Contracts & ExecutionQuestion 655 of 1632

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 the full $1,800 because the owner orally agreed and accepted the work
b.Unable to enforce the upcharge, because §7159 requires a signed written change order
c.Entitled to the $1,800 because changes under 10 percent need no writing
d.Entitled to the $1,800 because material upgrades are incidental and exempt from §7159

Explanation

B&P §7159(d) is explicit: a home improvement contract 'and any changes to the contract' must be in writing and signed by the parties BEFORE the work covered by the change order begins. §7159(e)(3) requires the contract itself to warn the buyer that extra or change-order work is unenforceable unless the change order states in advance and in writing the scope of the work, the amount added to or subtracted from the contract, and the effect on the progress payments and completion date. (a) is the common-law answer, and it is the wrong body of law — §7159 displaces oral assent for home improvement work. (c) invents a de minimis exception; the only relief §7159.5(a)(8) gives turns on furnishing a performance and payment bond, not on the size of the change. (d) invents an 'incidental work' exemption; moving tile from $4 to $9 a square foot changes both scope and price. The contractor also risks discipline under §7159.5 and §7160.

Law Reference: Bus. & Prof. Code §7159(d), §7159(e)(3); §7159.5(a)(8)

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