Under cross-examination from Bullock's lawyer, homebuilder Benny Daneshjou, hired in 1997 to build the home for Bullock, testified that the notes were used during the job to cover up the true amount construction workers were paid.

The sticky notes were placed on the workers' timecards, which were then photocopied and included with invoices Daneshjou's company sent to Bullock and her father, who helped her with the project, Daneshjou testified.

Bullock's lawyer, Walter Mizell, said the Bullocks were charged for hourly labor costs of about $30 when Daneshjou was only paying the workers $10.

"That was the private business of the Daneshjou Company Inc.," said Daneshjou, who said the sticky notes also covered information about jobs other than the Bullock house that the employees worked on.

Bullock's lawyers are seeking reimbursement of the alleged overbilling on the labor costs in a jury trial before State District Judge Paul Davis in the Travis County Courthouse. They also claim that the house needed $4 million in work to fix design defects after it was built.

Daneshjou, who sued the Bullocks before they countersued, claims the Bullocks owe him unspecified architectural and planning costs.

Daneshjou testified earlier in the day about the "cost plus" contract signed in April 1997 before construction began. The contract called for Bullock to pay the actual costs of the project, including labor, materials and overhead, plus 15 percent, which would be the company's profit, Daneshjou said.

The contract also called for Daneshjou to receive 6 percent for plans, he said. That portion of the contract is disputed by Bullock's attorneys.

Daneshjou testified that Bullock initially wanted a 5,000- to 6,000-square-foot home that would have cost about $1.2 million. The size mushroomed as the actress made changes to the eclectic design, which included a mix of Texas and French country influences, Daneshjou said. He did not testify about the final cost of the home; Bullock contends she has paid Daneshjou about $6.5 million.

Bullock, the star of numerous Hollywood movies such as Miss Congeniality, The Net and A Time to Kill, has sat quietly in the courtroom during the trial, surrounded by her lawyers.

Bullock became interested in Austin real estate in 1997, real estate agent Vicky Frank testified Monday. Frank said she found Bullock a home to rent near the Barton Creek Greenbelt during the making of Hope Floats, which filmed in Smithville.

Bullock later bought that home and sought to buy other local real estate, particularly on Lake Austin, Frank testified. When Bullock decided she wanted to build a home on six acres on River Hills Road, Frank recommended Daneshjou as a builder, Frank testified.

Bullock has never lived in the house.

http://www.chron.com/disp/story.mpl/ae/2758962.html