls: Programming and settings of Client's equipment (including drives, motor overloads, controls, thermostats, timers, and smart devices, and their apps, Wi-Fi, and firmware) are Client's responsibility unless in the signed scope.
• Existing Equipment on Re-Energizing: Contractor is not responsible for existing equipment that fails when de-energized and re-energized where the failure results from the equipment's age, condition, or latent defects rather than the Work.
• Leased or Third-Party-Owned Equipment: Client is responsible for claims by the owner or lessor of equipment at the property, except to the extent caused by Contractor's negligence.

37.1 Motors, Variable-Frequency Drives, and Phase Converters

• Drives: Motors operated on variable-frequency drives should be rated for drive use (inverter-duty). The drive or motor manufacturer may require line or load reactors, filters, shielded cable, shaft grounding, or maximum cable lengths. Unless Contractor selected the drive and motor as part of the Work, Client is responsible for confirming the motor is suitable for drive use, and Contractor is not responsible for motor bearing or insulation damage caused by drive operation.
• Motor Protection: Overload settings, drive parameters, and motor protection settings are Client's responsibility unless Start-Up is in the scope (Section 7.4).
• Phase Converters: Rotary or static phase converters supplied or selected by Client, and the quality and balance of their output, are Client's responsibility.

38. CLIENT-SPECIFIED AND CLIENT-SUPPLIED EQUIPMENT; LISTING

• Client-Specified Equipment: If Client furnishes, or directs Contractor to buy, a specific product, part number, brand, or configuration (including matching existing equipment), Client is responsible for confirming it is suitable for Client's use and compatible with Client's equipment.
• Listing: Contractor will install only equipment that, in Contractor's professional judgment, is listed or labeled by a Nationally Recognized Testing Laboratory (NRTL) or otherwise acceptable to the authority having jurisdiction. Marks such as UL, ETL, or CSA with a "US" or "C/US" indicator are NRTL marks. A CE mark, foreign certification, or manufacturer self-declaration is not, by itself, an NRTL listing. Contractor may decline to install, or remove from scope, any equipment it reasonably believes is not listed, approved, or code-compliant, and will offer a listed alternative by change order. Where Client chooses a specific product over a recommended listed alternative, Client accepts the risk of that choice; Contractor may also note it in writing.
• Source of Breakers and Parts: Contractor installs breakers and protective devices purchased through authorized distributors. Contractor may decline to install breakers or devices from unknown or unauthorized sources, including online marketplaces, because counterfeit and refurbished devices may not perform as listed.
• Client-Supplied Materials: Client-supplied fixtures, fans, devices, chargers, smart devices, and other materials carry no warranty from Contractor. A return trip or additional labor caused by a defective, incomplete, or incompatible Client-supplied item is billable.
• Warranty: Except to the extent caused by Contractor's negligence in installation, Contractor does not warrant the design, fitness, performance, availability, or listing status of Client-specified or Client-supplied equipment or materials. The manufacturer's warranty, if any, is Client's sole warranty for the product, and Contractor's warranty covers only Contractor's installation labor.

39. HIGH-LEG (FOUR-WIRE DELTA) SERVICES

IF YOUR SERVICE IS A 120/240-VOLT THREE-PHASE, FOUR-WIRE DELTA ("HIGH-LEG") SYSTEM, ONE PHASE CONDUCTOR (TYPICALLY THE "B" PHASE, MARKED ORANGE) MEASURES APPROXIMATELY 208 VOLTS TO GROUND. CONNECTING 120-VOLT EQUIPMENT TO THE HIGH LEG, CONNECTING A NEUTRAL TO THE HIGH-LEG PIN OF A PLUG, OR CONNECTING EQUIPMENT RATED FOR A DIFFERENT SYSTEM CAN DESTROY EQUIPMENT AND CREATE FIRE OR SHOCK HAZARDS.

• Contractor's Record: On every three-phase job, Contractor will record, at each three-phase receptacle or termination point it installs: line-to-line and line-to-ground voltages, which conductor is the high leg, phase rotation, and the receptacle configuration and pin assignment. The record becomes part of the completion record (Section 12.4), and Client will receive a copy.
• Labeling: Contractor will mark the high leg as required by code at the points where Contractor's Work makes connections.
• Client's Responsibility: CLIENT AGREES NOT TO CONNECT, OR ALLOW OTHERS TO CONNECT, EQUIPMENT, PLUGS, OR CORD CAPS TO A HIGH-LEG SYSTEM WITHOUT VERIFYING THEM AGAINST CONTRACTOR'S RECORD. EXCEPT TO THE EXTENT CAUSED BY CONTRACTOR'S NEGLIGENCE IN INSTALLATION, LABELING, OR THE RECORD, CONTRACTOR IS NOT RESPONSIBLE FOR DAMAGE RESULTING FROM CONNECTION OF INCOMPATIBLE OR MISWIRED EQUIPMENT.
• Additional Verification: Verification of Client's equipment, plugs, or cord caps beyond the record is billable.

40. AGRICULTURAL AND LIVESTOCK FACILITIES; STRAY VOLTAGE; POOLS AND SPAS

• Stray Voltage: Stray (neutral-to-earth) voltage can come from on or off the property, including the utility's system, neighboring loads, or equipment Contractor did not install. On request and as a separately priced item, Contractor will take and record voltage measurements at the start and end of its work. Those measurements document conditions at that time and are not a guarantee against future stray voltage. Contractor is responsible for stray voltage caused by its negligence or defective work, but not for stray voltage from the utility system, off-site sources, or equipment or wiring Contractor did not install or modify.
• Equipotential Planes: The code requires equipotential planes in certain livestock areas with electrical equipment, and equipotential bonding at swimming pools, spas, and hot tubs. Where the Work triggers these requirements, they are code-required work (Section 16). Where existing facilities lack them, Contractor may recommend them, and they are not part of the Work unless in the proposal.
• Pumps and Controls: Irrigation pumps, well pumps, dryers, and their controls, sizing, dry-run protection, and settings are Client's responsibility unless in the scope.

