Advanced Incorporated Warranty

Jump to Index of Performance Standards

Section I: Coverage

During the first year of the warranty period, which commences on the day that title transfers on the covered home (in the case of purchase), or project is substantially complete and available for use by owner (in the case of additions, remodeling or repairs to customers existing home) Advanced Inc. warrants and assures that the covered project will be free from:

Significant defects in materials or workmanship as defined in the attached Performance Standards (AIS-06).
Significant defects in the electrical, plumbing and mechanical systems as defined in the Performance Standards including the wiring, piping and ductwork portions of the system.

Appliances, fixtures or pieces of equipment which are covered by a manufacturer’s warranty ARE NOT covered by this warranty. Defects in any of the systems resulting from failures in an appliance, fixture or piece of equipment covered by a manufacturer’s warranty ARE NOT covered by this warranty.

Common elements of condominiums as they pertain to this warranty will be warranted against first year defects as stated in section A above. Common elements are defined as any portion of a primary condominium structure which is provided for the common use of the residents of the structure, housing individual units, is completed as listed on the Builders Application for New Home Warranty Coverage (Form AIW-06).

Section II: What will the Builder do?

If a defect occurs on an item during the applicable part of the warranty period and the item is covered by this Warranty the Builder will repair or replace the defective item. The Builder's total liability under this Warranty for the repair or replacement of defective items is limited to the original purchase price of the home. The choice to repair or replace any defective item is solely that of the builder. Any repair or replacement procedure shall not extend the Warranty period or any applicable part thereof. The Homeowner herein agrees to the method and manner of repair and/or replacement selected by the Builder.

Repair or replacement under this warrantee does not extend the term of the warrantee.

Section III: What the Homeowner Must do

If the Homeowner has a complaint on any item covered by this warranty under Section 1, A or B during the applicable part of the warranty period, the Homeowner must send a clear and specific written complaint to Advanced Inc. (stating the date on which the defect occurred). This written notice must be received by Advanced Inc. no later than 30 days after the expiration of the applicable part of the warranty period. In case of an emergency problem, the Homeowner must notify the Builder immediately in order that further damages can be mitigated. The Homeowner should take immediate action if circumstances dictate the need. If such notice is not received by Advanced Inc. by the deadline set forth above, a claim or complaint for the defect will be waived by the Homeowner and the claim or complaint will be rejected.

Section IV: Mediation and Arbitration

If the Homeowner and Builder disagree on any claimed defective items or resulting repairs in accordance with this warranty and the Performance Standards (Form AIS-06), the Homeowner may request impartial third party mediation or arbitration. Guidelines for conflict resolution are specified in General Conditions Section 4.2, including guidelines for Mediation and Arbitration. In the event the Homeowner(s) uses litigation, no additional warranty work will be performed until the litigation has concluded.

Section VI: Condominium

When the home is a condominium unit, the Homeowner(s) may file and pursue any claim against Advanced Inc. directly on his/her behalf or through a designated representative of the Condominium Association. Claims involving common elements may be filed by the Homeowner(s) or the Condominium Association directly against Advanced Inc.

Section VII: Exclusions

Advanced Inc. does not warrant deficiencies or defects regardless of (a) the cause of the excluded event; or (b) other causes of loss: or (c) whether other causes acted concurrently or in any sequence with the excluded events to produce the deficiency or defect. The following are excluded from coverage under this warranty:

Warrantee work will be performed with all due haste. Emergency repairs shall be made as quickly as possible, and non-emergency repairs will be scheduled and performed within a reasonable time. In case of an emergency the owner must take immediate action to prevent additional damaged. Advanced Inc. will perform no warrantee work if the customer's account is in default, or if a legal action is pending.
This warranty only covers work, which was contracted and completed by Advanced Inc. Warranty coverage begins after closing, or when a notice of completion is filed, a letter of occupancy is issued or when the final codes inspection is completed, whichever comes first. Advanced Inc. shall not provide coverage for:

Any structure, or system or part of a structure, or system which was not a part of our contracted project;
Any landscaping (including sod, seeding, shrubs, trees, straw or other mulch, and plantings) and landscaping irrigation systems;
Soil erosion which occurs after the warrantee commences.
Off-site improvements or any improvements installed after the inception date of warranty shown on the certificate whether provided by the builder or others;
Any loss, damage, or other condition which is not a deficiency or defect of construction;
Water intrusion, including roof leakage, except as described under the one and/or two year limited warranty;
Cost of transportation, food, storage, moving contents, shelter, or other incidental expenses related to homeowner relocating during repair;
Any loss or damage which may arise while the home is unoccupied or is not being used primarily for residential purposes;
Drainage deficiencies that do not affect the structural integrity of the home;
Any condition which does not result in actual physical damage to the covered home;
After the first year, concrete floors that are built separate from foundation floors or other structural elements of the home.
Deficiency or defect to any property, or part of the property, if the value is not included in the contract price or official change orders;
Any defect in deficiency caused by materials, design, construction, or work supplied by other than Advanced Inc, or their employees, agents, or subcontractors;
Changes, alterations or additions made to the home by anyone other than those performed under obligations of this warranty;
Changes of grading of the site by anyone other than Advanced Inc or their employees, agents, or subcontractors; or failure to maintain the proper grade;
Deficiency or defect cause or made worse by owners, occupants, or guests;
Any material or workmanship covered by another warranty.

The warranty does not cover deficiencies or defects caused by neglect, Acts of God, or claims which are normally covered by other insurance policies whether covered by such insurance policies or not. Therefore, Advanced Inc. shall not provide coverage for:

Consequential Damage: Any property damage or bodily injury which follows as a result of structural damage, or other defects covered under this warranty including defects in plumbing, electrical, heating and cooling;
Normal wear and tear or normal deterioration;
Subsidence in soil movement which was not reasonably predictable through reasonable soil testing or other investigation at the time of construction (this exclusion would not apply to an original FHA loan still in effect); or for which compensation is provided by state legislation or other insurance; or any damage caused or made worse by inadequate, saturation or uneven watering of soils within close proximity of foundations in areas with active soil; or damage by trees planted within 10 feet of foundations.
Deficiency or defect resulting from accidents, riot, civil commotion, or Acts of God; including but not limited to fire, explosion, smoke, water escape, windstorm, mudslide, erosion, hail, lightning, falling trees, aircraft, vehicles, flood, earthquake, volcanic eruption or change in the level of the underground water table;
Rot or Insect damage including termites;
Any loss or physically inflicted damage which is not a construction deficiency or defect, including but not limited to chips, scratches, and dents in materials, fixtures, appliances, or other items of equipment;
Any alleged deficiency or defect for which there is no evidence of deficiency or defect at the time of the claims investigation; or which has been repaired prior to an advanced Inc. claims investigation unless such deficiency or defect is considered by Advanced Inc. to be an emergency repair which was repaired by the homeowner(s) after the builder failed to respond within a reasonable time. Emergency items will be determined by Advanced Inc. considering imminent danger of resulting damage to the home. Emergency Items will not include items of comfort to the homeowner(s) such as but not limited to problems with air conditioners.

