Vanessa Howard and Ara Howard v. Luna Sea Charters, Inc. d/b/a Charter Homes and Curtis D. Thresher

IN THE DISTRICT COURT OF MARSHALL COUNTY STATE OF OKLAHOMA VANESSA HOWARD AND ARA HOWARD, Plaintiffs vs. LUNA SEA CHARTERS, INC. D/B/A CHARTER HOMES AND CURTIS D. THRESHER, Defendants. Case No. CJ-25-15 PLAINTIFFS' ORIGINAL PETITION To the Honorable Judge of said Court: Now Comes Vanessa Howard and Ara Howard, hereinafter called Plaintiffs, complaining of and about Luna Sea Charters, Inc., d/b/a Charter Homes and Curtis D. Thresher, hereinafter called Defendants, and for cause of action shows unto the Court the following: Jurisdiction and Venue 1. The amount in controversy exceeds the jurisdictional limit of the Court, thus giving this Honorable Court jurisdiction. 2. Venue in this Honorable Court is appropriate because the property giving rise to the damages of Plaintiffs is located in Marshall County, Oklahoma. Parties and Service 3. Plaintiffs Vanessa Howard and Ara Howard are individuals who reside in Kingston, Oklahoma. 4. Defendant Luna Sea Charters, Inc., d/b/a Charter Homes, is a Texas Corporation and may be served with process through the Secretary of State at 421 NW 13th Street, Suite 210, Oklahoma City, OK 73103, or wherever they may be found. 5. Defendant Curtis D. Thresher may be served at 9496 Laura Lane, Kingston, OK 73439, or wherever he may be found. Facts 6. Plaintiffs entered a contract with Defendant Luna Sea Charters, Inc., d/b/a Charter Homes, hereinafter "Charter Homes", on August 20, 2022, to construct a residential home on their property located at 10755 Old Willis Rd, Kingston, Oklahoma. See attached Exhibit "A". 7. Defendant Curtis D. Thresher is also the President, Director, Vice President, and Treasurer of Defendant Charter Homes. Defendant Curtis D. Thresher signed the contract on behalf of Charter Homes. 8. Under the terms of the contract, Defendant agreed to provide all labor and materials to construct the residence as described in the plans and specifications, attached as Exhibit "B". 9. In the contract, Defendant promised to execute the construction of the residence in accordance with the plans and specifications. Per the contract Charter Homes executed with Plaintiffs, Paragraph 9 includes a 2-year warranty for any defects in workmanship. 10. Plaintiffs paid in full the contract price of $351,379.00 for the home and moved into the home on August 20, 2023. 11. The master shower plumbing was installed incorrectly. There is a leak in the master bath shower behind the wall and is not usable. The master shower was rebuilt by Defendant to address the leak leading outside. Defendant’s crew took it upon themselves to use a different color metal trim and different color grout in the rebuild. It does not match the original design. The master bathroom has large gaps from plumbing coming in from the wall to the cabinet. The escutcheon plates were installed backwards under both sinks. The air vent in the master bedroom would not open. Defendant Thresher was informed and never addressed the issue. Plaintiffs had to remove the air vent to open it and reinstalled the vent, but it is not adjustable due to damage in the vent housing. The metal panel that needed replacing on the exterior of the home due to the master shower leak was only partially replaced. The entire panel was not removed and replaced, it was patched. 12. The guest bath shower tile was not sealed correctly and had to be re-tiled. In the process, Defendant’s crew damaged the pantry by knocking two holes in the wall, which they attempted to repair but are still visible. The new guest shower does not match the old shower design. The tiles go all the way to the ceiling, which they did not before, and the walls were not prepared to have tile all the way to the ceiling. The shower niche design does not match the previous design. The guest bathtub was not installed correctly and moves. The bathtub has cracks and needs to be replaced. The guest bathroom vanity needs to be repainted. There is a trim piece on the vanity to cover a gap between the granite and cabinet and it was never painted. The headknocker has been chipped and sanded but not filled. There are large gaps from the plumbing coming in from the wall to the guest bath vanity cabinet. The holes in the vanity are larger than the escutcheons that were installed. Defendant did not replace the vanity with holes in the correct location. 13. The exterior shower was not constructed using a shower pan and was not properly built and leaks in two (2) places. The exterior shower leak was not repaired to remedy the leak. Defendant filled in two sides of the bottom of the shower with silicone and it still leaks. This is potentially leaking into the wall shared with the home. 14. The roof has construction defects and improper seals around rain boots, roof jacks, and flashing, allowing water intrusion into the attic and possibly causing mold and leaks. The rain damaged insulation has not been replaced. The water leaked into the home and damaged the drywall ceiling in the kitchen and laundry room which had to be replaced; however, the ceiling paint is not matched with the prior paint. Defendant had a worker come out to install the missing seals on the roof; however, the worker stated he was not insured to complete the work that Defendant Curtis Thresher assigned them to do. The worker stated that he has never installed roof boot seals before. The panels under the boots were not removed to check for water damage for the year and a half they were unsealed and had water intrusion. 