DREAM TEAM ROOFING & CONSTRUCTION LLC
STANDARD TERMS & CONDITIONS
The terms and conditions (“Terms and Conditions”) stated herein shall govern every agreement between Dream Team Roofing & Construction LLC and Customer (as hereinafter defined). Certain terms used in this instrument are capitalized. Such terms shall have the meaning set forth in Section I below. By signing a Contract Agreement with Dream Team Roofing & Construction LLC, or any subsidiary thereof, Customer agrees to the Terms and Conditions that follow.
DEFINITIONS.
When used in this instrument, the following terms not otherwise defined herein have the following meanings:
“ACV” means the actual cost value.
“Contract Agreement” shall mean any and all signed agreements between Dream Team and Customer, including these Terms and Conditions.
“Customer” shall mean the Person(s) who orders the Services to be completed at the Property by Dream Team and who is responsible for the payment thereof.
“Deductible” shall mean the amount of money the Customer is required to pay before their insurance policy will begin to pay covered expenses. The Deductible is outlined in the Customer’s insurance policy and Dream Team has no power to control the Deductible amount.
“Dream Team” shall mean Dream Team Roofing & Construction LLC or its subsidiaries.
“Person” shall mean any individual or entity, including any corporation, limited liability company, partnership (general or limited), joint venture, association, joint stock company, trust, unincorporated organization or government (including any board, agency, political subdivision or other body thereof).
“Property” shall mean the home, business or land where Dream Team has been hired to perform the Services.
“RCV” means the replacement cost value.
“Scope of Work” shall mean the Services outlined in Exhibit A attached to the Contract Agreement between Customer and Dream Team.
“Services” shall mean those specific services to be performed by Dream Team as set forth in the Contract Agreement and Scope of Work between Customer and Dream Team.
“Supplemental Bills” and/or “Supplemental Billing” has the meaning set forth in Section III(c).
“Terms and Conditions” has the meaning set forth in the introductory paragraph hereof.
“Undisputed Settlement Statement” shall mean the scope of work supplied to Customer from their insurance carrier showing what work is covered by insurance and how much each line item will cost.
“Warranty” has the meaning set forth in Section XI.
SCOPE OF WORK.
The Scope of Work is outlined in EXHIBIT A attached hereto and incorporated herein. Dream Team shall supply the labor and materials required to perform the Scope of Work. Customer agrees that Dream Team has the right to substitute materials with equal or superior quality materials should the materials listed in the Scope of Work become unavailable for any reason. Dream Team has the right to make such substitution without notice to or permission from the Customer. Customer represents and warrants that Customer is duly authorized to order and direct the Services of Dream Team. In performing the Services, Dream Team shall be entitled to rely on the work of third parties, the representations of Customer and the public record and shall be under no obligation to verify any of the foregoing. The ordering of additional Services and/or materials from Dream Team beyond the Scope of Work shall constitute acceptance of the terms of these Standard Terms and Conditions as to such additional Services and/or materials. In the event there is damage to the Property that is not obvious upon first inspection, Customer hereby authorizes Dream Team to immediately make necessary repairs and Customer agrees to pay the RCV plus overhead and profit for such expenses as determined by Dream Team’s normal rates.
PAYMENT.
Paid by Cash. If Customer hires Dream Team, to be paid by cash, to perform the Services described in the Scope of Work, Customer shall pay the amount stated in the Scope of Work with fifty percent (50%) paid immediately upon signing the Contract Agreement and the remaining balance due immediately upon completion.
Paid with Insurance Proceeds. If Customer hires Dream Team, to be paid via insurance proceeds, Customer has, or will, file an insurance claim with their Property’s insurance carrier and such funds shall be used to pay for the Services. Customer hereby hires Dream Team as the general contractor of record to perform the Services described in the Scope of Work, at the address stated therein. The insurance company will provide an Undisputed Settlement Statement showing the damages that the insurance company will pay to repair or replace. Customer shall provide all Undisputed Settlement Statements received from their insurance carrier to Dream Team immediately upon receipt thereof. Customer is required to pay the RCV for the Services plus overhead and profit and taxes as stated by the initial Undisputed Settlement Statement and any additional Undisputed Settlement Statements received after Supplemental Billing. Dream Team is required to complete the Services as outlined by the insurance company. Any deviation from the Undisputed Settlement Statement shall be covered in Section IV.
