A contractor provides a written estimate for $3,200 in electrical repairs. The homeowner accepts and work begins immediately. During the project, additional problems are discovered requiring $800 more work. What is required under California law?
Correct Answer
B) Written change order signed by homeowner before additional work
Under B&P Code 7159.5, any changes to service and repair contracts require written change orders signed by the homeowner before additional work is performed.
Why This Is the Correct Answer
B&P Code 7159.5 mandates that any change to a home improvement or service/repair contract must be documented in a written change order signed by both the contractor and the homeowner before the additional work is performed. The dollar amount is irrelevant — even a $1 change requires a signed change order. This protects homeowners from surprise charges and contractors from payment disputes.
Why the Other Options Are Wrong
Option A: No additional approval needed if total stays under $5,000
There is no '$5,000 threshold' exemption in California law. The written change order requirement applies to all monetary changes regardless of the contract total or individual change amount. The $5,000 figure likely references the minimum contract size that triggers the full B&P 7159 written contract requirements, not an exemption from change orders.
Option C: Verbal approval from homeowner is sufficient
Verbal approval is never sufficient under B&P Code 7159.5 for changes to service and repair contracts. Oral agreements are unenforceable for contract modifications in home improvement work, and relying on verbal approval exposes the contractor to license discipline and the risk of non-payment for the additional work.
Option D: Additional work can proceed if under $500
There is no '$500 de minimis' exception for additional work in California contractor law. The written change order requirement is absolute — it applies to all additional work, no matter how small. This distractor may appeal to candidates who confuse it with the $500 threshold that triggers CSLB licensing requirements for repair work.
Memory Technique
Think: 'ANY change = change ORDER.' The word 'change' appears in both the situation and the solution. There is no dollar threshold — if the scope changes, paper must follow before the work begins.
More California Questions
A homeowner signs a $15,000 home improvement contract on Monday at 2 PM at the contractor's office. Under California law, what is the latest time the homeowner can cancel the contract without penalty?
A swimming pool contract for $28,000 is signed on Wednesday at the customer's home. The contract includes proper cancellation notices. If the customer wants to cancel, they must do so by when?
Under California's prompt payment law, if a contractor submits a proper payment request to a property owner, payment is due within how many days?
A general contractor hires a subcontractor for $22,000. The general contractor receives payment from the owner but fails to pay the subcontractor within how many days, subjecting themselves to penalty interest?
Under California Civil Code Section 8180, when must a subcontractor serve a preliminary notice on a private work project?
Which of the following contracts is NOT subject to the 3-day right to cancel under California law?
A subcontractor completes roofing work on Tuesday, March 15th. The general contractor is paid by the owner on Friday, March 25th. Under California prompt payment laws, what is the latest date the general contractor must pay the subcontractor?
A contractor receives a progress payment of $18,000 from a property owner on Monday. The contractor owes subcontractors $12,000 of this amount. By what day must the contractor pay the subcontractors?
A swimming pool contractor enters into a $45,000 contract to install an in-ground pool. The contract includes a $5,000 down payment. What is the maximum down payment the contractor can legally collect under California law?
A contractor completes $15,000 worth of electrical work on a commercial building. The property owner disputes $3,000 of the charges. Under California prompt payment law, what amount must the owner pay within the required timeframe to avoid penalties?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
A homeowner exercises their 3-day right to cancel a $6,000 siding contract. The contractor has already ordered $1,200 in custom materials. Under California law, the contractor:
Next Question
Which of the following is NOT required to be included in a California home improvement contract under B&P 7159?