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Contracts

California law requires that any contractor who contracts to do a home improvement project valued at $500 or more must provide the consumer/homeowner with very specific information and notices about the project, including a clear scope of work, time schedule, and payment plan. Contractors, subcontractors, material suppliers, and workers are also protected by mechanic's lien law to help insure that they are properly paid for their completed work. Local building departments have very specific requirements about when building permits are required for home improvement projects and it is the responsibility of the consumer/property owner to make sure that the necessary permits are obtained.

Be wary of anyone who says they can 'save you money' if you pull your own building permits! It often means that they are unlicensed and are unable to provide the building department with proof of Workers Compensation Insurance and other qualifications.

The followinglist provides important information about these critical issues.

 Home Improvement Contracts - What is Required
 Preliminary Notices and Mechanics Liens - What are They?
 California's 'Prompt Pay' Laws - What Do They Mean?
 What Do You Mean 'I Need a Permit?' - Why are They Needed?

Home Improvement Contracts

Written Contracts Required for All Work over $500 . . .
California law requires that anyone doing private or public construction work valued at $300 or more must be properly licensed by the Contractor State License Board (CSLB). In addition, the law requires that a specific written "Home Improvement Contract" be used for all home improvement projects where the price (including all labor, services, and materials) exceeds $500.

The Home Improvement Contract includes a number of specific items which are included for the protection of the homeowner. Among these items are the following important provisions:

 The contract must be in writing and signed by both the homeowner and the licensed contractor
 The contract must include the contractor's name, address, and contractor's 
license number
(be sure to call CSLB to verify that the license is valid and in good standing)
 The contractmust include a description of the work to be done, the materials to
 be used and the agreed price for the work
 The contract must include a schedule of payments showing the amount of each payment and shall be specifically referenced to the amount of work or services to be performed
 If the schedule of payments calls for a down payment, the down payment may not exceed $1,000 or 10% of the contract price whichever is less
 The contract must include the approximate dates when the work will begin and   when construction is to be completed

(Reference: Business and Professions Code, Section 7159)

 

Important Telephone Numbers . . .
Jurisdiction Building Department
Escalon (209) 838-3556
Lathrop (209) 858-2860
Lodi (209) 333-6714
Manteca (209) 239-8416
Ripon (209) 599-2108
Stockton (209) 937-8561
Tracy (209)831-4600
   
Calavaras County (209) 754-6390
San Joaquin County (209) 468-3123
Stanislaus County (209) 525-6557
Tuolumne County (209) 533-5633

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