41. GENERATORS, TRANSFER EQUIPMENT, AND SOLAR OR BATTERY SYSTEMS BY OTHERS

• Backfeed: Connecting a generator to building wiring requires listed transfer equipment or an interlock. Backfeeding through a receptacle or without approved transfer equipment is prohibited and dangerous to Client and utility workers.
• Portable Generator Configuration: Whether a portable generator's neutral is bonded to its frame must match the transfer equipment it is connected to. A mismatch can cause GFCI tripping or unsafe conditions. Unless Contractor supplied the generator, its configuration is Client's responsibility.
• Generators by Others: Contractor is not responsible for damage caused by generator voltage or frequency instability, generator harmonics, improper connection or operation by others (including manual operation of an interlock or transfer switch), or generators Contractor did not install. Client is responsible for generator fuel, maintenance, exercising, load management, and the placement of portable generators, including carbon monoxide safety. Where Contractor installs transfer equipment, Contractor will verify and document transfer operation at completion.
• Solar and Battery Systems by Others: Where solar, battery, or other generation installed by others connects to equipment Contractor works on, that system's inverters, settings, backfeed, and performance remain the responsibility of its installer and Client. Solar conductors can remain energized in daylight even when the main breaker is off. Contractor may require the system's owner or installer to shut it down and confirm it is safe before Contractor works on connected equipment.

42. GENERATORS, EV CHARGERS, AND BATTERIES INSTALLED BY CONTRACTOR

• Sizing: Generator and battery sizing is based on the loads Client identifies and the load calculation in the proposal (Section 46). Unless the proposal states "whole-building" coverage, Contractor does not promise that every load can run at once. Load management devices are installed only if listed in the proposal.
• What a "Turnkey" Generator Price Includes: Unless the proposal says otherwise, a turnkey generator installation includes the electrical work, transfer equipment, generator pad, setting the unit, start-up, and warranty registration. It does not include gas piping, the gas permit, the propane tank or fuel, or fuel supplier charges. Gas work must be performed by a licensed plumber or gas fitter, hired by Client or listed in the proposal as a subcontractor.
• Utility Approvals: Battery and other interconnected systems may require utility approval before they can operate. Client is responsible for delays in utility approvals not caused by Contractor.
• Warranty Registration: Contractor will register the manufacturer warranty on generators, transfer switches, EV chargers, and batteries Contractor supplies, unless the proposal states otherwise. Maintenance the manufacturer requires to keep the warranty in effect is Client's responsibility unless Client has a maintenance agreement (Section 60).
• EV Chargers: Contractor installs EV charging equipment to NEC Article 625 and sets the charger's maximum current to match the circuit installed. Client shall not raise the charger's current setting above the circuit's rating. Bidirectional charging (vehicle-to-home or vehicle-to-grid) requires listed equipment, utility approval, and specific transfer equipment, and is not part of the Work unless the proposal includes it.
• Incentives: Contractor does not promise any tax credit, rebate, utility incentive, or savings. Client is responsible for confirming eligibility.
• Solar: Contractor does not sell or install solar energy systems under these Terms. Any solar work requires a separate contract that complies with Texas law.

43. CONNECTED DEVICES, APPS, AND MONITORING

• Accounts: Apps, cloud accounts, and Wi-Fi connections for smart devices, chargers, generators, and monitoring equipment will be set up in Client's name. Client keeps its own passwords. Contractor does not keep or manage Client's accounts.
• Client's Network: Client is responsible for internet service, Wi-Fi coverage, and network settings needed for connected devices.
• End of Support: A manufacturer ending app, cloud, or firmware support, changing features, or charging subscription fees is not a defect in the Work.
• App Support: Help with apps, accounts, firmware updates, and connectivity after completion is billable (Section 58), unless it is part of the original scope.
• Not an Alarm Service: Monitoring features and alerts are provided by the manufacturer. Contractor does not monitor Client's equipment and does not provide an alarm or emergency response service.

44. UTILITY PROGRAMS AND REMOTE CONTROL OF EQUIPMENT

If Client enrolls equipment in a utility, retail electric provider, or ERCOT-related program (such as demand response, smart thermostat, or battery programs), the program operator may adjust, curtail, or control that equipment remotely. Contractor is not responsible for the effects of program control, program rules, or credits and charges under those programs.

45. STORM, FLOOD, AND EMERGENCY WORK

Work performed to restore power after a storm, flood, or other emergency may be temporary. Temporary repairs are not permanent repairs, carry the 30-day warranty in Section 13, and should be followed by permanent repairs.

• Billing: Emergency work is billed at the after-hours rate on the Rate Sheet as time and materials and is due on invoice. No deposit is required to dispatch emergency work.
• Permits: Section 16 applies.
• Emergency Retrofits: Emergency retrofits of Known-Hazard or Obsolete Equipment are governed by Section 20.6 and carry no warranty.
• Water-Damaged Equipment: Section 22.1 applies.

46. DESIGN, LOAD CALCULATIONS, AND SYSTEM CAPACITY

• Load Calculations Included: Contractor performs a load calculation and includes it in the proposal for: a new or replaced service; a standby generator or battery system; an EV charger; a heat pump or electric heating; and any motor or single load of 30 amps or more.
• Otherwise: Unless a load calculation, design, or engineering review is in the proposal, Contractor installs the Work as described and does not certify that the existing service, feeders, or equipment have enough capacity for Client's current or future loads.
• Not an Engineer: Contractor is a licensed electrical contractor, not a professional engineer. Contractor is not responsible for designs, drawings, or specifications prepared by Client, an engineer, a manufacturer, or others. Where the authority having jurisdiction requires engineered drawings, Client is responsible for obtaining them unless the proposal says otherwise.
• Obvious Problems: Contractor will tell Client if it notices an obvious capacity or code problem while working.

47. SMOKE ALARMS, CO ALARMS, AND LIFE-SAFETY DEVICES

Where Contractor installs smoke alarms, carbon monoxide alarms, or similar devices, Contractor installs them as required by code within the scope. Testing, battery replacement, and replacement at the end of the manufacturer's service life (typically 10 years) are Client's responsibility.

48. MANUFACTURER WARRANTIES

• Parts Only: Manufacturer warranties generally cover replacement parts only. After Contractor's warranty period ends (Section 13), labor to diagnose, remove, and replace a failed manufacturer product, and any travel charge, is billed at the current Rate Sheet rates, even if the manufacturer supplies the part at no charge.
• Registration and Maintenance: Contractor registers warranties on equipment it supplies as provided in Section 42. For other products, Client is responsible for registration unless the proposal says Contractor will do it. Client is responsible for maintenance the manufacturer requires to keep the warranty in effect.
• Warranty Claims: Contractor will help Client submit manufacturer claims for products Contractor supplied, but coverage decisions are the manufacturer's.