Supplemental Billing. It is common for additional damage to be uncovered as the roof comes off or the Services begin being performed. As items are uncovered, they can be inspected more thoroughly for damage. Dream Team will send additional bills to the insurance company to cover additional damage wherever appropriate (“Supplemental Bills”). In the event the insurance company pays for these additional Services billed by Dream Team, Customer shall forward the funds received from insurance company to Dream Team immediately upon receipt. Unless otherwise specified in writing, the price for Services is based on the understanding that all structural members and other components are in fact in sound condition. If any conditions are encountered that are not currently visible, Customer agrees to pay Dream Team additional compensation that may be necessary based upon Dream Team’s normal rates and as agreed to in writing by both parties.
Deductible. A PERSON INSURED UNDER A PROPERTY INSURANCE POLICY SHALL PAY ANY DEDUCTIBLE APPLICABLE TO A FIRST-PARTY CLAIM MADE UNDER THE POLICY. Pursuant to Tex. Ins. Code § 707.002. Added by Acts 2019, Texas Acts of the 86th Leg. – Regular Session, ch. 1099, Sec. 1, eff. 9/1/2019.
Interest and Fees. If at any time an invoice remains unpaid for a period in excess of thirty (30) days, a service charge of one and on half percent (1-1/2%) per month from the date of original invoice, an effective maximum rate of eighteen percent (18%) per annum, will be charged on past due accounts. Customer shall pay a five percent (5%) fee on all credit card payments.
Right to Stop Services. The failure of Customer to make proper payment to Dream Team when due shall, in addition to all other rights, constitute a material breach of the Contract Agreement and shall entitle Dream Team, at its discretion, to suspend all Services and shipments, including furnishing the Warranty, until full payment is made. The time period in which Dream Team shall perform the Services shall be extended for a period equal to the period during which the Services was suspended, and the sum to be paid Dream Team shall be increased by the amount of Dream Team’s reasonable costs of shut-down, delay and start-up.
ADDITIONAL SERVICES.
Any alteration or deviation from the Scope of Work involving extra costs will be executed only upon written agreement signed by both parties and shall be paid for in full by Customer including overhead and profit.
RIGHT OF ENTRY.
Customer shall provide Dream Team, and its subcontractors or other representatives, the right to enter the Property and any additional necessary permissions in order for Dream Team, and its subcontractors or other representatives, to complete the Services.
DELAYS.
If Dream Team is required to delay commencement of the Services or if, upon embarking upon the Services, Dream Team is required to stop or interrupt the progress of the Services as a result in changes in the Scope of Work requested by the Customer, to fulfill the requirements of third parties, strikes, accidents or other interruptions in the progress of construction, or other causes beyond the direct control of Dream Team, additional charges may be applicable and payable by the Customer and the approximate completion date of the Services shall be extended to take into account the period of delay. Dream Team shall not be liable for any delay damages. Any delays caused by any event or events beyond the control of Dream Team do NOT constitute abandonment and are not included in calculating timeframes for payment or performance.
EQUIPMENT.
All equipment used to complete the Services belongs to Dream Team and shall remain the property of Dream Team. Any equipment used for the Services outlined in the Scope of Work and left on the Property shall remain on the Property and returned to Dream Team upon the completion of the Services. All such equipment shall be in the same condition as it was when delivered to Customer.
CUSTOMER SATISFACTION.
Dream Team makes Customer satisfaction our top priority! If Dream Team caused any damage to the Property or the Customer is not satisfied with the Services performed, Customer shall notify Dream Team in writing within seven (7) days of completion of the Services in the Scope of Work. Customer hereby waives all claims related to the Services performed if Customer fails to notify Dream Team in writing within this time period.
CUSTOMER ADVISORY.
Customer acknowledges that re-roofing of an existing building or other Services in the Scope of Work may cause disturbance, dust, debris or fireproofing to fall into the interior. Dream Team shall not be responsible for any interior damages and advises the Customer to remove all wall hangings, light glass fixtures, and other fragile items prior to start of Services. Any items in attic should be covered for protection from falling debris and dust. Dream Team shall not be responsible for disturbances, nails pops, detachment of fireproofing or other materials from the underside of the deck, damage, clean up or loss to interior property, interior drywall cracks or any damage to any items on the interior or the exterior of the home or work site including damage to shrubbery, outside plants, landscaping, yard furniture, decking, sprinkler systems, or driveways during the process of the Services. Customer shall notify tenants of re-roofing and the need to provide protection underneath areas being re-roofed. Customer agrees to hold Dream Team harmless from claims of tenants who did not provide protection.
