RESIDENTIAL TERMS AND CONDITIONS

These Terms and Conditions (“Terms”) form part of the entire agreement between Chroma, LLC d/b/a Chroma Coatings (“Company”) and the Client identified in the accompanying Estimate. By accepting the Estimate, Client agrees to be bound by these Terms.

1. SCOPE OF WORK

The specific services to be provided by Company are detailed in the Estimate. Services may include painting, flooring installation, and other renovation or finishing work as specified. The Estimate, together with these Terms, constitute the entire agreement between Company and Client.

1.1 Surface Preparation (Painting Services)

When painting services are included in the Estimate:

• All surfaces receiving paint will be properly prepared according to manufacturer’s instructions
• Holes, cracks, and imperfections will be patched with suitable compound and primed
• Surfaces will be brought to true even surfaces where possible
• Wooden surfaces will be cleaned of dirt, oil, or other substances and sanded as required

Surface Preparation Limitation:

• Standard preparation includes patching of holes and cracks less than 2 inches in size. Larger repairs are not included unless specifically noted in the Estimate.
• For existing structures: Preparation is based solely on conditions visible and identified during the Company’s assessment, walkthrough, or customer-supplied photographs.
• For new construction: Preparation is based on plans, renderings, and specifications provided to Company. Our scope assumes surfaces will be delivered in “paint-ready” condition as defined by industry standards, with all drywall finishing, sanding, and basic prep work completed by others.
• Any additional preparation requirements discovered during the project that were not visible or apparent during the initial assessment or not indicated in the provided plans may require a change order and additional costs.

1.2 Flooring Installation

When flooring installation services are included in the Estimate:

• Company will install flooring materials as specified in the Estimate
• Subfloor preparation will be limited to standard cleaning, leveling, and repair of visible imperfections
• Company is not responsible for hidden subfloor defects, moisture issues, or structural problems that are not visible during the initial assessment
• Transitions, trim, and finishing details will be as specified in the Estimate

Subfloor Limitation: The Estimate assumes a sound, level subfloor within industry standards. Additional subfloor preparation, moisture mitigation, or structural repairs discovered during installation may require a change order and additional costs.

1.3 Other Services

For other services included in the Estimate, preparation and execution will be as detailed in the Estimate. Similar to painting and flooring services, Company’s responsibility is limited to conditions visible during assessment or specified in provided plans.

1.4 Materials

Unless otherwise specified in the Estimate, Company will select and provide all materials necessary to complete the work. All materials will be of professional quality from reputable manufacturers.

2. PROJECT TIMELINE

The projected start and completion dates are provided in the Estimate and represent Company’s best estimate based on current scheduling.

2.1 Weather Considerations

Project timelines are estimated based on favorable working conditions. Exterior painting work requires specific temperature and humidity conditions as recommended by paint manufacturers (typically 50-90°F with humidity below 85%). Company reserves the right to reschedule exterior work due to:

• Rain, snow, or other precipitation
• Extreme temperatures (below 50°F or above 90°F)
• High humidity or dew conditions
• Strong winds
• Other adverse weather conditions

Weather delays are not considered a breach of contract and will extend the completion timeline accordingly.

2.2 Schedule Coordination for New Construction

For new construction projects, Company’s work is dependent on the timely completion of preceding trades. If project delays from other trades impact the schedule:

• Company requires notification of schedule changes at least 3 business days in advance
• Significant rescheduling may impact the overall timeline due to other project commitments
• Multiple starts and stops due to other trade delays may incur additional setup fees

Company will coordinate with the builder/contractor to minimize these issues and maintain efficient workflow.

3. PAYMENT TERMS

The total project cost is specified in the Estimate.