49. ALLOWANCES

When the proposal includes an allowance (a set dollar amount for an item Client will select later, such as light fixtures or ceiling fans), the proposal price includes only that amount for the item. If Client's selection costs more, Client pays the difference plus Contractor's standard markup, and any added labor for heavier or more complex items. If it costs less, Contractor credits the difference. Allowance adjustments are documented by change order.

50. PACKAGE PRICING, SUBSTITUTIONS, AND STANDARD FINISHES

• Package Pricing: Proposal line items are priced together and assume one mobilization. If Client accepts only some items, or asks to split the work into separate visits, Contractor may re-price the remaining items before work begins.
• Substitutions: If a specified material or device is unavailable, discontinued, or delayed, Contractor may substitute an item of equal or better function and rating that meets code and is NRTL-listed, and will tell Client before installation. If Client requires the exact specified item, any resulting delay or price difference is Client's responsibility.
• Standard Finishes: Unless the proposal says otherwise, devices and cover plates are standard grade and white. Minor differences in color, finish, or appearance from photographs or catalog images are not defects.

51. TRENCHING AND EXCAVATION CONDITIONS

Trenching prices assume normal soil that can be dug with standard trenching equipment along an accessible route. The following are not included and will be handled by change order:

• rock, caliche, concrete, buried debris, old foundations, or roots too large for standard equipment;
• groundwater or water-filled trenches that require pumping;
• hand-digging where equipment cannot reach or where a utility locate requires it; and
• boring under driveways, sidewalks, or roads, unless listed in the proposal.

Trenches are backfilled with the excavated soil (Section 8.1). Soil settles over time. Top-dressing, re-leveling, sod, seed, and repair of items not disclosed under Section 8.1 or marked under Section 21 are Client's responsibility.

52. UTILITY CHARGES, EXISTING PATHWAYS, AND MATERIALS ON SITE

• Utility and Authority Charges: Unless listed in the proposal, the price does not include charges by the electric utility or cooperative (such as connection, meter, transformer, line-extension, membership, or temporary-service fees) or by any other authority. Client pays these directly or reimburses Contractor. Permits are handled under Section 16.
• Existing Pathways: Where the proposal relies on existing conduit, raceway, or sleeves installed by others, the price assumes they are continuous, undamaged, properly sized, and have a usable pull string. Clearing, repairing, or replacing them is extra work.
• Site Security and Theft: Client is responsible for securing the site at all times. Contractor does not provide site security. From delivery onward, Client bears all risk of theft, vandalism, loss, or damage to materials, equipment, devices, wire, copper, and the Work, whether stored, partly installed, installed, or complete, and whether before, during, or after the Work, except theft or damage by Contractor's own personnel. Labor, materials, and rework to replace, reinstall, or repair stolen or damaged items are additional work billed by change order, and the schedule is extended accordingly.
• Contractor's Property (Commercial, Industrial, Agricultural, and Contractor Clients): Where Client is a business, agricultural operation, general contractor, builder, or property manager, Client is also responsible for the theft, vandalism, loss, or damage of Contractor's tools, equipment, trailers, gang boxes, vehicles, and stored materials, and of Contractor's employees' hand tools, while they are at the site, except loss caused by Contractor's own personnel. Client will reimburse Contractor's cost to repair or replace them.
• Reinstalling Existing Items: When Client asks Contractor to remove and reinstall existing fixtures, fans, devices, or equipment, Contractor will reinstall them only if they are in safe, code-compliant condition. Contractor is not responsible for existing items that are worn or damaged or that fail after reinstallation, unless Contractor damaged them. Repair or replacement is extra work.

53. REMOVED EQUIPMENT AND ITEMS LEFT ON SITE

• Removed Equipment: Unless Client asks in writing before work begins to keep them, equipment and materials removed during the Work (including panels, breakers, fixtures, devices, wire, conduit, and scrap) become Contractor's property and may be disposed of, recycled, or salvaged. Removed items Client keeps are left on site at Client's risk. Meters and other utility-owned equipment remain the utility's property.
• Evidence: If Client has notified Contractor of a claim, or Contractor knows of one, removed items related to it will be kept under Section 55.
• Disposal Fees: Disposal of regulated materials (such as fluorescent lamps, ballasts, or batteries) may be billed separately as stated in the proposal.
• Client Items in Contractor's Possession: Client-owned equipment or materials left with Contractor that Client does not collect within 30 days after written notice may be disposed of at Client's expense.
• Warranty Replacements: Defective parts Contractor replaces under warranty become Contractor's property.

54. FAILED INSPECTIONS AND THIRD-PARTY APPROVALS

If a permit inspection fails because of Contractor's workmanship, Contractor will correct its work and pay any reinspection fee. If an inspection fails because of conditions outside Contractor's scope (such as existing wiring, work by others, Client-supplied equipment, lack of access, or items the inspector requires beyond the approved scope), the corrective work is a change under Section 9 and reinspection fees are billed to Client. Client is responsible for obtaining any homeowners' association, landlord, architectural-review, or easement approvals the Work requires before work begins.

55. CLAIMS PROCEDURE: NOTICE, PRESERVATION, INSPECTION, AND RIGHT TO CURE

• Notice and Cure: Before hiring another contractor to correct, or making any claim for, alleged defects in the Work or damage allegedly caused by the Work (other than in an emergency), Client shall give Contractor written notice describing the problem, with photographs if available, and allow Contractor a reasonable opportunity (not less than 10 business days after notice, or sooner for safety hazards) to inspect and, at Contractor's option, repair. If Client does not, Client's recovery shall not include costs that a timely cure by Contractor would have avoided.
• Preservation: Client shall not discard, alter, or repair any allegedly defective or damaged component, receptacle, plug, cord, or equipment until Contractor (and its insurer, if applicable) has had a reasonable opportunity to inspect it jointly with Client, unless immediate action is necessary for safety, in which case Client shall photograph and keep the removed items.
• Utility Events: Client shall report suspected utility events to its utility and keep the utility's outage or event reference number.
• Timing: Client shall give notice of any claim within 90 days after Client discovers, or reasonably should have discovered, the basis for it. Late notice does not bar a claim except to the extent the delay prevents Contractor from investigating or curing.
• Statutory Procedures: This Section supplements, and does not replace, notice and inspection rights under Texas Property Code Chapter 27 or Texas Business & Commerce Code § 17.505.
• Time to Bring Claims: Any claim against Contractor arising from the Work or these Terms must be filed within two years after the claim arises, in the forum required by Section 85.

