Contracts & ExecutionQuestion 655 of 690

On a residential remodel, the homeowner verbally asks the contractor to upgrade tile from $4/sf to $9/sf mid-project. The contractor proceeds without paperwork and later bills the extra $1,800. Under Bus. & Prof. Code §7159, the contractor is most likely:

a.Entitled to full payment because the owner orally agreed and accepted the work
b.Entitled to payment under a quantum meruit theory only if the cost was below 10% of the original contract
c.Unable to enforce the upcharge against the owner because §7159(c)(7) requires every change to a home improvement contract — including upgrades and price changes — to be in a written change order signed by both parties BEFORE the changed work begins; the contractor may also face CSLB discipline under §7159.5 and §7160
d.Entitled to payment because tile upgrades are 'incidental' and exempt from §7159

Explanation

Bus. & Prof. Code §7159(c)(7) requires every modification to a home improvement contract — scope, price, or schedule — to be reflected in a written change order signed by both parties BEFORE the changed work begins. Oral upgrades are unenforceable against the homeowner regardless of size and expose the contractor to discipline under §7159.5 (mandatory contract terms) and §7160 (consumer remedies, including treble damages for fraudulent home improvement practices). There is no 'incidental' exception in §7159, and quantum meruit recovery is generally barred when statutory contract requirements are violated under §7031 principles.

Law Reference: Bus. & Prof. Code §7159(c)(7)

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