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.
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.
More Law & Business Questions
A Fresno homeowner wants a $725 cabinet repair and trim adjustment. Which contract step best matches CA home improvement requirements?
A project has $6,500 retainage withheld. The owner releases 60 percent of retainage at substantial completion. How much cash is released?
Cash is $52,500 and monthly burn is $17,500. How many months of runway are available?
A supplier offers 1.5 percent early-pay discount on a $22,000 invoice. What is the discount?
A balance sheet lists assets of $310,000 and liabilities of $185,000. What is owner's equity?
A job is estimated to cost $135,000. What price gives a 25 percent gross margin?
A customer invoice of $4,000 has a stated late charge of 1.5 percent. What late charge is added?
A bid has direct labor of $18,000, materials of $12,500, and equipment rental of $3,500. If the contractor adds 20 percent markup on direct cost, what is the bid price?
A contractor wants a 25 percent gross margin on a job with estimated cost of $60,000. What selling price gives that margin?
A completed project sold for $150,000 and had total cost of $126,000. What gross margin percentage did the project earn?
