Contracts & ExecutionQuestion 718 of 1605
Under §7159.5, a contractor may NOT do which of the following regarding down payments and progress payments?
a.Bill the owner after a phase is finished
b.Demand or accept payment for work not yet completed and materials not yet delivered
c.Accept a $1,000 down payment on a large job
d.Accept final payment upon completion
Explanation
B&P §7159.5 prohibits a contractor from demanding or accepting payment that exceeds the value of work performed or materials delivered, keeping payments in step with progress.
Law Reference: B&P §7159.5Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)