INVERSIONES CUSINGO DEL SUR S.A.
Dear Kay and Anthony,
Your home building project located on site 5-31, consists of a 3,605 square
foot home as outlined in the building sketch approved by you (you will receive a
copy of definitive blueprints for your final approval), a painted infinity pool and
a car port with storage room.
Here is the breakdown of the expenses:
Main House – 1st Level
279.00mt2 3,002sq.ft.
@$75/
$ 225,150
Main House – 2nd Level
56.00mt2
603sq.ft. @$75/
$ 45,225
Car port
35.35mt2
380sq.ft. @$65/
$ 24,700
Storage room
11.24mt2
121sq.ft
$ 8,470
Painted Infinity Pool
4mts x 8mts x 1.50mts
@70/
$
22,500
Salt water system for the pool
$
2,000
“Stone” concrete cascade on pool site
$
3,500
SUB TOTAL……………………. $ 331,545
–2–
February 27, 2008
Outside staircase
$ 1,800
4 Units of instant hot water heater
@$375 per unit
$ 1,500
1 AC Unit in the master bedroom
$
1 AC Unit in the common area
$ 1,250
2 AC Units in the Guest Bedroom
@$700 per unit
1 AC Unit in the loft bedroom
Roof insulation in the master bedroom
750
$ 1,400
$
$
SUB TOTAL……………………. $
700
950
8,350
All of the above, as outlined in the building design approved by you, comes to
a total of $339,895, this amount being the value of the present contract.
Site preparation, architect’s fees, blueprints, building permit, water and
electrical hookups are not included in this price. Inversiones El Cusingo SA will
provide funding for these out of your initial deposit. You will later be billed
separately for these expenses and your payment for the contactor’s expense is to
be added to the amount required as your second building payment, enabling the
actual building work to begin on site. You will be provided copies of fees paid to
corroborate the expense.
Any features not contemplated in the blueprints, such as landscaping,
driveway, water management (i.e.: gutters) around the building site, property or
driveway are not included in the present offer, nor is any additional structural
work due to particular conditions of the building site.
PLAYA TORTUGA-OSA-PUNTARENAS
COSTA-RICA
TELEPHONE (506) 786-5032, FAX (506)786-5034
–3–
February 27, 2008
Here is a list of the standard building features you will find in your
construction. These, along with our qualified workmanship, are your guaranty of
superior quality and beautiful results.
1. Walls are built of Covintect styrofoam system with structural mesh and
concrete stucco.
2. Floors rest on poured concrete.
3. Roof structure is made of long lasting native hard wood.
4. Standard roofs come up with a lightweight steel sheets with a baked on
paint finish for easy maintenance. These sheets come with a Spanish style
tile roof imitation.
5. Eaves troughs are installed on all homes.
6. Cathedral ceilings with visible wood beams and tongue in grove wood slats
finish will be featured throughout the whole home, excluding those parts
of the home under a second floor.
7. Interior and exterior walls are finished in the following manner:
 One coat of cement sealer,
 Two coats of high quality paint, color to your choice, according to our
selection.
8. All plumbing installations respect national building codes and are linked to
a septic tank and drainage field system. The main water hook-up is not
included.
 This includes all faucets, sinks, porcelains, 1 hot water heater (60
Gallon) and shower or bathtub as indicated in the blueprints. All
indoor showers to have standard glass enclosures.
9. All electrical installations respect national building codes. The main
electrical hook-up is not included.
 This includes electrical switchboards, decorative light switches, lamps
and ceiling fans as indicated, to be chosen from our current selection.
PLAYA TORTUGA-OSA-PUNTARENAS
COSTA-RICA
TELEPHONE (506) 786-5032, FAX (506)786-5034
–4–
February 27, 2008
10. All indoor and terrace floors are finished with ceramic tiles.
11. Doors and windows are built in wood.
12. Kitchen and bathroom cabinets are handcrafted in wood and feature
ceramic countertops.
13. The pool will be painted and featured an infinity edge. It includes a
complete salt water system with pump and filter as well as all the necessary
accessories.
14. The carport will consist of a construction enclosed with decorative iron
work and includes a gate. A storage room will be built at the back.