PART D — PEOPLE, AUTHORITY, AND COMMUNICATIONS

56. AUTHORIZED REPRESENTATIVES, OWNERS, AND TENANTS

Client will identify, on the proposal or in writing, the person(s) authorized to approve work, change orders, and payments on Client's behalf ("Authorized Representative"). Contractor may rely on approvals from Client or an Authorized Representative. Approvals from tenants, property managers, family members, or employees who are not Authorized Representatives do not bind Client unless Client confirms them. If the person requesting work is not the property owner, that person represents that they have the owner's authority to request it.

Emergency Approvals: In an emergency, when Client and its Authorized Representative cannot be reached promptly, Contractor may rely on approval from Client's on-site property manager, maintenance supervisor, or facility staff for work needed to restore power safely or make a hazard safe.

57. MULTIPLE CLIENTS

If more than one person or entity signs or accepts the proposal (for example, spouses, co-owners, or an owner and a tenant), each is jointly and severally liable for all amounts due. Contractor may rely on instructions from any of them unless a single Authorized Representative is designated under Section 56.

58. PHONE GUIDANCE, REMOTE SUPPORT, AND INFORMAL ADVICE

• Informal Guidance: Guidance given by phone, text, or in passing is general information, not a diagnosis, inspection, load calculation, design, or engineering opinion. Client should perform only basic, safe steps (for example, resetting a breaker) in response and should not open panels or handle wiring.
• Remote Support: Scheduled remote support by phone or video (for example, help with a device setting, an app, or reviewing photos) is billable in 15-minute increments at the Rate Sheet rate.
• Design: A load calculation or design is provided only when included in a written proposal (Section 46).

59. INSPECTION SERVICES

When Contractor performs an electrical inspection or evaluation as a service, it is a visual inspection of readily accessible components at the time of the visit, limited to the scope in the proposal. It is not a real estate inspection under Texas Real Estate Commission rules, not a guarantee of future performance, and not a certification that the system is free of defects. Contractor does not move belongings, open finished surfaces, or remove panel covers where unsafe unless the proposal includes it.

60. MAINTENANCE AGREEMENTS

If Client signs a separate maintenance agreement, that agreement governs the maintenance services it describes, and these Terms govern everything else. If they conflict, the maintenance agreement controls for those services.

61. PHOTOGRAPHS, DOCUMENTATION, AND REVIEWS

• Photographs: Client authorizes Contractor to photograph and record measurements of the Work, the work area, equipment nameplates, and site conditions for documentation, quality, warranty, and dispute purposes. Contractor may use photographs of the Work in its marketing, without Client's name or address, unless Client opts out in writing.
• Reviews: Nothing in these Terms limits Client's right to post honest reviews, comments, or complaints about Contractor, as protected by the federal Consumer Review Fairness Act.

62. TEXT MESSAGES AND COMMUNICATIONS

By giving Contractor a phone number or email address, Client agrees that Contractor may contact Client by call, text, and email about scheduling, job updates, proposals, change orders, invoices, payment reminders, and warranty matters. Message and data rates may apply. Client may reply STOP to opt out of text messages at any time; Contractor will then use email or phone for required job and billing communications. Marketing texts are sent only with Client's separate consent. Contractor does not sell or share Client's phone number with third parties for their marketing.

63. AUTHORITY TO CHANGE TERMS; NO ORAL PROMISES

Only Contractor's Owner or Designee may change the price, scope, schedule, warranty, or these Terms, and only in a signed proposal, an approved change order, or another written document issued through JobTread or signed by Contractor. Client may not rely on any verbal statement, estimate, or promise that is not in the signed proposal, an approved change order, or these Terms. Nothing in this Section limits any right Client has under the Texas Deceptive Trade Practices Act that cannot be waived.

63.1 What Field Personnel May and May Not Do

Contractor's field personnel (technicians, helpers, and subcontractors) may: perform the Work in the signed scope; document conditions with photographs and readings; explain options and pass Client's questions to the office; stop or decline work for safety, code, or conduct reasons (Section 22); and present completion documents.

Field personnel may not: change the price, scope, schedule, or warranty; price, issue, or approve change orders; accept payment; or make promises about results not stated in the proposal.

63.2 No Side Work

Client agrees not to hire or pay Contractor's employees directly to perform electrical work outside Contractor's agreement. Any such work is not Contractor's work, is not performed under Contractor's license, insurance, or warranty, and Contractor has no responsibility for it. Client may report any request for side work to Contractor at (979) 559-3684.

64. LICENSING CONTINUITY

Contractor's Work is performed under Contractor's electrical contractor license (TECL #39231) and the supervision of its Master Electrician of record. If the Master Electrician of record becomes unavailable (for example, through illness, injury, or death), Contractor will designate another licensed Master Electrician as required by the Texas Department of Licensing and Regulation. If Contractor cannot continue the Work under a licensed Master Electrician within 30 days, Contractor will notify Client in writing. Client may then cancel the remaining Work and receive a refund of payments that exceed the value of the work performed and the materials purchased for the job, which become Client's property.

65. COURTESY WORK AND GOODWILL

Contractor may, at its discretion, provide a courtesy visit, free callout, discount, credit, or repair at no or reduced charge. A courtesy is voluntary, is not an admission of fault or liability, does not extend or renew any warranty, and does not obligate Contractor to provide it again.

66. PAYMENT INSTRUCTIONS AND FRAUD PREVENTION

Contractor accepts payment only through the payment link on Contractor's JobTread invoice, by check payable to J.L. Adrian Electric LLC mailed to P.O. Box 174, El Campo, Texas 77437, or another method Contractor confirms directly with Client by phone. Contractor's crews do not collect payment. Contractor will never change its payment instructions, mailing address, or bank account information by email or text message. If Client receives a message that appears to change Contractor's payment instructions, Client must call Contractor at (979) 559-3684 to verify before paying. A payment sent to an account other than Contractor's, including because of a fraudulent or spoofed message, is not payment to Contractor, and the invoice remains due, unless the fraudulent message resulted from a compromise of Contractor's own email or systems.

