(a)

1. (1) Wood substantially weakened by termites, powder-post beetles, or decay fungi (rot) should be replaced.

2. (2)

   1. (A) Replacements may be made by the license holder or the property owner, or both.
   2. (B) Replacements made by the license holder exceeding two thousand dollars ($2,000) must be performed by a licensed contractor.

3. (3) Replacement of damage caused by termites or powder-post beetles for which the operator is not responsible must be specifically excluded in writing by:

   1. (A) Describing the excluded replacements in the contract and stating therein that they are not to be made by the license holder;
   2. (B) Showing their location on the diagram of the structure; and
   3. (C) Noting that the replacement of uninfested hidden damage (that which cannot be seen by thorough visible inspection without defacing the property), which is not covered by subdivisions (a)(3)(A) and (B) of this section and which was caused by an infestation occurring prior to the operator's first treatment of the property or the issuance of a letter of clearance, shall not be the responsibility of the license holder.