Contracts & ExecutionQuestion 720 of 1605

When a home improvement contract's funds are handled through an approved joint control, the effect on the standard down payment and progress payment limits is that they:

a.Are doubled
b.Are cut in half
c.May not apply, because the joint control protects the owner's funds
d.Apply exactly the same with no change

Explanation

B&P §7159 provides that the down payment and progress payment restrictions do not apply when contract funds are placed with an approved joint control that disburses them as work is completed.

Law Reference: B&P §7159(d)

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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen Licensed California General Contractor (CSLB License #1101856 verify)
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