Required Contract Elements, the Mechanics Lien Warning, and Advertising

Beyond "get it in writing," California specifies exactly what a home improvement contract must contain — and requires your license number on everything.

1. License number on everything — B&P §7030.5

A California contractor must put their license number on all contracts, subcontracts, bids, and advertising. (B&P §7030.5) Advertising a contracting business without your license number is a violation. Someone advertising for under-threshold work while unlicensed must state that they are not a licensed contractor.

2. Required home improvement contract elements — B&P §7159

A home improvement contract must include (among others):

• the total contract price (stated in the contract),
• a description of the work and the materials to be used,
• approximate start and completion dates,
• a schedule of progress payments that describes each phase of work and the amount of each payment (payments tied to work — you can't front-load),
• a notice titled "Mechanics Lien Warning", plus the 3-day cancellation notice,
• the contractor's name, address, and license number.