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new construction 101 a superior home building experience things you should know before construction begins!

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new construction 101 contents welcome 1 who s who at heritage homes 2 plans specs 3-4 questions options 5 completion date 6 change orders 7-9 breaking ground 10 contractors vendors 11 safety first 12-13 keys locks 14 nothing s happening 15 home inspections 16 appendix 17 home inspection addendum 18-19 directions to heritage homes 20 places to eat near heritage homes 21-22

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new construction 101 once again all off us at heritage homes thank you for choosing as your builder we look forward to growing our relationship we also understand the process of building your new home involves a wide range of emotion from the initial excitement of purchase then making selections and for some the pressures of moving that is why we have gone to great lengths to simplify and organize new home construction in new construction 101 this document we introduce you to our construction policies and procedures reviewing this information will provide valuable insight into the selection and construction processes in the construction selection guide we provide detailed information about when and where selections are made answer frequently asked questions and provide pricing for common options a link to the guide document will be provided at the plans specs meeting explore new construction 101 by clicking the links in the navigation bar on the left there is no required order and no test at the end so check out topics of interest at the moment refer back to this document as other topics gain relevance in the future building a new heritage home offers you many unique opportunities · heritage homes offers almost unlimited design and selection choices · unlike things you buy already made you will likely get to see your home at almost all stages of construction keep in mind some stages of construction can be messy and dangerous · our construction process is interactive and relies on effective communication between you and us questions and site visits are an expected part of your building experience you will learn more about these things in the construction selection guide icons used in this document remember take note and thoroughly utilize this information it is important to ask questions if clarification is needed caution pay close attention time sensitive items or phase of construction requiring your attention past due extremely sensitive matters of your construction schedule prioritize your agenda to accommodate these items your attention to required due dates will avoid significant delays and costly charges 1

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new construction 101 who s who at heritage homes jennifer thornton jim papa sandi attwood paul baldwin dan bargabos larry petersen key staff responsibilities dan bargabos president dbargabos@heritage-homes.net sandi attwood office manager specialization financial operations sattwood@heritage-homes.net paul baldwin operations manager specialization oversees all construction scheduling and warranty provides answers to your detailed construction questions pbaldwin@heritage-homes.net jennifer thornton construction warranty supervisor specialization construction scheduling supervision and processing of warranty work requests jthornton@heritage-homes.net jim papa field manager specialization manages day-to-day construction operations and scheduling larry petersen assistant field supervisor specialization field and punch-out work company contact information phone fax web mail e-mail 315-451-4980 315-451-6765 www.heritagehomescny.com 7519 morgan road liverpool ny 13090 see staff email addresses above 2

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new construction 101 plans specs plans specs this is the beginning of a long relationship you will develop with construction coordinator jennifer thornton and operations manager paul baldwin as the two of them will work with you throughout both the construction period and the warranty period before the meeting is set often the draftsman has to complete a preliminary plan before the plans specs meeting is scheduled after receiving the plan there is a review of the plan and contract then your selection specifications package is compiled and reviewed the home site is often re-inspected to help determine the correct orientation for the house on the lot jennifer will contact you to set a date and time for the plans specs meeting plans specs meetings usually run about 2 hours first visit to the heritage homes office get directions or find places to eat nearby in the appendix at the meeting it is helpful if you bring the following · · · copy of your contract list of any related questions if balance of down payment is due after plans specs please bring a check a personal check is ok for this paul will begin a comprehensive review of the plan one page at a time being careful to make sure critical elements from addenda b c are noted on the plans the following topics may also be discussed · · · · · · · · · site plan and orientation of home specifications selection and option procedures change orders and change order due dates status of permit and target start date construction sequence schedule nothing s happening site visit guidelines how to handle questions · target completion 3

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new construction 101 plans specs at the conclusion of the meeting you will be asked to initial the plan and if so stated in the contract pay the balance of your down payment you will be given · · · · a copy of the plan set of selection sheets selection due dates access to the construction selection guide after the meeting heritage homes will complete the following as needed · · · · adjust specifications re-drawn and/or have architect stamp the plan have survey crew locate house on site plan and lot process and submit permit application 4

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new construction 101 questions options questions to be resolved questions that come up at plans specs meeting will be written down on a questions to be resolved form after the meeting the form will be put into the heritage homes database heritage will notify you as answers are received from the appropriate sources following the plans specs meeting and throughout the construction process additional questions will come to mind please email any questions to us remember no question is foolish it is understood that most homebuyers are not construction professionals from time to time heritage homes may send you a report with updated questions to be resolved information we will do our best to answer your questions promptly and thoroughly please review addenda b c of your contract keep in mind that if you do not see a particular item listed in the contract heritage homes concludes that it was not intended to be included there are times when an omission is inadvertent if we list the issue as a question to be resolved we ll be sure to get to the bottom of it options being considered at the plans specs meeting you begin discussing options you are considering for your new home these options will be noted at the meeting and then put into heritage homes database shortly after the meeting you can expect to receive a database report of options being considered the options being considered list will likely grow as you consider more options through the construction process heritage homes may periodically send you updated options being considered reports to help assure nothing is forgotten notify heritage homes as soon as possible to indicate which options you want incorporated into your home or which to remove from the list when you say yes to an option the change order process will begin 5

