Legal Question in Construction Law in California

Can A Contractor in California ask for more than $1000 deposit on a Commercial project, or does this maximum only apply to residential contracts?


Asked on 3/02/11, 11:28 am

2 Answers from Attorneys

Only applies to home improvements and swimming pools.

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Answered on 3/02/11, 11:41 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

It's $1,000 or 10%, whichever is less, on 'home improvement projects', and that's a defined term in the Business & Professions Code. Other projects - commercial, industrial, new-home custom building, etc. the parties are free to negotiate the terms, including advances.

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Answered on 3/02/11, 5:21 pm


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