15. The kitchen cabinets had to be repainted because sawdust got in the wet paint. The second time they were painted, Defendant’s painters did not sand the cabinets to remove all of the sawdust and debris. Then Defendant had the cabinet and drawer facings replaced. The drawer facings were replaced, but they did not caulk and paint the interior portion of the drawer. The cabinet facings were rehung, and cabinet pulls were reinstalled incorrectly and unlevel damaging the cabinet doors and drawers. They drilled into the drawers attempting to install pulls and drill marks are visible when opening the drawer. The island has been painted two different colors. Defendant never painted the final drawer facing that was delivered, leaving the kitchen cabinets incomplete. The lights under the kitchen cabinets are hanging and visible. They need to be replaced and wires painted to match the cabinets. There are holes on top of the kitchen cabinets for the light wiring. They are too large for the wire that is running through them. Plaintiffs asked Defendant Thresher to correct the issue. Defendant only corrected the holes under the cabinets and not the holes on top of the cabinets. The trim along the bottom of the kitchen island was damaged due to an improper repair. It needs to be replaced and repainted. The refrigerator cabinet has had many repair attempts to level the cabinet and remove a bow on the left and right side; this is because the countertop was not installed properly and is not square with the wall. This installation caused the refrigerator cabinet to also be installed incorrectly. The repair attempts damaged another cabinet. Defendant Thresher was informed of the installation issues via phone by the cabinet workers. 16. There is white paint on the inside of the kitchen sink. This was brought to Defendant Thresher’s attention upon move in and was not addressed. A clean has been attempted and the sink needs to be replaced. 17. Defendant Curtis Thresher told Plaintiff Ara Howard there was a minor leak in the water line from the meter to the house. Plaintiffs received a water bill for the billing cycle of June 13, 2023 through July 11, 2023 in the amount of $321.08. Plaintiff Vanessa Howard reported this bill to Defendant Thresher, at which time he claimed that there was not a leak and that there never was a leak. Defendant Thresher tried to blame the water meter. Defendant Thresher stated he would contact Marshall County Water Corp and handle the issue. Plaintiffs were required to pay the water bill and were never reimbursed by Defendant Thresher for $321.08. 18. Condensation builds up on PVC piping in the attic and various windows inside the home, indicating moisture issues. The HVAC heat pump installed is not what was stated in the specifications. The signed specifications have a 15-5 seer HVAC unit. Plaintiffs have a 15-3 seer unit installed. The HVAC system ductwork needs to be suspended and taped, per the recommendation of a licensed HVAC company. Plaintiffs are having to install a whole house dehumidifier per a licensed HVAC specialist. The licensed HVAC specialist reported that metal homes with spray foam insulation require a dehumidifier because the home does not breathe. This could cause mold to develop in the attic. Defendant has already replaced part of the ceiling above the laundry room due to biological matter in the attic. The home already has condensation that builds up on the inside of the window trim. The HVAC licensed technician also stated that the interior air handler was installed too low, not allowing enough return air flow into the unit and requiring us to compensate with door louvers. Plaintiffs have spent $6,400.00 on a whole house dehumidifier. Plaintiffs added the additional return vent space ourselves, per the HVAC specialist recommendation. This was quoted at $720.00. 19. The wall of the home shared with the garage does not contain the double insulation like the other exterior walls of the living space. 20. Plaintiffs asked Mr. Thresher about adding an underlayment for the vinyl floor due to moisture, noise, and temperature concerns. Mr. Thresher responded that the floor company was only trying to get money out of Plaintiffs, and it wasn't necessary, as Mr. Thresher installed a moisture barrier under the foundation. The Plaintiffs trusted Mr. Thresher’s recommendation and relied on Defendant’s representations. As a result of not using an underlayment, the floor is noisy and has issues with temperature. Further, Defendants and their contractors/employees spilled large amounts of paint on the floor that cannot be cleaned up. In the process of repairing the vinyl floor plank around the kitchen island, Defendant’s crew broke the floor joint between two planks. 