The warranty does not cover problems which may have been caused by the homeowner(s). Therefore, Advanced Inc. shall not provide coverage for any damage, defect, or deficiency that is caused or made worse by:

Dampness or condensation due to the failure of the homeowner(s) to maintain adequate ventilation;
Failure by the homeowner(s) to give notice to Advanced Inc. of any deficiencies or defects within a reasonable time or as specified in this warranty;
Negligence in proper maintenance or proper operation by anyone of items warranted under this warranty;
Failure of the homeowner(s) or anyone to comply with the warranty requirements of manufacturers of appliances, equipment or fixtures;
Any loss or damage which the homeowner(s) has not taken reasonable timely action to minimize;
Any dispute received by Advanced Inc. later than 30 days after the expiration of the warranted term for a claimed item of deficiency or defect.
Frozen pipes or damaged caused by frozen pipes, including damaged to the pipes, or surrounding structure.
Damage to finished areas that are deprived of normal climate control. Both temperature and humidity must be maintained within the normal range, for an occupied building, even during periods when it is not occupied, to avoid damage.

The warranty does not cover Service calls for non-warrantee items. If the customer requests a service call and warrantee work is not required Advanced will charge for the service call at the rate of $35 per man hour plus 50 cents per mile traveled with a minimum of 2 man hours charged even if no (or very little) work is performed.

Section VIII: General Conditions

Resale: Each successor in title to the home including, Mortgagee in possession, is automatically entitled to coverage under this policy for its unexpired term. The transfer fee for this policy shall not exceed $40.00. There is no limit under this certificate to the number of successions during the term of the policy.
Dispute Settlement: Guidelines for conflict resolution are specified in General Conditions Section 4.2, including guidelines for Mediation and Arbitration.
Delay: If Advanced Inc’s performance of any of its obligations is delayed by any event not resulting from their own conduct; they will be excused from performing until the effects of that event are remedied. Examples of such events are: Acts of God or common enemy, war, riot, civil commotion, sovereign conduct, or acts of persons who are not parties to this warranty.
Warranties: In the event Advanced Inc. repairs or replaces, or pays the cost of any defect covered by this Warranty for which you are covered by other insurance or warranties, you must, upon request by your builder or Advanced Inc. assign the proceeds of such repair, replacement or payment.
Other Rights: This Warranty gives you specific legal rights. You may also have other legal rights which vary from state to state. This Warranty does not affect any rights you may have through any other express or implied warranty.
Access to Premises: By accepting this Limited Warranty or Extended Warranty the Homeowner(s) agree to and understand that access to, on, though or within the premises during reasonable workday hours must be available so that any deficiency may be corrected and the Warranty Service performed. Failure to allow access or an unreasonable delay in allowing access to your home will void warranty coverage for that claim.
General: Should any provisions of this contract be deemed by a court of competent jurisdiction to be unenforceable, that determination will not affect the enforceability of the remaining provisions. This Warranty is to be binding upon the Builder, the Homeowner(s), their heirs, executors, administrators, successors and assigns. Use of one gender in the Warranty includes all other genders; and use of the plural includes the singular as may be appropriate. This warranty is to be covered by and construed in accordance with the laws of the state in which the home is located.

Section IX: Definitions

Dwelling, Unit or Home - A single or multi-family structure individually owned.

Approved Standards - The federal, state, county, or local building standards or codes affecting construction standards, plumbing, electrical, heating, cooking and ventilating systems in the area in which your home is built.

Consequential Damage - Any property damage or bodily injury which follows as a result of structural damage or any other items covered under this Warranty, including defects in plumbing, electrical, heating, cooling or ventilation systems.

Major Structural Defect - Actual physical damage to designated loan-bearing portions of the covered home when the actual physical damage is caused by failure or defect of such load-bearing portions. The actual physical damage must affect the load-bearing function to the extent that the covered home becomes unsafe, unsanitary or otherwise uninhabitable.

Warranty Document - The written terms of this warranty, including the performance standards.

ADVANCED INC. MUST RECEIVE WRITTEN NOTICE OF ANY DEFICIENCY OR DEFECT FOR ANY ITEM COVERED BY THIS WARRANTY PRIOR TO THE EXPIRATION DATE (+30 DAYS) OF THE APPLICABLE REPORTING PERIOD FOR THAT ITEM.

Index To

Performance Standards

(AIS-06)

I. Site Work

o Site Grading

o Site Drainage

II. Concrete

o Expansion and Contraction of Joints

o Cast-in-place Concrete

III. Masonry

o Unit Masonry

IV. Wood and Plastic

o Rough Carpentry

o Finish Carpentry (Interior)

o Finish Carpentry

V. Thermal and Moisture Protection

o Waterproofing

o Insulation

o Louvers and Vents

o Roofing

o Sheet Metal

VI. Doors and Windows

o Wood, Metal, Fiberglass, Composite and Plastic Doors

o Glass

o Sliding Doors

o Overhead Doors

o Wood, Plastic and Metal Windows

o Weather-stripping and Seals

VII. Finishes

o Lath and Plaster

o Gypsum Wallboard (Drywall)

o Ceramic and Marble Tile

o Finished Wood Flooring

o Resilient Flooring

o Painting

o Carpeting

o Stucco

o Roof Tile

VIII. Specialties

o Louvers and Vents

o Fireplaces

o Cabinets/Countertops

IX. Plumbing

o Plumbing-Water supply system

X. Mechanical

o Heating

o Cooling

o Condensation Lines

o Air Distribution

XI. Electrical

o Electrical Conductors, Fuses and Circuit Breakers

o Service and Distribution

o Outlets, Switches and Fixtures

ADVANCED INC.

2240 Summerfield Road

Cookeville, TN 38506

Phone: 931-528-1960 · 877-542-0431

www.cookevillehomebuilder.com

Performance Standards

(AIS-06)

Performance Standards (AIS-06) are the required standards for construction of all residential units warranted by Advanced Inc.

These Performance Standards establish minimum construction industry standards relating to specific deficiencies which apply during the applicable one year warranty period for workmanship and material deficiencies and/or two year warranty period for major mechanical, plumbing, heating, cooling and electrical systems.

Only the most frequent deficiencies of concern to the Homeowner(s) have been enumerated in the Performance Standards set forth in the following pages. The standards are in an easy to read format listing:

The Validity of all complaints not covered by these Performance Standards shall be determined on the basis of standard industry practice for the license under which the Builder has been qualified.

IMPORTANT NOTICE

When determining responsibility under these Performance Standards only reports from Advanced Inc. approved outside construction consultants (inspection firms, contractors, etc.) will be considered. Some outside firms and individuals feel it is their responsibility to locate possible problems rather than to resolve issues under consideration and they regularly address items not covered under the terms of the warranty. The following standards are the official standards used by Advanced Inc.

WORKMANSHIP AND/OR MATERIALS

(To be used in conformance with 1 year limited warranty)

I: SITE WORK

SITE GRADING:

* POSSIBLE DEFICIENCY: Settling of ground around foundation, utility trenches, or other areas.

PERFORMANCE STANDARD: Settling of ground around foundation, utility trenches or other filled areas shall not interfere with water drainage away from the unit.

BUILDER RESPONSIBILITY: Builder shall fill those areas where proper drainage has been affected. This shall be done one time only, during the first year of warranty. The Homeowner(s) shall be responsible of all grass, shrubs and landscaping in the affected area.

SITE DRAINAGE:

* POSSIBLE DEFICIENCY: Improper drainage of the site.