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new construction 101 completion date the completion date for your new home begins as an estimate it is obvious that weather can have a big impact on the completion date before the house is under roof and dried in but even after the house itself is dried in weather can still affect installation of utility services final grading concrete flatwork and other construction activities extended periods of wet weather or freezing temperatures can bring work to a stop in the entire region when favorable conditions return the trade s people go back to work picking up where they left off please understand that we are all as eager as you are to get caught up and back on track for completion completion date updates heritage homes recognizes that fixing a completion date is critical to planning your move a guaranteed date is unrealistic in the early stages of construction heritage homes reviews the scheduled construction activity each week you are welcome to check with us periodically for the most current target date as completion nears more factors come under control and the target date becomes more precise expect a firm but not guaranteed closing date about 30 days before completion it is suggested that until you receive this commitment you avoid finalizing arrangements for your move until then flexibility is the key heritage wants you to enjoy the building process and avoid unnecessary stress that can sometimes be caused by uncertainty which cannot be avoided the construction of a new home can cause some stress when it comes to scheduling your move when you begin to line up a moving company it is important to find a company that can be flexible to potential schedule delays and adjustments 6

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new construction 101 change orders heritage homes uses a change order form to describe and document all changes you request to your new home s plans and specifications change orders are processed whenever you · say yes with items from your options being considered list · change a selection previously specified there may be a charge no charge or a credit · go over or under a selection allowance · personalize your home plans further with a custom change described in more detail in the construction selection guide in order to complete your home by the target date heritage homes has to order many materials well in advance of the need or actual installation date once an item is ordered making further changes may involve adjusting the planned completion date and additional costs by requesting all changes before selection due dates you may avoid both when you request a change the construction coordinator will document the request and submit it for heritage homes approval and in some cases pricing pricing of custom change requests typically takes 5 to 10 business days if you desire a custom change after construction has started heritage homes is not responsible for resulting delays this type of delay does not extend the due date for the selection section involved see due dates for change orders in the following section sometimes a seemingly minor change impacts other elements of the home and therefore may come with unanticipated costs for example if you order a ceiling fan the framing that will hold the fan is reinforced if you add a window framing drywall interior and exterior trim and paint costs may all be affected changes of any kind requested after the due dates specified may include an administrative charge the operations manager returns final option pricing and sometimes schedule adjustments to the construction coordinator who provides you with a written change order if you elect to proceed with the change we ask that you sign the change order and return it to heritage homes as soon as possible all changes are documented and incorporated into your new home only after · you have approved and signed the change order · heritage homes has approved and signed the change order agreements with our trade contractors prohibit them from making any changes to plans or specifications without written change order authorization from heritage homes continued on next page 7

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new construction 101 change orders due dates for change orders heritage homes follows a schedule of due dates for changes as shown below heritage homes reserves the right to limit changes after the due date changes effecting foundation plans windows exterior doors garage doors roof mechanical systems cabinets appliances insulation siding exterior colors brick stone ceramic tile hardwood floors exterior countertops lighting mirrors glass carpet weeks following plans specs one week two weeks four weeks six weeks seven weeks eight weeks nine weeks ten weeks paying for change orders you can pay for change orders in one of three ways 1 2 pay for each change order as it is issued pay the lump sum of all change orders two days prior to closing cashiers check or bank checks are preferred no personal checks in access of $5,000.00 will be accepted 3 incorporate the change orders into your mortgage you will need to let us know how you intend on paying for your change orders within 30 days of your plans specs meeting or it will be assumed that change orders will be paid as stated in option #2 above this may require re-writing your contract after receiving the approval of your lender and heritage homes your lender may also require extra time to change your mortgage please consult with them first 8

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new construction 101 sample change order form change order #5.01 purchasers john smith jane smith model the oxford date job id 5/1/2006 123 abc obc id option description 1940 overhead door exterior keypad total price price $75.00 $75.00 heritage homes purchaser purchaser please note changes will not be implemented until an authorized change order is received at the heritage homes office date date date email authorization is acceptable provided the email includes the change order number and the total dollar amount of the change order please follow through with a hard copy of the signed change order by fax or mail 9

