Which practice by a contractor on a home improvement contract is PROHIBITED?
Explanation
B&P §7159.5(a)(5) is explicit: on a home improvement contract the contractor shall neither request nor accept payment that exceeds the value of the work performed or material delivered. Front-loading the money is the violation. Progress payments tied to completed phases are exactly how the statute expects payment to be staged; the license number and the CSLB notice are required contract contents; and a written warranty is a protection a contractor may always offer. Keep this apart from §7159.5(a)(3), which caps the down payment itself at $1,000 or 10% of the contract price, whichever is less.
Law Reference: Bus. & Prof. Code §7159.5(a)(5); §7159.5(a)(3)This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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