Legal Question in Construction Law in California

For residential work, a contractor can only ask for 10% of the contract price or $1,000, whichever is LESS. However, a contractor can require a progress payment for materials once they are delivered to the job site, but not before. So, before beginning any work or before materials are delivered they can only ask for a maximum of $1,000.00 (if your contract is $10,000 or more) or 10% of the contract price (if your contract is less than $10,000); however if the materials are delivered before the install begins, then the contractor could request a progress payment for the cost of materials, if that's called for in your contract. If your contract specifies something different, then the contract would govern except that the contract cannot ask for more than what I detailed above (i.e. it cannot require you to pay for materials before they are delivered to the job or require a larger deposit before materials are delivered or work begins).

Mr. Campbell is exactly correct IF you are talking about residential work. It does not apply to work on a commercial project. On a commercial job the owner and contractor can agree to any payment arrangements they want.