Draft for legal review

La Portalada Dr, Carlsbad | Prepared for Louis Konstas | October 29, 2026

This is a discussion draft only. It is not ready for signature, does not authorize construction and does not request payment. Bracketed information and the legal review items must be completed before execution. Except for the owner-approved budget, 20% fee, direct-payment arrangement and $1,000 deposit, the terms below are proposed for review.

1 Parties and property

Owner: Louis Konstas, together with any additional property owner required to sign [confirm]. Property: 4210 La Portalada Dr, Carlsbad, CA 92010. Owner mailing address, email and telephone: [complete].

Manager: [full legal entity name and entity type], doing business as ALZA Development, represented by Alejandro Escutia, [authorized title]. Business address: 1420 Kettner Blvd, San Diego, CA 92101. Notice email and telephone: [complete]. Applicable CSLB license number, classification and status: [verify before execution].

2 Purpose and licensing condition

The proposed engagement is project management for the interior renovation of a 1,618 sq. ft., three-bedroom, two-bathroom home. Louis will contract with and pay the trade contractors and suppliers directly and will separately pay ALZA for its agreed services.

Calling the engagement project management, or using direct owner payments, does not establish a licensing exemption. No regulated service may be offered or performed without the required license. Before this agreement is signed or a deposit collected, California construction counsel must confirm the lawful contracting structure and insert any required home-improvement provisions and notices.

3 Budget and management fee

The project-cost budget is $200,000, including a $20,000 owner-held contingency reserve. ALZA’s estimated fee is 20% of that budget, or $40,000. The total planning budget is $240,000. These are planning allowances, not a guaranteed construction price. The $1,000 deposit is credited against ALZA’s fee and is not added to the $240,000 total.

4 Proposed management services

Subject to the licensing condition in Section 2, ALZA will maintain the approved budget, collect and compare written trade proposals, coordinate owner selections, maintain the project schedule, coordinate trade communications and site meetings, provide written progress and cost updates, review payment requests for consistency with reported progress, track approved changes, and coordinate the punch list and closeout documents.

ALZA’s reviews do not replace required inspections, engineering, architectural services or each contractor’s own duties. ALZA remains responsible for reasonable care in its own agreed services; no provision excuses negligence or overrides a duty imposed by law.

5 Interior renovation scope

Planning allowances cover demolition and protection; kitchen renovation; two bathrooms; flooring; local drywall and ceiling refinishing; interior paint; selected lighting and electrical updates; interior doors, trim and hardware; an electric fireplace and selected built-ins; and design and permit allowances. Existing walls and plumbing locations are assumed to remain.

Excluded unless added by signed change: exterior work, landscaping, replacement windows, structural alterations, full HVAC replacement, whole-house repiping or rewiring, hazardous-material remediation, furniture and decorative accessories. Renderings are design concepts, not construction documents. Final products, quantities and trade scopes must be attached to the execution version.

6 Owner decisions and direct payments

Louis approves each trade contract, supplier purchase, selection and change before commitment. Louis pays approved invoices directly to the responsible provider and retains the contingency until an expense is approved. ALZA will not hold construction funds, sign contracts in Louis’s name, authorize changes or incur debt for Louis without specific written authorization. No authority is granted to sign permits or owner-builder declarations for Louis.

Louis will provide reasonable access, timely decisions and available property information. The parties must identify who obtains each permit and who is responsible for any owner-builder obligations. Direct payment does not resolve those responsibilities.

7 Trade qualifications and project records

Before a trade starts, confirm its appropriate active license, insurance and written scope. Each trade agreement should address price, payment stages, permits, inspections, safety, cleanup and warranties. ALZA will maintain copies supplied to it and report material gaps to Louis.

ALZA will provide a shared budget and change log with regular written updates. Contractor invoices, receipts, inspection records and appropriate conditional or unconditional lien releases will be organized for owner review. No unpaid provider should be asked to acknowledge payment it has not received.

