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Law & BusinessContractsmedium23% of exam part

A progress payment schedule asks the owner to pay for rough plumbing before that phase starts. What is the best contract-admin correction?

Correct Answer

B) Revise the schedule so payments do not exceed the value of work performed, apart from the down payment.

CSLB guidance requires a detailed written payment schedule, and payments cannot exceed the value of work performed except for the down payment.

Answer Options
A
Keep the date because advance payment helps the contractor manage cash.
B
Revise the schedule so payments do not exceed the value of work performed, apart from the down payment.
C
Move the rough plumbing amount into the final payment line without describing it, while keeping the early phase price hidden from the owner.
D
Collect the amount as a supplier deposit outside the home improvement contract.

Why This Is the Correct Answer

CSLB guidance requires a detailed written payment schedule, and payments cannot exceed the value of work performed except for the down payment.

Why the Other Options Are Wrong

Option A: Keep the date because advance payment helps the contractor manage cash.

Keep the date because advance payment helps the contractor manage cash. skips the written authority, scope, price, notice, or release control needed for project contracts.

Option C: Move the rough plumbing amount into the final payment line without describing it, while keeping the early phase price hidden from the owner.

Move the rough plumbing amount into the final payment line without describing it, while keeping the early phase price hidden from the owner. skips the written authority, scope, price, notice, or release control needed for project contracts.

Option D: Collect the amount as a supplier deposit outside the home improvement contract.

Collect the amount as a supplier deposit outside the home improvement contract. skips the written authority, scope, price, notice, or release control needed for project contracts.

Memory Technique

Small-job money rule for project contracts: ceiling and percent race, lower one wins.

Reference Hint

Study anchor (closed-book): memorize Project contracts from CSLB 2026 Law Book; CSLB Home Improvement Contracts / Business and Professions Code Section 7159; know the rule or calculation trigger without relying on exam-room lookup.

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