66.1 PAYMENT VERIFICATION, EQUIPMENT-ONLY SALES, AND REFUNDS

• Authorized Payment: Client represents that Client is the owner of, or is authorized to use, any card, bank account, or other payment method Client uses to pay Contractor.
• No Card Numbers by Phone, Text, or Email: Contractor does not accept card numbers by phone, text, or email and does not enter Client's card into its payment processor on Client's behalf. Client enters card payments in Contractor's payment portal through the JobTread invoice link.
• One Invoice, One Payment: Each invoice is paid in a single payment unless Contractor agrees in writing to accept it in parts.
• Verification: Before ordering, releasing, or delivering equipment or materials, Contractor may require photo identification, verification of the payment method, or payment in cleared funds. If Contractor cannot verify a payment, Contractor may decline or cancel the order and return any amount received to the original payment method.
• Equipment-Only Sales: Equipment or materials sold without Contractor's installation are released only after payment in full has cleared Contractor's bank account, and only to Client in person upon presentation of photo identification matching Client's name, unless Contractor agrees otherwise in writing. Contractor does not ship equipment or release it to a third party Client designates unless Contractor agrees in writing.
• Risk at Pickup: For equipment-only sales, risk of loss passes to Client when Client signs for and takes the equipment.
• Reversed Payments: If any payment is reversed, charged back, returned, or found to be unauthorized for any reason, the amount remains due from Client, and Contractor keeps all of its rights under these Terms, including its lien, collection, and material-recovery rights.
• Refunds: Refunds are made only to the original payment method, and only after the original payment has fully cleared. Contractor does not refund overpayments by any other method or to any other person.
• Payment by Others: If someone other than Client pays, Client remains responsible for the full amount, and any refund goes to the person who paid.

66.2 CONTRACTOR'S PREMISES

Contractor's office and shop are not open to the public. Client may visit Contractor's premises only by appointment confirmed by Contractor. Payments, documents, and equipment are delivered by mail, through JobTread, or at the job site unless Contractor agrees otherwise. If Client or anyone acting for Client comes to Contractor's premises without an appointment after being asked not to, or behaves in a threatening or harassing manner there, Contractor may refuse further service or terminate this agreement under Section 32, and Client pays for work performed through that date.

67. RETURNED PAYMENTS

If a payment is returned or reversed (for example, a bounced check or a returned bank transfer), Client will pay a returned-payment fee of up to $30, or the maximum permitted by Texas law if lower, and the original amount remains due. Contractor may require a different payment method for future payments.

PART E — COMMERCIAL AND CONTRACTOR CLIENTS

68. OPTIONAL HIGHER LIABILITY LIMIT (COMMERCIAL AND AGRICULTURAL CLIENTS)

The liability limit in Section 26 reflects the price of the Work. A commercial, industrial, or agricultural Client that wants a higher limit may request one in writing before signing the proposal. If Contractor agrees, the higher limit and any added price will be stated in the proposal or a signed change order, and Section 26 will apply with that limit. If Client does not request a higher limit, Client agrees the Section 26 limit is reasonable for the price charged.

69. CLIENT PURCHASE ORDERS AND CONFLICTING TERMS

A purchase order, work order, vendor registration, or other form Client issues is for Client's administrative convenience only. Terms printed on or referenced in that form do not change or add to these Terms, even if Contractor accepts or signs the form to receive payment, unless Contractor's Owner or Designee signs a written amendment stating which of Client's terms apply.

70. WORK FOR GENERAL CONTRACTORS, BUILDERS, AND PROPERTY MANAGERS

When Client is a general contractor, builder, developer, or property manager hiring Contractor for work on property owned by someone else:

• Governing Terms: These Terms apply to all Work for Client, including Work performed under a subcontract, purchase order, or work order issued by Client. If Contractor signs any such document, these Terms are incorporated into it. If that document conflicts with these Terms, these Terms control, unless the document states the specific Section number of these Terms that it replaces and is signed by Jacob Adrian. Terms of Client's contract with the owner do not bind Contractor unless Client provided a copy before Contractor's proposal and Contractor agrees to them in writing.
• Payment Due: Payment is due on completion of Contractor's work (Section 12), the same as for any other Client, unless Contractor agrees to different payment terms in a signed written agreement.
• Payment Not Contingent: To the extent permitted by Texas law, including Texas Business & Commerce Code Chapter 56, Client's obligation to pay Contractor is not conditioned on Client receiving payment from the owner or anyone else.
• Retainage: Client may withhold retainage only if the proposal or a signed subcontract states the amount. Retainage will be released when Contractor's own work is complete and accepted, not at the end of the overall project.
• Backcharges: Client may not backcharge Contractor unless Client gives Contractor written notice of the issue and at least 48 hours to correct it before Client or others perform the work.
• Resale Certificates: Section 4.8 applies.
• Schedule and Delay: Schedule dates are good-faith estimates that depend on site readiness and the work of other trades. Contractor is entitled to additional time for delays caused by Client, the owner, other trades, inspections, weather, or material availability. If Contractor is ever liable for delay, its total liability for delay is limited to 5% of Contractor's contract price unless a signed contract states a different amount.
• Insurance Requirements: Contractor will provide a certificate of insurance on request. Additional insured status, waivers of subrogation, primary and noncontributory wording, or limits above Contractor's standard coverage are provided only if stated in the proposal or a signed subcontract, and any added cost is billed to Client.
• Authority and Lien Rights: Client represents that the owner has authorized Client to contract for the Work. Nothing in this Section waives Contractor's rights under Texas Property Code Chapter 53.

71. CLOSEOUT DOCUMENTS RELEASED ON PAYMENT

Contractor may hold unconditional lien waivers, warranty letters, product warranty registrations, as-built drawings, and similar closeout documents until Contractor has received payment in full. Contractor's warranty (Section 13) applies once payment in full is received and runs from the original completion date. Contractor will not withhold inspection access, safety information, or any document that Texas law or the authority having jurisdiction requires Contractor to provide.

72. WEBSITE, BLOG, AND MARKETING CONTENT

Articles, blog posts, videos, social media posts, and other content on Contractor's website or channels are general information, not advice for Client's property, and are not part of these Terms or any proposal. Prices or offers in marketing content apply only if stated in a signed proposal.

72.1 CLIENT PORTAL AND COURTESY FEATURES

Contractor may give Client access to an online client portal (currently JobTread). Portal features, including schedules and Gantt charts, daily logs, progress photos, messaging, selections, and document storage, are courtesy tools Contractor provides at its discretion to keep Client informed.

