Source: https://www.wolfflaw.com/california-laws-and-requirements-for-home-improvement-contracts.html
Timestamp: 2019-04-24 00:32:01+00:00

Document:
By: George W. Wolff, Esq.
All non-public works jobs other than "residential"
If not licensed, contractor has no right to sue, must return all payments. B&P § 7031(a) & (b).
Owner may be employer. Fernandez v. Lawson. Permit/Inspection Issues.
Notice of Right Required to be in Home Solicitation Contract by CC § 1689.7.
Limited down-payment. B&P § 7159(d) Apparently only allows milestone method. B&P § 7159(e) Contractor cannot receive more than 100% of value of work.
Percent completion, schedule of values, milestones schedule, costs-to-date plus fee payment methods.
Lenders usually want percent completion per schedule of values, private inspection, retention.
Usually general, but with reference to specific, dated, sets of plans and specs/features.
Copyright issues re ownership of plans.
Needed for fixed price contract, often only skeletal or conceptual for design/build, cost-plus jobs.
Should be as complete as possible, to avoid extra work claims, disputes.
Required. B&P § 7159( c), but use some of allowances.
Contractual, many claims re delay, disruption costs, etc. are possible.
Written bid/offer/InvitationFB may be enforceable by owner without signed contract.
Costs plus fixed or variable fee, with or without maximum price.
Maybe not allowed, but use of allowances possibly permitted?.
Allowed, good for urgent jobs.
Licensing, insurance difficult, or have many different variations.
Builder not required to perform, absent contract change provisions.
Much litigation. Effect on fixed price contract of many changes, change in scope, abandonment.
Contractual, is a good idea in all contract types, required by most form contracts, change directive vs. change order; no pay without a writing clause, can be waived.
Contractual, provision must be in bold type, initialed separately or is not enforceable by contractor if 4 or less units. B&P §7191. But FAA may preempt State law.
FAA may preempt State law.
Contractual, tiers, restrictive endorsements as to type of work.
Notice and checklist required. B&P § 7159.3; 16 CAC § 872.
Owner should make sure to get certificates of insurance from contractor and subcontractors.
Owner usually buys, contractor is also beneficiary.
Contractual performance bonds guarantee completion for owner.
Cost = 2-5% of job cost..
Contractor's License Bond only covers $12,500 or less in damages.
Contractor cannot apply for more than for work done.
Delay, acceleration, disruption, inefficiency, extra work, abandonment, etc.
Contractual, except for liens, etc.
Limitations period is two or four years for suit.
Lien relates back to start of work.
Suit within 90 days of recording. CC § 3144, 3172..
By payment, by release bonds CC § 3143, 3171, by CC § 3154 petition.
Licensing, lien, stop notice requirements and rights.
Possible owner double liability if subcontractors are not paid.
Should require contractor to provide lien releases per CC § 3262 on progress, final payments. Required to be paid promptly by contractor. B&P §7108.5.
Require indemnity of owner and additional insured in subcontract.
Licensing, lien, stop notice and payment bond rights.
Required to be paid promptly by contractor. B&P §7108.5.
For convenience vs. for cause, contract provisions, law, very risky for both sides, possible consequential damages.
Usually __ days after "substantial completion".
2% per month late payment penalty in lieu of interest, reasonable attorney fees to prevailing party. where late retention payment CC § 3260(g), 3260.1. Otherwise contractual.
Except for roofing (CC §1797.90), no express warranty required, but most contracts have one year.
No express warranty required, but most contracts have one year.
4 years, 3 years after discovery but within 10 years of "completion." CCP § 337.1, 337.15, latter doesn't apply where wilful misconduct or fraud, repair work may extend, contract may shorten.
"B&P" refers to sections of the California Business and Professions Code.
most of which are available on-line at www.CSLB..ca.gov, which also includes much more detail and information on all of these subjects, as well as information on contractor licensing and related topics.
NB. This is not legal advice. Consult a competent construction lawyer for legal advice regarding your specific situation, as each situation is unique, and most laws frequently are changed by subsequent legislation or are affected by court decisions..
For legal questions, call George at (415)788-1881, x 222, or contact us.

References: § 7031
 v. 
 § 1689
 § 7159
 § 7159
 § 7159
 §7191
 § 7159
 § 872
 § 3144
 § 3143
 § 3154
 § 3262
 §7108
 §7108
 § 3260
 §1797
 § 337