Legal Question in Construction Law in California

Does California construction laws prohibit a general or sub contractor from collecting more than 10% of a contract up front as deposit and if so, what is the statute/code that deals with this issue?


Asked on 1/13/12, 8:29 am

2 Answers from Attorneys

Only for home improvement contracts, and it's 10% or $1000, whichever is less. Bus.&Prof;. Code, section 7159.5. Sections 7151 and 7151.2 deal with what is a home improvement contract.

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Answered on 1/13/12, 4:04 pm

I should add that it does not apply to a true subcontractor - one who is contracting with a general contractor or another subcontractor. It only applies to contracts with a homeowner.

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Answered on 1/13/12, 4:05 pm


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