On a $30,000 residential contract, $14,000 of work has been performed and the contractor already collected a $1,000 down payment. Ignoring retention, what is the maximum additional progress payment without exceeding the value of work performed?
Correct Answer
A) $13,000.
The total paid should not exceed the value of work performed except for the down payment. With $14,000 of work value and $1,000 already paid, the added payment is $13,000.
Why This Is the Correct Answer
The total paid should not exceed the value of work performed except for the down payment. With $14,000 of work value and $1,000 already paid, the added payment is $13,000.
Why the Other Options Are Wrong
Option B: $13,250.
$13,250. is above the supported result for project contracts; it likely adds scope or money the rule does not allow.
Option C: $10,500.
$10,500. is below the supported result for project contracts; it likely omits part of the approved scope, cap, credit, or holdback.
Option D: $6,500.
$6,500. is below the supported result for project contracts; it likely omits part of the approved scope, cap, credit, or holdback.
Memory Technique
Project Contracts cue Reconciling Homeowner'S: ceiling and percentage shake hands; the lower hand controls.
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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