PROFESSIONAL SERVICES PROPOSAL FOR COMBINED SERVICES

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1 PROFESSIONAL SERVICES PROPOSAL FOR COMBINED SERVICES PHASE I/ROOF EVALUATION PHASE II/DESIGN & SPECIFICATIONS PHASE III/QUALITY ASSURANCE/CONSTRUCTION MONITORING FOR The Landings 2208 W. Lindner Avenue Mesa, Arizona PREPARED FOR Landings Homeowners c/o Golden Valley Property Management Ms. Shelly Holland PO Box Phoenix, Arizona PROPOSAL DATE: April 5, 2010 SRC PROJECT #P2156 PREPARED BY Kelly B. Kinion SOUTHWEST ROOFING CONSULTANTS, INC. THE PROBLEM SOLVERS Licensed, Bonded, and Insured (AZ ROC License No ) 5815 N. Black Canyon Hwy., Suite 101 Phoenix, AZ (602) Fax (602) Toll Free (800)

2 PROFESSIONAL SERVICES PROPOSAL FOR COMBINED SERVICES PHASE I / ROOF EVALUATION PHASE II / DESIGN & SPECIFICATIONS AND PHASE III / QUALITY ASSURANCE / CONSTRUCTION MONITORING Client: SRC Project #2156 Proposal Date: April 5, 2010 Ms. Shelly Holland The Landings HOA c/o Golden Valley Property Management PO Box Phoenix, AZ Project Scope: Number Of Buildings: Project: The Landings 2208 Lindner Avenue Mesa, AZ Phase I / Phase II / Phase III 50 Plus For the fees herein established, and subject to the attached terms and conditions, Southwest Roofing Consultants, Inc. (hereafter Consultant), will provide professional services as set forth below, provided that Client authorizes services within 30 days from the date of this proposal. Please note any modifications or exclusions and initial. I. SCOPE OF SERVICES A. Phase I/Roof Evaluation B. Phase II/Design and Specifications C. Phase III/Quality Assurance/Construction Monitoring II. PHASE 1/ROOF EVALUATION As you are aware, the typical approach to roofing problems is to fix roofs when they leak. This "crisis management" method of operation is obviously the least effective approach to roof management. It allows for little flexibility. Virtually, no times to analyze the problem and the costs for emergency solutions seldom bear a true relationship to the severity of the problem. The Phase One / Roof Evaluation proposed is the first step necessary to institute a meaningful roof management program. A. General 1. Clients will furnish necessary and historical and other pertinent documents and drawings of the above project as it currently maintains in its files. THE PROBLEM SOLVERS Licensed, Bonded, and Insured (AZ ROC License No ) 5815 N. Black Canyon Hwy., Suite 101 Phoenix, AZ (602) Fax (602) Toll Free (800)

3 2. Client will provide access to the designated roof areas, or authorize Consultant to set up ladder for access, as needed, by way of signature on Notice to Proceed. 3. Consultant will review construction drawings, specifications, warranties, leak records, and other relevant documents insofar as such documents are made available. B. Comprehensive Visual Inspection During the course of Consultant's visual inspection of each roof area, Consultant will: 1. Measure all roof areas to obtain an accurate total square footage. 2. Evaluate the current condition of each roof area to determine the need for repair or re-roofing. 3. Provide a description of the type of roofing installed on each roof area and comment on their appropriateness. 4. Make determinations, based on our visual inspection, regarding the prioritization of remedial action on each roof area and provide meaningful budget information to assist you in planning for future expenditures. 5. Provide a written directive outlining an immediate plan of action based on our study of all roof areas and prepare a schedule of future repair and re-roofing requirements. C. Core Samples 1. One roof core sample shall be extracted from each unique roof area as needed for report writing purposes, at the discretion of the Consultant. All core samples will be sealed using currently accepted repair procedures. D. Comprehensive Written Report The Phase I/Roof Evaluation report shall contain as a minimum the following sections: 1. Executive Summary: Including site description, roof type description, size of roofs, life expectancy, options available for extending life expectancies (i.e. repairs or re-roofing, type of roof recommended as well as why). 2. General Photographic Documentation, which will provide a visual representation of our findings. 3. Individual Roof Information Pages, including pertinent data per roof type or area. 4. One (1) report will be ed to any person requested by the Client; if file size is too large a single disk will be provided to the client. The information provided will enable you to adopt a logical and organized approach to solving your problems. Any other approach can only be haphazard.