PERFORMANCE STANDARD: Necessary grades and swales will be completed by the Builder to insure proper drainage away from the unit. Standing or ponding water shall not remain for extended periods next to the unit after a rain (generally no more than 24 hours). The possibility of standing water after a heavy rainfall should be anticipated. Grading determination shall not be made while there is frost or snow on the ground, or while the ground is saturated. Standing water and saturated ground is normal during and immediately after periods of heavy rain.

BUILDER RESPONSIBILITY: The Builder is responsible only for initial establishment of proper grades and swales.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) is responsible for maintaining proper grades and swales once they have been properly completed. Damage caused by Homeowner(s) installed decks, pools, patios, planters, etc… which interfere with proper site drainage are not covered. Erosion is not covered.

II: CONCRETE

EXPANSION AND CONTRACTION OF JOINTS:

* POSSIBLE DEFICIENCY: Separation or movement of concrete slab within the structure at expansion, contraction and/or isolation joints causing random cracking

PERFORMANCE STANDARD: Concrete slabs within the structure are designed to move at expansion, contraction and/or isolation joints. Expansion and contraction also causes random cracking in concrete slabs.

BUILDER RESPONSIBILITY: None

CAST-IN-PLACE CONCRETE:

* POSSIBLE DEFICIENCY: Basement or foundation wall cracks

PERFORMANCE STANDARDS: Shrinkage cracks greater than 1/8 inch in width will be repaired.

BUILDER RESPONSIBILITY: Builder will repair cracks in excess of 1/8 inch in width with patching compound. Builder is not responsible for color variation.

* POSSIBLE DEFICIENCY: Cracking of basement floor.

PERFORMANCE STANDARDS: Minor cracks in concrete basement floors are normal. Cracks exceeding 1/4 inch in width or 3/16 inch in vertical displacement shall be repaired.

BUILDER RESPONSIBILITY: Builder will repair cracks exceeding maximum tolerances by surface patching or other methods as required. Builder is not responsible for color variation.

* POSSIBLE DEFICIENCY: Cracking of slab in attached garage.

PERFORMANCE STANDARD: Cracks in garage slabs in excess of 1/4 inch in width or 1/4 inch in vertical displacement will be repaired.

BUILDER RESPONSIBILITY: Builder will repair cracks exceeding maximum tolerances by surface patching, or other methods as required. Builder is not responsible for color variations.

* POSSIBLE DEFICIENCY: Uneven concrete floors/slabs.

PERFORMANCE STANDARD: Except for basement floors or where a floor, or portion of a floor, has been designed for specific drainage purposes, concrete floors in rooms designed for habitability shall not have pits, depressions or areas of unevenness exceeding 5/16 inch in 36 inches.

BUILDER RESPONSIBILITY: Builder shall correct or repair to meet the Performance Standard. Builder not responsible for color variation.

* POSSIBLE DEFICIENCY: Cracks in concrete slab-on-grade floors with finish flooring.

PERFORMANCE STANDARD: Cracks which rupture the finish flooring material shall be repaired.

BUILDER RESPONSIBILITY: Builder shall repair cracks, so they are not readily apparent.

* POSSIBLE DEFICIENCY: Pitting, scaling or spalling of concrete work covered under this Limited Warranty.

PERFORMANCE STANDARD: Concrete surfaces shall not disintegrate within the warrantee period to the extent that the aggregate is exposed and loosened under normal conditions of weathering and use.

BUILDER RESPONSIBILITY: Builder shall take corrective action to repair or replace defective concrete surfaces. Builder is not responsible for deterioration caused by salt, chemicals, mechanical implements and factors not under Builder’s control. Unless otherwise specified, Builder is not responsible for roof water run-off onto patios, walkways or driveways.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will avoid damaging the surface by the use of salts and chemicals not specifically designed for use on these surfaces.

* POSSIBLE DEFICIENCY: Settling, heaving, or separating of stoops, steps or garage floors structurally attached to the unit.

PERFORMANCE STANDARD: Stoops, steps or garage floors should not settle, heave or separate in excess of 1 inch from the house structures.

BUILDER RESPONSIBILITY: Builder will take whatever corrective action is required to meet the Performance Standard.

* POSSIBLE DEFICIENCY: Standing water on stoops.

PERFORMANCE STANDARD: Water should drain from all outdoor stoops or steps. Minor water standing on stoops for a short period after rain is a possibility.

BUILDER RESPONSIBILITY: Builder shall provide proper drainage of steps and stoops. Builder is not responsible for color variation of repair.

III: MASONRY**

Unit Masonry:

* POSSIBLE DEFICIENCY: Non structural foundation wall cracks.

PERFORMANCE STANDARD: Small cracks not affecting structural stability are not unusual in mortar joints of masonry foundation walls. Cracks greater than 1/8 inch in width will be repaired.

BUILDER RESPONSIBILITY: Builder will repair cracks in excess of 1/8 inch by pointing or patching. These deficiencies shall be reported and repairs made during the first year of the Limited Warranty period. Builder is not responsible for variation in color of repair.

* POSSIBLE DEFICIENCY: Cracks in masonry walls or veneer.

PERFORMANCE STANDARD: Small cracks due to shrinkage are common in mortar joints in masonry construction. Cracks greater than 3/8 inch in width will be repaired.

BUILDER RESPONSIBILITY: Builder shall repair cracks is excess of Performance Standard by pointing or patching. These repairs shall be reported to the Builder, but made close to the end of the first year of the Limited Warranty period to allow expansion, contraction and normal settling. Builder will not be responsible for color variation between old and new mortar.

** Stucco- see FINISHES.

IV: Wood and Plastic

ROUGH CARPENTRY:

* POSSIBLE DEFICIENCY: Floors or stairs squeak or sub-floor seems loose.

PERFORMANCE STANDARD: A squeak proof floor/stair cannot be guaranteed.

BUILDER RESPONSIBILITY: Builder will correct the problem only if cause by an underlying construction defect.

* POSSIBLE DEFICIENCY: Uneven wood floors.

PERFORMANCE STANDARD: Floors shall not be more than ¼ inch out of level within any 32in horizontal measurement. Allowable floor and ceiling joist deflections are governed by the applicable local building code.

BUILDER RESPONSIBILITY: Builder will correct or repair to meet Performance Standard.

* POSSIBLE DEFICIENCY: Bowed walls or ceilings.

PERFORMANCE STANDARD: All interior and exterior walls or ceilings have slight variances on finished surfaces. Walls shall not be more than ¼ inch out of level within any 32 inch horizontal measurement. Deflections shall be governed by the applicable local building code.

BUILDER RESPONSIBILITY: Builder will correct or repair bowed walls or ceilings as required by code.

* POSSIBLE DEFICIENCY: Out of plumb walls.

PERFORMANCE STANDARD: Walls should not be more than ¼ inch out of plumb for any 32 inch vertical measurement.

BUILDER RESPONSIBILITY: Builder will repair to meet the Performance Standard.

FINISH CARPENTRY (INTERIOR)

* POSSIBLE DEFICIENCY: Poor quality of interior trim workmanship.

PERFORMANCE STANDARD: Joints in moldings or joints between moldings and adjacent surface shall not result in open joints exceeding 1/8 inch in width.