• For projects over $5,000: 20% down payment required before work begins
• For projects under $5,000: No down payment required
• Remaining balance due in full upon project completion

Preferred Payment Method: ACH bank transfer (details provided on invoice)
Credit Card Payments: Accepted for convenience, with a 3% transaction fee added to cover processing costs
Other accepted payment methods: Check, Cash

3.1 Late Payment Terms

Invoices are due upon receipt unless otherwise specified in the Estimate. The following late payment terms apply:

• Payments not received within 15 days of the invoice date will be considered late
• Late payments will incur a late fee of 1.5% per month (18% per annum) on the outstanding balance
• If payment remains outstanding for more than 30 days, Company reserves the right to:
  • Suspend any ongoing or scheduled work until payment is received
  • Pursue collections through a third-party collection agency
  • File a mechanic’s lien on the property where work was performed
  • Recover reasonable attorney’s fees and costs incurred in collecting past due amounts

Client agrees to reimburse Company for all costs incurred in collecting any delinquent amount, including but not limited to attorney’s fees, mediation or court costs, and collection agency fees. All returned checks will be subject to a $35.00 returned check fee.

4. STANDARD CONDITIONS

The following terms and conditions are standard for all Company projects unless specifically modified or excluded in the Estimate. Any variations to these standard conditions must be explicitly documented and agreed upon in writing.

4.1 Color and Finish Disclaimer

While Company makes every effort to match colors precisely, slight variations may occur due to:

• Differences between paint batches
• Changes in ambient lighting conditions
• Differences in surface texture and porosity
• Natural aging of existing surfaces

Company recommends approving test samples on the actual surface before full application. Once colors are approved and applied, any changes will incur additional costs.

4.2 Unforeseen Conditions

• For existing structures: This agreement is based on visible conditions at the time of inspection or as shown in provided photographs.
• For new construction: This agreement is based on the plans, specifications, and renderings provided to Company.

Additional charges may apply if hidden damage (rot, mold, water damage, etc.) is discovered during work that was not visible during the initial assessment, or if actual conditions differ from the provided plans and specifications. Company will document and notify Client promptly before proceeding with any additional repairs.

4.3 Property Access and Utilities

The Client agrees to provide:

• Reasonable access to all work areas
• Use of electricity, water, and restroom facilities
• Removal of items that may impede work progress
• Clear parking space for work vehicles

4.4 Change Orders and Scope Expansion

Any modifications to the agreed scope of work must be documented in a written change order and signed by both parties. Verbal instructions without written documentation may lead to misunderstandings and are not binding.

Project Scope Expansion: Client may request additional services or expansion of the project scope during the project. Such requests will be handled as follows:

1. Request and Evaluation: Client shall submit the request to Company, which will evaluate the feasibility, pricing, and timeline implications.
2. Change Order Documentation: If Company agrees to the scope expansion, a written change order will be prepared detailing:
   • Description of additional work
   • Additional materials required
   • Additional cost for the expanded scope
   • Impact on project timeline and completion date
   • Any necessary modifications to the original terms
3. Execution: The change order becomes effective only upon signature by both parties or explicit email confirmation.
4. Payment: Unless otherwise specified in the change order, payment for additional work will be due upon completion of the added scope.

Company is not obligated to perform work outside the original scope until a change order is executed. Client acknowledges that scope expansions may necessitate adjustment of the project timeline and completion date.

4.5 Cancellation Policy

• Cancellation more than 7 days before project start: Full refund of deposit
• Cancellation within 7 days of project start: 50% of deposit retained for scheduling costs
• Cancellation after project has begun: Client is responsible for payment of work completed plus materials purchased

4.6 Insurance

Company maintains comprehensive general liability insurance and workers’ compensation coverage. Proof of insurance will be provided upon request.

4.7 Final Inspection and Project Acceptance

Upon completion of the project scope, Company will notify Client that the work is complete and ready for final inspection. The following process will apply:

1. Completion Notification: Company will notify Client in writing or by email that the project is complete according to the scope defined in the Estimate and any approved change orders.
2. Inspection Period: Client shall have three (3) business days from receipt of the completion notification to conduct a final walkthrough inspection and identify any items requiring touch-up or correction that fall within the original scope of work.
3. Punch List: Any touch-ups or corrections identified during this inspection will be documented in writing and completed promptly at no additional cost, provided they fall within the original scope of work.
4. Automatic Acceptance: If Client does not conduct the final inspection within the three (3) business day period, or does not provide a written list of items requiring correction, the project shall be deemed accepted by Client.
5. Payment Due: Final payment is due immediately upon project acceptance, whether through explicit acceptance or automatic acceptance as described above.
6. Separate Contract for Additional Work: Any requested modifications or additions that fall outside the original scope of work will require a new estimate and contract.

