Case: the deposit that became a citation
In one paragraph
A sole owner sells a $12,400 service upgrade and EV circuit at the kitchen table, texts a one-paragraph 'estimate,' and takes a $4,000 'materials deposit' by card so the panel can be ordered. The job is finished, inspected and fine. Six weeks later a CSLB letter arrives anyway: the deposit exceeded the cap by $3,000, there was no compliant contract, no schedule, and the deposit was collected before any material was delivered. The customer never complained about the work. He complained about the paper. The names are invented; the statutes are not.
The rule
On a home improvement contract the down payment may not exceed $1,000 or 10% of the contract price, whichever is less (B&P 7159.5(a)(3)); any other payment may not exceed the value of work performed or material delivered (7159.5(a)(5)); the contract must be in writing with the price in dollars and cents and a schedule of progress payments tied to work and materials (7159.5(a)(1), (4)); and the buyer must receive a signed copy with the statutory notices before work starts (7159(c)(3), (e)). Each failure is independently cause for discipline (7159(a)(5), 7159.5(a)).
Why it matters
Good work does not cure bad paper. A customer who is entirely satisfied with the installation can still file, or an inspector, a competitor or an ex-spouse can, and CSLB's review is of the documents: the contract, the receipt, the dates. The deposit cap is the single most cited violation because the proof is on the contractor's own receipt.