BUILDER RESPONSIBILITY: Builder will repair defective joints as defined. Caulking is acceptable. Builder is not responsible for color variation.

FINISH CARPENTRY

* POSSIBLE DEFICIENCY: Exterior finish siding has open joints between pieces of trim.

PERFORMANCE STANDARD: Joints between exterior trim elements, including siding and masonry, shall not result in open joints in excess of 3/16 inch in width.

BUILDER RESPONSIBILITY: Builder will repair only once during the first year of warranty. Caulking is acceptable.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will maintain the exterior finish by periodic caulking and painting.

* POSSIBLE DEFICIENCY: Inadequate clearing of wood siding from possible grade.

PERFORMANCE STANDARD: There should be a 6 inch clearance between the wood siding and the finished grade at the time of closing or first occupancy, whichever comes first.

BUILDER RESPONSIBILITY: Builder will insure that there is a minimum 6 inch clearance between the wood siding and the finished grade at the time of closing or first occupancy, whichever comes first.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will maintain a 6 inch clearance between the siding and finished grade.

* POSSIBLE DEFICIENCY: Delamination of veneer siding or joint separation.

PERFORMANCE STANDARD: All siding shall be installed according to the manufacturer's and industries accepted standards. Separations and delaminations shall be repaired or replaced.

BUILDER RESPONSIBILITY: Builder will repair or replace affected siding, as needed, unless caused by manufacturer’s defect or Homeowner(s) neglect to maintain siding properly. Manufacturing defects are not covered under this warranty and must be reported to that manufacturer. Repaired area may not match in color and/or texture. For surfaces requiring paint, Builder will paint only the new materials. The Homeowner(s) can expect that the newly painted surface may not match original surface in color.

V: THERMAL AND MOISTURE PROTECTION

WATERPROOFING:

* POSSIBLE DEFICIENCY: Leaks in foundation and basement.

PERFORMANCE STANDARD: Leaks resulting in actual trickling of water shall be repaired. Leaks caused by improper landscaping or failure to maintain proper grades are not covered by this Limited Warranty. Dampness of the walls or floors may occur in new construction and is not considered a deficiency.

BUILDER RESPONSIBILITY: The Builder will take such action as necessary to correct leaks except where the cause is determined to result from homeowner(s) action or negligence.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will maintain proper grades and drainage around the home.

* POSSIBLE DEFICIENCY: Leaks in exterior wall not adequately sealed or caulked.

PERFORMANCE STANDARD: Joints and/or cracks in exterior walls and openings shall be sealed and/or caulked to prevent water penetration in accordance with industry standards.

BUILDER RESPONSIBILITY: Builder will repair any deficiency once during the first year only. Builder is not responsible for color variations.

HOMEOWNER RESPONSIBILITY: Homeowner(s) will maintain caulking and sealing in exterior walls.

* POSSIBLE DEFICIENCY: Mold, mildew, or fungus.

PERFORMANCE STANDARD: Mold, mildew, or fungus can form as a result of leaks or condensation. This is considered consequential damage.

BUILDER RESPONSIBILITY: None

HOMEOWNER RESPONSIBILITY: Mold, mildew or fungus control is a homeowner responsibility, and must be prevented by maintaining adequate ventilation, and controlling moisture and humidity levels in all areas of the home. Mechanical dehumidification may be required.

INSULATION:

* POSSIBLE DEFICIENCY: Insufficient insulation.

PERFORMANCE STANDARD: Insulation will be installed in accordance with local applicable energy and building code requirements or, as applicable, FHA and VA requirements.

BUILDER RESPONSIBILITY: Builder will insulate the home as required to meet local energy and building requirements. This will not make a room sound proof.

LOUVERS AND VENTS:

* POSSIBLE DEFICIENCY: Leaks due to snow or rain driven into the attic through louvers or vents.

PERFORMANCE STANDARD: Attic vents/louvers must be provided for proper ventilation of the attic space of the structure.

BUILDER RESPONSIBILITY: None

ROOFING:

* POSSIBLE DEFICIENCY: Ice build-up on roof.

PERFORMANCE STANDARD: During prolonged cold spells, ice build-up is likely to occur at the eaves of a roof. This condition occurs when snow and ice accumulate and gutters and downspouts freeze up.

BUILDER RESPONSIBILITY: None.

HOMEOWNER RESPONSIBILITY: Prevention of ice build-up on a roof is a Homeowner(s) maintenance item.

* POSSIBLE DEFICIENCY: Roof or flashing leaks.

PERFORMANCE STANDARD: Roofs or flashing shall not leak under normally anticipated conditions, except where cause is determined to result from ice build-up or Homeowner(s) action or negligence.

BUILDER RESPONSIBILITY: Builder will repair any verified roof or flashing leaks not caused by ice build-up or Homeowner(s) action or negligence. However, Advanced Inc is not responsible for leaks which occur on roofs or portions of roofs which we did not install or. There is no warrantee coverage on roof repairs no matter how extensive.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will maintain the roof and periodically remove leaves, pine needles and other debris from the roof surface, valley gutters and down spouts.

* POSSIBLE DEFICIENCY: Standing water on flat roof.

PERFORMANCE STANDARD: Water shall drain from a flat roof except for minor ponding immediately following a rainfall unless the roof is specifically designed for water retention.

BUILDER RESPONSIBILITY: Builder will take corrective action to assure proper drainage of roof.

SHEET METAL:

* POSSIBLE DEFICIENCY: Gutters and/or downspouts leak.

PERFORMANCE STANDARD: Gutters and downspouts shall not leak but gutters may overflow during heavy rain.

BUILDER RESPONSIBILITY: Builder will repair leaks one time during the first year. Caulking is acceptable.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will keep leaves and debris out of gutters and downspouts to assure proper water flow.

* POSSIBLE DEFICIENCY: Water standing in gutters.

PERFORMANCE STANDARD: When gutters are unobstructed by debris, the water level shall not exceed one (1) inch.

BUILDER RESPONSIBILITY: Builder will correct to meet Performance Standard. It is possible that small amounts of water will stand in certain sections of gutter immediately after a rain.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will keep leaves and debris out of gutters and downspouts to assure proper water flow.

VI: DOORS AND WINDOWS

WOOD, METAL, FIBERGLASS, COMPOSITE AND PLASTIC DOORS:

* POSSIBLE DEFICIENCY: Warpage of exterior doors.

PERFORMANCE STANDARD: Exterior doors may warp to some degree due to temperature differential on inside and outside surfaces. However, they shall not warp to the extent that they become inoperable or cease to be weather resistant.

BUILDER RESPONSIBILITY: Builder will correct or replace and refinish defective doors during the first year of the Limited Warranty period. Repairs or replacements may not match the original door, but will match as closely as possible.

HOMEOWNER RESPONSIBILITY: If the Homeowner(s) paints or stains the outside doors, the surfaces must be properly prepared before applying paint or stain.

* POSSIBLE DEFICIENCY: Warpage of interior passage and closet doors.

PERFORMANCE STANDARD: Interior doors (full openings) shall not warp to the extent that the door becomes inoperable.

BUILDER RESPONSIBILITY: Builder will correct or replace and refinish defective doors to match existing doors as nearly as possible during the first year of the Limited Warranty period.

* POSSIBLE DEFICIENCY: Shrinkage of insert panels reveals raw or unpainted wood edges.

