Contracts & ExecutionQuestion 138 of 1632

A change order on a home improvement project that increases the price must:

a.Be confirmed by email before the crew starts the added work
b.Be filed with the CSLB within five days of the price change
c.Be approved by the project lender before the work proceeds
d.Be in writing and signed by the owner and the contractor

Explanation

B&P §7159(c)(5) makes a change-order form part of a home improvement contract only if it is in writing AND signed by the parties before any work covered by it begins, and §7159(d) repeats that requirement for any change to the contract. An email confirmation is a writing but not a signed change order, which is where this goes wrong most often in the field. No provision requires a change order to be filed with CSLB, on a five-day clock or any other. And a lender's approval may govern the draw, but it is not what makes the change binding between owner and contractor.

Law Reference: B&P Code §7159(c)(5), (d)

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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)
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