15. We offer you a complete team of professional supervisors: engineers,
architects and surveyors, all registered with the national boards of their
trade.
16. All our personal is insured against injury on the job site in order to
eliminate the owner’s liability.
17. We offer a 5 year structural warranty.
18. Our labor is guaranteed for one full year after delivery.
PLAYA TORTUGA-OSA-PUNTARENAS
COSTA-RICA
TELEPHONE (506) 786-5032, FAX (506)786-5034
–5–
February 27, 2008
INVERSIONES CUSINGO DEL SUR S.A.
CONSTRUCTION CONTRACT
1. PURPOSE OF THIS CONTRACT
Between us, Inversiones Cusingo Del Sur S.A., known hereafter as the
Contractor, duly registered in the Panama Commercial Registry, represented in
this act by Jean-Marc Levesque, married, Canadian with Costa Rican residency
I.D. number 1124-00008332, resident of Ojochal de Osa and July Bloom S.A.,
hereafter known as the Contracting Party, duly registered in the Costa Rican
Mercantile Registry, represented in this act by Anthony Ralph Johnson, American
citizen with passport number 213508854.
a) The parties contract for the construction of a house on the property registered in
the Public Registry under registration number 120500, cadastral plan number
P-732518-2001, known as Lot 5-31, located in the province of Puntarenas,
County of Osa.
b) The Construction will take a period of ten months after the payment of 50% of
the value of this contract, barring circumstances out of the Contractor’s control.
c) This contract is based upon the lay out plan approved by the Contracting Party.
The constructive plans of the building will be an integral part of this contract and
will be accepted by both parties, who will sign them in show of acceptance.
d) The construction will be governed by the rulings currently in force in the country
for constructions of this type in accordance with CFIA, SNE, A&A and CSCR
standards.
e) The characteristics and quality of the materials used for the construction will be
in accordance with item 1.c) and 1.d) of this contract and the specifications
agreed upon by both parties and included in the addendums, that being all
documents, letters, plans or sketches agreed upon and bearing the signature of
both parties.
f) The price of the contract is 339,895.00 U.S. $ (three hundred and thirty nine
thousand, eight hundred and ninety five dollars U.S.). This price does not
include architect’s fees, cost of blueprints, building permit, site preparation, site
water management, landscaping, water and electrical hook ups, furniture and
home appliances, as well as any extra preparatory site work required.
PLAYA TORTUGA-OSA-PUNTARENAS
COSTA-RICA
TELEPHONE (506) 786-5032, FAX (506)786-5034
–6–
February 27, 2008
2. CHARACTERISTICS OF THE CONSTRUCTION
a) The construction and its mechanical and constructive characteristics will refer to
the code and ruling mentioned in item 1. d) of the present contract, reflecting in
the constructive plans to be drawn up.
b) The finishing materials used in the construction, such as tiles, porcelains, lights
and ceiling fans will be chosen by the Contracting Party from the current
selection offered by the Contractor in Costa-Rica. An alternate selection will
imply an additional cost that will be duly accepted by the Contracting Party and
billed upon demand.
c) The unavailability of the finishing materials will be the Contracting Party’s
responsibility if he makes a late selection of the aforementioned materials.
d) Any changes that are asked for by the Contracting Party that are not included in
the construction design and specifications will generate an extra cost that will
be duly accepted in writing by the Contracting Party. Such costs are to be paid
upon demand of execution of changes.
e) Any delay that is attributed to the Contracting Party will generate an additional
cost that will be calculated in accordance to the expenditure in labor and
material incurred by the Contractor and will be paid upon delivery of invoice
detailing such costs.
3. FORM OF PAYMENT
a) Payments will be made in the currency of the United States of America and the
date of payment will be noted as that in which the funds are deposited in the
indicated account.
b) The schedule of payments will be as follows:
I.
$84,973.75
as a deposit.
II.
$63,730.31
to initiate the construction.
III.
$95,595.47
to initiate the roof construction.
IV.
$47,797.74
to initiate laying of ceramic and painting.
V.
$30,802.99
to complete balance on the fourth installment
VI.
