Legal Question in Construction Law in California

The CSLB seems to be silent on the subject. Like all good legal questions, the answer is "it depends":

� Does the contract include an amount for the purchase of the property?

� Is this a contract to build plans that the landowners have had drawn?

� Is the �new home� actually all new construction or replacement of a tear down?

Home Improvement Contracts are limited to a deposit of the lesser of $1,000 or 10 percent of the contract amount. (see Business and Professions Code �7159.5) Home Improvement Contracts are generally remodeling or repair, but not always. For instance, installation of new driveways, swimming pools, spas, hot tubs, terraces, patios, awnings, storm windows, landscaping, fences, porches, garages, bomb shelters, etc. is �Home Improvement.� The definitions of Home Improvement and Home Improvement Contract are in Business and Professions Code �7151.

Commercial construction contracts are usually set at whatever the parties to the contract negotiate, with 10% deposit being fairly standard.