Contracts & ExecutionQuestion 741 of 1605
A contractor completes 40% of a $20,000 job. Under §7159, the maximum he may have collected by that point (excluding a lawful down payment) is generally:
a.Nothing until 100% complete
b.$15,000
c.About the value of the work performed and materials delivered, roughly $8,000
d.The full $20,000
Explanation
Progress payments may not exceed the value of work performed and materials delivered. At 40% completion, collections should track roughly that value, about $8,000, plus any lawful down payment.
Law Reference: B&P §7159(d)Practice all 1605 questions free — no signup required.
Related questions on this topic
- To cancel within the three-day period, the buyer must:
- Which of the following must appear near the buyer's signature line as a required caution in a home improvement contract?
- For a service and repair contract, the buyer must receive a fully completed copy:
- The down payment and progress payment limits in §7159 are designed primarily to:
- A home improvement contract must identify the parties. This means it must include:
- Even for an emergency repair that the homeowner requested, the three-day right to cancel:
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)