Home Improvement Contracts and Change Orders (B&P §7159)

The Law & Business exam is the other CSLB test — it covers running a contracting business legally. California has strong consumer-protection rules for home improvement contracts, and they're heavily tested.

1. Contracts must be in writing — B&P §7159

A home improvement contract, and any changes (change orders) to it, must be in writing and signed by both parties before that work starts. Before any work begins, the contractor must give the buyer a signed, dated copy of the contract.

The contract must include (among other things) the contractor's name, business address, and license number, the "Home Improvement" heading, dates, a description of the work, and the total price.

2. The down-payment limit — B&P §7159.5

A home improvement down payment may not exceed 10% of the contract price OR $1,000 — whichever is LESS.