A contractor wants to make changes to an existing home improvement contract that will increase the total price by $2,500. What does California law require for this change order?
Correct Answer
C) Written change order signed by both parties
California B&P Code 7159 requires that any changes to a home improvement contract that affect the contract price or completion date must be in writing and signed by both the contractor and the homeowner. This protects both parties and ensures clear documentation of agreed-upon modifications.
Why This Is the Correct Answer
California B&P Code 7159 mandates that any modification to a home improvement contract affecting the price or completion date must be documented in a written change order signed by both the contractor and the homeowner. This requirement ensures mutual agreement, prevents disputes over verbal understandings, and creates a clear paper trail for any contract amendments.
Why the Other Options Are Wrong
Option A: Notarized amendment to the original contract
Notarization is not required for change orders under California law. B&P Code 7159 only requires a written document signed by both parties — adding a notary is an unnecessary step not mandated by statute, and insisting on it would create unnecessary friction and delay.
Option B: Email confirmation from the homeowner
Email confirmation alone does not satisfy the legal requirements under B&P Code 7159. While email can document communications, it does not constitute the formal signed written change order the law requires. The homeowner's typed name in an email is generally not treated as the equivalent of a signature on a change order document.
Option D: Verbal agreement with the homeowner is sufficient
Verbal agreements are explicitly insufficient under California law. B&P Code 7159 was enacted specifically to prevent disputes arising from unwritten understandings. Relying on verbal agreements exposes both the contractor and homeowner to significant legal risk and can constitute a licensing law violation by the contractor.
Memory Technique
Think '7159 = Write It, Sign It.' Any change that touches price or schedule under a home improvement contract must be Written and Signed by both sides. No exceptions for small amounts.
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