21. Defendant Thresher told Plaintiffs he would install the same trim in their home as he installed in another home built by Defendant Charter Homes; however, Plaintiffs’ trim does not match the trim that was promised to them by Defendant Thresher. Further, the current trim was painted with poor quality paint. 22. The home has extensive texture and painting issues throughout with paint chipping and caulking cracking. There is excess paint that has stained and damaged numerous other finishes in the home including the floors and hardware. There are multiple places where the paint colors do not match. Almost all of the door hardware has been scratched or has paint from the times that Defendant has attempted repairs on the home. The wall texture in the interior of the home is inconsistent. Plaintiffs asked for certain walls to be sanded and retextured. Defendant’s crew sanded the wrong wall and did not finish painting where they sanded. Defendant Thresher was asked to repaint the entire home due to poor quality paint and workmanship. He refused to repaint the entire home and was only willing to touch up certain areas. The painters have left drip marks, brush strokes, and unmatched paint throughout the house. The painters got paint drips on the granite, windows, floors, grout, home appliances, house plants, and door hardware. 23. There is white paint on several exterior metal panels from the painters using Plaintiffs’ exterior faucets. The metal panels were not cleaned or replaced. 24. The exterior electrical outlets were not sealed. Defendant added silicone around every outlet instead of installing the proper fixtures. 25. Per the home inspection, the gutter next to the garage is in the improper place and should be moved due to corrosion of concrete and safety issues. 26. Plaintiffs were persuaded by Defendant Thresher to get fiberglass exterior doors and to stain the doors to look like wood. However, Defendants’ painter informed Plaintiffs that staining the doors is not the best practice and recommended painting the doors. Plaintiffs discussed these concerns with Defendant Thresher, and he said that he has done many doors this way and it will be fine. 27. The parties had a full discussion about fixtures to be installed in the house. Defendant Thresher went into detail about his dislike of traditional toilet paper holders. Plaintiffs sent images of the bathroom fixtures that they wanted Defendant to order and it did not include traditional toilet paper folders. Defendant installed completely different fixtures than what Plaintiffs requested. 28. Several items for the home were verbally agreed upon with Defendant Curtis Thresher and did not take place. The grout color was agreed upon during a meeting between the tile contractor and Defendant Thresher for black grout throughout the home. The incorrect grout color was used, there are at least three different grout colors in the home. The grout on the kitchen backsplash is breaking apart and falling out. This grout color was originally supposed to be black. Defendant Thresher had gray grout installed and did not verify the color with Plaintiffs. 29. Two (2) of the kitchen cabinets were supposed to have glass installed in the cabinet face. The cabinet builder stated that he does not do glass, and it was agreed that Defendant Thresher’s contractors would do the glass. Plaintiffs do not have two cabinets with glass. 30. Defendant Thresher told Plaintiffs he would cover the exterior posts in cedar; however, they are metal and painted black. 31. Defendant Thresher represented to Plaintiffs that he would install a small sidewalk between the front and side patio. It was not installed. 32. Defendant Thresher told Plaintiffs he would have a pad and hook up for a back-up generator installed. It was not installed. It was discussed during the meeting with the electrician and Mr. Thresher. 33. Plaintiffs were charged for and paid for thirteen (13) series 146 single hung windows; however, Defendant only installed twelve (12) windows. Plaintiffs noticed that a window was missing on the house plans and pointed it out to Defendant Curtis Thresher. Defendant Curtis Thresher represented to Plaintiffs that Plaintiffs would get the number of windows they paid for, but only twelve (12) windows are installed in the home. Plaintiffs have never been given the missing window or reimbursed for the missing window. Plaintiffs also paid for four (4) series 146 picture windows and only have three (3) installed. Defendant Curtis Thresher represented he could not install one of the picture windows due to an issue with the structure of the home; however, Defendant Curtis Thresher designed the structure himself. 34. Exterior window frames are bent and scratched and need to be replaced. Plaintiffs brought this to Defendants’ attention before moving into the home and were told by Mr. Thresher that his crew would make them look better. However, this concern was never addressed. 