A payment schedule asks for 45 percent before work starts and before any materials are delivered. What is the concern?
Correct Answer
C) Front loading.
Payment terms should not be front-loaded beyond the value of work performed or materials delivered.
Why This Is the Correct Answer
Payment terms should not be front-loaded beyond the value of work performed or materials delivered.
Why the Other Options Are Wrong
Option A: Written warranty terms.
Written warranty terms. skips the written authority, scope, price, notice, or release control needed for progress payment limits.
Option B: Current notice terms.
Current notice terms. skips the written authority, scope, price, notice, or release control needed for progress payment limits.
Option D: Deposit cap.
Deposit cap. skips the written authority, scope, price, notice, or release control needed for progress payment limits.
Memory Technique
Reviewing Residential shortcut is not a term until paper carries it.
Reference Hint
Study anchor (closed-book): memorize Progress payment limits from CSLB 2026 Law Book; CSLB Home Improvement Contracts / B&P Code Section 7159 home improvement contract requirements; know the rule or calculation trigger without relying on exam-room lookup.
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