A contractor performing home improvement work discovers the project will exceed the original contract amount by $8,500 due to unforeseen conditions. What is required under B&P Code regarding change orders?
Correct Answer
A) Written change order signed by both parties
B&P Code requires all changes to home improvement contracts, regardless of amount, to be documented in writing and signed by both parties.
Why This Is the Correct Answer
The B&P Code requires that all changes to home improvement contracts — regardless of dollar amount — must be in writing and signed by both the contractor and the homeowner. Verbal agreements, even for small amounts, are not sufficient for home improvement contract modifications.
Why the Other Options Are Wrong
Option B: CSLB notification within 48 hours
CSLB notification within 48 hours is incorrect. There is no requirement under the B&P Code to notify CSLB when a home improvement contract changes. Change order requirements involve the contracting parties, not the licensing board.
Option C: Verbal approval is sufficient if under $10,000
Verbal approval is sufficient if under $10,000 is incorrect. No dollar threshold exempts home improvement change orders from the written requirement. The B&P Code mandates written, signed change orders for all amounts.
Option D: New permit application required
A new permit application is required is incorrect. While permit amendments may be needed in some cases (if scope changes affect permitted work), the B&P Code's primary requirement for contract changes is a written change order — not a new permit application.
Memory Technique
Remember 'Home improvement = always in writing.' Think of it this way: a homeowner's home is their biggest asset — any change to work on it must be documented in writing, no exceptions, no dollar minimums.
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