PERFORMANCE STANDARD: Panels will naturally shrink and expand and may expose unpainted surface(s).

BUILDER RESPONSIBILITY: None.

* POSSIBLE DEFICIENCY: Split in door panel.

PERFORMANCE STANDARD: Split panels shall not allow visible light or weather intrusion through the door.

BUILDER RESPONSIBILITY: Builder will, if light is visible, fill split and match paint or stain as closely as possible, one time in first year of the Limited Warranty period.

* POSSIBLE DEFICIENCY: Malfunction of door locks and hardware.

PERFORMANCE STANDARD: Door locks and hardware shall operate as designed.

BUILDER RESPONSIBILITY: Adjustment to door hinges, thresholds, weather stripping, locks and mechanisms will be performed if needed one time during the first year of this warrantee.

HOMEOWNER RESPONSIBILITY: Door hinges, thresholds, weather stripping, and locks require periodic maintenance and adjustment.

GLASS:

* POSSIBLE DEFICIENCY: Glass broken or scratched.

PERFORMANCE STANDARD: If reported prior to first occupancy, glass or mirror surfaces shall not have scratches visible from 10 feet under normal lighting conditions.

BUILDER RESPONSIBILITY: Defective glass not reported to the Builder prior to project completion is the Homeowner(s) responsibility.

SLIDING DOORS:

* POSSIBLE DEFICIENCY: Sliding doors do not operate properly.

PERFORMANCE STANDARD: The Builder will assure that sliding doors are installed according to manufacturer’s specifications. It is acceptable for small amounts of water to stand in the bottom of the track for a period of time after a rain.

BUILDER RESPONSIBILITY: Builder will adjust or repair inoperative sliding doors, one time only, during the first year.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) must maintain the sliding doors per manufacturer’s specifications. The slide tracks must be kept clean and free of debris, the rollers lubricated and adjusted.

OVERHEAD DOORS:

* POSSIBLE DEFICIENCY: Garage doors fail to operate properly under normal use.

PERFORMANCE STANDARD: Garage doors shall operate properly.

BUILDER RESPONSIBILITY: Builder shall correct or adjust garage doors as required, except where the cause is determined to result from Homeowner(s) negligence. If a Homeowner(s) installs a garage door opener, the Builder will no longer be responsible for the operation of the garage door.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will lubricate all moveable parts as mentioned in the operating manual. The Homeowner(s) shall also maintain the door and opener (including the "electric eye and it's bracket) alignment to prevent malfunctions. The area between the electric eyes must be kept unobstructed, and the "eyes" must be kept in alignment or the door will not close.

* POSSIBLE DEFICIENCY: Garage doors allow intrusion of water and snow.

PERFORMANCE STANDARD: Garage doors will be installed as recommended by the manufacturer. Some intrusion of the elements can be expected under abnormal conditions.

BUILDER RESPONSIBILITY: Builder shall adjust or correct garage doors one time only, unless caused by Homeowner(s) negligence.

WOOD, PLASTIC AND METAL WINDOWS:

* POSSIBLE DEFICIENCY: Malfunction of windows.

PERFORMANCE STANDARD: Windows will operate with reasonable ease, as designed.

BUILDER RESPONSIBILITY: Builder will correct as required.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will keep tracks and rollers cleaned, lubricated and adjusted.

* POSSIBLE DEFICIENCY: Condensation and/or frost on windows.

PERFORMANCE STANDARD: Windows will collect condensation on interior surfaces when extreme temperature difference and high humidity levels are present. Condensation is usually the result of climactic/humidity conditions, sometimes created by the Homeowner(s) comfort preference.

BUILDER RESPONSIBILITY: Unless attributed to faulty installation, window condensation is a result of conditions beyond the Builder's control. No corrective action required.

HOMEOWNER RESPONSIBILITY: If a humidifier is installed, the Homeowner(s) will follow the manufacturer's recommendations for proper setting of the humidistat.

WEATHERSTRIPPING AND SEALS:

* POSSIBLE DEFICIENCY: Interior water seepage.

PERFORMANCE STANDARD: Caulking in areas where water is supplied, such as sinks, tubs, showers and hose bibs, is required to exclude penetrating water away from surrounding areas.

BUILDER RESPONSIBILITY: Once during the first year Builder will repair any area deemed to be deficient, to meet the performance standard. Builder is not responsible for color variation.

HOMEOWNER RESPONSIBILITY: caulking is an on-going responsibility of the Homeowner(s).

* POSSIBLE DEFICIENCY: Air infiltration around doors and windows.

PERFORMANCE STANDARD: Infiltration is normally noticeable around doors and windows, especially during high winds. Poorly fitted weatherstripping shall be adjusted or replaced.

BUILDER RESPONSIBILITY: Builder will adjust or correct improperly fitted doors, windows and weather stripping one time in the first year of the limited warranty.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) may need to have storm doors and windows installed to provide satisfactory solutions in high wind areas.

VII: FINISHES

LATH AND PLASTER:

* POSSIBLE DEFICIENCY: Cracks in interior wall and ceiling surfaces.

PERFORMANCE STANDARD: Hairline cracks are not unusual in interior wall and ceiling surfaces. Cracks greater than 1/8 inch in width are considered excessive.

BUILDER RESPONSIBILITY: Builder will repair cracks exceeding 1/8 inch in width as required, one time only, during the first year of the Limited Warranty period. Builder is not responsible for color variation.

GYPSUM WALLBOARD (DRYWALL):

* POSSIBLE DEFICIENCY: Defects which appear during the first year of the Limited Warranty such as nail pops, blisters in tape, or other blemishes.

PERFORMANCE STANDARD: Slight blemishes such as nail pops, seam lines and cracks not exceeding 1/8 inch in width are common in gypsum wallboard installations and are considered acceptable.

BUILDER RESPONSIBILITY: Builder will repair only cracks exceeding 1/8 inch in width, one time only, during the first year of the Limited Warranty period. Builder is not responsible for color variations in the paint or differences in finished texture.

CERAMIC AND MARBLE TILE:

* POSSIBLE DEFICIENCY: Ceramic or marble tile cracks or becomes loose or hollow sounding.

PERFORMANCE STANDARD: Ceramic or marble tile cracks or becomes loose as a result of expansion or contraction of the surface upon which it is placed. The Builder responsibility in this event should be discussed prior to closing (contract homes) to avoid misunderstandings. Unless otherwise agreed, the following Builder responsibility applies.

BUILDER RESPONSIBILITY: Builder will replace cracked tiles and resecure loose tiles only once during the first year of occupancy, unless the defects were caused by the Homeowner(s) action or negligence. Builder will not be responsible for discontinued patterns or color variations in ceramic tile or grout. Hollow sounding tile is not considered a defect.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will regrout cracks after initial repairs have been made.

* POSSIBLE DEFICIENCY: Cracks appearing in grouting of ceramic tile joints.

PERFORMANCE STANDARD: Cracks in grouting of ceramic tile joints are commonly due to normal shrinkage conditions. Homeowner(s) is responsible for maintenance of grouted areas.

BUILDER RESPONSIBILITY: Builder will repair grouting if necessary, one time only, during the first year of the Limited Warranty period. Builder will not be responsible for discontinued tile patterns, color variations, or discontinued colored grout. Regrouting of cracks is a maintenance responsibility of the Homeowner(s) within the life of the house.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will regrout cracks after initial repairs have been made.