INSURANCE.
Coverage. Dream Team shall carry worker’s compensation, automobile and commercial general liability insurance. Dream Team will furnish a Certificate of Insurance upon request. Dream Team’s proposal and contract price is based on Dream Team’s existing insurance limits and endorsements. If Customer requests additional insurance coverage or endorsements, additional premiums may be added to the contract price. Any additional insurance coverage or endorsements are subject to Dream Team’s insurance carrier’s review and underwriting approval. Customer shall purchase and maintain builder’s risk and property insurance, including labor and materials furnished by Dream Team, covering fire, extended coverage, malicious mischief, vandalism and theft on the Property to protect against loss or damage to material and partially completed Services until the job is completed and accepted. Moneys owed to Dream Team shall not be withheld by reason of any damage or claim that is covered by liability, property or builder’s risk insurance.
Additional Insured. If Customer requires, and Dream Team agrees, to make Customer or others additional insureds on Dream Team’s liability insurance policy, Customer and Dream Team agree that the naming of Customer or others as additional insureds is intended to apply to claims made against the additional insured to the extent the claim is due to the negligence of Dream Team and is not intended to make Dream Team’s insurer liable for claims that are due to the fault of the additional insured.
WARRANTY.
Dream Team warrants to the Customer that all Services provided under the Scope of Work and any Supplemental Billing will be free from defects in workmanship for a period of three (3) years from the date of completion (the “Warranty”). This Warranty is in lieu of all other express or implied warranties including those of merchantability and fitness for a particular purpose. This Warranty shall be void if the manufacturer has a warranty covering the issues outlined herein. It is expressly agreed that in the event of alleged defects in the materials furnished pursuant to a Contract Agreement, Customer shall have recourse only against the manufacturer of such material. This Warranty shall be void if (i) the Services are replaced by any Person other than Dream Team; (ii) if the amount due to Dream Team is not paid in full; or (iii) if the Customer does not upgrade decking that is dimensional lumber or spaced decking. This Warranty does not cover damage for items that were not replaced during the Services provided by Dream Team. Any damage covered by this Warranty shall be calculated using ACV (depreciation) and not RCV. DREAM TEAM SHALL NOT BE LIABLE FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES. The execution of a Contract Agreement by the Customer signifies Customer’s agreement that this Warranty shall be and is the sole exclusive remedy against Dream Team. Any repairs that consist of less than a full roof replacement shall have a one (1) year workmanship warranty covering the area repaired only.
CONSTRUCTION DEFECTS.
Prior to filing a lawsuit for construction defects, Customer shall present Dream Team with written notice of alleged defects. Customer shall allow Dream Team to inspect the alleged defects and provide Customer with a written response which shall include Dream Team’s offer to repair defects or compensate Customer for such defects within thirty (30) days after receipt of the notice of defects. If Customer fails to follow the defect procedure outlined herein, Customer agrees that Customer shall be barred from bringing any cause of action, including negligence, against Dream Team related to such defects. Customer agrees that Customer’s exclusive remedy shall be under the Warranty provided by Dream Team in Section XI.
LIMITATION OF LIABILITY.
Act of God. Dream Team shall not be liable for damages of any kind that result from an act of God, fire, flood, strike, pandemic, third parties, acts of terrorism or by any other circumstances which are beyond the control of Dream Team, including (without limitation) severe weather.
Intentional Conduct. Dream Team’s liability for damages of any kind due to breach of warranty, contract, error, omission, negligence, tort or any other legal theory shall be limited to conduct that was intentional and shall be limited to a maximum of the total amount paid to Dream Team under the Contract Agreement. UNDER NO CIRCUMSTANCES SHALL DREAM TEAM BE LIABLE FOR SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES.
Claims. In the event Customer desires to make any claim against Dream Team, Customer shall provide Dream Team with written notice of such claim within seven (7) days from the date Customer, or its agents, first discovers the claims or the same shall be barred. Any claims against Dream Team brought under a Contract Agreement or in any way arising from a Contract Agreement must be filed within one (1) year from the time the cause of action accrued or it shall be time barred.