• Not Part of the Work or Price: Portal features are not part of the Work, the contract price, or any proposal unless the signed proposal lists a feature as a line item.
• Contractor Decides What to Use: Contractor decides which portal features to use on each job, how much detail to include, and how often to update them, and may change, limit, or stop any feature at any time.
• Website Descriptions: Descriptions of the portal on Contractor's website, in marketing, or in the software provider's materials describe what the software can do. They are not a promise that any feature will be used on any job (Section 72).
• No Breach: Not providing, updating, or completing any portal feature is not a breach of this agreement and is not grounds to withhold or reduce payment or to claim the Work was not provided.
• Schedules Are Estimates: Schedules and dates shown in the portal are good-faith estimates under Section 10, not guarantees.
• Availability: The portal is run by a third-party software provider. Contractor is not responsible for portal outages, errors, or changes the provider makes.
• Official Notices: Portal messages and logs do not replace any notice these Terms require to be given in writing under Section 73.

PART F — GENERAL PROVISIONS

73. NOTICE

Written notices to Contractor required under these Terms must be sent to office@jladrianelectric.com or by certified mail to P.O. Box 174, El Campo, Texas 77437.

Notices to Client may be sent by email or text message to the contact information Client provided, through JobTread, or by mail to the service or billing address, and are effective when sent.

Where a statute requires a specific notice method (for example, certified mail under Texas Property Code Chapter 27 or the notice required by Texas Business & Commerce Code § 17.505), that method controls.

74. GOVERNING LAW AND VENUE

This agreement is governed by Texas law. Any arbitration takes place in Wharton County, Texas, as provided in Section 85. Any court proceeding permitted by these Terms shall be brought in the county required or permitted by Texas law. Lien foreclosure actions shall be brought where the property is located.

75. ATTORNEY'S FEES

In any dispute or collection action, the prevailing party shall recover reasonable attorney's fees, costs, and expenses (including arbitration fees) from the non-prevailing party, except where the AAA Consumer Rules require otherwise.

76. ENTIRE AGREEMENT

These Terms, together with the signed proposal, estimate, quote, booking confirmation, or approved change order, and the Rate Sheet referenced in them, are the entire agreement between the parties and supersede all prior negotiations, representations, and agreements, written or oral. Any promise, warranty, or representation about the Work must be in the written agreement; an oral promise not included in it may not be enforceable under Texas law. Changes to scope or price are made by change order under Section 9. Any other change to these Terms must be in a written amendment signed by both parties.

Order of Precedence: If a signed proposal or change order conflicts with these Terms, the proposal or change order controls only for price, scope, schedule, payment schedule, and anything it expressly says overrides a numbered Section of these Terms. These Terms control everything else.

Language: These Terms are written in English. Client confirms that Client read and understood them, or had the opportunity to have them translated before signing. Any translation is for convenience only, and the English version controls.

77. SEVERABILITY

If any provision of these Terms is found unenforceable or invalid, it will be modified to the minimum extent necessary to make it enforceable, and the remaining provisions continue in full force.

78. NO WAIVER

Contractor's failure to enforce any provision on one occasion does not waive its right to enforce that provision later.

79. SURVIVAL

All provisions that by their nature should continue after the Work is completed or the agreement ends survive, including payment obligations, warranties, limitations of liability, releases, indemnities, lien rights, the claims procedure and time to bring claims, attorney's fees, and dispute resolution.

80. CONTRACTOR'S EMPLOYEES; NO OTHER BENEFICIARIES

Contractor's employees, agents, and subcontractors are intended beneficiaries of, and may enforce, Sections 20.5 (Release), 26 (Limitation of Liability), 28.1 (Waiver of Subrogation), 27 (Consequential Damages Waiver), and 85 (Dispute Resolution) as if they were Contractor. Except for them, these Terms create no rights for anyone other than Client and Contractor, including tenants, lenders, and later owners or buyers.

NO PERSONAL LIABILITY: THIS AGREEMENT IS WITH J.L. ADRIAN ELECTRIC LLC ONLY. CLIENT AGREES THAT NO OWNER, MEMBER, MANAGER, OR EMPLOYEE OF CONTRACTOR IS PERSONALLY LIABLE FOR CONTRACTOR'S OBLIGATIONS UNDER THIS AGREEMENT, AND CLIENT WILL LOOK ONLY TO CONTRACTOR AND ITS INSURANCE, NOT TO ANY INDIVIDUAL'S PERSONAL ASSETS OR PROPERTY, FOR ANY CLAIM ARISING FROM THE WORK OR THESE TERMS, EXCEPT TO THE EXTENT TEXAS LAW DOES NOT ALLOW THIS TO BE WAIVED.

PART G — TEXAS STATUTORY NOTICES

81. RESIDENTIAL DISCLOSURES (TEXAS PROPERTY CODE § 53.255)

For residential work where Contractor is the original contractor, Contractor delivers the following disclosure statement before the contract is signed, as required by Texas Property Code § 53.255:

KNOW YOUR RIGHTS AND RESPONSIBILITIES UNDER THE LAW. You are about to enter into a transaction to build a new home or remodel existing residential property. Texas law requires your contractor to provide you with this brief overview of some of your rights, responsibilities, and risks in this transaction.

CONVEYANCE TO CONTRACTOR NOT REQUIRED. Your contractor may not require you to convey your real property to your contractor as a condition to the agreement for the construction of improvements on your property.

KNOW YOUR CONTRACTOR. Before you enter into your agreement for the construction of improvements to your real property, make sure that you have investigated your contractor. Obtain and verify references from other people who have used the contractor for the type and size of construction project on your property.

GET IT IN WRITING. Make sure that you have a written agreement with your contractor that includes: (1) a description of the work the contractor is to perform; (2) the required or estimated time for completion of the work; (3) the cost of the work or how the cost will be determined; and (4) the procedure and method of payment, including provisions for statutory reservation of funds and conditions for final payment. If your contractor made a promise, warranty, or representation to you concerning the work the contractor is to perform, make sure that promise, warranty, or representation is specified in the written agreement. An oral promise that is not included in the written agreement may not be enforceable under Texas law.