Project completion is determined by completion of the scope of work as defined in the Estimate and any approved change orders, not by subjective standards. Work will be considered complete when it has been performed according to industry standards and the agreed-upon scope, even if Client desires additional work beyond the original scope.

4.8 Communication Protocol

Each project will be assigned a dedicated project manager who will be the Client’s primary point of contact throughout the project. Client will receive regular updates on progress and be notified immediately of any issues that arise.

4.9 Furniture and Belongings

Company will move furniture weighing less than 75 pounds per worker as necessary to complete work. Client must remove or secure fragile, valuable (over $500), antique, electronic, or artwork items beforehand. Company’s liability is limited to $500 per item/$2,500 total and excludes damage to improperly secured items or items moved contrary to weight/type restrictions..

4.10 Pets and Children

For safety reasons, Company requests that pets be secured and children supervised during the painting process. This helps ensure both their safety and allows the crew to work efficiently.

4.11 Photography Rights

By accepting the Estimate and these Terms, the Client grants Company the right to take photographs of the work in progress and the completed project. These photographs may be used by Company for portfolio, marketing, social media, and advertising purposes. If Client does not wish to grant these rights, Client must communicate this in writing (email is sufficient) prior to the start of the project.

4.12 Subcontracting Rights

Company reserves the right to subcontract any portion of the services outlined in the Estimate to qualified third-party contractors at Company’s sole discretion. Company shall:

• Remain fully responsible for all work performed by subcontractors as if performed by Company directly
• Ensure all subcontractors maintain appropriate licensing, insurance coverage, and qualifications required to perform the subcontracted work
• Manage and supervise all subcontractors to ensure compliance with these Terms and the quality standards promised to Client
• Be responsible for payment to all subcontractors, with no obligation for Client to pay subcontractors directly
• Ensure all subcontractors comply with all safety regulations, property access protocols, and professional conduct requirements defined in these Terms
• Require all subcontractors to sign appropriate confidentiality agreements to protect Client’s confidential information in accordance with Section 6.4
• Maintain documentation of all subcontractor qualifications, insurance certificates, and executed agreements
• Include information about key subcontractors in project documentation provided to Client upon request

Client acknowledges and agrees that Company’s use of subcontractors does not release Company from any obligations under these Terms, and Company remains the primary point of contact for all project-related matters. Upon request, Company will provide Client with information regarding the identity and qualifications of any subcontractors engaged for the project.

4.13 Clean Up

Unless otherwise agreed, Company will clean up at the end of each workday. Tools and paint will be placed in a designated area. If Client and Company agree to leave the area in a certain state for efficiency, exceptions can be made to this rule.

5. WARRANTY

5.1 Workmanship Warranty

Company warrants its workmanship for a period of one (1) year from the date of project completion, per the specific contracted scope of work.

• For painting services, this warranty covers peeling, blistering, flaking, or coating separation that occurs due to improper application or preparation.
• For flooring installation, this warranty covers installation defects including loose materials, improper adhesion, or incorrect fitting that occurs due to improper installation techniques.
• For other services, the specific warranty coverage is as stated in the Estimate.

This workmanship warranty is limited to labor and application/installation techniques only. This warranty covers defects related to Company’s work, but does not cover areas of fading, wear and tear, abuse, weather, or accidental damaging occurrences.

Note: The following are not considered issues of workmanship and are not covered under this warranty:

• Paint blistering and separation of caulk from wood cupping due to intense and/or direct heat
• Flooring expansion, contraction, or cupping due to environmental conditions
• Normal wear patterns in flooring or painted surfaces
• Cracks or separations that reappear due to building settling, structural movement, foundation issues, or similar building-related situations
• Repairs made to address previous settling or structural issues

If a defect in workmanship appears within one (1) year from the date of project completion and is reported to Company, Company will inspect the affected areas and perform the necessary repairs at no additional cost to Client.

5.2 Manufacturer Product Warranty

All products and materials are covered exclusively by the manufacturer’s warranty. The performance of products themselves, including but not limited to color retention, product consistency, and advertised features, is the sole responsibility of the manufacturer.