35. Two (2) windows need to be replaced due to cracks. Defendant was informed and did not address this issue or make repairs. 36. The home built does not contain the square footage stated on the contract. Plaintiffs’ home is short “under roof” square footage. 37. Per the specifications page, Plaintiffs were to have three hundred (300) feet of built out space in the attic to use for a future room; however, the room constructed is only approximately one hundred (100) square feet of decking and there is not enough headroom to stand in the attic to make it a future room per the specifications page. 38. Exterior doors in the home have been hung incorrectly or are damaged due to the Defendants’ incorrect installation of the doors. The exterior door to the garage is not sealed correctly to prevent outside water from intruding into the garage. Defendant attempted to rehang the door multiple times, but it still leaks. The exterior trim Defendant had to replace after rehanging the door was never painted to match the house. The concrete pad is higher than the foundation of the home, causing water to run toward instead of away from the house. The gaps around the door allow air, light, and water to pass through and intrude into the garage. The water intrusion has caused water damage to the trim in the garage. Although Defendant has replaced the trim once, the continued water intrusion has damaged the new trim and continues to cause water damage and possible mold growth. 39. The patio concrete, garage floor concrete, and the extension from the garage has stain and paint that will not come off. Defendant Thresher stated that he would power wash the concrete and try to remove the stain. This was never attempted. 40. All exterior faucets leak when turned on with a water hose attached. Defendant’s Thresher’s plumber has come out to tighten fittings. They still leak and were not replaced. 41. The front door was replaced and rehung by Defendant; however, during the last attempt to rehang the door, there was no support put under the threshold. This has caused a draft into the house and the threshold bows when stepped on. This has also caused the front door to swing all the way open every time it is opened; it will not stop and stay in place. 42. There are three closet support rods missing throughout the home. 43. Defendant never reinstalled the exterior trim on the back door from the master bedroom to the patio. Plaintiffs installed the trim that was left sitting on the patio. The trim still needs to be caulked and painted. This door still allows light and air to pass through to the interior of the home because it is not hung or sealed properly. The door needs to be replaced due to poor staining of the fiberglass door. Several spots on the door are missing stain. Defendants’ painter informed Plaintiffs that they will not be able to match the stain with touch up. The north side exterior door also needs to be replaced due to patches of no stain. The door from the living room to the garage was rehung by Defendant, but still allows light and air through. Plaintiffs paid a locksmith $639.00 to come out and rekey the home to one key and make adjustments that allowed all doors to close properly. Defendant’s crew came out after and worked on the doors, undoing the majority of the locksmith’s work. 44. The interior door to the laundry room needs to be rehung, because it does not close properly. 45. Defendant Curtis Thresher stated that he was a qualified builder and that he could do everything from design to build. His crew was used to complete various tasks that they are not specialized in or insured to complete. He claims that he builds all of his homes by Texas standards and that there is not a builder in the area that builds to those standards. Defendant Curtis Thresher further represented himself as a large home builder that builds million to multi-million dollar homes. Stated he was currently building 19 homes while in the process of building Plaintiff’s home. 46. Curtis Thresher stated on the day that Plaintiffs signed the contract that his word means more than his contract. Most of the communication or specifications between the parties took place verbally rather than written. 47. Defendant Curtis Thresher told Plaintiffs that Plaintiffs would receive a file with all of the receipts and paperwork that pertained to the build of our home. As of the filing of this petition, Plaintiffs still have not received a folder proving the money spent on materials and labor for the home. 48. Plaintiffs repeatedly told Defendants of the issues of the home. Defendants have come back to the home on several occasions to attempt to repair some of the defects but they have been unsuccessful. Defendants have refused to repair many defects in the home. Defendants most recently attempted to make repairs in September and October 2024; however, some defects were worse after their alleged “repairs”. 