READ BEFORE YOU SIGN. Do not sign any document before you have read and understood it. NEVER SIGN A DOCUMENT THAT INCLUDES AN UNTRUE STATEMENT. Take your time in reviewing documents. If you borrow money from a lender to pay for the improvements, you are entitled to have the loan closing documents furnished to you for review at least one business day before the closing. Do not waive this requirement unless a bona fide emergency or another good cause exists, and make sure you understand the documents before you sign them. If you fail to comply with the terms of the documents, you could lose your property. You are entitled to have your own attorney review any documents. If you have any question about the meaning of a document, consult an attorney.

GET A LIST OF SUBCONTRACTORS AND SUPPLIERS. Before construction commences, your contractor is required to provide you with a list of the subcontractors and suppliers the contractor intends to use on your project. Your contractor is required to supply updated information on any subcontractors and suppliers added after the list is provided. Your contractor is not required to supply this information if you sign a written waiver of your rights to receive this information.

MONITOR THE WORK. Lenders and governmental authorities may inspect the work in progress from time to time for their own purposes. These inspections are not intended as quality control inspections. Quality control is a matter for you and your contractor. To ensure that your home is being constructed in accordance with your wishes and specifications, you should inspect the work yourself or have your own independent inspector review the work in progress.

MONITOR PAYMENTS. If you use a lender, your lender is required to provide you with a periodic statement showing the money disbursed by the lender from the proceeds of your loan. Each time your contractor requests payment from you or your lender for work performed, your contractor is also required to furnish you with a disbursement statement that lists the name and address of each subcontractor or supplier that the contractor intends to pay from the requested funds. Review these statements and make sure that the money is being properly disbursed.

CLAIMS BY SUBCONTRACTORS AND SUPPLIERS. Under Texas law, if a subcontractor or supplier who furnishes labor or materials for the construction of improvements on your property is not paid, you may become liable and your property may be subject to a lien for the unpaid amount, even if you have not contracted directly with the subcontractor or supplier. To avoid liability, you should take the following actions:

(1) If you receive a written notice from a subcontractor or supplier, you should withhold payment from your contractor for the amount of the claim stated in the notice until the dispute between your contractor and the subcontractor or supplier is resolved. If your lender is disbursing money directly to your contractor, you should immediately provide a copy of the notice to your lender and instruct the lender to withhold payment in the amount of the claim stated in the notice. If you continue to pay the contractor after receiving the written notice without withholding the amount of the claim, you may be liable and your property may be subject to a lien for the amount you failed to withhold.

(2) During construction and for 30 days after final completion, termination, or abandonment of the contract by the contractor, you should reserve or cause your lender to reserve 10 percent of the amount of payments made for the work performed by your contractor. If you choose not to reserve the 10 percent for at least 30 days after final completion, termination, or abandonment of the contract by the contractor and if a valid claim is timely made by a claimant and your contractor fails to pay the claim, you may be personally liable and your property may be subject to a lien up to the amount that you failed to reserve.

If a claim is not paid within a certain time period, the claimant is required to file a mechanic's lien affidavit in the real property records in the county where the property is located. A mechanic's lien affidavit is not a lien on your property, but the filing of the affidavit could result in a court imposing a lien on your property if the claimant is successful in litigation to enforce the lien claim.

SOME CLAIMS MAY NOT BE VALID. When you receive a written notice of a claim or when a mechanic's lien affidavit is filed on your property, you should know your legal rights and responsibilities regarding the claim. Not all claims are valid. A notice of a claim by a subcontractor or supplier is required to be sent, and the mechanic's lien affidavit is required to be filed, within strict time periods. The notice and the affidavit must contain certain information. All claimants may not fully comply with the legal requirements to collect on a claim. If you have paid the contractor in full before receiving a notice of a claim and have withheld the 10 percent of the contract price or value of work, you may not be liable for that claim. Accordingly, you should consult your attorney when you receive a written notice of a claim to determine the true extent of your liability or potential liability for that claim.

OBTAIN A LIEN RELEASE AND A BILLS-PAID AFFIDAVIT. When you receive a notice of claim, do not release withheld funds without obtaining a signed and notarized release of lien and claim from the claimant. You can also reduce the risk of having a claim filed by a subcontractor or supplier by requiring as a condition of each payment made by you or your lender that your contractor furnish you with an affidavit stating that all bills have been paid. Under Texas law, on final completion of the work and before final payment, the contractor is required to furnish you with an affidavit stating that all bills have been paid. If the contractor discloses any unpaid bill in the affidavit, you should withhold payment in the amount of the unpaid bill until you receive a waiver of lien or release from that subcontractor or supplier.

OBTAIN TITLE INSURANCE PROTECTION. You may be able to obtain a title insurance policy to insure that the title to your property and the existing improvements on your property are free from liens claimed by subcontractors and suppliers. If your policy is issued before the improvements are completed and covers the value of the improvements to be completed, you should obtain, on the completion of the improvements and as a condition of your final payment, a 'completion of improvements' policy endorsement. This endorsement will protect your property from liens claimed by subcontractors and suppliers that may arise from the date the original title policy is issued to the date of the endorsement.

Subcontractor and Supplier List (§ 53.256): Where Contractor is the original contractor on a residential project, Contractor will provide a list of the subcontractors and suppliers it intends to use before work begins, unless Client waives the list in writing.

Homestead Improvement Notice (Texas Property Code § 41.007): For improvements to Client's homestead, the following notice applies:

IMPORTANT NOTICE: You and your contractor are responsible for meeting the terms and conditions of this contract. If you sign this contract and you fail to meet the terms and conditions of this contract, you may lose your legal ownership rights in your home. KNOW YOUR RIGHTS AND DUTIES UNDER THE LAW.

82. RESIDENTIAL CONSTRUCTION LIABILITY ACT NOTICE

The following notice is required for residential construction work under Texas Property Code Chapter 27:

THIS CONTRACT IS SUBJECT TO CHAPTER 27 OF THE TEXAS PROPERTY CODE. THE PROVISIONS OF THAT CHAPTER MAY AFFECT YOUR RIGHT TO RECOVER DAMAGES ARISING FROM A CONSTRUCTION DEFECT. IF YOU HAVE A COMPLAINT CONCERNING A CONSTRUCTION DEFECT AND THAT DEFECT HAS NOT BEEN CORRECTED AS MAY BE REQUIRED BY LAW OR BY CONTRACT, YOU MUST PROVIDE THE NOTICE REQUIRED BY CHAPTER 27 OF THE TEXAS PROPERTY CODE TO THE CONTRACTOR BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, NOT LATER THAN THE 60TH DAY BEFORE THE DATE YOU FILE SUIT TO RECOVER DAMAGES IN A COURT OF LAW OR INITIATE ARBITRATION. THE NOTICE MUST REFER TO CHAPTER 27 OF THE TEXAS PROPERTY CODE AND MUST DESCRIBE THE CONSTRUCTION DEFECT. IF REQUESTED BY THE CONTRACTOR, YOU MUST PROVIDE THE CONTRACTOR AN OPPORTUNITY TO INSPECT AND CURE THE DEFECT AS PROVIDED BY SECTION 27.004 OF THE TEXAS PROPERTY CODE.

