A subcontractor performed extra work after a superintendent gave a verbal field direction, but the owner never signed a change order. What should the prime avoid?
Correct Answer
C) Billing the owner as though a signed change order already exists.
For CA home improvement contracts, owner price or scope changes should be handled by a signed written change order before the change becomes part of the contract.
Why This Is the Correct Answer
For CA home improvement contracts, owner price or scope changes should be handled by a signed written change order before the change becomes part of the contract.
Why the Other Options Are Wrong
Option A: Reviewing the subcontract and daily reports.
Reviewing the subcontract and daily reports. skips the written authority, scope, price, notice, or release control needed for project contracts.
Option B: Determining who authorized the field direction.
Determining who authorized the field direction. skips the written authority, scope, price, notice, or release control needed for project contracts.
Option D: Documenting the dispute before negotiating responsibility, before deciding whether owner approval was actually obtained.
Documenting the dispute before negotiating responsibility, before deciding whether owner approval was actually obtained. skips the written authority, scope, price, notice, or release control needed for project contracts.
Memory Technique
When home clashes with improvement, let the contract speak before Handling Disputed.
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
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A completed project sold for $150,000 and had total cost of $126,000. What gross margin percentage did the project earn?