A contractor wishes to collect progress payments on a home-improvement contract. Under B&P §7159.5, each progress payment must:
Explanation
B&P §7159.5(a)(5) bars front-loading: apart from the downpayment, a contractor may neither request nor accept a payment exceeding the value of the work performed or the material delivered. The exact-10-percent answer borrows the §7159.5(a)(3) downpayment cap — $1,000 or 10 percent of the contract, whichever is less — and misapplies it to every progress payment. Billing when materials are merely ordered fails because §7159.5(a)(5) counts material delivered, not material promised, and billing the next phase before that work starts is the front-loading the section exists to stop.
Law Reference: B&P §7159.5(a)(5); cf. §7159.5(a)(3)-(4)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 →
Practice all 1632 questions free — no signup required.
Own the complete CSLB Law & Business guide — PDF + EPUB, $24.99 →
Related questions on this topic
- A subcontractor on a private project completes its work and the prime contractor withholds 5% retention. The owner has accepted the project and released all retention to the prime. Under Civil Code §8814, the prime must release the sub's retention within how many days?
- A home-improvement contract has a total contract price of $48,000. Under B&P §7159(d), the MAXIMUM down payment the contractor may demand or accept before any work or material delivery is:
- A consumer signs a home-solicitation contract for solar panel installation at her residence on a Tuesday at 6 PM. Under Civil Code §1689.5 et seq., she may cancel without penalty until midnight on:
- A commercial construction contract has a liquidated damages clause of $2,500 per day for late completion. Under Civil Code §1671(b), this clause is presumed:
- A residential remodel contract for a four-unit building contains a mandatory arbitration clause. Under B&P §7191, the clause must:
- A homeowner contracts with a Class B contractor to build a new single-family dwelling the owner will keep for at least one year. Under B&P §7164, the written contract MUST contain:
Last reviewed: · editorial process