83. THREE-DAY RIGHT TO CANCEL (HOME SOLICITATION SALES)

If this agreement is solicited or signed somewhere other than Contractor's place of business (for example, at Client's home), Client may have the right under Texas Business & Commerce Code Chapter 601 to cancel within three business days. Where this right applies, the following notice governs, and the deposit is refundable under this Section notwithstanding any "non-refundable" language elsewhere in these Terms:

YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT.

The Notice of Cancellation form is provided in duplicate, with the cancellation deadline filled in, for every transaction to which this Section applies (see Exhibit A).

If Client cancels within this period, payments made by Client will be returned within 10 business days after Contractor receives the written cancellation notice, and any security interest arising from the transaction will be cancelled. If Contractor has delivered materials to the property, Client must make them available to Contractor; if Contractor does not reclaim them within 20 days of cancellation, they become Client's property.

Emergency or Immediate Work: If Client asks Contractor to begin work immediately because of an emergency or a health or safety condition, Client may be asked to sign a separate written request for immediate performance. Performing emergency work at Client's request may affect the three-day cancellation right as permitted by law. Contractor will still honor refund obligations for any work, materials, or planning not yet performed at the time of cancellation.

Exhibit A — Notice of Cancellation: The Notice of Cancellation form appears at the end of these Terms as Exhibit A.

84. SCOPE OF STATUTORY RESIDENTIAL NOTICES

The disclosures and notices in Sections 81, 82, and 83 apply only to work that qualifies as residential construction, a homestead improvement, or a home solicitation transaction under Texas law. They do not apply to commercial or industrial projects.

PART H — DISPUTE RESOLUTION

85. DISPUTE RESOLUTION AND ARBITRATION

EXCEPT FOR COLLECTION ACTIONS OR MECHANIC'S LIEN FILINGS AND FORECLOSURES BY CONTRACTOR, AND EXCEPT THAT EITHER PARTY MAY BRING AN INDIVIDUAL CLAIM IN A JUSTICE (SMALL CLAIMS) COURT WITHIN THAT COURT'S JURISDICTION, ANY DISPUTE, CLAIM, OR CONTROVERSY ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE WORK PERFORMED, OR THESE TERMS SHALL BE RESOLVED EXCLUSIVELY BY BINDING ARBITRATION ADMINISTERED BY THE AMERICAN ARBITRATION ASSOCIATION (AAA), IN WHARTON COUNTY, TEXAS.

THIS AGREEMENT INVOLVES INTERSTATE COMMERCE, INCLUDING MATERIALS AND EQUIPMENT MANUFACTURED AND SHIPPED FROM OUTSIDE TEXAS AND PAYMENTS PROCESSED THROUGH INTERSTATE CARD AND BANKING NETWORKS. THIS ARBITRATION AGREEMENT IS GOVERNED BY THE FEDERAL ARBITRATION ACT, 9 U.S.C. §§ 1–16, AND, TO THE EXTENT NOT INCONSISTENT, THE TEXAS ARBITRATION ACT.

IF CLIENT IS AN INDIVIDUAL OBTAINING WORK FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES, THE AAA CONSUMER ARBITRATION RULES APPLY AND FILING FEES AND ARBITRATOR COMPENSATION WILL BE ALLOCATED AS THOSE RULES REQUIRE. OTHERWISE, THE AAA CONSTRUCTION INDUSTRY ARBITRATION RULES APPLY.

CLIENT EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY OR TO PARTICIPATE IN A CLASS ACTION OR CLASS ARBITRATION. IF THE CLASS WAIVER IS FOUND UNENFORCEABLE, ANY CLASS CLAIM SHALL PROCEED IN COURT, NOT ARBITRATION.

THE ARBITRATOR'S AWARD SHALL BE FINAL AND MAY BE ENTERED AS A JUDGMENT IN ANY COURT OF COMPETENT JURISDICTION. EXCEPT WHERE THE AAA CONSUMER RULES REQUIRE OTHERWISE, THE LOSING PARTY SHALL PAY ALL ARBITRATION FEES, COSTS, AND THE PREVAILING PARTY'S REASONABLE ATTORNEY'S FEES. FOR RESIDENTIAL CONSTRUCTION CLAIMS, THE NOTICE REQUIRED BY TEXAS PROPERTY CODE CHAPTER 27 MUST BE GIVEN BEFORE ARBITRATION IS STARTED.

CLAIMS AGAINST CONTRACTOR'S EMPLOYEES, AGENTS, AND SUBCONTRACTORS ARISING FROM THE WORK ARE SUBJECT TO THIS SECTION (SECTION 80).

86. CONTACT US

J.L. Adrian Electric LLC d/b/a Adrian Electric Email: office@jladrianelectric.com Phone: (979) 559-3684 Address: P.O. Box 174, El Campo, TX 77437

DISPUTE RESOLUTION

BY SIGNING BELOW, YOU AGREE THAT ANY DISPUTE (EXCEPT SMALL CLAIMS COURT CASES AND OUR RIGHT TO FILE A LIEN OR COLLECT UNPAID INVOICES IN COURT) WILL BE DECIDED BY BINDING ARBITRATION IN WHARTON COUNTY, TEXAS, INSTEAD OF IN COURT OR BEFORE A JURY. CLASS ACTIONS AND CLASS ARBITRATIONS ARE NOT ALLOWED. THIS SUMMARY IS GOVERNED BY THE FULL ARBITRATION TERMS IN SECTION 85.

By signing the proposal, estimate, quote, or change order, Client confirms they have read and accepted all terms above.

EXHIBIT A — NOTICE OF CANCELLATION

J.L. Adrian Electric LLC d/b/a Adrian Electric • TECL #39231 • P.O. Box 174, El Campo, TX 77437 • (979) 559-3684

Regulated by The Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711, 1-800-803-9202, 512-463-6599; website: www.tdlr.texas.gov