4 III. DESIGN AND SPECIFICATION SERVICES A. Our services include: 1. Conduct additional site investigation to determine re-roof design, specifications, and account for particular details that will affect long-term performance of the roofing system. 2. Prepare written specifications and drawings (bid documents) for a new roofing system. 3. Put the project out to bid to at least three qualified roofing contractors who specialize in the installation of the specified roofing system. 4. Conduct a Pre-Bid Meeting at the job site with those contractors selected to bid the work. 5. Receive bids in our office or yours at a specified date and time. 6. Prepare a Bid Review and make recommendations regarding contractor selection. IV. QUALITY ASSURANCE / CONSTRUCTION MONITORING A. Our services include: 1. A Field Auditor will observe the application procedures and specification requirements. 2. The Field Auditor will report his findings to the appropriate party. 3. A full report outlining the day's activities will be provided in writing. 4. Photographs will be taken each day the Field Inspector is at the site (amount of photographs will vary depending on the day's activities). B. Schedules of Inspections / Daily Fees V. FEE SCHEDULE 1. Unannounced Spot Inspections (USI's) are based on three hours per day. The daily rate is $ Under this agreement, Client shall reimburse Consultant for services rendered. Our total fee shall not exceed the following sum without prior authorization from the Client. A. Our fee for the Phase I/Roof Evaluation will be $ 3, B. Our fee for the Phase II/Design and Specification services will be $ 2, C. Our fee for Phase I and Phase II combined services will be $ 5, (If both phases are contracted at the time of signing of the Notice to Proceed there will be a savings of approximately 10%) D. Our fee options for Phase III/Quality Assurance/Construction Monitoring is as follows: (A complete cost of the Phase III portion of the contract cannot be determined until Phase I and II are completed, at that point SWRC will make recommendations once the project scope is known.) $ (per USI)

5 VI. TERMS 1. We require a deposit of 40% with the balance billed at appropriate stages of the project. Keep in mind a 1.5% per month service charge will be added to accounts past thirty (30) days. 2. If invoices become more than 60 days delinquent, SRC will start collection process, at which time Client will become responsible for paying all outstanding invoices, interest, and all reasonable attorney and/or collection fees. VII. GENERAL A. Each project is of unique design. Estimated construction cost, if any, prepared by the Consultant, represents the Consultant's best judgment as a design professional familiar with the construction industry. It is recognized, however, that the Consultant does not guarantee that the construction cost will not vary from the project budget. Keep in mind the Consultant does not have control over labor, material, or equipment costs associated with the actual bidding process. B. The (owner or builder) agrees to limit the Consultant's liability to the (owner or builder) due to the Consultant's negligent acts, errors or omissions to the total amount of fees which the Consultant will and/or has collected from the (owner or builder) for services rendered on this project. The parties agree that this limitation of liability is applicable to all damages which could be awarded by a court or arbitration panel and that such damages include, but are not limited to, tort damages, contract damages, strict liability, liquidated damages and/or punitive damages. We appreciate the opportunity to be of service to you. Should you have any questions, please feel free to contact our office at (602) Sincerely, SOUTHWEST ROOFING CONSULTANTS, INC. Kelly B. Kinion Licensed Roofing Consultant ROC #118468

6 NOTICE TO PROCEED PROPOSAL DATE: April 5, 2010 PROJECT: The Landings 2208 W. Lindner Avenue Phoenix, AZ SRC Project #P2156 SERVICE(S): I. Phase I/Roof Evaluation II. Phase II/Design & Specifications III. Phase I and II Combined Services IV. Phase III/Quality Assurance / Construction Monitoring FEES: I. $ 3, Phase I/Roof Evaluation II. $ 2, Phase II/Design & Specifications III. $ 5, Phase I and II Combined Services (If both phases are contracted at the time of signing of the Notice to Proceed there will IV. be a savings of approximately 10%) $ ea. Phase III/USI (See above notation) TERMS: We require a deposit of 40% with the balance billed at appropriate stages of the project. Keep in mind a 1.5% per month service charge will be added to accounts past thirty (30) days. If invoices become more than 60 days delinquent, SRC will start collection process, at which time Client will become responsible for paying all outstanding invoices, interest, and all reasonable attorney and/or collection fees. Southwest Roofing Consultants, Inc. is hereby authorized to proceed with services as described in this Proposal. CLIENT: SIGNED: NAME: TITLE: DATE: Golden Valley Property Management Shelly Holland Southwest Roofing Consultants, Inc. Kelly B. Kinion President April 5, 2010 THE PROBLEM SOLVERS Licensed, Bonded, and Insured (AZ ROC License No ) 5815 N. Black Canyon Hwy., Suite 101 Phoenix, AZ (602) Fax (602) Toll Free (800)

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