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new construction 101 breaking ground before construction of your home can begin heritage homes has several important tasks to accomplish that sometimes beyond our control for example · structural changes you make to the plans may necessitate a revision of the drawings and engineering for the home these revisions must be complete prior to applying for a building permit and can take from several days to several weeks · building a home requires that heritage homes obtain a building permit this process varies from town to town and can take a few days to several weeks · weather conditions may affect the start date but please note that heritage homes builds year round below is an outline showing some of the relationships between construction processes plans specs specs are reviewed plan is marked up and sent to architect for final review and to be stamped to certify it meets building code requirements stamped plan delivered to heritage homes apply for building permit with the town or village excavation is scheduled footing is poured footing inspection foundation begins lumber windows exterior door orders are sent these selections must be finalized foundation is complete foundation inspection framing begins roof is ordered and the cabinets are ordered these selections must be finalized appliance specifications are distributed these selections must be finalized framing is complete electrical walk-thru heating plumbing and electrical work is roughed in fireplace is installed all these selections must be finalized ceramic tile countertop materials are ordered these selections must also be finalized order lighting roughs are complete framing inspection insulation begins insulation complete insulation inspection drywall begins interior paint is ordered hardwoods are ordered these selections must be finalized drywall and tape are complete walls are primed ceramic tile is installed and hardwood is installed carpet is ordered selections must be finalized trim walk-thru cabinets are delivered trim work begins trim extras details must be finalized cabinets are installed countertops are measured and scheduled for installation selections must be finalized mirrors shower doors are measured and scheduled for installation selections must be finalized finishes lights and appliances are delivered and installed heating plumbing and electrical finish work is completed hardwoods are finished with two coats of polyurethane finishes lights and appliances are delivered and installed heating plumbing and electrical finish work is completed hardwoods are finished with two coats of polyurethane punch out carpet is installed closet shelving is installed 3rd coat of polyurethane is put on the hardwoods final cleaning takes places plumbing electrical inspections lender inspection certificate of occupancy inspection final walk-thru inspection work on punch list begins day of closing locks are changed paint touch-ups touch up -cleaning takes place congratulations 10

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new construction 101 contractors and vendors who will work on your home your home is built through the combined efforts of specialists in many trades from excavation and foundation through framing mechanicals and insulation to drywall trim and finish work heritage homes selects all contractors and vendors who will contribute in the construction of your home all materials and products are ordered from vendors and suppliers with whom heritage homes has established detailed terms and specifications in order to ensure you the heritage homes standard of construction only authorized suppliers trade contractors and heritage homes employees are permitted to perform work in your home sweat equity arrangements and using your choice of contractor/supplier are usually not available as a part of the purchase agreement who has authority to make decisions each trade contractor works on a limited portion of the home they will not be aware of all the details that affect the home and are not in a position to offer judgments all questions or requests for changes must go through heritage homes and heritage will obtain input from trade contractors when it is appropriate vendors suppliers and trade contractors have no authority to enter into agreements for heritage homes for your protection and theirs the terms of our trade contractor agreements prohibit alterations without written authorization from heritage homes their failure to comply with this procedure can result in the termination of their contract 11

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new construction 101 safety first heritage homes understands that you will want to visit your new home as construction progresses checking the construction progress is very exiting but the site can be dangerous safety comes first for insurance purposes heritage homes reserves the right to require that you wear a hard hat and that your real estate agent or a member of our staff accompany you during each visit when on site please observe these safety procedures at all times · · · · · · · if possible do not bring children on the jobsite if they must come with you keep older children within view and younger children within reach look in the direction you are moving at all times do not walk backward even one step watch for boards cords tools and openings in floors nails or construction materials that might cause tripping puncture wounds or other injury do not enter any level of a home that is not equipped with stairs and rails stay a minimum of 6 away from all excavations give people using power tools or operating large noisy grading equipment or delivery vehicles plenty of room assume the operator cannot see or hear you in addition to safety considerations be aware of the possibility that mud paint drywall compound and other construction materials may be in use and can get onto your clothing heritage homes reserves the right to revoke site visit privileges for failure to comply with any safety procedures please print sign and return the site visit acknowledgment form on the following page 12

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safety first site visit safety acknowledgement heritage homes understands that you will want to visit your new home as construction progresses checking the construction progress is very exiting but the site can be dangerous safety comes first for insurance purposes heritage homes reserves the right to require that you wear a hard hat and that your real estate agent or a member of our staff accompany you during each visit when on site please observe these safety rules at all times · · · · · · · if possible do not bring children on the jobsite if they must come with you keep older children within view and younger children within reach look in the direction you are moving at all times do not walk backward even one step watch for boards cords tools and openings in floors nails or construction materials that might cause tripping puncture wounds or other injury do not enter any level of a home that is not equipped with stairs and rails stay a minimum of 6 away from all excavations give people using power tools or operating large noisy grading equipment or delivery vehicles plenty of room assume the operator cannot see or hear you in addition to safety considerations be aware of the possibility that mud paint drywall compound and other construction materials may be in use and can get onto your clothing please print sign and return the form below heritage homes reserves the right to revoke site visit privileges for failure to comply with any safety procedures site visit safety acknowledgement i understand and agree with the above mentioned safety guidelines customer date customer date please return a signed copy to heritage homes 13

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