FINISHED WOOD FLOORING:

* POSSIBLE DEFICIENCY: Wood flooring does not adhere.

PERFORMANCE STANDARD: Wood flooring shall not lift or become unglued.

BUILDER RESPONSIBILITY: Builder shall repair or replace, at Builder’s sole option, the affected wood flooring as required. Builder shall not be responsible for color variation of wood flooring or for problems caused by Homeowner(s) neglect or abuse.

* POSSIBLE DEFICIENCY: Crack developing between floor boards.

PERFORMANCE STANDARD: Cracks in excess of 1/8 inch in width shall be corrected.

BUILDER RESPONSIBILITY: Builder will repair cracks in excess of 1/8 inch within the first year of the warranty period by filling or replacing, at Builder’s option

RESILIENT FLOORING:

* POSSIBLE DEFICIENCY: Nail pops appearing on the surface of resilient flooring.

PERFORMANCE STANDARD: Readily apparent nail pops will be repaired.

BUILDER RESPONSIBILITY: Builder shall correct nail pops which are above the surface. Builder will repair or replace, at Builder’s sole option, resilient floor covering in the affected area with similar material. Builder will not be responsible for discontinued patterns or color variations in the floor covering.

* POSSIBLE DEFICIENCY: Depressions or ridges appear in the resilient flooring due to sub-floor irregularities.

PERFORMANCE STANDARD: Readily apparent depressions or ridges exceeding ¼ inch in 36 inches shall be repaired.

BUILDER RESPONSIBILITY: Builder shall take necessary corrective action to bring the defect within acceptable tolerance so that the affected area is not readily visible. Builder shall not be responsible for discontinued patterns or color variations in floor covering.

* POSSIBLE DEFICIENCY: Cuts and gouges appear in the surface of the resilient flooring.

PERFORMANCE STANDARDS: The Builder will assure that the surface of the flooring does not have any observable cuts and gouges.

BUILDER RESPONSIBILITY: The Builder will repair cuts and gouges reported in writing prior to closing or first occupancy, whichever occurs first.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will protect the resilient floor surface by having chair and furniture protective devices installed and/or maintained.

* POSSIBLE DEFICIENCY: Resilient flooring does not adhere.

PERFORMANCE STANDARD: Resilient flooring shall not lift, bubble or become unglued.

BUILDER RESPONSIBILITY: Builder shall repair or replace, at Builder’s sole option, the affected resilient flooring as required. Builder shall not be responsible for discontinued patterns or color variation of floor covering, or for problems caused by Homeowner(s) neglect or abuse.

* POSSIBLE DEFICIENCY: Seams or shrinkage gaps show at resilient flooring joints.

PERFORMANCE STANDARD: Gaps shall not exceed 1/16 inch in width in resilient floor covering joints. Where dissimilar materials abut, a gap not to exceed 1/8 inch is permissible.

BUILDER RESPONSIBILITY: Builder shall repair or replace, at Builder’s option, the affected resilient flooring as required. Builder shall not be responsible for discontinued patterns or color variation of floor covering, or for problems caused by Homeowner(s) neglect or abuse.

PAINTING:

* POSSIBLE DEFICIENCY: Exterior paint or stain peels, deteriorates or fades.

PERFORMANCE STANDARD: Exterior paints or stains should not fail during the first year of the Limited Warranty period. Fading is normal and the degree is dependent on climactic conditions.

BUILDER RESPONSIBILITY: If paint or stain is defective, Builder will prepare and refinish affected areas, matching color as close as practicable. Where finish deterioration affects the majority of a wall area, the whole area will be refinished.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will maintain the exterior surfaces per the manufacturer’s specifications.

* POSSIBLE DEFICIENCY: Additional painting required due to other repair work that is the Builder’s responsibility.

PERFORMANCE STANDARD: Painting repair required under this Limited Warranty shall be finished to match surrounding areas as closely as practicable.

BUILDER RESPONSIBILITY: Builder shall refinish repair area as indicated.

* POSSIBLE DEFICIENCY: Deterioration of varnish or lacquer finishes.

PERFORMANCE STANDARD: Natural finishes on interior woodwork shall not deteriorate during the first year of the Limited Warranty period. Varnish type finishes used on the exterior will deteriorate rapidly and are not covered by the Limited Warranty.

BUILDER RESPONSIBILITY: Builder will retouch affected areas of natural finish interior woodwork, attempting to match the color as closely as practicable.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will maintain these surfaces per the manufacturer’s specifications.

* POSSIBLE DEFICIENCY: Mildew or fungus on painted surfaces.

PERFORMANCE STANDARD: Mildew or fungus may form on a painted surface if the structure is subject to abnormal exposures or weather conditions.

BUILDER RESPONSIBILITY: None. Mildew or fungus is a condition the Builder cannot control.

HOMEOWNER RESPONSIBILITY: Mildew control is a Homeowner(s) responsibility. The Homeowner(s) is responsible for cleaning and maintaining surfaces in order to minimize the presence of mildew and fungus. See Homeowner’s Maintenance Manual (available from Advanced Inc) for additional information.

CARPETING:

* POSSIBLE DEFICIENCY: Open carpet seams or stretching occurs.

PERFORMANCE STANDARD: Wall to wall carpeting, when stretched, shall not come loose from the point of attachment. Carpet seams may show but no separation at seam should occur.

BUILDER RESPONSIBILITY: Builder will correct if original installation was at direction of the Builder.

* POSSIBLE DEFICIENCY: Spots on carpet, minor fading.

PERFORMANCE STANDARD: Exposure to light can cause spots on carpet and/or minor fading.

BUILDER RESPONSIBILITY: None

* POSSIBLE DEFICIENCY: Edge mismatching in pattern of wall covering and/or other floor coverings.

PERFORMANCE STANDARD: Not a construction defect, and should be discussed with the Builder prior to closing.

BUILDER RESPONSIBILITY: None.

STUCCO:

* POSSIBLE DEFICIENCY: Cracking occurs in exterior stucco wall surfaces.

PERFORMANCE STANDARD: Cracks are not unusual in exterior stucco wall surfaces. Cracks greater than 1/8 inch in width shall be repaired.

BUILDER RESPONSIBILITY: Builder shall surface repair cracks exceeding 1/8 inch in width, one time only, during the first year of the Limited Warranty Period. Builder is not responsible for color variation.

ROOF TILE:

* POSSIBLE DEFICIENCY: Broken roof tile.

PERFORMANCE STANDARD: Not a construction defect, and should be called to Builder’s attention prior to closing.

BUILDER RESPONSIBILITY: Improper treatment can cause roof tile to crack. Broken roof tile not reported to the Builder prior to closing is the responsibility of the homeowner.

VIII: SPECIALTIES

LOUVERS AND VENTS:

* POSSIBLE DEFICIENCY: Inadequate ventilation of attics and crawl spaces.

PERFORMANCE STANDARD: Attic/crawl spaces shall have a ventilation area as required by the approved building code.

BUILDER RESPONSIBILITY: The Builder shall provide for adequate ventilation under code. Builder is not responsible for any alterations to the original system.

FIREPLACES:

* POSSIBLE DEFICIENCY: Fireplace or chimney does not draw properly.

