What to Include in a California Builders contract

Whenever a homeowner or a landlord needs to renovate a home or a condo, they would need a legitimate California contractor to do the job. In the process, disputes can arise. To prevent disputes to happen, it is therefore important to properly document details of the California Builders contract into a perfect reference for what has been agreed upon including possible changes thereon.

The contract should detail the scope of work, the price, schedule of payments, the responsible person to obtain the necessary building permits, and most importantly, the date of cessation and completion of the project. What is more, the contract shall identify the contractor, its business address and license number. Likewise, a good contract will include clauses of warnings and notices about mechanics lien, the right to cancel, and allowable delays that might arise due to unforeseen conditions.

Understanding the nature of a California builders contract

Properly document a contract into writing. Once a contract is documented, it protects both the customer and contractor. Put all agreements into writing. Specify minute details of materials to be used, like a brand name as it may apply, the quantity and quality, the color, weight, and size. A detailed example would be the installation of the set of oak kitchen cabinets, supplied by company ABC, model 12345A, as per the plan. It is imperfect to state merely the installation of kitchen cabinets.

Never sign a contract if you don’t understand and agree with it. What you sign will authorize the contractor to move forward with the project and could become the contract. Review, analyze, and check in detail the conditions of the contract. You can actually review the proposed contract with your attorney.

Include in the California Builders contract everything that has been agreed upon, like a complete removal and cleanup of debris and waste materials, special requests such as saving used timber for firewood, or saving certain materials or appliances. Give clear instructions where materials may not be stored where there are pets or children around.

Do not sign a black contract. You will be bound by everything set down in that contract later on. Get a true copy of the contract and keep it for record and reference purposes.

Always update your contract with change orders. Signed change orders become part of the contract. Change request orders often reflect the subtracted or added work, substituted equipment or materials, change in price or perhaps the change in its completion date and more. Make sure change request orders are in writing.

In swimming pool projects, be sure to receive the checklist for homeowner’s swimming pool. Include in your contract the scale drawing and plan showing the pool’s shape, size dimensions and construction, plus the equipment specifications. You may wish to browse the web for more information on this.

To cancel a contract must be in writing. Technically, you can cancel a contract within three (3) days after signing the contract however, it must be mailed before midnight of the third day.

Always make your financial terms as clear as possible. Include the total price, schedule of payments and penalties and sometimes the cancellation penalty. Specify the amount of your down payment. In California, down payment should never exceed $1,000 or 10 percent of the contract price, whichever is less.

However, the rule for down payments has also an exception. Contractors that have a Blanket Performance and Payment Bond on file with CSLB, (this bond is the amount of work the contractor does at any one time) can ask you for the entire contract amount up front.

With this bond in place, the contractor is not required to provide information about mechanics lien or provide a schedule of payments at all. This type of bond does not offer customers a certain level of protection at all. But this is rare in the U.S. There are only about two dozen companies that have been approved to use them. In checking your contractor’s license status, you can find out if your contractor has this type of bond in place.

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