8 Fee basis proposed for review

The proposed final fee is 20% of actual eligible project costs approved by Louis and incurred for the agreed scope, net of refunds and credits. Eligible categories proposed here are trade labor and materials, supplier purchases, approved design services and permit fees. Exclude ALZA’s own fee, unused contingency, financing charges, late penalties and costs outside the approved project. Avoid counting the same invoice or material purchase twice.

The $40,000 fee is the budget estimate if eligible costs reach $200,000. If eligible costs are lower, the fee decreases under this proposed formula. Any projected fee above $40,000 requires a written amendment approved before additional scope is authorized. The parties must confirm this fee basis before signing.

9 Deposit and subsequent invoices

The proposed deposit is $1,000 payable to ALZA Development only after the final agreement is complete and signed, the contracting structure is verified, and all required notices have been delivered. It is an advance credit toward the management fee, not an additional fee and not automatically earned or nonrefundable. At the $40,000 budgeted fee, the remaining estimated fee is $39,000 after crediting the deposit.

Proposed billing: monthly invoices for earned management services with supporting cost records and a deposit-credit ledger; undisputed amounts due within 15 calendar days. The cumulative fee invoiced must not exceed 20% of documented eligible costs or the amount lawfully earned for services actually performed. Apply the deposit against the first earned fees. If a statutory progress-payment schedule is required, replace this provision with the required dollar amounts and service milestones before execution. No accelerated advance collection is authorized by this draft.

10 Changes and timing

Changes to scope, selections, cost, management services or schedule require written owner approval before commitment. Each change should show its project-cost effect, the corresponding 20% fee effect and timing consequences. No automatic use of contingency is permitted.

Proposed management start: [date]. Anticipated construction start: [date]. Anticipated completion: [date]. Confirm permit and procurement assumptions before signing. ALZA will promptly communicate known delays; this draft does not guarantee a completion date.

11 Cancellation termination and refunds

All applicable statutory cancellation rights and refund deadlines are preserved. Before signing, counsel must provide the correct cancellation notice and completed cancellation forms, identify the notice recipient and calculate the applicable deadline. No waiver of a cancellation right is included.

Proposed additional termination right: either party may terminate on seven calendar days’ written notice, without restricting any shorter statutory right. Subject to applicable law, only lawful fees for services actually performed through termination are payable. No lost future fee or automatic forfeiture is owed. Return unearned deposit or fee balances and provide project records promptly, within 10 calendar days or any shorter applicable deadline. Statutory cancellation controls when it requires a fuller refund.

12 Electronic records and signatures

The execution version may be signed electronically only with each party’s affirmative consent. Before signing, each party must be able to review, retain and print the complete agreement and attachments, including notices. An electronic signing system should verify signer identity, capture consent and intent, record the document version and timestamps, preserve an audit record and deliver the fully signed copy to both parties.

A payment receipt is not a substitute for a signature or consent. Draft review, a typed name in this draft, or viewing the website does not accept a contract. Signing and checkout remain inactive until a completed execution version and the relevant services are configured.

13 General terms proposed for review

California law governs, subject to mandatory consumer protections. No mandatory arbitration, jury waiver, broad indemnity or limitation of liability is proposed in this draft. The final signed agreement and its incorporated attachments will control over marketing copy; amendments require both parties’ written agreement. Statutory duties and remedies cannot be reduced by this agreement.

14 Execution fields not for use in this draft

Owner: Louis Konstas | Signature: [execution version only] | Date: [complete]

Additional owner, if required: [name, signature and date]

ALZA legal entity: [complete] | Authorized signer: Alejandro Escutia

Title: [complete] | Signature: [execution version only] | Date: [complete]

Counsel completion checklist

Confirm ALZA’s legal entity, address, notice email, authority and licensing for the actual scope. Confirm the property address and all required owners. Determine the applicable contracting classification; add required license, insurance, lien, consumer and cancellation disclosures, required statutory wording and forms, and any required payment schedule. Confirm the owner’s applicable cancellation period without assuming age or an exception. Finalize scope attachments, permit responsibility, dates, fee basis, deposit refund terms and electronic-delivery consent. Review any owner-builder implications. The checklist is not a substitute for those provisions.