$16,994.75
upon completion of the building process or within
thirty days of receiving proof (photographs).
c) If the Contracting Party does not take possession of the finished construction
within a month of being advised of the completion of the contract or of receiving
proof thereof, it will be assumed that the Contracting Party is satisfied with the
construction and will pay the balance due.
PLAYA TORTUGA-OSA-PUNTARENAS
COSTA-RICA
TELEPHONE (506) 786-5032, FAX (506)786-5034
–7–
February 27, 2008
4. RIGHTS OF THE CONTRACTING PARTY
a) The Contracting Party is entitled to request technical assessment in accordance
with his needs and convenience and he will communicate with the engineer
responsible for the construction to clarify any doubts and to eventually
implement any corrective measures that may generate from this discussion.
b) In case of disagreement between the parties, Mr. Jean-Marc Levesque will
name a neutral referee, duly qualified for that matter and of known moral
solvency and both parties will be subject and will abide by his decision.
c) The Contracting Party will be free to bring any furniture inside the construction
before its delivery under his sole responsibility, with no liability to the Contractor
in case of damage to the aforementioned furniture.
d) The Contracting Party does not have any commercial or labor relation with those
persons or companies participating in the manufacture of the construction.
d) The Contractor will make a monthly progress report no longer than two pages
and with at least two photographs that will be sent to the Contracting Party in a
previously agreed-upon fashion.
e) If the Contracting Party needs or requests a more frequent number of reports,
these will be sent within the periodicity indicated by him, if the Contracting Party
agrees to pay for any additional costs involved.
f) Upon payment of the final balance due, the Contractor will give the Contracting
Party a Discharge Policy, certifying that the Contractor’s services have been
paid for in full and that the construction is free of any liens and/or claims from
suppliers or personnel employed on the site during the construction process.
g) The Contracting Party or his representative has thirty days to take possession
of the finished product once advised that the project is completed, during which
time the Contractor will receive claims presented by the Contracting Party.
PLAYA TORTUGA-OSA-PUNTARENAS
COSTA-RICA
TELEPHONE (506) 786-5032, FAX (506)786-5034
–8–
February 27, 2008
5. RIGHTS OF THE CONTRACTOR
a)
Payments by the Contracting Party will be made to that account indicated by
the Contractor and payments will be considered received when the funds are
credited to the aforementioned account. The Contractor will calculate as a
delay to the construction the length of time he has to operate or cease
operations, without adequate access to the necessary funds, and the
Contracting Party shall cancel this obligation upon delivery of invoice detailing
such costs.
b)
If there is any doubt of any kind, the Contractor will ask for clarification of such
doubts in writing and will expect an answer within the following eight calendar
days.
c)
If an expedite answer in writing pertaining to finishing materials and/or other
issues concerning the construction is not received, the contractor will use his
own criteria to resolve the issue without any liability to himself.
d)
The Contractor will employ the ideal personnel for each and every activity to
be carried out and performed, and only his judgment and convenience will
prevail.
e)
The Contractor provides a five-year structural warranty and a one-year
warranty on labor. These warranties do not include coverage of manufactured
items and only the manufacturers warranty will apply in such cases.
f)
The Contractor will not be held responsible for any claims other than that
covered by the warranty thirty days after delivery.
g)
The Contractor will not be held responsible for maintenance of the finished
home thirty days after delivery and such maintenance will be the responsibility
of the Contracting Party.
h)
The Contractor will not be liable for any inconvenience derived from the
aesthetics or subjective qualities of the project.
PLAYA TORTUGA-OSA-PUNTARENAS
COSTA-RICA
TELEPHONE (506) 786-5032, FAX (506)786-5034
–9–
February 27, 2008
It is assumed by both parties that in this contract will be carried out with the highest
of moral standards and all the obligations derived therein.
Our signatures are hereunto affixed on February 27, 2008.
-----------------------------------------
-------------------------------------
Jean-Marc Levesque
For Inversiones Cusingo Del Sur S.A.
Residency No.
1124-00008332
Anthony Johnson
American passport
213508854
PLAYA TORTUGA-OSA-PUNTARENAS
COSTA-RICA
TELEPHONE (506) 786-5032, FAX (506)786-5034