PERFORMANCE STANDARD: Properly designed and constructed fireplaces and chimneys will function properly. It is normal to expect that high winds can cause temporary negative draft situations. Similar negative draft situations can also be caused by obstructions such as large branches of trees too close to the chimney. Some homes may need to have a window opened slightly to create an effective draft when the home has been insulated and weather-proofed to meet energy conservation criteria. Any existing manufacturing warranty will exclude coverage from this warranty.

BUILDER RESPONSIBILITY: Where there is a fireplace or chimney malfunction, the Builder will determine the cause and correct it, if the problem is one of construction.

* POSSIBLE DEFICIENCY: Chimney separation from structure to which it is attached.

PERFORMANCE STANDARD: Newly built fireplaces will often incur slight amounts of separation. Separation shall not exceed 3/8 inch from the main structure in an 8 foot vertical measurement.

BUILDER RESPONSIBILITY: Builder will determine the cause of separation and correct if standard is not met (one time only). Caulking is acceptable.

* POSSIBLE DEFICIENCY: Fire box paint discolored by fire or heat

PERFORMANCE STANDARD: None.

BUILDER RESPONSIBILITY: None.

* POSSIBLE DEFICIENCY: Cracked firebrick and mortar joints

PERFORMANCE STANDARD: None.

BUILDER RESPONSIBILITY: None. Heat and flames from "roaring" fires will cause cracking.

CABINETS/COUNTERTOPS:

* POSSIBLE DEFICIENCY: Surface cracks, delaminations and chips in high pressure laminate on vanity/kitchen cabinet countertops.

PERFORMANCE STANDARD: Countertops fabricated with high pressure laminate coverings shall not delaminate.

BUILDER RESPONSIBILITY: Builder will replace delaminated coverings to meet specific criteria. Builder will not be responsible for chips and cracks unless noted prior to closing.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will maintain these surfaces according to manufacturer’s specifications. Joints in a laminate surface should be caulked to maintain a proper moisture barrier to assure proper performance of the covering. See Homeowner’s Maintenance Manual (available from Advanced Inc) for additional information.

* POSSIBLE DEFICIENCY: Kitchen cabinet door and/or drawer malfunctions.

PERFORMANCE STANDARD: Warpage not to exceed ¼ inch as measured from face frame to furthermost point of warpage with door or drawer front in closed position.

BUILDER RESPONSIBILITY: Builder shall correct or replace doors or drawer fronts.

* POSSIBLE DEFICIENCY: Gaps between cabinets, ceiling or walls.

PERFORMANCE STANDARD: Acceptable tolerance shall not exceed ¼ inch in width.

BUILDER RESPONSIBILITY: Builder shall correct to meet Performance Standard. Caulking is acceptable. Builder is not responsible for color variation.

IX: PLUMBING

PLUMBING-WATER SUPPLY SYSTEM:

* POSSIBLE DEFICIENCY: Plumbing pipes freeze and burst.

PERFORMANCE STANDARD: Drain, waste/vent and water pipes shall be adequately protected, as required by code, during normally anticipated cold weather, and as defined in accordance with ASHRAE design temperatures to prevent freezing.

BUILDER RESPONSIBILITY: Builder will correct to meet the code. It is the Homeowner(s) responsibility to drain or otherwise protect lines and exterior faucets exposed to freezing temperatures.

* POSSIBLE DEFICIENCY: Water supply system fails to deliver water.

PERFORMANCE STANDARD: All connections to municipal water main and private water supply (except equipment, pumps, motors, valves, switches and related items) shall by the Builder responsibility. Private systems shall meet applicable codes at time of construction.

BUILDER RESPONSIBILITY: Private systems shall be designed and installed in accordance with approved building, plumbing and heath codes. Builder will repair if failure is the result of defective workmanship or materials. Builder has no responsibility for elimination of the sources of supply when the problem is beyond Builder’s control. The Builder is not responsible for water quality.

* POSSIBLE DEFICIENCY: Leakage from piping.

PERFORMANCE STANDARD: No leaks of any kind shall exist in any soil, waste, vent, or water pipe. Condensation does not constitute leakage.

BUILDER RESPONSIBILITY: Builder shall make repairs to eliminate leakage.

* POSSIBLE DEFICIENCY: Stopped up sewers, fixtures and drains.

PERFORMANCE STANDARD: Sewers, fixtures and drains will operate properly.

BUILDER RESPONSIBILITY: Where defective construction is shown to be the cause, Builder will assume the cost of the repair. Builder shall not be responsible for sewers, sewer systems, fixtures and drains which are clogged through Homeowner(s) negligence.

HOMEOWNER RESPONSIBILITY: If a problem occurs, the Homeowner(s) should consult Builder for a proper course of action. Where Homeowner(s) negligence is shown to be the cause, the Homeowner(s) shall assume all repair costs.

* POSSIBLE DEFICIENCY: Leak in faucet or valve.

PERFORMANCE STANDARD: Valves or faucets shall not leak due to defects.

BUILDER RESPONSIBILITY: Builder will repair or replace leaking faucets or valves when due to defects in workmanship or material. Homeowner(s) is responsible for maintenance. Fixtures covered by a manufacturing warranty are not covered by this warranty.

* POSSIBLE DEFICIENCY: Defective plumbing fixtures, appliances or trim fittings.

PERFORMANCE STANDARD: Fixtures, appliances or fittings shall comply with each manufacturer’s standards.

BUILDER RESPONSIBILITY: Builder will replace any defective fixture or fitting which does not meet acceptable standards, as defined by the manufacturer.

* POSSIBLE DEFICIENCY: Noisy water pipes.

PERFORMANCE STANDARD: There will be some noise omitting from the water pipe system due to the flow of water.

BUILDER RESPONSIBILITY: Builder cannot remove all water flow noises and pipe expansion. Builder will eliminate "water hammer" or excessive noise only if due to improper installation.

* POSSIBLE DEFICIENCY: Septic system fails to operate properly.

PERFORMANCE STANDARD: Septic system shall be designed and installed to comply with applicable, approved code requirements. Septic system shall function adequately and handle properly designed flow of household effluent specified by the governing health and building department regulations in effect at the time of construction and during all seasons, under normal local climactic conditions. Approval of the governing regulatory authority at the time of construction shall evidence Builder’s compliance with this standard.

BUILDER RESPONSIBILITY: Builder shall repair, or correct, malfunctioning or non-operating systems, if failure is caused by inadequate design, faulty installation, or other cause relating to actions of the Builder or Builder’s contractors, or subcontractors. Builder will not be responsible for system malfunction or damage, which is caused by Homeowner(s) negligence, lack of system maintenance, or other causes attributable to actions of the Homeowner(s) or Homeowner’s contractors, not under the control of the Builder. These include, but are not necessarily limited to, the addition of fixtures, items of equipment, appliances, pumps, motors, valves or switches, or other sources of waste or water to the plumbing system served by the septic system and damage, or changes, to the septic system installation or surrounding soil conditions that may be critical to the system’s functioning.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will properly maintain the system by maintaining proper grades, landscaping, gutters and protecting the area from heavy vehicular traffic which could cause soil compaction or damaged to buried pipes. Septic tanks need to be pumped during periods of excessive use or extended rainfall. Seek a reliable septic tank contractor for this service. In case of dispute, if Builder has obtained approved permits from the governing health authority, the homeowner must provide proof system was installed improperly.