49. Per the signed specifications, Plaintiffs were to have a heater installed in the master bathroom in the ceiling outside the shower. There was only an exhaust fan installed. Defendant did replace the unit with a heater and exhaust fan combination unit during December of 2023. Upon installation, the replacement unit size was smaller than the original unit, and a hole was left in the ceiling. Defendant patched part of the hole when he came out for repairs during September of 2024, leaving a small hole on one side and it does not match the rest of the ceiling. Defendant filled it with mud instead of replacing the sheetrock. The paint does not match in color. 50. Defendants performed additional work that was not authorized. Plaintiffs specifically asked Defendant Thresher to NOT install a camera system. Plaintiffs did not want Defendant to install Defendants’ security system. However, Defendants installed their security system anyway and now Plaintiffs have seven (7) metal panels that have holes and cameras that they did not want, did not ask for, and would be costly to replace. Defendants performed unauthorized work and added this item to Plaintiffs’ home specifically against their wishes and direction. 51. Defendants qualifies as a “contractor” under 15 O.S. § 765.6 and the above violations clearly constitute a “construction defect” under the same section. Conditions Precedent 52. Defendants received written notice of Plaintiffs’ claims for construction defects more than thirty (30) days prior to filing this suit in accordance with 15 O.S. § 765.6. 53. Plaintiffs have allowed Defendants to inspect the construction defects, which Defendants have not repaired. Actual Fraud (Breach of 15 O.S. § 60) 54. Defendant Curtis Thresher committed actual fraud in his dealings with Plaintiffs with intent to deceive another party thereto, or to induce Plaintiffs to enter into the contract. Defendant Thresher made fraudulent statements. Defendant Thresher had knowledge or belief of this fact. As a result of Defendant Thresher’s failure to explain the truth, Plaintiffs were deceived to enter into the contract to allow Defendants to construct their home, causing Plaintiffs to suffer damages. 55. If a contractor makes a false assertion that damages the owner, the contractor can be sued under the theory of fraud. The elements of actionable fraud in Oklahoma are: (1) that defendant made a material representation; (2) that it was false; (3) that he made it when he knew it was false, or made it recklessly, without any knowledge of its truth and as a positive assertion; (4) that he made it with the intention that it should be acted upon by plaintiff; (5) that plaintiff acted in reliance upon it; and (6) that the plaintiff thereby suffered injury. State ex rel. Southwestern Bell Tel. Co. v. Brown, 1974 OK 19, ¶ 19, 519 P.2d 491, 495; see also Okla. Stat. tit. 76, §§ 2, 4. 56. Defendant Thresher made multiple representations to Plaintiffs about the quality and workmanship of the construction of the home which he knew were false in order to induce Plaintiffs to hire him to construct their home. Fraud in the Inducement 57. On August 20, 2022, Defendant Thresher requested Plaintiffs enter into a contract with Defendant Charter Homes for construction of the custom home. Defendant Thresher orally represented to Plaintiffs that Defendant would build Plaintiffs a custom home to their specifications. In fact, these representations were false. Defendant Thresher knew the representations to be false and made them with the purpose of inducing the Plaintiffs to enter into the contract in question in reliance on the statements. Plaintiffs in fact relied upon the representations and false statements and would not have entered into the contract without them. Plaintiffs have been damaged by paying thousands of dollars for a home that was not built to their requested specifications and other actual damages asserted. Violations of the Consumer Protection Act (Breach of 15 O.S. § 753) 58. Defendants engaged in practices declared to be unlawful under the Oklahoma Consumer Protection Act when, in the course of Defendants’ business, Defendants: a. Represents, knowingly or with reason to know, that the subject of a consumer transaction is of a particular make or brand, when it is of another; b. Makes a false or misleading representation, knowingly or with reason to know, as to the source, sponsorship, approval, or certification of the subject of a consumer transaction; c. Makes a false or misleading representation, knowingly or with reason to know, as to affiliation, connection, association with, or certification by another; d. Makes a false representation, knowingly or with reason to know, as to the characteristics, ingredients, uses, benefits, alterations, or quantities of the subject of a consumer transaction or a false representation as to the sponsorship, approval, status, affiliation or connection of a person therewith; or e. Commits an unfair or deceptive trade practice as defined in Section 752 of this title. 59. The commission of the above acts or practices resulted in actual damages sustained by Plaintiffs. Additionally, Plaintiffs are entitled to the costs of litigation including reasonable attorney's fees. Construction Defects 60. Defendants' actions are unconscionable; therefore, Defendants should pay a civil penalty, in a sum set by the court of not more than Two Thousand Dollars ($2,000.00) for each violation. 