Contracts & ExecutionQuestion 56 of 163264% of test-takers answer this correctly

Under California law, a home improvement contract is required for residential work when the total contract price (labor AND materials) is at least:

a.$200
b.$500
c.$1,000
d.$2,500

Explanation

California requires a written home improvement contract for any work on a residential property totaling $500 or more, including both labor and materials (B&P §7159). Note: this $500 written-contract threshold is a DIFFERENT number from the $1,000 unlicensed minor-work threshold under §7048 — SB 517 amended §7159 for 2026 (subcontractor-disclosure rules), but left this $500 figure in place, so do not confuse the two.

Law Reference: Bus. & Prof. Code §7159

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