Roof Inspections. Dream Team conducts inspections of Customer’s roof and issues inspection reports as a courtesy to Customer for a nominal fee. Customer and Dream Team agree that Dream Team does not warrant or guarantee that the inspection will discover every potential source of roof failure, leak or other issues. Dream Team also does not warrant or guarantee that the inspection will cause the roof to last for the full life of the manufacturer’s warranty or as long as noted in the inspection report. Should the roof experience a leak or failure that Customer alleges Dream Team should have discovered during the inspection, Customer and Dream Team agree that Dream Team’s maximum liability arising out of the alleged missed failure will be Dream Team’s fee for the inspection. Customer’s exclusive remedy against Dream Team, its owners, agents, and employees for any claimed failure or leak that Customer alleges Dream Team did not discover is to claim for return of Dream Team’s fee for the inspection and report. Customer and Dream Team agree that Dream Team is not liable for any consequential damages arising out of any claimed roof failure or leak that Dream Team did not discover during the inspection or note on Dream Team’s inspection report.
BUYER’S RIGHT TO CANCEL.
If this Contract Agreement was solicited at the residence of Customer and Customer does not want the goods or services provided herein, Customer may cancel the Contract Agreement by mailing a notice to Dream Team Roofing and Construction LLC at the address located on the Contract Agreement executed by the parties. The cancelation must state that Customer does not want the goods or services agreed upon and must be mailed before midnight of the third (3rd) business day after execution of the Contract Agreement.
LIQUIDATED DAMAGES.
In the event Dream Team procures insurance proceeds for Customer based on attending adjuster meetings, negotiating with insurance company or for any other reason, and then Customer prevents Dream Team from performing the Services outlined in the Scope of Work, Customer agrees to pay liquidated damages to Dream Team in the amount of twenty five percent (25%) of the total contract price for the Property including Supplemental Billing, if applicable. This is including charges for both labor performed and materials purchased by Dream Team prior to such date Customer prevents Dream Team from performing the Services.
MOLD DISCLAIMER.
Dream Team and Customer are committed to acting promptly so that roof leaks are not a source of potential interior mold growth. Customer will make periodic inspections for signs of water intrusion and act promptly including prompt notice to Dream Team if Customer believes there are roof leaks, to correct the condition. Upon receiving notice, Dream Team will make roof repairs. Customer is responsible for monitoring any leak areas and for indoor air quality. Dream Team is not responsible for mold or indoor air quality. Customer shall hold harmless and indemnify Dream Team from claims due to indoor air quality and resulting from a failure by Customer to maintain the building in a manner to avoid growth of mold. The Contract Agreement does not include, unless explicitly specified, any mold abatement, removal or cleaning. If mold is found existing on the premises, any cost to abate, remove or clean shall be paid by Customer as an extra. In addition, any Warranty given to Customer under the Contract Agreement does NOT include the cost to abate, remove or clean mold that may be found on the Property in the future.
NON-DISPARAGEMENT.
Customer, and its agents, agree to refrain from disparaging Dream Team by making any negative statement for any reason. Customer shall work in good faith with Dream Team to resolve any issues Customer may have. If Customer breaches this provision, Customer shall pay liquidated damages to Dream Team in the amount of twenty five percent (25%) of the total contract price for the Property in return for the harm caused to Dream Team’s reputation. Customer shall retract and remove any and all disparaging statements.
SEVERABILITY.
Each section, subsection and lesser section of these terms and conditions constitute a separate and distinct undertaking, covenant or provision hereof. In the event that any provision of any Contract Agreement shall be determined to be invalid or unenforceable, such provision shall be deemed limited by construction in scope and effect to the minimum extent necessary to render the same valid and enforceable, and, in the event such a limiting construction is impossible, such invalid or unenforceable provision shall be deemed severed from the Contract Agreement, but every other provision of the Contract Agreement shall remain in full force and effect.
ENTIRE AGREEMENT.
The Contract Agreement constitute the entire understanding of the parties and no other understanding, collateral or otherwise, shall be binding unless in writing and signed by all parties hereto.
GOVERNING LAW.
All issues and questions concerning the construction, validity, enforcement and interpretation of the Contract Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Texas or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Texas. In furtherance of the foregoing, the internal law of the State of Texas shall control the interpretation and construction of the Contract Agreement, even though under the jurisdiction’s choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.
HEADINGS.
The headings contained in the Contract Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of the Contract Agreement.