Company will gladly assist clients in communicating with product manufacturers and will serve as a liaison on the Client’s behalf in the event of any product-related issues or failures. Company will help document any product concerns, file claims, and facilitate resolution with the manufacturer, but the ultimate responsibility for product performance rests with the manufacturer.

6. ACCEPTANCE

The Estimate referencing these Terms constitutes the entire agreement between Company and Client. Acceptance of the Estimate, whether by electronic signature, email confirmation, or payment of deposit, indicates acceptance of these Terms in their entirety.

6.1 Notices and Communications

Project Communications: Any notice, approval, consent, or other communication required or permitted under these Terms may be provided through any of the following methods, all of which shall be considered formal and legally binding:

• Physical documents delivered in person or by mail
• Email communications to designated representatives
• Text messages (SMS) between authorized representatives
• Communications through project management platforms or apps designated for the project

Change Orders: Change orders may be executed through written signature, electronic signature, or explicit email confirmation from both parties, consistent with Section 4.4 of these Terms.

Legal Notices: Formal legal notices required under these Terms (including dispute notifications, breach notices, and contract termination notices) must be provided in writing or by email to erik.nieman@chromacoatings.com.

Designated Communication Channels:

• Primary Project Contact: The Chroma-appointed Project Manager for the specific project (daily operations, scheduling, project-specific issues)
• Executive Escalation: aj.dressler@chromacoatings.com (project escalations, operational issues, final authority)
• Legal Contact: erik.nieman@chromacoatings.com (contract disputes, legal notices)
• Client shall provide primary email address and phone number for project communications
• Both parties may designate additional authorized representatives for specific types of communications

Delivery and Confirmation:

• Email notices shall be considered delivered when sent, provided no delivery failure message is received
• Text messages shall be considered delivered when sent from the phone numbers designated by each party
• For time-sensitive communications, Company may use multiple methods to ensure receipt

Record Keeping:

• Both parties agree to maintain records of all electronic communications related to the project
• Screenshots, email threads, and text message records shall be acceptable documentation for project communications and approvals
• All change order confirmations (whether signed or electronic) must be maintained as project records

Authorization:

• Each party shall designate which individuals are authorized to provide binding communications on their behalf
• Any limitations on authority must be communicated in writing at project commencement
• Emergency communications may be accepted from any party representative, subject to subsequent written confirmation
  
  

6.2 Dispute Resolution

In the event of any dispute, claim, question, or disagreement arising from or relating to these Terms or the breach thereof, the parties shall use their best efforts to settle the dispute, claim, question, or disagreement through the following process:

1. Direct Communication: The parties shall first attempt to resolve any disputes through direct communication between Client and Company’s representative.
2. Mediation: If the dispute cannot be resolved through direct communication, the parties agree to engage in mediation. The mediation shall be conducted in Wake County, North Carolina by a neutral third-party mediator mutually agreed upon by both parties, with the costs of mediation being the sole responsibility of the Client.

Both parties agree that mediation shall be the sole and exclusive method of resolving any disputes arising out of or relating to these Terms.

6.3 Governing Law and Jurisdiction

These Terms and the relationship between Company and Client shall be governed by and construed in accordance with the laws of the State of North Carolina without regard to its conflict of law provisions. The parties agree that any proceedings related to mediation shall be held in Wake County, North Carolina.

6.4 Confidentiality

Both parties agree to maintain the confidentiality of certain information shared during the course of the project:

• Company’s Confidential Information: Client agrees not to disclose Company’s confidential information including but not limited to: pricing structures, estimates, proprietary techniques, business processes, supplier relationships, and any other non-public information about Company’s business operations. Client may disclose pricing information only to their immediate family members, financial advisors, or others who need to know for budgeting purposes.
• Client’s Confidential Information: Company agrees not to disclose Client’s confidential information including but not limited to: personal information, financial information, property details, and any other private information provided by Client. Company may use photographs of the completed work as permitted under Section 4.11 (Photography Rights).
• Duration: These confidentiality obligations shall remain in effect for two (2) years following the completion of the project.

This confidentiality provision does not restrict either party from disclosing information that: (a) was rightfully in the party’s possession prior to receiving it from the other party; (b) is or becomes publicly available through no fault of the receiving party; (c) is rightfully received from a third party without a duty of confidentiality; or (d) is required to be disclosed by law or court order.