Contracts & ExecutionQuestion 698 of 1605
A contractor structures a home improvement contract so that each progress payment is due 'as work proceeds.' Under §7159, each progress payment must:
a.Be collected only at project completion
b.Not exceed the value of the work performed or materials delivered at that point
c.Be at least $5,000 to be enforceable
d.Equal one-third of the total contract price
Explanation
B&P §7159 requires that progress payments be tied to specifically described phases and that a contractor not request or accept payment exceeding the value of work performed or materials delivered.
Law Reference: B&P §7159(d)Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)