Contracts & ExecutionQuestion 649 of 1632

A change order on a home improvement contract is enforceable only if it is:

a.Oral, so long as the contractor logs it in the daily job record
b.Submitted to the CSLB for approval before the work is performed
c.Issued by the contractor alone if it stays under 10% of the contract price
d.In writing and signed by both parties before the changed work begins

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 prior to the commencement of any work covered by the change order; §7159(d)(13) requires the contract itself to say so under the heading Note About Extra Work and Change Orders. A daily job log is the contractor's own record, not the owner's signature. The CSLB licenses and disciplines contractors; it does not pre-approve change orders. And no percentage of the contract price lets a contractor change the work unilaterally - that is the practice §7159 was written to stop.

Law Reference: B&P Code §7159(c)(5); §7159(d)(13)

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