California Construction Contracts ? Why You Need California
Contracts
California Construction law has special requirements for both residential and non-residential
construction contracts. No matter who prepares the agreement, the contractor will
be held responsible for any defect.
• Residential contracts require several pages of detailed disclosures covering
liability insurance, workers' compensation coverage, a notice to property owners,
the right to cancel the contract and payment terms.
• Contracts for pools and spas require additional disclosures.
• The penalty for omission of any of the required disclosures (or failure to
get a signed contract) is discipline by the California State License Board.
• Omission of the disclosures required by California Business & Professions
code §7191 (arbitration) results in loss of the right to require arbitration.
• Omission of the disclosures required by California Business & Professions
Code §7163 (financing) makes the contract unenforceable.
• Omission of the disclosures required by California Civil Code § 1803.2 (retail
installment sale) makes the contract unenforceable.
• All California construction contracts must include the license law notice
(in 12-point type) as required by California B&P Code §7030 and §7159(e)(5).
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