61. Additionally, when a contractor or builder has breached the contract by defective construction and the defects may be remedied by repair to comply with the contract, the measure of damages is limited to the cost of the repairs. Smith v. Torr, 1957 OK 73, ¶ 12, 310 P.2d 378, 380. 62. 60 O.S. 837 allows for the recovery of court costs and attorney fees, which Plaintiffs now seek. Breach of Contract 63. On August 20, 2022, Defendant Curtis Thresher requested Plaintiffs enter into the contract with Defendant Charter Homes for the construction of Plaintiffs’ home. Defendant Thresher orally represented to Plaintiffs that he would construct them a custom home per their specifications as detailed above. In fact, these representations were false. Defendant Thresher knew the representations to be false and made them with the purpose of inducing the Plaintiffs to enter into the contract. Plaintiffs in fact relied upon the representations and false statements and would not have entered into the contract for Defendant to construct their custom home without them. Plaintiffs have been damaged by having a home that does not meet their specifications and has numerous defects. Failure to Perform work in a Workmanlike Manner 64. By agreeing to perform work in a contract, Defendants promised to use reasonable skill, care, and diligence and that the work will be done in a workmanlike manner and be reasonably fit for its intended use. 65. Defendants failed to perform the work under the contract in a workmanlike manner. Breach of Express and Implied Warranty 66. The parties’ contract contained a warranty provision “limited to defects in workmanship within the scope of the work performed by the contractor and which arise and become known within two (2) year from the date thereof.” 67. Where a general contractor contracts to perform work for another requiring exercise of care, skill and knowledge, there is an implied warranty that work which he undertakes shall be of proper workmanship and reasonable fitness for its intended use. 68. Defendants breached the express warranty in the contract and implied warranties in constructing a home that had defects in workmanship and is insufficient for its intended use. Damages 69. As a direct and proximate result of the occurrences made the basis of this lawsuit, Plaintiffs have incurred actual damages for costs to repair and remedy the defects, deviations, and omissions in Defendants’ work. 70. Plaintiffs are additionally entitled to court costs and a reasonable attorney fee to be set by the court and to be collected as costs. 71. Plaintiffs state for notice purposes that by this pleading they are claiming any and all damages to which they are entitled under Oklahoma law. Prayer 72. For these reasons, Plaintiffs ask that Defendants be cited to appear and answer and that on final trial Plaintiffs have and recover: a) Judgment against Defendants, jointly and severally, in a sum in excess of the minimum jurisdictional limits of the Court for Plaintiffs’ actual damages; b) Pre-judgment interest; c) Post-judgment interest; d) Costs of court; and e) All such other relief, at law or in equity, to which Plaintiff may be entitled. Respectfully submitted, BILL KENNEDY LAW, PLLC [signature] Hillary L. Clark Oklahoma Bar No. 33694 [email protected] William P. Kennedy Oklahoma Bar No.34857 [email protected] 121 S. Austin Avenue Denison, Texas 75020 Tel. (972) 939-4878 Fax. (972) 939-6878 Attorneys for Plaintiffs Exhibit A CONSTRUCTION CONTRACT THIS CONTRACT IS ENTERED INTO THE, by and between Charter Homes hereafter “Contractor” and Ara & Vanessa Howard hereafter “Owner”. 1. SCOPE OF WORK: Contractor shall provide all labor and materials and shall construct for Owners the residence as described by the plans and specifications (hereafter “the Project”) selected by Owners and more particularly described as Howard Home. Copies of said plans and specifications have been executed by Contractor and Owner on the date hereof and are made a part of the contract. 2. WORK SITE: The Project shall be constructed on the property of Owner located at 10755 Old Willis Road Kingston Ok. 73439 “the Work Site”). Owner hereby authorizes Contractor to commence and complete the usual and customary and grading on the Work Site as may be required in the judgment of the Contractor to complete the Project. Unless called for in the specifications no landscaping, finish grading, filing or excavation is being performed at the Work Site by the Contractor except as is so required. 3. PERMITS: Contractor shall apply for and obtain such permits and regulatory approvals as may be required by local municipal county government, the cost thereof shall be an expense of the Project. 