* POSSIBLE DEFICIENCY: Cracking or chipping of porcelain or fiberglass.

PERFORMANCE STANDARD: Chips and cracks on surfaces of bathtubs/sinks can occur when hit by sharp or heavy objects.

BUILDER RESPONSIBILITY: Builder will not be responsible for repairs unless damage has been reported to Builder prior to closing and/or listed on the original "walk-through/punch list".

X: MECHANICAL

* Items covered by a manufacturing warranty ARE NOT warranted under this limited warranty.

HEATING:

* POSSIBLE DEFICIENCY: Inadequate heating.

PERFORMANCE STANDARD: Heating system shall be capable of producing an inside temperature of 70 degrees F, as measured in the center of each room at a height of 5 feet above the floor. Federal, state or local energy codes shall supersede this standard where such codes have been locally adopted.

BUILDER RESPONSIBILITY: Builder shall correct heating system to provide the required temperature.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will maintain the heating system and assure that air filters are cleaned/changed per manufacturer’s recommendations. Balance the dampers and registers to assure proper air distribution. See Homeowner’s Maintenance Manual available from Advanced Inc for additional information.

COOLING:

* POSSIBLE DEFICIENCY: Inadequate cooling.

PERFORMANCE STANDARD: Where air-conditioning is provided, the cooling system shall be capable of maintaining summer design conditions as specified in ASHRAE handbook. In the case of outside temperatures exceeding 95 degrees F, a differential of 15 degrees F is acceptable. Federal, state, or local energy codes shall supersede this standard where such codes have been locally adopted.

BUILDER RESPONSIBILITY: Builder shall correct cooling system to meet temperature conditions in accordance with specifications.

HOMEOWNER RESPONSIBILITY: The Homeowner(s) will maintain the cooling systems and assure that air filters are cleaned/changed per manufacturer’s recommendations. Balance the dampers and registers to assure proper air distribution. See Homeowner’s Maintenance Manual available from Advanced Inc. for additional information.

* POSSIBLE DEFICIENCY: Cooling lines leak.

PERFORMANCE STANDARD: Cooling lines shall not develop leaks during normal operation.

BUILDER RESPONSIBILITY: Builder shall repair lines leaking refrigerant and re-charge unit, unless damage has been caused by the events or occurrences caused by the Homeowner(s).

CONDENSATION LINES:

* POSSIBLE DEFICIENCY: Clogging of condensation lines.

PERFORMANCE STANDARD: None. Condensation lines will clog eventually under normal use.

BUILDER RESPONSIBILITY: Builder shall provide unobstructed condensation lines at time of first occupancy.

HOMEOWNER RESPONSIBILITY: Maintenance is required. See Homeowner’s Maintenance Manual (available from Advanced Inc.) for additional information.

AIR DISTRIBUTION:

* POSSIBLE DEFICIENCY: Noisy ductwork.

PERFORMANCE STANDARD: When metal is heated it expands and when it cools it contracts. The result is a cracking sound which is generally to be expected.

BUILDER RESPONSIBILITY: None.

* POSSIBLE DEFICIENCY: "Oil canning".

PERFORMANCE STANDARD: The stiffening of the ductwork and the gauge of the metal used shall be such that ducts do not "oil can". A booming noise caused by "oil canning" is not acceptable.

BUILDER RESPONSIBILITY: Builder will correct to eliminate this noise.

* POSSIBLE DEFICIENCY: Ductwork separates or becomes unattached.

PERFORMANCE STANDARD: Ductwork should remain intact and securely fastened.

BUILDER RESPONSIBILITY: Builder will re-attach and re-secure all separated or unattached ductwork.

XI: ELECTRICAL

ELECTRICAL CONDUCTORS, FUSES AND CIRCUIT BREAKERS:

* POSSIBLE DEFICIENCY: Failure of wiring to carry its designed load to the electrical box.

PERFORMANCE STANDARD: Wiring should be capable of carrying the designed loan to the electrical box under normal residential use.

BUILDER RESPONSIBILITY: Builder shall install wiring in conformity with local, state, or approved national electrical code requirements. In the case of additions or retrofits the builders' responsibility extends only to the contracted work. Existing wiring may not be up to current codes, and may or may not be subject to codes inspection, and required upgrades or repairs. Builder is not responsible for existing wiring which is not upgraded during the project.

* POSSIBLE DEFICIENCY: Fuses blow or circuit breakers "kick out" (excluding ground fault interrupters)

PERFORMANCE STANDARD: Fuses and circuit breakers should not usually activate under normal usage, however breakers, which activate because of excessive load are functioning correctly.

OWNER RESPONSIBILITY: The Owner is responsible to reset activated breakers and GFCI devices, and to avoid overloading wiring.

BUILDER RESPONSIBILITY: Builder shall install wiring in conformity with local, state, or approved national electrical code requirements. In the case of additions or retrofits, the builders' responsibility extends only to the contracted work. Existing wiring may not be up to current codes, and may or may not be subject to codes inspection, and required upgrades or repairs. Builder is only responsible for existing wiring which is upgraded during the project.

SERVICE AND DISTRIBUTION:

* POSSIBLE DEFICIENCY: Ground fault interrupter trips frequently.

PERFORMANCE STANDARD: Ground fault interrupters are sensitive safety devices installed into the electrical system to provide protection against electrical shock. The sensitive devices can be tripped very easily.

BUILDER RESPONSIBILITY: Builder shall install ground fault interrupter in accordance with approved electrical code. Tripping is to be expected and is not covered unless due to faulty installation.

OWNER RESPONSIBILITY: Owner shall test all GFCI (GFI) devices on a regular basis as prescribed by the manufacturer, and check for tripped GFCI devices before requesting a warrantee service call. If a service call is requested because of a tripped GFCI device, the customer will be billed as previously noted under exclusions.

OUTLETS, SWITCHES AND FIXTURES:

* POSSIBLE DEFICIENCY: Drafts from electrical outlets.

PERFORMANCE STANDARD: Electrical junction boxes on exterior walls may produce air flow whereby the cold air can be drawn through the outlet into a room. The problem is normal in new home construction.

BUILDER RESPONSIBILITY: None.

OWNER RESPONSIBILITY: Unless special construction is specified for the purpose of extraordinary energy efficiency, most owners will have many opportunities to improve the energy efficiency of their home or other building. Plugs and gaskets which are made for the purpose of reducing air infiltration through electrical devices are widely available at retail building centers, and can be easily installed by the owner. The Owner may also want to contact the electrical service provider about having an energy survey performed. Large improvements in energy efficiency may be realized by taking simple actions.

* POSSIBLE DEFICIENCY: Malfunction of electrical outlets, switches or fixtures.

PERFORMANCE STANDARD: All switches, fixtures and outlets should operate as required by codes.

BUILDER RESPONSIBILITY: Builder shall repair or replace defective switches, fixtures and outlets.

IMPORTANT NOTICE

When determining responsibility under these Performance Standards only reports from Advanced Inc. approved outside construction consultants (inspection firms, contractors etc.) will be considered. Some outside firms and individuals feel it is their responsibility to locate possible problems rather than to resolve issues under consideration and they regularly address items not covered under the terms of the warranty.