Your rights as a home owner during construction

Understanding Your Rights for Home Improvement in California

As a licensed general contractor, I take pride in educating my clients on their legal protections under California law. The CSLB Consumer Guide to Home Improvement Contracts (Terms of Agreement) outlines key homeowner rights—and here’s what you should know.

1. Everything Must Be in Writing 📄

For any home improvement job over $500, a written contract is mandatory. It must be legible, easy to understand, and include your right to cancel or rescind the contract CSLB+7CSLB+7CSLB+7.

Contracts must detail:

• Scope of work

• Materials

• Payment schedule

• Contractor’s name, address, and CSLB license number

• Who obtains necessary permits

• Starting and completion dates

• Cleanup responsibilities

• Warranties for labor and materials CSLB+2CSLB+2CSLB

2. Payment Terms: Down Payments & Schedule

By law, down payments cannot exceed 10 % of the contract price or $1,000, whichever is less, unless the contractor holds a blanket performance and payment bond filed with CSLB CSLB+7CSLB+7CSLB+7.

Additionally, payments must not exceed the value of work performed (except the permitted down payment), and each payment should correspond to completed milestones as spelled out in the schedule CSLB+2CSLB+2.

3. Change Orders & Extras

Any scope or material changes must be handled via written change orders, signed by both parties before new work begins. These change orders become part of the contract and should clearly indicate added or subtracted cost, description of work, and impact on schedule CSLB+5CSLB+5CSLB+5.

4. Right to Cancel (“Cooling-Off” Period)

Most contracts include a three-business-day cancellation period (or five-business days for consumers age 65+) if the contract wasn’t negotiated at the contractor’s office and is $25 or more CSLB.

To cancel, homeowners simply send written notice. The contractor must return all money paid within 10 days and restore the property to its previous condition. Consumers must return any materials delivered or installed CSLB+1.

Exception: Service and repair contracts (emergency work under $750) may not include this cancel period, and cancellation rights are waived once work begins CSLB+1.

5. Mechanics’ Lien Warning

Any contract must include a Notice to Owner warning about potential mechanics’ liens, a legal claim subcontractors, suppliers, or workers can file if unpaid. This notice helps homeowners avoid unexpected liens on their property CSLB+6CSLB+6CSLB+6.

6. Warranties & Complaints

If you receive a warranty—either from your contractor or the manufacturer—it must be in writing and clearly state what’s covered and its duration. Note: you have up to four years to file a CSLB complaint about defective workmanship—longer if additional warranties are included in your contract CSLB.

Closing Thoughts

Understanding these protections can give you confidence and ensure your project stays on track and within legal guidelines. As your licensed contractor, my goal is to deliver quality work and full transparency so you feel informed at every step. Questions? I’m always happy to review your contract drafts or clarify terms before you sign.