4. SOIL CONDITIONS: Contractor shall have no responsibility for the condition of the soils at the Work Site. Any excavation, filling or other work required by the Owner other than the usual and customary excavation and grading shall be additional expense of the Owner. Owner shall determine before construction begins if additional site work is required because of the soil conditions at the Work Site and shall provide Contractor written specifications as to such additional site work. Contractor shall not be responsible for any damages as a result of the soil Conditions at the Work Site. 5. INSURANCE: Owner will maintain builder's risk insurance. Contractor shall be responsible for any worker's compensation coverage or payments required and shall indemnify and hold Owner harmless for the payment of same or any such claims against Owner. 6. SURVEY AND TITLE: Prior to commencement of construction Owner shall provide Contractor with boundary survey performed by a licensed surveyor, a title opinion by a licensed attorney and a copy of all protective covenants which effect the Work Site. 7. CHANGES TO SCOPE OF WORK: Owner may make changes to the scope of the work including to the plans and specifications from time to time during the construction of the Project. However, any such change or modification shall only be made by written "Change Order", in the form of a letter to Contractor specifying the changes. Owner agrees to pay any increase in the cost of the Project as a result of all Change Orders. In the event the cost of the Change Order is not known at the time a Change Order is executed the Contractor shall estimate the cost thereof and Owner agrees to pay the actual cost whether or not it is in excess of the estimated cost. 8. CONTRACTOR FEE: Owner agrees to pay Contractor the sum of $351,379.00 or performing the services set forth in the scope of the work. Contractor shall be paid as follows; #1 20% down payment #2 15% payment for rough in plumbing, floor electrical, upgraded slab. #3 35% Framed, in the dry, electric, plumbing & a/c rough-in, and foam insulated #4 10% sheetrock, tbt, doors, trim and cabinets. 10% painted inside 10% appliances, fixtures, flooring and final 9. WARRANTY: Contractor warranty shall be limited to defects in workmanship within the scope of the work performed by Contractor and which arise and become known within Two (2) year from the date hereof. All said defects arising after Two (2) year and defects in material are not warranted by Contractor. Contractor hereby assigns to Owner all warranties on materials as provided by the Manufacturer thereof. WITNESS THE SIGNATURES TO THE PARTIES HERETO ON THE DATE FIRST WRITTEN ABOVE. Contractor Owner Exhibit B Specifications for Ara & Vanessa Howard 10755 Old Willis Road Kingston, Ok. 73439 From Charter Homes 08/20/2022 The cost to build is $351,379.00 total under roof 3501.7 sq. ft. living 2028.7 sq. ft. covered patios 912.00 sq. ft. main garages 561 sq. ft. This is a 3 bedroom, 2 bath, 1 outdoor shower and open concept energy efficient metal home. 9' ceiling in custom living area. 1 walk-in tile sunken shower, upgraded cabinets, granite on all cabinets and window seals, upgraded vinyl flooring, double insulated walls w/ 15-5 seer hvac unit. Prepare dirt for new heavy slab and cross beams. Treat slab for termites Install all rough-in plumbing, electrical floor supply lines, heavy plastic and with anchor plates. Pour 3500 psi concrete in all beams, slab with 5/8 and 3/8 rebar. Metal Walls will be 10' all interior wall will be 9' of high quality lumber in the living and garage will be finished and include trim base board and painted. Furnish and install vinyl argon gas, ford tinted and glass windows. Furnish and Install on main metal roof 4/12 pitch on all areas. Custom designed cabinets, pantry and closet shelving. Upgraded electrical package with 2 floor plugs. Master bath with ceiling heater Master with walk-in tiled shower with seat. Master bath, utility room and guest bath with have full tiled floors. 3.00 budget a sq. ft. Granite counter tops and window seals. 45.00 sq. ft. High quality waterproof vinyl floor. 4.00 a ft. cost Install 1 propane line to house. Full Gutters Custom energy package with double insulation in wall and ceilings with fiberglass and foam in house only. Garage will only by fiberglass walls and roof. water heater and gas line to cooktop. All porches will be cement floors. Add 12' x 24' extra cement in front of garage and pad for a/c and propane tank. 1 each 8' x 18' insulated garage door with opener and 1 each 3' walk door. House to have a pulldown staircase to the attic. The attic floor about 300' will be built to support possible new storage room with lights. Finish new 15-5 seer heat pump HVAC unit. New appliances with 6,000.00 budget. Custom paint One color on walls, ceilings and white in all closet. Color of metal will be gray walls and roof with all black trim. Master shower upgraded faucet and shower heads. 2 gas lines cooktop and grill on patio. Howards will pay for a DEQ approved septic system, appliances [budget 6000.00], kitchen pulls water and electric lines to house, and used propane tank, 750.00. this will be separate invoice. $28,221.00 Note: Owner will provide builder's risk insurance, extra dirt from land for house pad, and all landscape. Charter Homes Howard’s